Landscaping Businesses and the Economy
October 2nd, 2009by Drew Roberts, CPCU, ARM
Landscaper Impacted by Slow Economy
I found this article from August on The Boston Globe’s website. It discusses the lagging economy’s impact on landscaping businesses. It says:
At a time of the year when they should be worried about keeping grass green, lawn care companies are struggling to keep out of the red. For many, a wet spring and summer, along with the lagging economy, have caused a drop-off in business.
There are two main reasons for the slump: More people are cutting back on lawn care because they are concerned about the economy and job security, and the slowdown in home construction has depressed the demand for landscapers.
Bob Dolibois, executive vice president of the American Nursery and Landscape Association, based in Washington, estimated the $150 billion lawn care industry is off by 5 to 12 percent nationwide this summer, “depending on where you are.’’
The article continues to describe a few local landscapers that have filed for bankruptcy. This problem is impacting lawn maintenance and other landscaping businesses throughout the country. I have seen this personally with many of our clients here in Florida.
The downturn extends far beyond the people who cut grass. With home construction slowed, there is less need for companies that install irrigation systems, design lawns, and supply machinery.
“We’ve been taking on a lot of smaller-size projects that maybe we would not have considered in the past,’’ said David Berarducci, owner of David Berarducci Landscape Architecture in Boston. The company specializes in designing landscapes for universities and municipalities.
Berarducci said his profits are off by about 50 percent this year - $150,000 less in the first seven months of the year, compared with 2008. That’s forced him to go to a four-day work week and lay off one of his two full-time employees.
“I’ve cut back on pretty much everything,’’ he said. “Nobody knows if things are going to get worse or not.’’
Dave Figueiredo, general manager of Irrigator Services Inc. of Boston, said his business has been off by about 50 percent because of the recession.
“I’ve been in the business roughly 30 years, and it’s probably one of the slowest seasons I’ve ever seen,’’ he said.
I wish all of our clients and other landscaping businesses across the country the best of luck during these tough economic times. I don’t know when there will be a light at the end of the tunnel, but I am encouraged by some landscapers that have found a way to generate growth and offer increased services during these times. If you are considering cutting some of your business expenses and want to discuss options to reduce your insurance premiums, please do not hesitate to contact our office for comparative insurance quotes.
