Market Trends: Dec. 2000

IN THE NEWS
A Strategic Maneuver

Learning, sharing and planning for the future, 132 landscape contractors gathered at Lawn & Landscape’s first Business Strategies Conference, Oct. 8-10 in Chicago, Ill., which featured in-depth financial management sessions, roundtable discussions and opportunities to consult with financial experts.

Industry professionals including Tom Oyler (below), Jerry Gaeta, George Koziarz and Pamela Jordan conducted sessions on topics including valuing your business, structuring compensation packages, budgeting techniques and tax opportunities.

“The inaugural Business Strategies conference served a market need for in-depth education on financial management,” said Cindy Code, group publisher of Lawn & Landscape magazine. “We’re pleased with the response and we’re looking forward to next year’s conference and exploring other targeted issues.”

Next year's conference is Oct. 7-9 in Scottsdale, Ariz. The topic will be human resources management.

IN THE NEWS
Acres Acquires More Yards

NAPERVILLE, ILL. - One Chicagoland landscape company is initiating growth via its own version of industry consolidation. Instead of spreading its name nationally, The Acres Group, is expanding regionally through local acquisitions that match the company’s geographic, service and customer base, noted Sherm Fields, vice president of sales and marketing.

The recent acquisition of the Bill Fenn Landscaping Co., Naperville, Ill., a $600,000 dollar outfit, boosts Acres’ annual revenue to more than $23 million. This is the second partnership for The Acres Group, following the 1998 acquisition of the R. Glass Landscape Co., Roselle, Ill. This consolidation delivered $10 million in annual sales, a staff of 250 and a fleet of more than 100 trucks and trailers to the company, he said.

A key for making such acquisitions is identifying companies that share your business goals, Fields noted. “These are some great synergies,” Fields explained. “Bill Fenn is well respected, and the properties that he was servicing mirror the accounts that make up our portfolio - townhomes, condos, high-quality commercial and multi-family sites.”

The Acres Group services more than 30,000 townhomes through its three Chicago facilities - Naperville, Roselle and Wauconda - and employs more than 450 landscape, construction and snow removal personnel.

As the industry continues to consolidate, The Acres Group will continue considering acquisitions as a form of growth, Fields added. “Locally, acquisitions supply us with additional depth and scope in a very competitive industry and are an opportunity for us to not become complacent.”
- Kristen Hampshire

IN THE NEWS
U.S. Labor Rate Remains Low

WASHINGTON, D.C. - The U.S. jobless rate held steady at a three-decade low of 3.9 percent, the government reported. Of note in the lawn and landscape market, unemployment among Hispanics - a vital, industry workforce group - dropped to 5 percent, its lowest level on record.

The unemployment rate for other minorities remained near record lows as well -black unemployment was at 7.3 percent.

The low unemployment rate is not having an impact on wages, however, with average hourly earnings at $13.89 in October.

IN THE NEWS
Syngenta Sells Fungicide To Bayer

GREENSBORO, N.C. - Pesticide manufacturer Syngenta continues moving forward as company executives deal with completing the merger between Novartis Crop Protection and Astra Zeneca.

One significant move made by the company was the finalization of its sale of Novartis’ newly developed Flint fungicide products to Bayer, which was announced Oct. 17. The primary product in this line for turf applications was Compass, which Novartis invested considerable research dollars in and was just beginning to launch when the company was notified by the European antitrust authorities that it would have to sell off the product for merger approval.

Bayer submitted the winning bid in what was characterized by sources familiar with the process as a very competitive bidding process with multiple pesticide suppliers making offers for the product. The acquisition gives Bayer another new chemistry to go along with its grub-control product Merit.

In addition, Syngenta’s North American crop protection offices will be located in Greensboro, N.C., the current home of Novartis.

WASHINGTON D.C. - Dow AgroSciences Canada has agreed to voluntarily phase out most in-and-around-the-home uses of chlorpyrifos (Dursban) products in Canada. Voluntary withdrawal of these use patterns aligns with the recent agreement between Dow AgroSciences and the U.S. Environmental Protection Agency.

The stated goal is to achieve pesticide harmonization consistent with the North American Free Trade Agreement.

“While the safety of chlorpyrifos products, when used as directed, has been demonstrated by extensive study and 30 years of use, we are honoring the request of (Canadian officials) to implement the same phase out of chlorpyrifos as in the U.S.,” said Rick Smith, president and CEO of Dow AgroSciences Canada.

In Canada, the residential use patterns affected will be phased out according to the same timeline as the U.S. Sales of Dursban products will continue until existing stocks are depleted, with retail sales occurring until Dec. 31, 2001.

IN THE NEWS
OSHA Issues New Standard On Ergonomics

BELLEVILLE, Wis. - The Occupational Safety and Health Administration (OSHA) issued a new ergonomics standard, and business groups are challenging the controversial new rules in court.

The standard requires employers to establish job-based ergonomics programs triggered when employees experience work-related musculoskeletal injuries or persistent signs or symptoms of injuries in jobs that include defined risk factors. The standard also requires employers to provide employees removed from work due to ergonomic-related injuries with 90 percent of their pay and 100 percent of their benefits for 90 days, until they return to work or until it is certified that they can never return to their jobs.

General farming is exempt from the standard, but horticultural employers, including landscape architects, contractors who perform sod laying and turf installation and nurseries, who fall within certain other OSHA SIC codes must comply with the new rule.

Barring congressional action or a successful court challenge, the new standard will go into effect on Jan. 16, 2001.

IN THE NEWS
CLIP Conference Boosts Tech-Savvy

GAITHERSBURG, Md. - The 11th annual CLIP Conference attracted 372 landscape industry professionals who attended software how-to workshops, trend-focused seminars and networking roundtable discussions Nov. 14-17 at the Hilton, Gaithersburg, Md.

This year’s theme, “Dream, Plan, Dominate,” focused on managing business goals, integrating technology to increase business efficiency and growing a successful, profitable company.