Market Trends: March 1997

Equipment Sales To Grow

According to a report from The Freedonia Group, Cleveland, shipments of commercial lawn and garden equipment are expected to grow at a rate of about 6.4 percent annually. The report estimated total commercial shipments in 1985 as $369

million, rising to $1.08 billion in 1995. Projections show shipments to increase to approximately $1.475 billion in the year 2000.

The estimates define the commercial market as including golf course, commercial, municipal and other government mowing. Equipment shipments includes mowers, turf tractors and related equipment, vacuums, blowers, sweepers, parts, attachments and miscellaneous equipment. The forecast noted expected increases in prices based on the use of higher powered models using steel and more expensive engines.


Echo Inc. To Acquire Technic Tool

Echo Inc., Lake Zurich, Ill., announced it has signed a letter of intent to purchase Technic Tool, Lewiston, Idaho. Technic Tool manufacturers the Power Pruner™ line of telelscoping and fixed-length pruning tools along with a full line of accessories.

Robin Pendergrast, president of International Market Exchange and spokesperson for Echo, credited Technic Tool with creating the market for extended pruning equipment over the last 10 years.

"This acquisition is a win-win deal for everyone," he said. "It will allow Echo to continue to dominate the market-place, and contractors will benefit from even wider distribution of the company’s products."

Pendergrast refused to disclose the sale price of the company and said issues such as whether or not the Technic Tool operations will be moved to Illinois and the long-term future of Technic Tool President Dale Aldridge have not yet been finalized.


State Preemption Upheld In Ohio

The battle between the city of Fairview Park, Ohio, and a franchise of Barefoot Grass regarding a pesticide ordinance is finally over. The Ohio Supreme Court decided it has no constitutional jurisdiction to hear the case, effectively striking down the city’s attempt to regulate pesticide applications within its borders.

The ruling solidified the state preemption law, which states that no municipality may pass pesticide legislation that is more restrictive than what the state has on the books. The court’s decision ends a 19-month legal battle between the city and Barefoot Grass, which received substantial legal and financial support from Ohio Professional Applicators for Responsible Regulation and its members.

The law, originally passed in 1992, was not enforced until June 27, 1995, when a citizen filed a complaint against a Barefoot Grass applicator who had not complied with the city’s notification requirements. The company, with the support of OPARR, challenged the ordinance through a series of lower court decisions before the Supreme Court made its ruling.


Sales Is Key at ALCA’s New Program

Doug Trenary of Fast-Track Inc., Atlanta, will train attendees at a new two-day symposium on sales, sponsored by the Associated Landscape Contractors of America. The symposium will be held Aug. 21-24 at the Fairmont Hotel, Dallas, Texas.

This premier event will pre-sent topics such as setting and reaching clear sales goals, the art of listening, managing time and energy, techniques to con-quer objections and other pertinent subjects. For more information on this program, contact ALCA at 800/395-2522.


Biosys Acquired By Thermo Trilogy

Biosys, manufacturer of biological pest control products located in Columbia, Md., was purchased by Thermo Trilogy in January for an estimated $11 million.

This news comes just a few months after biosys filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code last September. The purchase was subject to and approved by the bankruptcy court on Jan. 7.

"With the biosys acquisition, we will make significant progress in our strategy to pur-sue the environmental technology business," said Brian Holt, president and chief executive officer of Thermo Ecotek, Thermo Trilogy’s parent company.

The biosys products will greatly enhance Thermo Trilogy’s line of environmentally friendly alternatives to chemical pesticides.
At this point, there are no plans to discontinue production of any of the biosys lines of products, according to Ramon Georgis, the company’s director of research and development. No final decisions have been reached, however.

Georgis noted that the nature of the sale allows Thermo Trilogy to renegotiate its contracts with product distributors, which could result in changes in product distribution and availability. Biosys products included pheromone, neem/azadirachtin, nematode and virus-based biopesticide products.

In addition to the assets of biosys, Thermo Trilogy also acquired the available stock of AgriSense BCS Ltd.


PLCAA Searches For Executive Director

Ann McClure, who has been executive vice president of the Professional Lawn Care Association of America, announced she will be leaving April 1 to take a position with the Gas Turbine Institute.

PLCAA President Terry Kurth wished her the best of luck, adding, "(PLCAA) has grown strong under her direction ... her successor will find a strong group to lead." President-elect Larry Messina will chair a search committee; Tom Delaney is interim manager.


Proposed Bills Could Bring Tax Relief

Two bills introduced in Congress are aimed at reducing estate taxes on family businesses, according to the American Association of Nurserymen. Senate Bill 2, introduced by Majority Leader Trent Lott (R-Miss.) as the "Family Tax Relief Act," would reduce estate taxes and increase effective exemption from $600,000 to $1 million over eight years. A second bill, introduced by Jon Kyl (Senate Bill 75), called the "Family Heritage Preservation Act," would repeal estate and gift taxes. AAN supports passage of a bill.


EXPO 97 Changes Weekend Dates

For the first time in years, the International Lawn, Garden and Power Equipment Exposition will move to a Saturday starting date. This year’s EXPO will start on Saturday, July 26 and finish on Monday, July 28.

According to EXPO organizers, the new schedule will be more convenient for attendees’ business schedules and will also allow visitors to take advantage of weekend airfare discounts. The annual dinner and concert will be held on Sunday evening instead of Monday. For more information about the new format at EXPO ’97, call 800/558-8767.


PLCAA Gears Up For Lawn Care Month

To salute the greening af America’s more than 25 million acres of lawn space, the Professional Lawn Care Association of America is preparing to kick off its eighth year of celebrating April as National Lawn Care Month. As part of the campaign, the organization has distributed press releases and videos to a wide range of print and electronic media. The information covers topics critical to the lawn care industry, including the benefits of turfgrass, grasscy-cling and the proper use and storage of pesticides.

"National Lawn Care Month is a time to recognize the grass plant’s contribution to our lifestyle and environment," noted Ann McClure, executive vice president of PLCAA.


In Business ...

Helena Co., Memphis, purchased the CoRoN division of Moyer and Son ... Zurn Industries Inc. completed the purchase of Eljer Industries Inc. ... Ames Lawn & Garden Tools acquired Woodings Verona Tool Works ... Leslie-Locke formed an advisory council for fencing ... The Gehl Company expanded its two South Dakota manufacturing facilities.

March 1997
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