By Wendy Jespersen, Lee Ann Knudsen and Sarah Willis
Horticulture Review spoke to Landscape Ontario members from across the province. We focused on the nine regional chapters and asked members from different sectors about the challenges and successes they faced over the past year. Many people talked about the rainy fall, and there were some warnings of a slowing economy, but many members reported a very strong year and are just as optimistic about 2007. Here is our regional round-up:
Durham
“Weather really is a major factor in our business, no matter where the economy is going,” says Harry Worsley of Uxbridge Nurseries. This season was an outstanding growing year according to Worsley, offering ideal moisture and heat. Uxbridge reported good sales through the season.
But then fall hit, with way too much rain, and job sites got too wet for installations, orders were delayed and soggy fields prevented digging – reminding the industry that weather trumps all.
Worsley noted a continuing trend in demand for natives, and smaller, more upright shapes to suit today’s smaller lot sizes.
The numbers tell an optimistic story for Richard Clark of Clark Property Maintenance in Port Perry. Clark is pleased to report better margins in 2006 than the year before.
Clark credits vigilance over costs as an important factor in his improved results, and thanks his staff for being efficient with time and materials. He says he is lucky to have longstanding employees that care, including John, George, Ted, Dale, Chris and Pam.
The key challenge this year for the company was wet, sloppy fall weather. Some jobs had to be worked through under adversity, others required waiting for drier conditions. Several equipment purchases enhanced Clark’s productivity, including a skid steer, a small excavator and an improved sprayer.
Clark has been audited by the Ministry of Labour and WSIB, and got positive results. He believes the process makes it better for people in business, and encourages those trying to do things the wrong way to improve.
Georgian Lakelands
“The rain threw us off a bit,” says Earle Graham of Lakelands Irrigation in Elmvale. Graham saw a strong April through July, but a wet August and September put a damper on business.
“We still see a strong economy in the high-end and commercial projects, but the intermediate sector appears to be softening a bit,” notes Graham, who still sees a strong future for the industry, regardless of the weather. “More and more commercial projects are making industry certification a requirement, and this is great for our industry.” Graham says that the bar is being raised for irrigation contractors and he is happy to see professionalism increasing.
Long term, Graham sees an increased demand on potable water in the Georgian Lakelands area and expects municipalities to become much more conscious of how much water is used. “The next chapter is about consumption, so we have to take precautions now to avoid an all-out watering ban, like in Vancouver.”
Stephen Woods of Native Woods Nursery in Midland says the weather hit the garden centre hard. “We got sidetracked right off the bat. I think it was snowing on the May long weekend,” he explains. “Our window is so narrow, and if you don’t do well on the long weekend, it can be a real kicker for the rest of the season,” he says.
Big box stores also affected Native Woods’ business in 2006. “We now have all the major players — Walmart, Home Depot, Canadian Tire, Great Canadian Superstore. In a small place like Midland, it makes things very tricky for smaller retailers,” says Woods, whose ammunition involves providing a destination garden centre, premium plant material and professional advice.
Golden Horseshoe
The irrigation sector enjoyed the best and suffered through the worst of weather last year. Steve Macartney of Raintree Irrigation and Outdoor Systems in Hamilton notes the early spring was great and the hot and dry weather in June had phones ringing off the hook. However, once the fall rains set in “it was tough selling residential sprinkler systems in the rain,” says Macartney. “Commercial contracts are different, but we had a tough time getting on sites this fall to complete the work.” Because of the mild weather, Macartney’s crews were able to work later in the year and finally get a few projects completed, but some were “long and agonizing.”
The irrigation industry is a progressive group and Macartney sees the need for more qualified irrigation technicians in the future. “Our customers are wanting more services and products. There is lots of opportunity to upgrade existing systems as well as innovative new irrigation technology on the horizon.” Citing the new E.T. (evapo-transpiration) based controllers as one of the new water management options, Macartney says there have been big advances in water conservation and management, and as such, there is a need for more trained professional people to deal with them.
Macartney already holds CLIA (Certified Landscape Irrigation Auditor) and CIC (Certified Irrigation Contractor) titles, but is currently studying to attain his CID (Certified Irrigation Designer) designation which covers the fundamentals of irrigation design. With the CID, helooks forward to being more creative with irrigation design, allowing his customers to realize the full benefits of their irrigation systems.
The demand on irrigation system design is sandwiched between the needs of time-strapped homeowners and the reality of watering restrictions and bans. Macartney is optimistic that by investing in technology and training, forward-thinking irrigation contractors can learn to manage our precious water resources and reduce the effects of water restrictions on the entire green industry.
Interiorscapers are affected more by fluctuations in the corporate economy than the weather. That, and people’s perspective on the value of his service, says Peter Tigchelaar of Urban Green in Dundas, explaining, “Some people still think of it as a ‘frill.’ This is an ongoing issue for our industry, and a great deal of time was spent at LO’s Interiorscape Conference on this subject.”
Tigchelaar and his staff spend a lot of time on client education and marketing their services – “bringing people up to speed and explaining the human value of what we do,” he explains. Some areas of the corporate world are catching on. “We have call centres and ad agencies who have a lot of people packed into an office area and they recognize the value of humanizing the workspace using plants.” To spread the word about his business, Tigchelaar invests time in networking. “We belong to a number of different business groups in our area. New business generally comes from building personal relationships and by word-of-mouth.”
For Urban Green, 2006 was a year of growth. “Not so much in our bottom line,” says Tigchelaar, “but we invested in our infrastructure by building a new workshop and adding new staff. Because we believe in what we do – adding an aesthetic and humanizing element to interior spaces.”
Sourcing plants in the year of the hurricanes (2005) was difficult and jobs were occasionally held up by a lack of availability. However, Tigchelaar says the tropical foliage industry in Florida quickly adapted; he is working with new sources and finding large plant material isn’t such a problem any more.
His own human resource efforts occasionally pose difficulties. “Finding staff is always a problem. But I’ve been lucky enough to find a couple of people recently who have come from garden centres. I find the most important element for new staff is that they must love working with plants.”
London
The mild winter of 2005-2006 meant that the season started early for DeGroot’s Nurseries in Sarnia. “The early spring was nice,” said John DeGroot. “The wet weekends in May didn’t hurt us and we saw a healthy sales increase this year.” In 2005, there was upheaval and renovation at DeGroot’s as they revamped their garden centre and built a spectacular new greenhouse, so this year’s boost in sales was much anticipated. “It’s a retail greenhouse, not a growing house,” explains DeGroot. Now that DeGroot’s customers can shop under shelter, the rain doesn’t affect the business as much as in the past. Although DeGroot admits the fall rains were “ridiculous.”
DeGroot predicts that changing demographics will be the next challenge facing the industry. The aging baby boomers will want more services. “This bodes well for anyone in the landscaping business,” he suggests. “It’s going to be all about service. There is a big block of people whose children have graduated from school. They have more disposable income, but don’t want to do the work themselves anymore.” Managing labour to provide the level of service demanded will be another challenge. “The reality is that the horticulture industry is going to have to find creative ways of attracting and retaining staff in future,” DeGroot offers.
Another retailer reporting a really good year was Ken Sipkens of Sipkens Nurseries in Wyoming. “Fall was lousy, but that’s the thing with weather,” he admits. As a full service garden centre, Sipkens reports they saw a fair increase in hard goods — pottery, giftware, bulk stone and natural rock. The growth in pottery sales he attributes to staff putting more emphasis on creative displays, but has no answer for why natural stone sales were up. In addition, sales of four-inch annuals were strong this year. Sipkens doesn’t focus on annual cell packs, but rather looks for what’s new and different in larger pots.
The design and landscaping division at Sipkens Nurseries experienced a very good year, which was a pleasant surprise. Jobs keep getting larger and more intricate as clients demand a different look than their neighbour’s garden. Staying ahead of everyone in the area requires dedication and creativity on the part of Sipken’s designer.
Sales in their wholesale perennial department were slightly down over the previous year. “But that’s because we grow under contract for department stores. We found they were just a bit more careful with their quantities in 2006.” However, Sipkens says that he is seeing increases in the orders coming in for next year, so stores are looking forward to a good spring.
Hosta Virus X hasn’t affected this perennial grower as he grows and propagates most cultivars himself and doesn’t order any hostas from Europe. When Sipkens brings in fancy hosta cultivars from the U.S. he is careful to source tissue cultured stock and hasn’t seen any evidence of the mutating virus at his nursery.
Ottawa
Phil Lindsay of Lindsay’s Lawncare Enterprises in Ottawa reported a good season. He was pleased to run a full-time construction crew for the first time in 2006. Lindsay called last December and January awful months. Lindsay’s snow team made it through by getting a lot less sleep, rearranging schedules and putting personal life on hold.
That experience reinforced Lindsay’s conviction that snow removal contractors should all be “squeezed” into joining a commodity group. He sees a need to boost the level of professionalism in the snow business. Lindsay has two employees enrolled in apprenticeship, and believes stronger promotion of that program is also a priority.
A surprising amount of repeat design business distinguished the season for Janice Ife of Ife Landscaping Design Consultants, Merrickville. “I got calls from people I had done work for 10 years ago. I had moved and changed my phone number, but they were determined to find me,” said Ife. Landscape design is not a prime field for counting on repeat business, but Ife finds people in the Ottawa area are mobile yet loyal.
About to leave on her first vacation in two years, Ife reported a good season, “as busy as I wanted.” She felt that most horticulture professionals in the Ottawa area were busy as well. Strong demand and a rainy fall generated a lot of pressure to get work done.
Ife counts many young couples with big homes among her customers, who want (and can afford) landscapes right away. Low maintenance is as big as ever, and clients continue to request reduced-pesticide solutions. Interest in water features remains high, with many clients opting for pondless waterfalls.
Marc Arnold of Rockcliffe Landscaping in Gloucester reported a somewhat slower year, though still busy. The scale of Rockcliffe’s projects seems a little smaller, perhaps reflecting a slightly softer Ottawa housing market. However, strong home prices in the area during the past several years have encouraged renovations, including landscaping, and Arnold remains confident about the future.
Rockcliffe has trended away from hard landscaping work, and toward plants. The need for specialized horticultural knowledge has made attracting staff that much harder, and Arnold says, “the only way to fix a shortage of people is to improve productivity.” The company uses customized software for time management and job tracking, allowing it to streamline and standardize its services, leading to improved efficiency. Generating quotes through a computer lets employees with plant knowledge spend more time on their specialty, according to Arnold. He considers staff development a long-term commitment – Rockcliffe generally hires one graduate from Algonquin College each year, and took on two high school co-op students this season.
Arnold cannot say whether the trend toward soft work reflects his company’s chosen direction, or consumer demand. He does see the trend accelerating thanks to television, because creating and decorating an outdoor room with plants is far more appealing on a garden show than laying pavers.
Toronto
“This was our best year ever,” says Peter Tolias of Tolias Landscaping and Plowing in Mississauga. “We were very, very busy and very profitable,” explains Tolias. The concern for Tolias wasn’t about the weather, rather, just keeping all the customers happy.
“We have turned our whole company around,” says Tolias, “by taking advantage of J. Paul Lamarche’s job costing program. We learned to eat, breathe and live numbers. It has been the most worthwhile thing we have ever done.”
As for snow removal, Tolias says that November and December of 2006 are very different from the previous year. “We had lots of snow in late 2005, but we are ready when it comes.” Plans for 2007 include more of the same, says Tolias. “We are always looking for ways to improve effectiveness and cut costs.”
“The busiest year ever,” says Frank DiMarco of DiMarco Landscape Lighting in Toronto. The weather was a challenge for scheduling and completion, especially during the fall. “It was the rainiest fall I’ve ever seen,” says DiMarco.
Traffic issues continue to be an issue for DiMarco and his crews and he suspects that his colleagues have similar problems. “We try to hit the road earlier, or come back later, and we use the 407 whenever possible, but you can’t avoid traffic when you are working in the GTA,” he says. Indications are for another good year, says DiMarco. “We are looking at a very busy spring.”
“The best year ever — by a lot, not just a little,” says Arthur Skolnik or Shibui Landscaping in Toronto. Demand for landscape contractors is very high, and Skolnik expects more of the same for next year. “Actually, I think we have at least five really good years ahead.”
“The only problem is getting to everyone,” says Skolnik. Labour is always an issue, he says, especially in Toronto. “Finding experienced, knowledgeable people is extremely challenging and I suspect it will continue to be that way.”
Upper Canada
Potter’s Nurseries in Kingston experienced roughly the same year as in 2005, due to circumstances beyond its control. “June wasn’t too bad for us,” says Kent Potter, “but then the city scheduled major road construction on our street from August to November. At times the road to our store was closed – so our fall sales were definitely down compared with other years. We’re looking forward to a better year in 2007 and hopefully the road construction is now over for the next 50 years!”
On the other hand, Potter’s landscaping division had a good year as the baby boomers continue to have work done on their properties. “In our area we’re seeing people going back to basics in the landscape. We’ve been doing a lot of landscaping with larger evergreens and shrubs with perennials as accent plants.” Potter says his store doesn’t sell annuals any more. “There are too many greenhouse growers in the area doing annuals really well, we stopped trying to compete with them.”
Nature’s Way Landscaping in Gananoque had an excellent year “until the middle of September. Up until then I think we’d only lost a couple of days due to rain,” said Terry Childs. “Once the fall rains began, it never did dry out enough for us to start working at full speed, as most of our jobs involve driving over lawns and soil to get to where we’re working.” Childs says they plan to spend the first part of 2007 catching up on jobs that couldn’t be finished the previous fall. “Most of our customers realize the weather is a problem we can’t control and appreciate that we won’t work in conditions that could further damage their soil and create costly repairs.”
Childs also operates a wholesale organic fertilizer business, which had an excellent year. “From an applicator’s point of view it has never been easier to sell an organic program to lawn care customers,” he explains. “We are seeing more and more demand for it. We are selling as much organic product to traditional lawn care operators as we do to organic lawn care companies.” Educating customers is the most time consuming, but a necessary part of offering an organic program as it requires a shift in philosophy, education and expectations. “Our philosophy is that we provide a healthy lawn — we do lawn care, not weed control. All our lawn care programs start with a soil test and we spend time with clients educating them, as should all lawn care companies,” says Childs. ‘We leave behind fact sheets explaining our products, services and what maintenance, if any, is expected of the client after our visits.”
Childs mentions that Gananoque has just announced a pesticide ban that will begin in two years. “It’s almost as if we’re going back to the old way of looking after things — doing things right the first time and creating sustainable landscapes.”
Attracting qualified labour hasn’t been an issue for Nature’s Way, which runs with two small crews. “We pay a bit more for labour, but have control over things. Nearly all of Childs’ employees, as well as Childs himself, have been apprentices or are willing to enroll in the apprenticeship program.
Obviously Childs hopes the fall of 2007 will bring better weather, “but at the same time we needed the rain,” he says. “I don’t think we can plan on the same weather patterns any more. We need to gear our businesses to be more flexible to deal with the changing weather.
“In the past some companies planned so that they work until the end of August to cover their costs and then consider everything after that to be profit. The changing weather patterns mean these companies need to rethink their operations and job costing so that every job has some profit built in. Landscaping and maintenance has been one of the businesses that people start when they are laid off, thinking it’s easy to do. But we all need to face the fact that it’s a real business and has to be planned for accordingly.”
Childs notes another emerging issue that could hurt the landscaping industry is that the provincial government is beginning to enforce existing rules requiring a licensed electrical contractor to install landscape lighting. LO recently organized a new commodity group to lobby the government and find workable solutions to this problem.
Waterloo
“It was a magic year,” according to Nina Aprile of WildThings Plant Farm in Clifford. Aprile found the mood among her customers was especially cheerful this year. Gardeners were enthusiastic, and spread the word about WildThings to bring in new customers.
From a marketing standpoint, WildThings had special success with events in 2006. A Canada Day celebration drew a large crowd that was in the mood to have a good time.
Aprile sees the tastes of her customers maturing, and going back to basics. Boutique plants are out, shrubs are in. WildThing’s biggest challenge of the season was keeping up with brisk demand. An unexpected opportunity to diversify came along, with an unusual amount of design work, all generated by word of mouth. “Every garden we did sold a garden,” said Aprile.
Aprile found the Internet surprisingly effective in driving business. WildThings is in the country, but educated consumers used the web to discover it, and “people who find us that way are spenders,” according to Aprile. Free opportunities to post the garden centre’s events on the Internet also helped make the season a success.
In Cambridge, Bill Beldham of Beaver Creek Landscape Construction reported a good year as well. “We started construction on Mar. 29, and are finishing our two last jobs in December. An 8½-month season makes for a good year.”
Beldham cited two challenges this year. The rainy October wrecked his fall momentum, and finding and keeping good people is tough. He currently has two strong apprenticeship candidates on staff and is considering participation in the program this winter.
Beaver Creek’s most rewarding business strategy this year was to stage what Beldham calls a forensic audit. He and his bookkeeper tore the financials down to the bottom dollar, and found surprising leakage. As a result, the company has implemented a purchase order system, which Beldham call a godsend when it comes to cost control.
“Don’t get me wrong,” Beldham says, “My suppliers were not deceiving me. But after I dissected my invoices I found I was not actually paying what I thought I was, because of quantities, etc.” Based on sales revenue comparable with 2005, Beaver Creek’s costs after his audit experience for payroll and materials are lower.
Windsor
“Flat” is what comes to mind when Karl Klinck is asked to sum up garden centre sales for 2006. The owner of Orchard Farms Nursery in Windsor says it was a strange year for the retail sector. “April was warm, and it was an excellent month for us, but then May was rainy and that really took the steam out of our sales.”
The U.S. economy continues to affect Windsor retailers. “Our dollar is higher so visits from Michigan residents are down. The Windsor casino revenues are down and we are facing some plant closures in Windsor. I think people are a little nervous.” In spite of fewer visits, the average sale has gone up at the garden centre, says Klinck.
Klinck has found that the expensive items, like 100-cm Japanese cut-leaf maples, did not sell. He says he’ll adjust things for next year by offering smaller sizes. Klinck is leery of making predictions for 2007. “I don’t expect major changes, but again, our business always depends on the weather.”
As a landscape contractor, Dan Garlatti of Garlatti Landscaping has a different view. “It was a really good year for us.” Garlatti attributes some of his increased sales to hiring a fulltime landscape designer. “It made a big difference this year,” he says.
“The summer weather was good for our business,” Garlatti explains, “but the fall weather was terrible. We lost a lot of days.” Garlatti is hoping that the snow side of his business will turn around in 2007, because the snow in 2006 was almost non-existent. “Snow can make or break your year,” says Garlatti. “We still have contracts but the pay-per-plow work is not there.”
Garlatti expects that plant closures will hurt the Windsor area in the next few years. On the up side, it might help the labour situation for landscape companies, he says.
