Jim Huston

The state of the economy can be described in one word – stagnant. However, the state of the green industry is anything but stagnant. The fifteen contractors with whom I’ve visited this summer are engaged, proactive and planning to grow. They are anything but placid and, in some cases, their assertiveness is paying big dividends. Here’s a general snapshot of what I’ve been seeing.

Commercial installation is flat or non-existent in many parts of the country. Where there is work, it’s not uncommon to see 20-30 bidders submit prices.

Residential installation is stronger than commercial work but it is still anemic. Jobs are much smaller and margins are down a minimum of ten percent. Contractors are accepting $1,000-$2,000 jobs when the past minimum was $5,000-$10,000.

Public works projects are few and far between. Government bailout funds do not seem to have trickled down to the green industry. I guess we need more lobbyists in Washington.

Commercial and residential maintenance has become extremely competitive. Installation contractors have realized the brilliance of having a maintenance base. They’ve jumped into this market but have driven prices down. Property managers smell blood in the water and are working contractors against one another.

Conclusion
The economy may be flat but the green industry contractors that I’ve visited are not being tepid about growing their businesses. They are vigorously working on internal efficiencies and external marketing opportunities. Many have reinvented themselves or key areas of their existing product and service mix.

I hate to say it, but the current lackluster economy has been the best thing to happen to many of my clients. They’ve had to rethink everything. And this has been a good thing!

JIM HUSTON runs J.R. Huston Consulting, a green industry consulting firm. See www.jrhuston.biz; mail jhuston@giemedia.com.