A Southwestern Sample: Business Strategies in Review

SCOTSDALE, Ariz. - Desert conditions require different care. Just ask Terrain Systems, an Arizona-based landscape business that serves mostly commercial clients - 80 percent - in the greater Phoenix area. The company's service mix consists of 75 percent installation and 25 maintenance, with a projected revenue of $10.5 million for 2001. In a market fueled by new construction - homes, retail and business establishments - the company has experienced generous growth in recent years.

The Sanctuary Day Sap and Resort. Fifty landscape contractors who attended the conference visited four of Terrain System's sites, starting with a day spa and resort at the Gardiner Tennis Ranch at Camelback Mountain. Dale Micetic, owner, pointed out more than 70 salvaged desert trees that were craned into place on the property. More than 500 tons of native boulders were reset into the mountainside to create planting pockets and contain a severe slope.

The $450,000 contract also features an "endless pool," as well as a grassy area with a mountain view specially designed for wedding receptions. With more than 12,000 manhours invested in the job, Micetic noted that one of the project's challenges was the frequent change in plans. In addition, some of the plants and trees were recovered by licensed individuals who scouted specific varieties in the desert, he said.

Drip irrigation on this property keeps desert flowers healthy, added Todd Huston, vice president of the company. This type of irrigation is common in desert landscapes - plants simply will not survive without a system, he added.

Chaparral Business Park. The first industrial development project located on the Salt River-Pima Indian community, this business park involves four phases - three of which are complete. Each phase is approximately $150,000 in contracted landscape value, the landscape including indigenous desert plants such as Palo Verde trees that were boxed and moved from another site.

One challenge in particular Terrain Systems confronted when installing the plants was working around a partially-wet concrete parking lot during installation. In order to install the plants they company had to rent a boom truck so they could be dropped in without spoiling the concrete surface. This rental cost was an unexpected addition to the invoice, Huston said.

Finova Office Park. Healthy grass in desert environments requires more than watering, mowing and managing weeds. Now, Terrain Systems is overseeding properties with Bermuda grass cover with perennial ryegrass for winter color. This new variety will provide color while Bermuda grass goes dormant in winter months, Micetic explained.

Though Finova office park contains some grass expanses, the most difficult part of this job was dealing with a parking lot that settled three times after the building was constructed, Huston noted. Crews had to replant parking lot planters.

Besides structural challenges, the site faced financial strains. It remained vacant for 10 years while the real estate industry recovered from 1987 recession, and the project eventually was completed in 1999. It includes 78 mature date palms and a boulder wall to retain an adjacent roadway slope. The installed cost of the project was $540,000 with a labor with a labor requirement of 14,000 manhours.

Chandler Fashion Mall. A shopping mecca scheduled to open in two weeks, the Chandler Fashion Mall portrays an account Micetic said is ideal for his company. Designed to be Arizona's newest and largest mega-mall, the establishment required 6,000 trees, 436 palms and 55,000 shrubs. Started in early July, the job must be completed before its grand opening at the end of October, so naturally, time constraints present a challenge for the crews, who are working 7-days a week until the property is finished.

The irrigation mainline on the property is 4 inches wide and extends more than 7 miles, with lateral lines exceeding 27 miles. The project budget was $2.9 million and it required more than 62,000 manhours to complete so far.

The author is the Associate Editor of Lawn & Landscape magazine.