Market Trends: Oct. 1999

INDUSTRY BESTS ECONOMY

The industry’s growth run of the last five years has been widely talked about, but how many people realize just how significant this growth has been? The gross domestic product (GDP), which is the actual historical growth of the nation’s economy, has averaged 4.2 percent annually over the last five years.

This number pales in comparison to the growth enjoyed by contractors who anticipate added sales in upcoming years. These growing contractors have grown at an average of 21.1 percent over the same five-year period.

WIDESPREAD FIRE ANT CONTROL

PARSIPPANY, N.J. – The Texas Agricultural Extension Service and Green Grass (a landscape maintenance company) are in a joint effort to implement a program to control the spread of fire ants.

Steve Goodson, owner of Green Grass, said that his residential clients could benefit if they could utilize a new program.

“All of my customers are on the same program,” Goodson remarked. “If we see fire ants in any one of those visits, we treat for them.”

According to American Cyanamid, entomologists and pest control specialists agree that a community-wide effort to control the wide spread southern pest works better than individual lawn treatments. Some neighborhoods have turned these efforts into fire ant “block parties.”

“We think you’ll need to treat less frequently if you take the block party approach,” explained Mike Merchant, extension urban entomologist, Dallas, Texas. “We emphasize treating on a dry day in the spring and fall with a broadcast bait product. Ants ingest the bait, take it back to the colony and feed it to the queen. Once she dies, the colony perishes. If all homes within a subdivision are treated at once, ants can’t move next door and take up residence.”

FIRM OFFERS MARKETING SERVICES

CAMPBELL, CA – A marketing firm, GreenAdvice, has formed to specialize in the ornamental, turfgrass, consumer and specialty agriculture industries.

The lead principals at GreenAdvice are Mark Broxon, formerly a general manager with the Scotts Co.; Bob Holmgren, an independent marketing consultant for the consumer lawn and garden industry and Steve Stebbins, an executive recruiter and information services specialist.

GreenAdvice is a turn-key marketing service firm. Typical projects undertaken by the company include business plan preparation, market research, acquisition search and analysis, new product introductions, positioning and branding.

“Our mission at GreenAdvice is to provide specialized project management expertise, market information and general marketing services to the industry,” Holm-gren said. “Further. we have the ability to quickly identify a client's needs, develop a detailed action plan and then execute that plan in a very cost efficient manner.”

TRUGREEN-LANDCARE ANNOUNCES CHANGES

MEMPHIS, TN – TruGreen-ChemLawn announced that Paul Anderegg has been named president of TruGreen LandCare, the companies new commercial landscape operation.

Anderegg has been overseeing all of the landscape field operations for the company since its inception in February 1998.

TruGreen LandCare also announced four additional acquisitions totalling $5 million in sales.

NEW FRANCHISE OPPORTUNITIES ABOUND

PHOENIX, AZ – Abundant Landscape Franchising, Phoenix, Ariz., a company that offers a wide variety of services, including landscaping, irrigation systems, water features, etc., has announced plans to franchise its Abundant Landscape Design centers.

Dale Shipp, president, said phase one of the franchise development plan will include Arizona, New Mexico and Texas.

“We are basically cloning our current business,” Shipp commented. “If the franchisee follows what we have been doing then he or she should have a successful business.”

The developers of the pop-ular Christmas Décor franchise system have introduced Nite Time Décor, a landscape lighting franchise system.

“Customers like to do business with contractors they already trust,” explained Curtis Hogan, executive vice president. “This program will be targeted at the average consumer and will offer them more than the standard runway lighting.”

Hogan said Nite Time Décor franchisees will benefit from the organization’s three-day technical training, marketing and business management education, design tips and product accessibility.

“Because of the volume we plan on dealing in, we will keep substantial inventories for our franchisees to access,” Hogan said.

Blake Smith, president of Nite Time Décor and Christmas Décor, said contractors who understand the challenges of landscape lighting enjoy high profit margins.

Smith said initial plans were to sell the first 10 franchises by the middle of September and then work with this group for two months to perfect the system before selling additional franchises.

For information on Nite Time Décor, call 877/552-4242.