Members of the Outdoor Power Equipment Institute (OPEI)’s Board of Directors and more than 100 partners and friends prepare to cut the ceremonial ribbon on May 7, 2018, to open the association’s new headquarters building in Old Town Alexandria, Va.

Quarterly Report ● January 2018

The OutDoor Pow-er D

OPEI Equipment Engines UTVs

OUTDOOR POWER EQUIPMENT INSTITUTE

QUARTERLY REPORT

MAY 2018

POWERING GOOD

www.opei.org ● 1605 King St. Alexandria, VA 22314 ● 703-549-7600

President’s MessageIn February, OPEI moved into its new headquarters building in Alexandria, VA. To celebrate, we hosted an open house and ribbon cutting for members and part-ners on May 7 in conjunction with Engines and Fuels and Handheld Products committee meetings – the first held in the new conference center. We’ve shared some photos of the new building here, and you can see more at our website, www.opei.org.

The 2018 GIE+EXPO is expected to be the largest ever, with increases in exhibitors and exhibit space in-doors and out, including the UTV segment. The UTV Corral, positioned at the entrance of the Kentucky Exposition Center, is already nearing capacity. Be sure to look for an announcement this summer on a new broadcast television and digital effort from TurfMutt and our partners at Litton Entertainment/Hearst Television. – Kris Kiser

The Mayor of Alexandria, Allison Silberberg, celebrates with OPEI board members and Kris Kiser, President and CEO of OPEI. Pictured left to right: Tom Duncan, President & CEO, Positec; Daniel T. Ariens, Chairman & CEO, Ariens Company, and Chair of the OPEI Board of Directors; Mayor Allison Silberberg; Kris Kiser; Ed Cohen, Vice President – Government and Industry Relations – American Honda Motor Co., Inc.; Tom Cromwell, Group President – Power, Kohler Company; and Bjoern Fischer, President, STIHL Incorporated.

OPEI Opens New Headquarters Building More than 100 members, partners, and friends were on hand as the Outdoor Power Equipment Institute offi-cially opened its new headquarters building in Alexan-dria Monday, marking a new stage in the growth of the association. “This building represents a new chapter in OPEI’s story. Thanks to record levels of membership and member engagement, we had a good problem – we outgrew our old space,” says Kris Kiser, OPEI president and CEO. “As a trade group with members in Europe, Japan, China, and across the United States, we have global meetings, and we wanted to be able to host them in person and virtually. Now, we’re better suited to host ISO, IEC, and other international gatherings.” “This is an exciting moment in the history of OPEI. As this year’s chairman, I’m proud to officially open our new headquarters for business,” says Dan Ariens,

Chairman and CEO of Ariens Co., and OPEI Board Chairman. “Since it was founded more than 60 years ago, OPEI has grown in scope and stature, and it’s well-positioned to continue its advocacy on behalf of the outdoor power equipment industry.” Thirty years ago the OPEI Board of Directors moved the association from Washington, D.C., to Alexandria, VA, to build and own its headquarters building. In 2017, OPEI’s Board voted to sell its exist-ing building and acquire 1605 King St., representing a multi-million-dollar investment. The new building, in the heart of Old Town Alex-andria, sits one block from the D.C. Metro, and just four miles from National Airport. Its state-of-the-art conference center is designed to accommodate OPEI’s increasingly large committee meetings. “Evidencing the shift away from out-of-house meeting spaces, our Engine and Fuels and Handheld Products committees met here to debut our new con-ference center,” Kiser says. “We’re excited to begin the next phase of our growth in our continued service of the outdoor power equipment industry.”

OPEI’s Engine and Fuels and Handheld Products committees de-buted the new conference center during their meetings the week of May 7. The new building sits one block from the D.C. Metro, and just four miles from National Airport. Its state-of-the-art con-ference center is designed to accommodate OPEI’s increasingly large committee meetings.

GIE+EXPO Announces New Keynotes, Format for 2018 ShowRegistration opened in early April for GIE+EXPO 2018, and with the combination of new Wednesday hours and dynamic education, it’s shaping up to be even bigger than the last three record-setting years. Exhibit space sales are already running ahead of this time last year, and organizers anticipate topping 2017’s record-breaking numbers. In addition, the Outdoor Demonstration Area is expected to meet or exceed last years’ record-breaking 20 acres. As a result of the show’s continued growth, a new format will be implemented, allowing contractors an extra day on the show floor. Following an earlier dealer preview on Wednesday, the indoor exhibits will open for the entire industry from 3-7 p.m., including a wel-come reception on the show floor beginning at 5 p.m. The indoor exhibits and Outdoor Demonstration Area will be open Thursday and Friday for all attendees. To kick off the show on Wednesday, show manage-ment has added two keynote addresses for landscapers and dealers: Dr. Robert Ballard, oceanographer and former U.S. Navy officer. Best known for his discov-ery of the RMS Titanic in 1985, Ballard combines his

passion for the last great uncharted territory and a practical approach to team building and execution to entertain and motivate audiences. His presentations, sponsored by John Deere and STIHL, are included with tradeshow registration.

OPEI Board Adds 2 Members At the association’s January meeting in Miami, FL, the Board of Directors elected two new members: Mark Wagner, President and CEO, Club Car LLC, (pictured left) and Joseph C. Wright, President and CEO, Excell Industries (pictured right).

CPSC Convenes Hearing on PrioritiesOn April 11, the U.S. Consumer Product Safety Commission convened its annual public hearing on agency priorities for the next two fiscal years. OPEI filed written comments urging the agency to focus on its support of voluntary standards development and improvement of agency processes to assure better consistency in their support of manufacturer compliance efforts. OPEI, along with the broader business community, has urged for immediate Senate votes to confirm Ann Marie Buerkle as the permanent chair and lawyer Dana Baiocco as a Republican replacement of Democrat commissioner Marietta Robinson. Also pending is a White House nomination to fill a vacant commissioner seat, necessary to solidify a five-member commission with a Republican majority.

Administration Proposes Controversial TariffsIn the last several months, the Trump Administration has proposed two separate trade actions involving new tariffs, one citing national security concerns with most foreign imports of steel and aluminum stocks, and an-other on some 1,300 products imported from China in retaliation for alleged unfair trade practices. The gov-ernment is currently facing significant pushback from both U.S. trading partners and domestic stakeholders, making the prospects for the implementation of some or all of the measures unclear. On a general front, OPEI is working with allied sectors to voice funda-mental concerns with trade policies that have adverse impacts on U.S. businesses and consumers.

California Prop 65 Gains PublicityOn March 30, a California Superior Court judge ruled that Starbucks and other in-state coffee sellers would have to begin labeling in compliance with the state’s Proposition 65 regulation, for the alleged consumer risk of ingesting a chemical byproduct of coffee. This is just the latest example broadening public awareness of this 30-year-old regulation that provides for prod-uct warnings in the case that they contain state-listed substances. OPEI continues to work with members to assure that the industry is well-informed of the chang-es to Prop 65 warnings, which take effect this summer.

OPEI Selects New Statistics ProviderOPEI is excited to be working with Reston, VA-based Vault Consulting, LLC, as its new vendor for the col-lection and publication of industry market statistics. Since February, the firm has been working on a mod-

ernized system to deliv-er monthly statistics to eligible members, with output planned to resume in May.

Vault will be a featured presenter at this June’s Annual Meeting, outlining the new services and future innovations to come. Also in June, OPEI will publish its next quarterly forecast, providing sector projections for 2018 and 2019.

Registration Opens for 2018 Annual Meeting Registration for OPEI’s 66th Annu-al Meeting is now open. The event takes place in Bonita Springs, FL, June 18-20, and will feature keynote presentations from Adam Steltzner, who led the NASA Mars Rover Curiosity landing team, and Vivek Wadhwa, a Stanford Univer-sity Research Fellow and “Silicon Valley’s most provocative voice,” as well as updates on other key industry trends. Learn more at www.opei.org.

National Geographic Publishes ‘Love Unleashed’ Featuring TurfMutt’s Story TurfMutt is featured in a new book, “Love Unleashed: Tales of Inspiration and the Life-Changing Power of Dogs,” by Rebecca Ascher-Walsh and published in March by National Geographic. The book focuses on the importance of our pets, and encourages rescue, re-habilitation and adoption of dogs. Along with support-ing animal adoption, the TurfMutt program encourag-es people to make wise decisions around their family yards, lawns, and landscapes for the health of pets, wildlife, and the environment. Also in March, TurfMutt’s media rela-tions program earned an honorable mention in the

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JUNE 18-20, 2018HYATT REGENCYCOCONUT POINT RESORT & SPABONITA SPRINGS, FLORIDA

OUTDOOR POWER EQUIPMENT INSTITUTE

OPEI

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PRNews’ Corporate Social Responsibility Awards at a ceremony at the National Press Club in Washington.

States Active on Franchise, Repair LawsState legislators across the U.S. have been busy this winter and spring in considering adverse changes to state laws setting franchise contract terms between industry suppliers and their dealers, and drafting new statutes consistent with the “Right to Repair” move-ment. OPEI is working with allied industries, dealers, service providers, and members to find workable solu-tions to the identified problems that negate the need for new state laws.

Landscaping Sector Again Faces Seasonal Labor ShortageDespite Congressional authorization of additional H-2B visas in the recently passed FY 2018 funding bill, the federal government has been slow in processing foreign worker visa applications leading to detrimental conse-quences for landscapers who rely on the H-2B program as a source of seasonal employees. With the U.S. econ-omy at full employment and various sectors competing over an already insufficient pool of seasonal employees, growth in the landscaping sector is being hampered, including investments in new equipment. OPEI works through the H-2B Workforce Coalition to advocate for the expansion and reform of this critical program as a long-term resource of seasonal employees.

House Subcommittee Hears Testimony on Replacing the RFSOn April 13, a subcommittee of the House Energy and Commerce Committee heard testimony from refin-ers, fuel retailers, and an auto OEM advocating for the replacement of the federal Renewable Fuel Standard with a high-octane fuel performance standard. Also testifying was the biofuels industry, which opposed any policy shift repealing the RFS. Other proposals consid-

ered during the hearing included waiving the seasonal restrictions placed on the availability of E15 and further government consideration of “drop-in” fuels. OPEI con-tinues to support policy reforms which provide greater regulatory certainty, optimum fuels for OPE products and protections against misfueling hazards.

Engine and Fuels Committee Meets with California Air Resources BoardOPEI Engines and Fuels Committee members met with California Air Resources Board staff in El Mon-te, CA, on April 10 to discuss the development status of new small engine emission regulations. The group discussed key rulemaking activities including emission reduction technical feasibility testing, population and inventory surveys, and zero-emissions equipment. OPEI’s Engines and Fuels Committee will continue to work with ARB throughout rule making. Standards Updates• OPEI requests interested parties to serve as canvass

members in the review and ballot of proposed new ANSI standards for cut-off machines, powered pole pruners, and powered chipper/shredders. Particu-larly needed are general interest and user canvass members. If interested, contact Michael Ross at mross@opei.org.

• B175.6 Hedge Trimmers Committee is wrapping up development of the first edition of the hedge trimmer standard. The standard is expected to be published this summer.

• B71.10 Fuel Systems Committee is wrapping up de-velopment of the third edition of the fuel systems standard. The standard is expected to be published this summer.

• U.S. TAG to ISO TC23/SC17 – The U.S. TAG recently participated in the annual plenary and work group meetings held in Stockholm, Sweden. The development of working drafts for several

standards was assigned at the meeting, including 11681-1 and 11681-2 (chain saws), 7915 (chain saw handle strength), 11806-1 and 11806-2 (grass trimmers and brushcutters), 11680-1 and 11680-2 (pole-mounted powered pruners), 13772 (chain saw chain brake performance), and 9467 (exhaust systems). U.S. TAG members are leading the devel-opment of revisions for 7915 and 11806. OPEI will host the next annual meeting at its new headquar-ters building in May 2019, likely in conjunction with SC13.

• 60335-4-107 Robotic Lawnmower – The IEC amendment has delayed the ANSI/OPEI canvass process for another year pending its approval and ultimate inclusion in the ANSI/OPEI publication.

OPEI Canada Continues to Monitor British Columbia Political Changes The British Columbia Coalition NDP/Green govern-ment has entered a new phase in which the coalition partners are openly threatening each other. The social-ist NDP have recently announced major tax and green-house gas emissions concessions to a proposed Lique-fied Natural Gas (LNG) facility on the British Columbia North Coast. Green Party Leader Andrew Weaver has indicated he will seek to bring down the government at the first opportunity if the LNG policy is not revoked. It is a complicated procedure to force out the government but not an idle threat. This could become a “hung parlia-ment” and a general election would have to be held. Despite their differences on the industrial envi-ronmental issues the Greens and NDP are united on consumer environmental policy. In the nine months since the government was formed we have witnessed an aggressive tone from Ministry of Environment staff regarding the British Columbia Recycling Regulation.

OPEI Canada Engages with British Columbia Ministry of EnvironmentOPEIC continues to work with the Ministry of Envi-ronment to gain approval of the revised program plan. Following several meetings and revisions of the pro-posed outdoor power equipment stewardship plan, the ministry has come back with suggestions of tentative plan approval with various amendments regarding targets to be met within a six-month time frame. The Ministry asked that OPEIC respond to these com-ments by April 6. Given the Ministry of Environment “amendments” deal with performance measures and not plan itself, it’s hard to see how much this will really improve the day-to-day operation of the collection system. OPEIC responded with a formal letter to the Minister of Environment urging reconsideration of its suggested amendments, and enumerating the modifi-cations and improvements to the plan, at the Ministry’s request. OPEIC continues to work with the Ministry of Environment to reach a resolution. Upcoming OPEI MeetingsMay 28-June 1 – Recycling Council of British Colum-bia – Whistler, British ColumbiaJune 12-14 – International Internal Combustion En-gine Manufacturers Associations – Brussels, Belgium June 18-20 – OPEI Annual Meeting – Bonita Springs, FLJune 20 – OPEI Board Meeting – Bonita Springs, FLJuly 9-20 – IEC TC 116 WG 10 and WG7 – Denver, COOct. 4 – OPEI Market Statistics Forum – Alexandria, VAOct. 10 – Legal and Regulatory Compliance Meeting – Alexandria, VAOct. 17 – OPEI Board Meeting – Louisville, KYOct. 17-19 – GIE+EXPO – Louisville, KY