Market Trends: June 1998

Contract Inconsistency

For many lawn care and maintenance contractors, having business under contract brings a sense of security that is invaluable and simplifies business management. For other contractors, contracts represent a needless hassle and are often too complicated to understand.

Apparently, quite a few people belong to each camp. A survey of contractors nationwide conducted for Lawn & Landscape found that 31.4 percent of contractors don’t use written contracts while 26.8 percent have all of their business under contract. The remaining 41.2 percent was divided fairly equally among the remaining percentile categories.

Jacobsen, Ransomes Move Forward

RACINE, Wis. - As the dust settles from Textron’s Jan. 30-acquisition of Ransomes, a sizeable manufactuer emerges to take advantage of the combined resources of the two organizations.

The new company is Textron Turf Care and Specialty Products and includes products marketed under the names of Jacobsen, Ransomes, Cushman, Ryan, Bob-Cat, Brouwer, Bunton and Steiner. Peter Wilson, previously the president of Ransomes, was named president of the new company, and Phil Tralies, Wilson’s counterpart at Jacobsen, was appointed president of Textron Turf Care and Specialty Products Americas.

Harold Pinto, senior vice president of sales and marketing, explained that while Ransomes was particularly attractive to Jacobsen because of its market presence in Europe and other areas outside of the U.S., the companies’ combined engineering resources should enable it to bring improved products to market more rapidly. “Ransomes had some pretty innovative technologies in areas such as electric mowers for the golf market that should really open some new doors for us in the commercial market,” Pinto noted, adding that the various product lines will continue to be marketed under their own names.

While some previous manufacturer acquisitions have been driven by one company’s interest in a specific product of another company, Pinto pointed out that this deal was a result of a much larger plan.

“The Bob-Cat line’s reputation did help make Ransomes very attractive to Jacobsen, but this deal now makes us market leaders in both commercial and golf sales worldwide, which is the strategy Textron has used all along,” Pinto said. “We want to be number one in all of the markets we play in.”

Pinto also agreed with other manufacturers’ observations that consolidation among suppliers will continue. “Consolidation is a factor throughout the entire industry, from companies like Environmental Industries and American Golf to the dealers and distributors to the manufacturers who are looking to leverage the benefits of different manufacturing, distribution and engineering resources to grow their role in the market,” he noted.

Weisburger Partners Up

WHITE PLAINS, N.Y. - B. & D.A. Weisburger Insurance, the insurance agency chosen by the Professional Lawn Care Association of America to offer insurance to its members, has teamed with a new business partner in order to expand its offerings and ability to serve contractors nationwide.

Weisburger will represent Westport Insurance Corp., Kansas City, Kan., for insurance programs in the lawn care and pest control industries. Westport, which is owned by a subsidiary of GE Capital Services, allows Weisburger to expand the coverages it offers to include programs such as environmental claims and spills from vehicles. “We’ll be able to offer programs other companies can’t,” noted Michael Weisburger, president.

Weisburger also pointed out that the individuals at B. & D.A. Weisburger will continue to support contractors’ needs. “We have 80 years of combined experience writing coverage for people in the pesticide and herbicide business, and that’s something we’re proud of,” he said. “Now, we will write that coverage with Westport as the underwriter.”

Further strengthening the deal is the fact that Weisburger will continue to use the Midlands Claim Administrators, Oklahoma City, Okla., as its claim handlers. “Having a stand alone claims organization means there’s no bureaucracy involved in the processing of claims,” Weisburger explained.

“Contractors insure their businesses to protect them from financial devastation, and this type of alliance will help us protect them,” Weisburger concluded.

SIMA Off To Good Start

PITTSBURGH -The ongoing emphasis on professional-izing the green industry took another step forward with the first-ever Snow & Ice Symposium, presented by the Snow & Ice Management Association.

The event drew approximately 85 attendees to hear presentations such as, “Pricing and Making a Profit,” “Advances in Weather Reporting” and “Subcontracting and Preparing for Ongoing Snowfalls.”

John Allin, president of SIMA and owner of Allin Companies, Erie, Pa., said the organization was pleased with the response to the event and expects considerable growth as soon as next year.

Contractors interested in the 1999 Symposium or in joining SIMA should call 814/456-9550.