Landscape Management, December 2018

benefitting from those factors During the first nine months of this year construction spending was up 55 percent over the same period in 2017 according to the U S Census Bureau On the residential side it was a pretty strong year Fetig says echoing comments from other landscapers Consumer spending was pretty strong we pretty much had all the work we could handle in that division The Conference Boards Consumer Confidence Index remains at the highest level since fall 2000 and consumers expect the strong pace of economic growth to carry over into early 2019 Likewise the University of Michigans Consumer Sentiment Index remained higher in 2018 through early November 984 than in any prior year since 2000 WAGES TICK UP Also critical to future spending prospects in November people ages 25 54 in the working population anticipated a 36 percent annual gain in nominal household income the best in the past decade according to the Consumer Sentiment Index Employer costs for total compensation in private industry rose 29 percent from September 2017 to September 2018 according to the Bureau of Labor Statistics That compares with a 23 percent increase in the Consumer Price Index over that same period Total compensation includes wages salaries and benefits Labor rates are inching upward in the landscape industry see chart on page 50 too driven by demand Its hard to put a number on the overall increase in labor rates for Winterberry Gardens BY THE NUMBERS Customer mix 46 LANDSCAPEMANAGEMENT NET DECEMBER 2018 17 Service mix 54 Full service landscape contractor maintenance lawn care design build and irrigation 15 Landscape maintenance contractor mowing trimming etc 12 Landscape design build contractor design installation 1 Landscape architect 2 Irrigation contractor 2 8 Chemical lawn care company excluding mowing Tree and shrub care company 6 Other n Midwest OH IN IL MI WI MN MO IA ND SD NE KS n West AK CA CO HI ID MT NV OR UT WA WY n Southeast AL AR FL GA KY LA MS NC SC TN VA WV n Southwest AZ NM OK TX n Northeast CT DE ME MD MA NJ NH NY PA RI VT D C Canada other Less than 1 24 21 30 7 Geographic breakdown Stolz says because the 15 million company has put such an emphasis on labor efficiencies while paying some individuals more Equipment has been part of that equation he says For instance the companys golf course irrigation department has added machines to improve speed when pulling pipe and the commercial bid build division has added attachments like tree augers to improve efficiency Any time we can find a way to do the same amount of work with fewer people were willing to make that investment he says noting equipment helps prevent fatigue which improves employees quality of life Despite some media reports about President Trumps tariffs on imported steel and aluminum hurting landscape equipment manufacturers no landscape contractors we spoke to reported feeling the negative effects of those changes yet although several have their eye out for them in 2019 Continued from page 45 Continued on page 48 Industry Pulse Bryan Stolz Percentages dont equal 100 due to rounding 14 Multifamily residential 26 Commercial industrial 7 Government institutional 1 Other 54 Single family residential