Rotary Cutter Bush Hog temporarily shuts down...

[HCF 966]

CCI -

Where are you hearing AGCO might be a potential buyer? I'm hearing CNH Global as a possible buyer. That's according to Ag Equipment Intelligence reports.

I agree that Bush Hog won't dis-appear, but I think something will definitely change. I'm pretty sure their line will be pared back.... no more ATV's, UTV's, Zero-turn mowers.... There is just to much competition in those sectors. I also think they will sell the loader / backhoe lines off completely.

I'm hearing the same thing you are about CNH. All short line companies that don't have an alliance with tractor companies are in the same shape as Bush Hog. Even Alamo Group.

 

[HayDR]

Bush Hog does in fact make one series of its own tillers. They are the only short line that manufactures a tiller.

LandPride and King Kutter make their own tillers. When you consider KK sold 18,000 last year and Bush Hog sold about 700. KK is a bit more major than BH in tillers. KK made money last year and BH has lost money the last 5 years in a row.

 

[keyser soze]

Bush Hog does in fact make one series of its own tillers. They are the only short line that manufactures a tiller.

King Kutter and Land Pride both make tillers in the US. That is a fact. Many Bush Hog employees (Sales reps, sales managers etc) told me they do not make their tillers so that is what I'm going off of. But I can in fact guarantee that there are other short lines make their own tillers.

 

[keyser soze]

I'm hearing the same thing you are about CNH. All short line companies that don't have an alliance with tractor companies are in the same shape as Bush Hog. Even Alamo Group.

Saying that all short lines that don't have an alliance with a tractor companies are in the same situation as Bush Hog is in fact a false statement. Some... sure. But not all.

 

[SESS]

Here is an article from the news paper dated January 22, 2009-I sure hope Bush Hog finds the answer and can pull out of this economy problem......

Selma Times-Journal | Bush Hog getting local support

 

[HayDR]

Here is an article from the news paper dated January 22, 2009-I sure hope Bush Hog finds the answer and can pull out of this economy problem......

Selma Times-Journal | Bush Hog getting local support

Bush Hog will not exist in the future as they have been in the past. Bush Hog sent all of it vendors faxes saying all PO's have been canceled. Once you have done this to your suppliers any company will have a hard time gaining suppliers back. They will have to renegotiate contracts and bring all the outstanding accounts up to current or suppliers will not play ball. Bush Hog does have many outstanding debts. Employees can only last so long and they must find paying jobs. It will take an investor that will be willing to trim BH down to a company 30-50% of it's current size for their business model to be successful. BH dealers are saddled with inventory that cost more than the current production just because the $4 plus fuel caused steel prices and transportation costs to spike. Those units are on the dealer lots in a floor plan.

Look for BH to be sold piece by piece and pared back to a traditional premium cutter line. No more light duty Squealer line of equipment that is over priced and uses the same gearboxes that KK, Kodiak, Tarter gate and other commodity style cutter manufacturers are using. Unless Alamo Group, Woods or LandPride purchases BH there will be a fire sale of inventory on dealers lots. BH will have to build from the ground up because consumer confidence has taken a free fall. BH has a limited supply of parts and when those are gone just where are they going to get them. BH has OEM loader contracts and they will soon be in default on so that will reduce the value of the BH/Great Bend loader division. I'd say that another month of doing nothing will push Crown into walking away from BH and start the liquidation.

I can also tell you this that many of the dealers have jumped ship and have informed BH that they are no longer a dealer for BH and to come get their products. They do not want to wait until a Farmtrac type mess occurs and be in the middle and drag into a potential court ordered bankruptcy. I've been talking to Woods, Rhino, & LandPride sales reps and they are getting calls from BH dealers wanting to sign up for contracts to sell their lines of equipment.

BH equipment is quality equipment but when Crown put a former Delphi executive at the helm after Bobby Middlebrooks, their fate was sealed. Delphi was a bad business model that failed and the same concepts caused this BH situation. Crown has lost a bunch of money in BH and IMO they wish they had never jumped into BH.

 

[SESS]

Do Bush Hog dealers floorplan their equipment? and if so-with who?

I hope the BH dealers do not have the same problems as us Farmtrac dealers!! I would not wish the pain we are having on my worst enemy!!

Its a shame to see another long standing company go down the drain.

 

[radman1]

CCI

I think your post is probably what is going to happen. Sad, but probably true. I wonder how much the value of my 30 year old 6' bush hog is going to decrease? I paid $250 10 years ago for it.

 

[keyser soze]

CCI

Tarter Gate uses Cheetah gearboxes. So does Howse. They are junk.

Bush Hog used a lot of Omni & and I believe some ITG boxes. King Kutter uses alot of Omni gearboxes. Rhino was using ITG boxes, but the gentleman that was importing them has pretty much quit importing gearboxes for reasons I'm not going to go into.

Land Pride and Woods also use gearboxes out of china. I'm not sure what correlation you're trying to draw with the gearbox thing... but most boxes come from China, and from looking at your website, I'm sure you're well aware of that.

 

[HayDR]

CCI

Tarter Gate uses Cheetah gearboxes. So does Howse. They are junk.

Bush Hog used a lot of Omni & and I believe some ITG boxes. King Kutter uses alot of Omni gearboxes. Rhino was using ITG boxes, but the gentleman that was importing them has pretty much quit importing gearboxes for reasons I'm not going to go into.

Land Pride and Woods also use gearboxes out of china. I'm not sure what correlation you're trying to draw with the gearbox thing... but most boxes come from China, and from looking at your website, I'm sure you're well aware of that.

Tarter also uses Omni Gearboxes.
BH uses Omni, Comer and Walterscheid.
ITG is owned and run by George Jenkins, they supply Rhino many of their Gearboxes. Rhino also uses some Omni and Comer gearboxes. ITG - Who We Are