Market Trends: July 1997

Quality. Affordability. Durability.

Sounds like the makings of a great truck, doesn’t it? Those are the three most popular features when Lawn & Landscape readers go truck shopping, according to the results from a recent survey of 1,000 readers.

Respondents were asked to note the four most important factors they look for when purchasing a new service vehicle. Clearly quality (70.8 percent), price (68.2 percent)and durability (50.7 percent) are most important to truck buyers. The fourth most popular feature was serviceability (36.4 percent), followed by bed size (27.2 percent) and adaptability (25.3 percent). And, surprisingly, the least important feature was safety features (6.5 percent).

AgriBioTech Purchases Burlingham Seeds

In a deal that makes it the largest seed producing company in the world, AgriBioTech Inc., Las Vegas, Nev., acquired Burlingham Seeds, Forest Grove, Ore., for $10 million. The 85-year-old seed company be-comes the latest acquisition by the rapidly growing, full service seed company which has an eye toward advanced product research founded in biotechnology.

"Ownership of Burlingham germplasm should enhance AgriBioTech’s negotiations for biotechnology access," noted Dr. Johnny Thomas, company president.

"The turfgrass in-dustry has come a long way in the last 10 to 15 years, but when you look at biotechnology you see that this is really where the emphasis of the industry has to be in the next generation as opposed to seeking mechanical innovations," explained Zenon Lis, marketing manager, Burlingham Seeds. "This deal gives us a vision for the future with biotechnology and, we feel, it gives other companies someone to approach and talk to about issues of technology transfer."

Lis said Burlingham will continue to market its turfgrass products through its traditional channels, and most benefits from the deal won’t be evident to customers until research-and-development work produces new turfseed varieties or characteristics. That will likely take seven to 10 years for those products to reach market.

ECI Acquires U.S. Lawns

Environmental Care Inc., Calabasas, Calif., completed the acquisition of U.S. Lawns, Orlando. Cheryl Steelberg, public relations director for ECI, said the companies agreed to the deal in the spring of 1996, but they reserved comment until the due diligence phase of the process was complete.

U.S. Lawns and its 24 franchises will operate as an autonomous business unit of ECI. Tom Oyler, founder of U.S. Lawns, will operate as president of the organization. Bruce Wilson, ECI president, will serve as CEO of U.S. Lawns. "It’s Tom’s vision and energy that created this company. Bruce felt Tom should continue to run the organization," noted Steelberg.

Manufacturers Unite Seeking Qualified Help

More and more, power equip-ment manufacturers are find-ing themselves seated across the table from their fiercest competitors. When they’re not joining forces to counter impending regulations, they’re taking a proactive approach to redefining the role mechanics play in the green industry and developing future sources of these valuable employees.

"There is an obvious short-age of qualified engine techni-cians in our industry, and it’s going to get much worse be-fore it gets better because the equipment is getting so complicated," warned Virgil Russel, executive director, Engine & Equipment Training Council, Dallas, Texas.

"Our industry produces products that need service, and the industry as a whole is producing these products faster than they can be serviced," admitted Dave Zerfoss, president, Husqvarna Forest & Garden Co., Charlotte, N.C. "The overriding issue is the service support for these products, regardless of whose dealer it is.

"We need to establish the equivalent of the automotive ASE qualification for the power equipment industry," Zerfoss continued. "That means we, as manufacturers, have to set aside our territorial concepts and work together on this larger initiative."

Russell noted that along with improving the certification program currently available for engine technicians, the EETC is working with vocational and training schools to encourage more students to consider the profession and continue to edu-cate the teachers.

Surgeon General’s Warning: Don’t Mow?

Looking for a breakthrough marketing plan? Is there a large market of elderly residents who should be your lawn care customers?

Well, a study published by the Beaumont Rehabilitation and Health Center, Birmingham, Mich., might help close the deal.

According to the study of 10 male cardiac patients in good physical condition, pushing a lawn mower may cause heart attacks. The volunteers used manual and automated mowers to mow 25-meter plots of turf for 10 minutes.

"Based on the study results, we believe people who have a family history of heart problems or one or more of the major risk factors for heart disease should think twice before operating a manual lawn mower," warned Cindy Haskin-Popp, Beaumont exercise physiologist. "While mowing, some participants ex-ceeded their target heart range by as much as 20 percent."

Hoskin-Popp suggested that upper body exercise, upright posture, isometric exertion, respiratory strain and hot/humid weather may contribute to the excessive heart demands.

Novartis Adds Avid to Product Mix With Merck

Merck’s divestiture from its specialty chemical business became final in May when they sold their global crop protection business to Novartis, Greensboro, N.C., for $910 million.

The agreement puts the Novartis moniker on Avid (abamectin), a widely used miticide/insecticide used in the ornamental, nursery and landscape market. Novartis plans to evaluate the potential for expanding the label and for new formulations for abamectin, according to Tom McGowan, vice president of Novartis Specialty Products.

The pending deal must still clear antitrust scrutiny in the United States and abroad, but approvals are expected some time later this summer.

MACH 2, Conserve Clear Fast Track

Officials for RohMid, Parsippany, N.J., and DowElanco, Indianapolis, Ind., are gathering state registrations for MACH 2 turf insecticide and Conserve SC, respectively, in the wake of the U.S. Environmental Protection Agency’s recent registration of the products.

Although registration is expected from most states by the middle of this month, RohMid manager John Thomas said that availability will be very limited for the remainder of this year. Thomas expects that both the liquid and granular formulations will be in full production for the 1998 season.

MACH 2 contains the active ingredient halofenozide, which affects the normal molting process of a variety of grubs and caterpillars.

Conserve is labeled for landscape and turf applications, as well as nursery, golf and arborist care. This first product in the spinosyn class offers control of sod webworms, cutworms and army-worms along with a variety of ornamental insect pests.

Conserve is expected to be available on a limited basis beginning this August with full availability next year.

Toro Enjoys Record Quarter

The Toro Company, Bloomington, Minn., boosted by the acquistion of James Hardie Irrigation, announced record net sales and profits for its second quarter. Net sales for the quarter increased 22 percent to $352.2 million with income of $19 million, an increase of 13.1 percent.

Donald St. Dennis, director of public relations, attributed much of the record sales to the professional market, noting that sales to the consumer market were flat. Commercial sales were up 12.4 percent from last year, and Toro-Hardie irrigation sales jumped 117.9 percent over the same time.

The company also announced all administrative and distribution functions for Toro Hardie Irrigation, Laguna Niguel, Calif., will be moved to Toro’s Riverside, Calif., irrigation headquarters.

IN BUSINESS...

The DowChemical Company bought Eli Lilly & Company’s share of DowElanco...Stens Power Equipment Parts opened a new distribution center in Atlanta, Ga… Grotech U.S.A. is doing business as TrynEx International…BlueBird International Inc. acquired EverGreen International Inc.…Asgrow and Hartz moved their headquarters to Des Moines, Iowa.