Landscape Management, October 2010
Adapt or die Diversification reigns as contractors adjust to the beat of what they are describing as a fundamentally changed industry LANDSCAPEMANAGEMENT NET OCTOBER 2010 S4 TOP PRIORITIES 1 Maintaining current business sources of revenue 2 Growing my business 3 Cutting expenses 4 Innovation fi nding new ways to do business 5 Managing cash fl ow issues 6 Adding new services to offer more to core clients 7 Adding or improving green sustainability services for customers SOURCE LANDSCAPE MANAGEMENT TAKE AWAYS 2010 Industry Setbacks 1 Service pricing decreases reducing margins 2 Uncertainty lingers with clients and owners 3 Business becomes more complex and volatile 2011 Industry Goals 1 Improve effi ciency to make up for price reductions 2 Diversify and adapt to todays new reality 3 Understand customer needs before making business changes and then integrate their feedback into future reinvention planning GROWING PAINS Avg 2009 Avg 2010 Growth Growth Lawn maintenance 475 660 Design build installation 194 216 Chemical lawn care 166 456 Irrigation 093 520 Total company revenue 141 463 M any landscapers are using the word fl at to describe business this year as owner and consumer confi dence and service pricing remain low offi ce buildings and homes suffer high vacancies and margins dwindle under the continued tighter restraints of running a landscape business But despite the lingering recession the industry has not fl at lined It still has a pulse nearly half of contractors 47 say so describing the industry as healthy Relatively healthy dominates at 39 over the mere 8 who call their market very healthy While total company revenue growth was slight in 2009 at 141 2010 growth expectations are better at 46 And average net revenue is 891 But one cant ignore those other nagging fi gures blips on the screen that show an erratic or unusually slow heartbeat These are the 27 of people who say the industry is down the majority of which 14 call it down signifi cantly and the 26 who describe it as just fl at Its the uncertainty thats scary explains Joanne Kostecky president of Allentown PAs Joanne
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