Market Trends: Sept. 1997

While much of the country spent April and May waiting for a spring that never came, lawn care applicators took advantage of cool start to the 1997 season for an extended series of first round applications. Those sales were just the start to a strong pesticide application season, based on a survey of 1,000 Lawn & Landscape readers.

More than 62 percent of respondents indicated they have spent more money this year on pesticides than in 1996, with an average increase of 13.9 percent per company. Meanwhile, just 3.6 percent of respondents spent less on pesticides this year, although their decrease was more dramatic at 17.6 percent. The other 34.3 percent haven’t experienced any change in their pesticide spending.

Expo Still Faces Critics

Despite near-record attendance driven by significant increases in end user attendees, the International Lawn, Garden & Power Equipment Expo still hears criticism it has lost its focus and is less attractive to the dealers and distributors it was created to serve.

Dennis Dix, president and CEO, Outdoor Power Equipment Institute, Olde Town Alexandria, Va., admitted exhibitor space - 262,000 square feet - was down from 1996. However, he pointed to a 26 percent increase in contractor attendance and overall attendance nearing 30,000 as good signs.

"We felt the show went very well and we’re real pleased with the growth we saw," he said.

Many exhibitors agreed.

"This has definitely been a good show for us," noted Mark Michaels, senior forestry products manager, Husqvarna Forest & Garden Co., Charlotte, N.C. "We’ve seen a lot of contractors, which is great because they’re the end user. But we still approach this as primarily a dealer and distributor show, and it’s been real strong from that standpoint as well."

Other exhibitors echoed Michaels’ sentiments, and OPEI staffers are optimistic about returning such industry names as Shindaiwa, Echo, Stihl and Scag to the show in the future. However, that likely won’t be accomplished without some changes.

"We believe the show has become stagnant and repetitive," noted Dave Dahlstrom, marketing manager, Shindaiwa Inc., Tualatin, Ore. "Since it’s always in Louisville, it has a tendency to attract the same attendees. It’s long past time to consider moving the show."

"That’s the biggest falsehood going," refuted Dix. "We’ve had 10 percent new attendees every year. Plus, there’s no comparable facility in such a central location for so much of the industry."

"We also believe attendance has dropped off in terms of people we’re interested in - the servicing dealer," continued Dahlstrom.

According to OPEI, dealer attendance was down 10 percent from last year, although it still accounted for 35 percent of the total attendees.

Another common concern of non-exhibitors is what they term a lack of focus in terms of the products exhibited at the show. "Sometimes growth is good, sometimes it’s bad," noted Gary Hardee, manager of power tools, Stihl Inc., Virginia Beach, Va. "The show has all kinds of equipment that aren’t outdoor power equipment."

"Who are we to say that someone should or shouldn’t be there?" asked Dix.

Hardee attended EXPO this year and said it seemed better organized.

Hardee also said exhibitors contribute to the problem. "So many exhibitors sell booth equipment at the end of the show," he said, "that a lot of regional landscapers come just looking for deals. This is enough of a problem that it hurts area dealers."

L.A. Blower Ban In Limbo

Enforcement of the ban on gas-powered backpack blowers in Los Angeles has been tabled by its city council pending the resolution of concerns it has over enforcement and whether the ban will be able to achieve a positive environmental result.

The L. A. Police Department has been charged with providing a plan to city council on how they will enforce the ban, while a committee has been formed to determine what issues in terms of noise and pollution this ordinance resolves.

A source close to the situation said a California distributor of power equipment, in conjunction with a major manufacturer, is reviewing a potential lawsuit against the city, but there’s no word how soon legal action would be taken. The moratorium expires Dec. 31.

SNA Exhibitors Say Sales Up

The Southeast is a great place to be selling plant material, according to exhibitors visited by Lawn & Landscape at the Southern Nursery Association’s Horticultural Trade Show in Atlanta. From Texas to the East Coast, nurseries are moving product in the professional market, some in record numbers.

The reports come despite some regions of the South experiencing up to 27 straight days of rain from mid-May through June. Ray French, operations manager with Southern Growers, Montgomery, Ala., said 1997 was "the strongest March, April and early May in the history of the company." Sales hot spots for his products include Atlanta, Nashville and the Florida panhandle.

"We’re having a great year," noted James Robertson, nursery assistant manager with McGinnis Farms, a $40 million wholesale nursery in College Park, Ga. "Last year was a bit slower for us, but 1997 has been super."

Robertson’s only concern is growing competition between wholesalers, such as McGinnis, and growers who are attempting to sell direct. "It isn’t a big threat, but it’s a trend we’re seeing," Robertson asserted.

Lawn Institute Closes Doors

The Lawn Institute, which has served the green industry for 42 years, closed its doors for the final time on June 30. The decision was made "due to insufficient interest and financial support from the turfgrass seed industry over the last several years," noted Scott Patterson, president.

Jim Brooks, just the third executive director to head the association, attributed the decision primarily to a continually dwindling membership, which had fallen to just 55 companies this year. "The consolidation of seed companies decreased the potential membership and limited the number of varieties submitted to the variety review board," he said. "And while we were told by the seed industry they wanted to focus on reaching homeowners, I can’t quantify that 10,000 bags of seed were sold because of the exposure we’ve generated."

Brooks said the group is currently involved in discussions with the Professional Lawn Care Association of America examining options to restructure and continue the Lawn Institute.