Market Trends: June 1999

Truck Time

There are several factors a landscape contractor should consider before buying a service vehicle. But how do contractors weigh the pros and cons in order to walk away from the purchase knowing they made a wise investment.

In a survey of Lawn & Landscape readers, product quality topped the list of criteria, with 64.4 percent respondents mentioning its importance as a decision-making factor. Price was the second most mentioned feature at 51.1 percent, with durability coming in a close third place with 48.9 percent.

Serviceability (37.8 percent) and tow rating (31.1 percent) scored at fourth and fifth, respectively. Other options listed in the survey were (listed in descending order of their percentage scores): gas mileage, brand loyalty, warranty, adaptability, manufacturer support, bed size, dealer location, cab size, storage capabilities and safety features.

Novartis T&O Names New Chief

GREENSBORO, N.C. – Randy Williams is obviously someone who likes the challenges of an unpredictable future.

Effective June 1, Williams was named vice president of the global turf and ornamental business for Novartis, replacing Tom McGowan, who retired. Williams spoke with Lawn & Landscape about the challenges facing all pesticide manufacturers that are driving consolidations around the world and the opportunities he sees for an expanded product line from Novartis.

“I’m already familiar with a lot of the new active ingredients we have coming through the pipeline that will fit the landscape, golf and lawn and garden markets,” Williams noted, adding that he moves into this new position from his role as vice president of the fungicide business unit. “In particular, we have a strong pipeline of about nine reduced risk products currently at the EPA for approval. We should be seeing a lot of them come to market in the next 12 to 24 months.”

In particular, Novartis is optimistic about its new technologies in the herbicide and insecticide categories, which should broaden its product line.

“I’d say we’ll be much more aggressive in new product developments in the near future,” Williams added.

One development making such an aggressive approach possible is the increased efficiency Novartis enjoys as a result of the Ciba/Sandoz merger that formed the company in 1996.

Sandoz was doing a lot of the same things Ciba was doing in the market, and we’ve been able to eliminate a lot of the duplication,” Williams explained. “That’s why we’re going to continue to see consolidation in the supplier side of the industry because margins have gotten tighter and companies need to eliminate the wasted resources.”

Kanga, Ariens Finalize Deal

BRILLION, Wisc. – The rising popularity of compact utility loaders has led to another partnership, as the Ariens Company and Kanga Loaders, Bixby, Okla., announced a manufacturing and distribution agreement in the U.S.

Ariens, which is also the parent company for Gravely, will offer a limited number of Kanga’s Mini Skid Steer Loader and attachments through Ariens and Gravely dealers this season and begin manufacturing the machines as well Jan. 1, 2000. The Kanga machines have been manufactured in Australia until now.

“We have been manufacturing our loaders in Australia since 1981, and we look forward to this agreement, which will allow us to manufacture our loaders locally in the United States, the largest market in the world,” noted Brent Matthews, U.S. manager for Kanga Loaders USA.

Kanga will continue to market its loaders to professional contractors under the Kanga name, while details regarding the marketing of Gravely’s unit have not been finalized as of yet.

Gravely hopes to introduce its model at the International Lawn, Garden & Power Equipment Expo in Louisville, Ky., in July.

PLCAA Plans Legislative Day

WASHINGTON, D.C. – Lawn care and landscape professionals will visit Capitol Hill July 19-20 as part of the Professional Lawn Care Association of America’s Legislative Day on the Hill.

“Water issues, one-week prenotification bills, FQPA, pesticide registry dilemmas and business issues galore are cropping up all over the country,” noted Tom Delaney, PLCAA’s executive vice president. “Legislative Day gives companies a platform to make their case on the Hill.”

In addition to scheduled visits to their own politicians’ offices to speak up for the industry, attendees will partake in the Arlington Cemetery Renewal and Remembrance project for the third year, where contractors donate their turf care expertise for improvements at Arlington National Cemetery.

For information, contact PLCAA at 800/458-3466.

A Century of SNA

ATLANTA, Ga. — From humble beginnings with nine charter members forming a group to ensure the survival of the nursery industry in the South, the Southern Nursery Association cebrates its centennial birthday in 1999.

The association will highlight its 100th anniversary with a celebration at its annual convention and trade show, to take place July 30-Aug. 1 in Atlanta. More than 10,000 attendees are expected for the show, or about 200 times as many as the 50 that arrived in Chattanooga, Tenn., at the SNA’s 1899 convention.

“SNA has led an important role in the development of the horticultural industry in the South throughout these past 100 years,” noted Bill Reese, SNA president. “And I foresee the SNA playing an even more important role as we approach the new millennium.”

For more information on the SNA, call 770/973-9026.

Economy May Slow Power Equipment Sales

ALEXANDRIA, Va. – An economic forecast conducted by the Outdoor Power Equipment Institute for consumer- type equipment and certain commercial turf products, predicts a slowdown by the end of model year 1999 and through model year 2000. The slowdown is attributed to an expected decline in housing starts and sales of existing single-family homes.

For 1999, all products except consumer walk-behind mowers and commercial riding mowers are expected to decline. For 2000, all products except consumer- type lawn tractors and commercial riding mowers are also anticipated to decrease.

The current forecast for model year 1999 is Sept. 1, 1998 through Aug. 31, 1999.

Landscaping Popular in Home Improvement

NEW YORK, N.Y. – More than one-third of all homeowners – 36 percent, to be exact – have plans for some type of home improvement project for 1999, according to the American Express Retail Index survey.

On average, homeowners expect to spend $2,747, with landscaping plans scheduled by 23 percent of respondents, which was third in popularity behind interior decorating (41 percent) and renovation/remodeling (32 percent.

Unfortunately, two-thirds of the respondents expected to perform the work themselves, and only 51 percent of respondents said they would leave the work to a professional contractor if money was not a concern.

New Holland Acquires Case

AMSTERDAM – New Holland, Harrisburg, Penn., and Case Corp., Racine, Wis., will unite to form a nearly $12-billion global equipment company to reportedly be based in Racine.

The deal, which is still subject to Case shareholder approval, will create a new group controlled by Fiat, New Holland’s parent company.

While the companies’ products, geographic sales distribution and business mix are already complementary, according to New Holland, the merger will preserve the brand equities of both companies and strengthen their distribution network, combining Case’s 4,900 and New Holland’s 6,100 dealers.

At the same time, the merger brings about potential for $400 to $500 million in annual savings within three to four years by integrating production, purchasing and support activities costs. The savings generated, according to New Holland, will drive growth in agricultural equipment through coordinated expansion into new markets.

Case reported 1998 net revenues of $6.1 billion while New Holland reported revenues of $5.7 billion.