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.

I came across the following article in The St. Petersburg Times. It is by Yvonne Swanson and I thought you would enjoy it since it discusses competition from “door knockers” with unlicensed businesses. The landscaping business is tough enough to manage without this type of competition. I think the author of this article does a good job of explaining the benefits of going with a professional landscaper.

It was early on a Sunday morning when the young, scruffy fellow knocked on Greg Charles’ front door. Spotting lots of trees in the St. Petersburg yard, he came calling with a chain saw and a story about how all those big trees needed cutting.

Some homeowners would have listened to the sales pitch, forked out the money and watched those limbs fall. But the man had knocked on the wrong door.

Greg Charles is a local legend when it comes to trees and other plants. He has taught thousands of people the ABC’s of the landscape field at Pinellas Technical Education Centers, where he’s run the horticulture program for more than three decades.

Unlike other professional industries, most of the services offered by lawn, tree and garden businesses don’t require licensing based on skill and expertise. In fact, anyone with a business license and a lawn mower, chain saw or other equipment can call themselves a landscape professional.

Hiring a company or individual who comes knocking on your door can be dangerous, experts warn. Improper tree work, as well as poor pruning of shrubs and other plants, can spread disease and kill plants. These “door knockers” may offer a sweet deal, but it could result in thousands of dollars in damage if trees and mature plantings are lost.

Summer is high season for these self-proclaimed landscapers, who prey on homeowner fears of tree-related damage that could come with tropical storms and hurricanes.

“All these fly-by-nights are going around now telling people they need hurricane cuts and thinning out the center of their trees, which makes it more susceptible to storm damage,” Charles says. “You have so many people wanting business that they are going out butchering trees. If we get a significant blow, we’ll see those trees go down.”

Homeowners can protect their properties and pocketbooks by hiring a certified professional or member company of the Florida Nursery, Growers & Landscape Association. The group, which has 2,400 member companies, has certified more than 1,000 individuals statewide, according to Merry Mott, its director of industry certifications.
Certified professionals must pass extensive exams and complete continuing education on such topics as plant care, pest identification, water quality and conservation, fertilization, landscape installation, irrigation repair and landscape maintenance.

Charles and his colleagues are on a crusade to educate the public about the industry and the importance of hiring qualified people for the job.

In these tough economic times, many homeowners are tempted by cheap prices, but as with most services, you get what you pay for. “You take the low bid, and guess what? Most of the time when you try to cut corners, you get bit in the butt,” says Charles.

One thing I wish the article discussed is the importance of hiring a landscaping business that has insurance. Many of these “door knockers” do not carry insurance policies on their business and any damage they cause would not be covered. The injured party could try to sue the person that provided the landscaping services, but more than likely they wouldn’t have any assets worth repaying the damages. As a landscaping business, you should always mention the importance to the client that you carry appropriate limits of insurance coverage. This can be as simple as giving the client a copy of your certificate of insurance and making a brief comment on the importance of hiring a landscaping business with insurance.

I found a recent article about an owner of a landscaping business in Maryland that was accused of falsifying payroll records to pay less on insurance and taxes. According to the article, the landscaper failed to report pay to 39 workers and overtime pay during a three-year period. This resulted in the landscaping business underpaying their workers’ compensation carrier by 51,850 dollars. It also caused the business to not withhold 40,400 dollars in state income tax and underpay the Executive Office of Labor and Workforce Development’s Division of Unemployment Assistance an additional 32,800 dollars.

This tax and insurance fraud was discovered by an auditor for the landscaper’s workers’ compensation insurance carrier. The auditor discovered corporate tax returns that were filed by the owner for nearly 400,000 dollars in payment to subcontractors that were not disclosed during the audit. This was coupled with an insurance claim by one of the 39 employees that were not listed on the payroll. The Insurance Fraud Bureau of Massachusetts then began their investigation of the company.

The owner of the landscaping business has been charged with 10 counts of unemployment fraud, 31 counts of failure to withhold state income tax, three counts of workers’ compensation fraud, and three counts of larceny. I know from experience that this is not a solitary example of insurance fraud and that this happens very frequently. I will do more research and write another article in the next few days about the impact that insurance fraud has on insurance premiums paid by your business.

The North American Industry Classification System (NAICS) was designed to replace the Standard Industrial Classification (SIC) system. The NAICS is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy. The NAICS Code for landscaping businesses is 561730.

561730 – Landscaping Services

The 561730 NAICS code is used to classify businesses that are primarily engaged in providing landscape care and maintenance services and/or installing trees, shrubs, plants, lawns, or gardens. This classification also includes businesses that provide these services along with the design of landscape plans and/or the construction (i.e., installation) of walkways, retaining walls, decks, fences, ponds, and similar structures. Here is a detailed list of some of the types of business operations classified into the 561730 NAICS code:

• Arborist services
• Tree surgery services
• Tree trimming services
• Tree pruning services
• Tree removal services
• Cemetery plot care services
• Fertilizing lawns
• Garden maintenance services
• Landscape installation services
• Lawn fertilizing services
• Lawn maintenance services
• Lawn mowing services
• Lawn spraying services
• Lawn seeding services
• Hydroseeding services (e.g., decorative, erosion control purposes)
• Landscape care and maintenance services
• Landscape contractors (except construction)
• Lawn care services (e.g., fertilizing, mowing, seeding, spraying)
• Line slash (i.e., rights of way) maintenance services
• Maintenance of plants and shrubs in buildings
• Mowing services (e.g., highway, lawn, road strip)
• Ornamental tree and shrub services
• Plant and shrub maintenance in buildings
• Landscaping services (except planning)
• Plant maintenance services
• Pruning services, ornamental tree and shrub
• Seasonal property maintenance services (i.e., snow plowing in winter, landscaping during other seasons)
• Seeding lawns
• Shrub services (e.g., bracing, planting, pruning, removal, spraying, surgery, trimming)
• Snow plowing services combined with landscaping services (i.e., seasonal property maintenance services)
• Sod laying services
• Spraying lawns
• Tree and brush trimming, overhead utility line
• Tree services (e.g., bracing, planting, pruning, removal, spraying, surgery, trimming)
• Tropical plant maintenance services
• Turf (except artificial) installation services
• Weed control and fertilizing services (except crop)

The BearWise Landscapers insurance program is specifically designed to insure these types of business operations. As a division of an independent agency, our insurance agents can shop the rates from over 35 insurance carriers. We have experience with the landscaping industry and the carriers that insure businesses like yours. Allow us the opportunity to use this expertise to serve the insurance needs of your business by completing our short online form to request comparative insurance quotes.

The Standard Industrial Classification (SIC) code for businesses engaged in tree trimming services is 0783. The 0783 SIC Code is used to classify the arborists industry and more specifically, it is used to classify establishments that are primarily engaged in ornamental shrub and tree trimming services. Here is a list from a government website of different types of sub classifications for business that fall under this SIC code:

• Ornamental shrub and tree services
• Arborist services
• Removal services, bush and tree
• Planting services, ornamental bush
• Planting services, ornamental tree
• Pruning services, ornamental bush
• Pruning services, ornamental tree
• Bracing and surgery services
• Bracing services, ornamental tree
• Surgery services, ornamental bush
• Surgery services, ornamental tree
• Spraying services, ornamental bush
• Spraying services, ornamental tree
• Tree and shrub pruning services
• Tree trimming services for public utility lines

The Standard Industrial Classification (SIC) code for businesses engaged in lawn and garden services is 0782. The 0782 SIC Code is used to classify the landscaping industry and more specifically, it is used to classify establishments that are primarily engaged in performing a variety of landscape maintenance services. Here is a list from a government website of different types of sub classifications for business that fall under this SIC code:

• Lawn and garden services
• Garden services
• Garden maintenance services
• Garden planting services
• Lawn services
• Cemetery upkeep services
• Fertilizing services, lawn
• Lawn care services
• Mowing services, lawn
• Mulching services, lawn
• Seeding services, lawn
• Sodding contractor
• Spraying services, lawn
• Sprigging services, lawn
• Bermuda sprigging services
• Turf installation services, except artificial
• Highway lawn and garden maintenance services
• Landscape contractor

The Standard Industrial Classification (SIC) system was created by the United States government to classify industries by a four-digit code. It was established in 1937 and is being supplanted by the North American Industry Classification System (NAICS), which was released in 1997. There are still many government agencies and other organizations that still use the SIC codes, such as the US Securities and Exchange Commission (SEC).

For landscape maintenance businesses, the SIC code for your industry is 0782. For Tree trimming businesses, the SIC code for you industry is 0783. The primary industry group is 078 and it is composed of 3 SIC codes, 0781 (Landscape Counseling and Planning), 0782 (Lawn and Garden Services), and 0783 (Ornamental Shrub and Tree Services). The BearWise Landscapers insurance service focuses on the businesses classified into the 0782 SIC code and the 0783 SIC code. Here is a more detailed description of the 078 Industry Group:

Industry Group 078 - Landscape and Horticultural Services: This industry group is composed of establishments primarily engaged in performing a variety of ornamental shrub and tree services. These services include landscape design, landscape counseling, and landscape planning in the 0781 SIC code, lawn and garden services in the 0782 SIC code, and arborists and other tree services in the 0783 SIC Code. Establishments primarily engaged in forestry services are classified in Major Group 08. Establishments primarily engaged in general lawn and garden planting and maintenance are classified in Industry 0782, and those primarily engaged in performing shrub and tree services for farm crops are classified in Industry 0721. Establishments primarily engaged in the installation of artificial turf are classified in Construction, Industry 1799. Here are links to articles that describe the primary SIC codes for clients of BearWise Landscapers in more detail:

• SIC Code 0782
• SIC Code 0783

As a landscape installation business or a lawn maintenance business, you will probably find the Cash-For-Grass Program in Los Angeles interesting. I came across this program in this article by the American Society of Landscape Architects. It quoted another article in the Los Angeles Times that stated the following:

As if broken sprinklers, polluting mowers or the simple desire to conserve water weren’t enough, the Los Angeles Department of Water and Power is giving its customers more motivation to let go of their lawns. Single-family homes can get a rebate of up to $2,000, assuming you meet criteria for the Residential Drought Resistant Landscape Incentive Program.

Fast on the heels of the new watering ordinances that took effect June 1, the Los Angeles Department of Water and Power has begun a cash-for-grass program. Single-family homes served by the DWP will be eligible to receive $1 for every square foot of turf that they replace with less thirsty alternatives.

For years Southern California water managers paid scant attention to outdoor water conservation. Then they saw stunning savings achieved in Nevada. According to the Southern Nevada Water Authority, in the last decade, Las Vegas has removed more than 125 million square feet of grass, saving 7 billion gallons of water a year. That’s almost one-tenth of Southern Nevada’s annual water supply.

The rebate program requires that you have a plan for the successor landscape. Acceptable turf substitutes include drought-tolerant plants, mulch and permeable ground cover.

Whatever successor landscape you choose, the intent of the cash-for-grass program is to reduce the 50 to 90 inches of water routinely applied to turf every year. Drought-tolerant substitutes may require just 15 — in keeping with L.A.’s average annual rainfall.

For information on the L.A. Department of Water and Power program, call the regional water agency rebate hotline at (888) 376-3314. The recording will say funding for regionwide programs is exhausted, but keep listening. DWP customers can press 3 for more details on their rebate.

It is an interesting situation and is somewhat similar to Florida’s push for more native landscapes.

The FNGLA’s Certified Landscape Designer (FCLD) program offers a professional designation for practicing Landscape Designers and provides consumers a way to choose qualified design professionals. It is provided by the Florida Nursery, Growers and Landscape Association (FNGLA). FNGLA’s FCLD program is designed for landscape design professionals in landscape design firms as well as landscape designers in government agencies. Those qualified to sit for the FCLD exam must have a minimum of two years’ professional landscape design experience.

FNGLA Certified Landscape Designer (FCLD) is the highest level of certification available to Florida’s landscape design professionals. In order to sit for the written exam to complete the FCLD certification, applicants must have first successfully earned the FCHP designation.
Exams will cover principles of Plant Identification, Selection, Placement, and Protection, Sustainable Practices, Design, Business Management, Project Management and Codes & Laws.
Once both the FCHP written exams and the FCLD written exams have been completed, the applicant will submit a plan, either CAD or hand-rendered, to be reviewed.

Certification is a great way to distinguish yourself as a knowledgeable landscape professional. It provides a set of standards developed, maintained and administered by industry. These standards establish a minimum level of competency for professional members of the industry. Certification is voluntary and helps regulate the industry by providing a means by which consumers can identify industry members who have demonstrated their skills and abilities. FNGLA certification provides Florida’s nursery and landscape industry personnel the opportunity to earn professional accreditations distinguishing themselves from others. Other certifications for landscapers include:

• FCHP
• FCLT
• FCLMT
• FCLC

The FNGLA’s Certified Landscape Contractor (FCLC) program is the only standard for measuring the knowledge of practicing landscape contractors in Florida. The program was designed to promote professionalism and raise the standards of Florida’s landscape industry. FCLC also provides a way for government agencies, landscape architects, companies and individuals to choose qualified professionals in a state that does not require licensing of landscape contractors. In fact, FCLC has been included in the specifications of agencies, requiring that anyone bidding on particular jobs hold FNGLA’s FCLC designation. It is provided by the Florida Nursery, Growers and Landscape Association (FNGLA). The FCLC exam requires that applicants first complete both the FNGLA Certified Horticulture Professional (FCHP) written exam and the FNGLA Certified Landscape Technician (FCLT) field exam before sitting for the FCLC written exam.

FNGLA’s FCLC program is designed for owners, managers and supervisors of landscape contracting, landscape management or design build firms, as well as government agencies, parks departments and developers. Those qualified to sit for the FCLC exam must have a minimum of three years’ experience in the horticulture/landscape industry with one of those years in Florida. FNGLA’s FCLC certification is valid for a three-year period. During that time, FCLCs are required to earn 30 Continuing Education Units (CEUs) in order to renew. If you hold more than one certification, these CEUs will apply to all certifications you hold.
In the absence of the required number of CEUs, the certified professional will be required to retake the exam.

Certification is a great way to distinguish yourself as a knowledgeable landscape professional. It provides a set of standards developed, maintained and administered by industry. These standards establish a minimum level of competency for professional members of the industry. Certification is voluntary and helps regulate the industry by providing a means by which consumers can identify industry members who have demonstrated their skills and abilities. FNGLA certification provides Florida’s nursery and landscape industry personnel the opportunity to earn professional accreditations distinguishing themselves from others. Other certifications for landscapers include:

• FCHP
• FCLT
• FCLMT
• FCLD