Landscape Management, December 2015
Industry Pulse COSTS REPORT in check Lower fuel prices help companies keep costs under control By Marisa PalMieri m ost is quiet on the expenses front for landscape professionals Although industry members expect an overall operating cost increase of 11 percent on par with what they reported for last year they seem to be at ease thanks to fuel price relief I bought gas today for 195 says Steve Biernacki general manager of WaterQuest Landscaping in Albuquerque N M It makes a big difference U S regular gasoline retail prices declined to an average of 229 per gallon in October down 31 cents from the third quarter average The U S Energy Information Administration EIA expects monthly average gasoline prices to continue declining EIA projects regular gasoline retail prices to average 233 per gallon in 2016 The diesel fuel retail price which averaged 383 per gallon in 2014 is projected to average 272 per gallon for 2015 and 270 per gallon in 2016 Other costs have increased somewhat such as concrete but nothing is too out of the ordinary Biernacki says I dont really see anything that has gone up signifcantly he says At Joyce Landscaping in Marstons Mills Mass expenses are up across the board except fuel If you look at our proft and loss statement the one thing thats 52 LANDSCAPEMANAGEMENT NET December 2015 GoinG down U S Diesel Fuel and Gasoline Prices Retail diesel fuel dollars per gallon Retail regular gasoline dollars per gallon Source Short term energy outlook november 2015 operatinG cost outlook Average change in costs projections 45 4 35 3 25 2 JAN Dec JAN Dec JAN Dec JAN Dec JAN Dec JAN Dec 2011 2012 2013 2014 2015 2016 been consistently cheaper has been gas says President Chris Joyce In fact the 115 million company is projecting a 60000 fuel savings from 2014 to 2015 Health insurance is up 3 percent for Joyce after changing carriers liability is up due to growth as is workers comp The one that Im most concerned about is the future of health insurance he says noting the company has gone to a high deductible plan and is looking at self insurance Its a challenge for our employees its a challenge for our country right now Additional reporting by Dillon Stewart photo iStock com rzelich Reported Reported Reported Projected 2011 2012 2012 2013 2013 2014 2014 2015 10 10 11 11 14 11 7 3 10 9 10 10 7 9 11 9 14 10 11 9 TOTAL Fuel Labor Equipment Insurance
You must have JavaScript enabled to view digital editions.
