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The poor housing market has had its effect on the landscaping industry, but many contractors are still off to decent starts this year. Some have done so by focusing on high-demand services where competition isn’t quite as steep.

In the Springfield, MO, area, the housing market has slowed, but custom building remains strong. “We are still doing well with our current custom home builders,” says Jeremy Eck of Spruce It Up Inc., a 2007 Pros in Excellence Award winner.

One area that hasn’t faired too well, though, is landscape maintenance. Eck says there are more low-balling “guys with a truck” than he’s ever had to deal with. “They put larger companies like ours, with higher expenses because we have insurance and provide employee benefits, in a bit of a pickle,” Eck relates. “Don’t get me wrong—we’re still doing well. But we’re looking to add new services for current customers and also sell new jobs.”

LAWN CARE

The big growth area for Spruce It Up has been lawn care. They’ve been in the process of buying out another company to expand into this arena, which Eck says is a much more steady market segment for him. “Our fertilization sales have increased dramatically,” Eck tells. “Acquiring this company and branching into lawn care helps us offer ourselves as a complete lawn and landscape company. We’re now looking to upsell current customers with our new offerings.” Spruce It Up also provides construction, irrigation, sod installation and snow removal services.

Out in California, another full-service landscape company is looking to do the opposite. “In response to this ‘economic downturn,’ we are budgeting lower enhancement and construction sales, and are focusing on our core business of maintenance,” shares Darryl Orr, owner/partner of Pacific Landscapes Inc. in Sebastopol, CA, a 2007 Pros in Excellence Award finalist.

IRRIGATION

Pacific Landscapes is also using its leadership role in water conservation to capitalize on an increase in demand for irrigation. “Concerns about increasing water costs, the ‘go green’ environmental movement and availability of city rebate funds are really firing up an interest in water management and irrigation upgrade services,” Orr points out. “We are really striving to set our business apart from our competitors by having the strongest team of irrigation repair technicians and water managers in the region.”

Pacific Landscapes currently has seven supervisors enrolled in the QWEL (Qualified Water Efficient Landscaper) and SQWEL (Spanish Qualified Water Efficient Landscaper) certification program. Last year the company certified eight managers and supervisors in this EPA-approved program.

After half a decade of cautious enthusiasm, Pacific Landscapes has also fully embraced “smart” irrigation technology. “Installation of ET-driven, automated irrigation time controllers has become the standard rather then the exception for time clock replacements,” Orr explains. In March, Pacific Landscapes was honored by the Sonoma County Business Environmental Alliance (BEA) with a Best Practices Award for dedication to profitable environmental practices and its leadership role in water conservation programs.
In addition to smart irrigation, Orr and his partner David Penry have also fully embraced the fact that unrelenting fuel prices are punishing to the bottom line. “Our February fuel bill was $11,000, compared to $8,000 last February,” Orr says.

Oregon contractor Dale Wiley has also seen fuel costs climb more than 30 percent, while pointing out that the increase does nothing but eat at his bottom line. “We are now tracking fuel expense on a weekly basis, and can make adjustments since our sports turf contracts are quoted and performed on a weekly basis,” Wiley explains.