Treading Water

It was June 2007, and irrigation contractor Edward Klaas was in a great position – he was turning down business because he had too much work to do. And this was despite a watering restriction limiting homeowners to irrigating three days per week.

In a very short amount of time, however, the picture changed drastically, according to the owner/vice president of Roswell, Ga.-based Southern Sprinkler Systems and the current president of the Georgia Irrigation Association.
“We haven’t lost market share to other companies, but people can’t use their irrigation systems and, as a result, have to cancel their contracts.”

In fall 2007, Klaas’ business averaged 47 calls per day. That fell to only three calls per day in the fall of 2008. “We laid off staff; we had no choice,” he says. “People just aren’t thinking about irrigation systems. This has been devastating to our business.”

The Georgia landscaping industry lost a third of its market share value, decreasing from $8 billion to $3 billion after the implementation of severe water restrictions in September 2007, says Jim McCutcheon, CEO of Austell, Ga.-based HighGrove Partners. And the UGA Center for Urban Agriculture reported a 20-percent reduction in industry sales over the first six months of 2008, adding that employers in the industry have shed an estimated 24,000 full-time, year-round employees and 15,600 part-time workers.

Add up these variables: a drought, water restrictions and a faltering economy that seems to be getting worse before it gets better. If this sounds like the perfect storm to kill an entire industry in one state, it should. However the question remains: Is the irrigation industry dead or simply on life support, particularly in Georgia where conditions are the worst? Experts have varying opinions but seem to agree those in the industry shouldn’t give up yet. They do need to look for other opportunities in the meantime, continue to educate their customers, and see what the 2009 irrigation season has up its sleeve.

RESTRICTIONS & TROUBLE SPOTS. The northern half of Georgia is currently under a level IV drought response and has been since September 2007. This basically means there is no outside watering allowed with a few exceptions. One exception is for new landscape installation, but contractors and homeowners have to register with the state in order to water new installations. (See sidebar Reality Bites on page 99.)

“There is a 10-week establishment period for plant material and then after that you can do hand watering between midnight and 10 a.m.,” says Bob Scott, president of Conyers, Ga.-based Irrigation Consultant Services and current president of the Rochester, Mass.-based American Society of Irrigation Consultants.

The Georgia Green Industry Association has hopes of changing the permitted uses in this level to include drip and low-flow irrigation, says Chris Butts, director of environmental, legislative and public relations for the Epworth, Ga.-based organization. 

“The restrictions in Georgia are still status quo,” explains Andy Smith, external affairs director for the Irrigation Association, Falls Church, Va. “If you are in the northern part of Georgia, the watering ban is still in effect because of
Lake Lanier. It is still about 22 feet down from its rim elevation and right now it should be higher.”

Other areas are feeling the squeeze from restrictions as well. According to Smith, another battleground to watch is the South Florida Water Management District. “They have established a desire to have a year round one-day-per-week water restriction,” he says. “I’m not convinced that one day a week will work given the specifics of the sandy soil base they are in – a situation where light frequent water applications would give you the best water conservation.”

South Florida is not alone. Smith says other states to watch for trouble include Arizona, New Mexico and Texas. Also Colorado and Utah rely on the snow pack for water, and they could be hard hit if they do not get the snow pack they need.

It’s not always just drought that can cause these water shortages. Sometimes the water utilities are struggling to manufacture water and ship it out to the consumer. “There hasn’t been a lot of money for investment in infrastructure, so some of this is a production and conveyance problem as well,” Smith says.

He added that ultimately contractors and homeowners are using a lot of drinking water for irrigation and that is not necessary. However, there is no secondary supply, so drinking-quality water has to be used for landscape needs. “As an industry, we have no control over where we get our water,” Smith says.

THE CHANGING CONTRACTOR. Restrictions and a tough economy mean contractors in drought areas are being hit hard.

Although situations like Klaas’ are extremely grim, others in the field are not calling the industry dead by any means.
“High-end residential is still active and there is some activity with commercial and municipal clients,” Scott says. “Where it is really hurting is with homeowners and builders, and that is hurting everybody.”

A contractor in North Carolina with no water restrictions sees the industry developing and changing but not dying. Todd McCabe, president, Landscapes Unlimited, Wilmington, N.C., saw some restrictions in his area last fall but he is under no water restrictions currently.

“It’s not a dying industry here by any means,” he says. “I think the irrigation industry is changing for the better and becoming more efficient.”

McCabe’s company is now using more drip irrigation as he has realized it is the most efficient method. Scheduling is also an area where they are saving water. “I’d say we’ve cut back as much as 50 percent of water that we are using just by cutting the schedule,” he says.

Making changes and saving their customers money is exactly the way McCutcheon has increased his irrigation business. Because of the need to be creative and innovative in irrigation right now, his company created KnowWater – a program where he does an analysis of his customer’s current irrigation situation and offers them a renovation that will give them a return on their investment.

“Our renovation plan can include as many as nine steps – anything from simple to complex and everything in between,” McCutcheon says. “For each step, we will show the customer what they will save over time by making the recommended changes. We make all kinds of recommendations from pressure reductions to switching to drip irrigation, and more.”

After implementing KnowWater last year his company actually doubled to tripled the amount of irrigation work they did since the previous year, “even in a time when we’re not allowed to turn on the systems full time,” McCutcheon adds. “Irrigation business is not dead in Georgia or anywhere else.”

 With a program like this, educating the customer is crucial. Recently, McCutcheon held a symposium to educate his clients on the drought situation, what they can do to conserve water, and what this means for their irrigation systems.

There are opportunities out there, he says. “I think people have to understand where their customers are feeling pain and what is driving customer decisions,” McCutcheon explains. “Talk to your customers and find out where other contractors are coming up short.”

Sherry Loudermilk, executive director of the Georgia Green Industry Association in Epworth, Ga., agrees that educating the consumer is key. Because of the media using terms such as “water bans” instead of “restrictions,” many consumers assume they cannot use water at all or are so confused they just turn it off. “It’s important for irrigation professionals to educate consumers because there are things they can do, especially if you are planning a new installation.”

As McCutcheon says, “if everybody plans to run their businesses the same way they did in 2007 and 2008, they wont’ be here – they won’t survive.”

ON THE HORIZON. With all of the problems from 2008 continuing into this year – drought, economy, and restrictions – many wonder if 2009 will bring any relief at all.

“It all depends on what happens with the restrictions, and we’ve been given indications from the environmental protection division that we’re going to have very little if any relief at all this year,” Klaas says. 

The one thing that could offer a bit of relief is if drip, microspray and low-flow irrigation became exempt uses to the restrictions as they have in some states, Butts says, adding, “if we can’t turn the water on even a little bit, then this is all kind of futile.”

Scott believes there is a chance to see some improvement later in the year with more money availability, but it will take quite awhile for the building sector to see any economic improvements.

Most agree this year will prove to be rough, and no matter what happens irrigation professionals will need to be prepared to make changes, educate their clients, be innovators and become more efficient in their water use.

The author is a freelancer based in Valley View, Ohio.