Diversification Essential to Stay Afloat

It’s no surprise that the cost of water is increasing in California. Rapid population growth and ongoing dry climate conditions have cities throughout the state imposing water restrictions.

Water conservation doesn’t have to be a bad thing, though. It’s times like this that provide the perfect opportunity for lawn and landscape professionals to expand their services. Not only can expansion increase revenue, it can save water and put money back into their customers’ pockets.

This is the theory behind the California Landscape Contractors Association’s Water Management Certification Program. Started in the summer of 2007, the program is designed as a practical – and profitable – solution to water restrictions. The idea is simple. Industry professionals are trained to provide customers with eye-appealing landscapes while using the right amount of water based on plant requirements, according to CLCA’s Web site.

“Homeowners are looking to reduce water usage,” says CLCA member Edward Wallace, CLIA, who also is a member of the program’s committee. “This is setting the stage for landscape contractors because it adds a division to their business. There’s a market segment being developed. If you get ready for it there’s a lot of money on the table.”

To become certified, the applicant first must pass a written, multiple-choice test covering irrigation basics, says Wallace. After passing, the person must manage at least one property at or below the association’s established landscape water budget for a year. Management involves submitting monthly water budgets showing they are abiding by the established budget.

Successful completion of the year-long program results in full water management certification. The result: more services to offer customers and lower labor costs due to sustainable landscapes.

The training is catching on. This year alone, 380 landscape professionals will become certified, Wallace says. About 50 companies add the certification to their list of qualifications every month.

And the results are paying off. Once certified, companies are listed on CLCA’s Web site as certified water managers. Because of their conservation efforts, several water departments throughout the state often refer customers to its Web site when they are looking for a contractor, Wallace says.

Increased exposure is only the beginning. Contractors also can see a spike in profits. According to CLCA’s Web site, Pacific Crest Landscape & Maintenance in San Jose obtained a 30 percent rate hike from one client after showing how much money that client was saving each year based on documented water usage.

Wallace adds companies that don’t try to diversify won’t fare well in today’s economy, especially in California where the threat of a severe drought turns more into a reality each day.

“If we don’t manage water there are some companies that won’t be around,” he says. “It’s imperative to diversify. We don’t have to change but add to our company structure simply through education. You can either layoff employees, cut back hours or you can regroup their mindset.”

The benefits could be what a contractor needs to stay afloat, or even increase revenue, during an economic recession.

“There’s so much that can be done,” Wallace says. “It’s a win-win situation not only for our customers, but for contractors who are keeping jobs and creating new opportunities. It creates an economic stimulus plan within the green industry. I look at water management certification as a solution to our state because water is the whole key.”