Brave New Worlds - Landscape Industry Trends

"To begin with, it's worth noting that all thefollow. Transformational leadership is driven by
insanity around us notwithstanding there will be asustainability and not simple efficiency. Decisions
moment when this age will start to make sense:are open and transparent. Transformative leaders
That brave new world will look very differentuse consultation and participation as a process to
than it does now..."create change. The change required is not in what
-Joshua Cooper Ramo, author of The Age of thewe do as a business. The change is about how
Unthinkablewe do business. Transformative leaders empower
It's the Economypeople.
Yes, the economy is in shambles. One large U.S.Address the Environment
investment bank has disappeared while theIn the landscape industry, green was simply what
remaining four have been acquired or becomewe called our industry. Twenty years later, green
conventional banks. As of the end of 2009 oneis the one of the hottest growing trends in the
hundred forty banks have closed. In 2010,world. Faith Popcorn, of the BrainReserve, places
twenty-seven banks have closed through Marchthis in terms of Save Our Society (SOS). It is a
11th. The Wall Street Journal reports that thegrowing trend towards social responsibility. People
FDIC expects the bank closure rate to increasebuy brands that help society. People want to
this year. The New York Times reports thatwork for companies that help society. People are
beyond the $700 billion TARP bailout, thewilling to commit a certain amount of time to help
government has committed to spend about $12.2society.
trillion to prop up the sagging economy. TheEnvironmental issues have dramatically changed
residential housing market has collapsed and thefrom conserving precious natural resources into
commercial property market is on the brink ofcreating a sustainable environment. We in the
disaster.landscape industry can play an important role.
What does this mean to our industry? InConversely, if we do not play an important role,
interviews with contractors, suppliers andthe environmental issues will dramatically change
manufacturers across the country, the overall U.S.our industry. In 2007, seventeen Canadian
landscape industry declined between 25% to 30%communities banned commercial lawn care
in 2008. Keeping at the current pace, it appearsapplicators and in 2008 another 124 followed suit.
that the landscape industry has declined anWe often think water conservation is reserved
additional 30% in 2009. Overall, this contraction tofor the arid West. In the late 1980's we saw the
our market over the last twenty-six months isadvent of low-flush toilets and low-flow
between 40% to 50%. The West Coast and Eastshowerheads. In Massachusetts today, most area
Coast have been hit the hardest. The Midwest,communities impose water restrictions to meet
with the exception of Michigan, is experiencing thethe 2004 state standard setting the maximum
least amount of decline. Even in areas with lesserper-person usage rate at 65 gallons per day.
amounts of decline, such as New England, the painMassachusetts also adopted the first low-flush
is still present.toilet ordinance. With the average U.S. household
In Texas, the Midwest, and New England,water usage at 78 gallons per person per day this
companies focused on the residential market feltregulation has the potential to put the
the pinch early last year. This year, companiesMassachusetts landscape industry out of business.
focused on the commercial market are feeling theWhat is our role? Through landscapes, we create
economic crunch. Overall, in the last eighteensustainable sites. Several organizations have
months, the landscape market in Texas is downidentified "green" industries as the number one
30%. While not as bad as California or Florida thegrowth industry.
decline is still frightening.Simply plant trees. The EPA reports that tree
The only bright spot is commercial maintenanceplanting sequesters carbon and enhances the
and mowing contractors. Dan Diehl, withquality of soil, water, air and wildlife. If every
Consumer Manager for Kenney Equipment says,family planted just one tree, the amount of CO2
"With the unusually wet weather over the lastin the atmosphere would be reduced by one billion
two years, the commercial mowing market haspounds annually. One tree will absorb about 10 lbs.
stayed about the same. However, everyone isof air pollutants, including 4 lbs. of ozone. Trees
being very cautious and prices have dropped asplanted around a home can reduce air conditioning
companies struggle to stay in business."usage by 30%. Over a 50-year lifetime, a tree
Competitiongenerates $31,250 worth of oxygen, provides
In the short term, competition is fierce as$62,000 worth of air pollution control, recycles
competitors drop prices. Margins are being$37,500 worth of water, and controls $31,250
squeezed. Surviving companies will be lean andworth of soil erosion.
extremely efficient. Can companies reinventVegetative roof surfaces, or greenroofs, are an
themselves in a down market? The list ofadditional opportunity. Greenroofs are growing at
companies that have started in down economiesa rate of 35% this year. Greenroofs improve
is legendary. Apple, Microsoft, Google, and Dellstormwater retention, save energy, and reduce
Computers are all companies that started in downnoise levels in a building. Environmentally
economies. Reinvention is possible. In the 1950'sgreenroofs mitigate the urban heat island effect,
AT&T reinvented their telephone network.reduce dust and smog, produce oxygen and act
Businesses today have a unique opportunity toas a carbon dioxide sink. Financially, greenroofs
rethink how they conduct business. The smartincrease the life expectancy of the roof,
companies are doing this. They have changed.contribute to LEED® points, and may be eligible
Smart companies are accepting the economicfor government incentives.
chaos and are seeking hidden opportunities.Rain gardens, bioswales, and rainwater harvesting
Survival - The companies that survive will havetechnologies provide additional "green"
these attributes:opportunities. Rain Gardens are water-retaining
1. Adaptabilityareas planted with native or low-maintenance
Companies that are incredibly quick andvegetation. A properly constructed rain garden
responsive will survive this crisis. "In nature, it isallows rainwater to runoff from impervious
not survival of the strongest or the smartest ofsurfaces like rooftops, driveways, and sidewalks.
the species but the species that is the mostThis reduces stormwater runoff - allowing
adaptable to change," said Charles Darwin.captured rainwater to soak into the soil instead of
Adaptability also speaks to the need to berunning into storm drains. Rain gardens can reduce
incredible efficient. Companies across the nationnon-point source pollution running into local
are reducing costs at an alarming rate. Thosestreams and waterways. Rain gardens improve
companies, which understand most effectivelywater quality, aid in flood control, and encourage
where to reduce expenses without reducingwildlife.
essential services will prosper.Bioswales, similar to rain gardens, have an
2. Great Customer Serviceadditional element of a subsurface under drain -
Great customer service never goes out ofusually a corrugated pipe that feeds into the
fashion. Take care of your existing customersstormwater system. A landscape with properly
while your competition offers panic drivendesigned rain gardens is cost effective when they
discounts. Know your customers. Talk to youreliminate the need to construct curbs, gutters,
customers. Great customer service is all aboutstorm drains and retention ponds.
communication.Rainwater harvesting system is an old idea seeing
Great customer service also means great quality.an increased interest in the U.S. as an alternate
The value proposition of your company dependswater supply. The City of Tucson, Arizona
upon delivering what a customer wants. It alsorecently passed the first commercial rainwater
depends on delivering it when your customerharvesting requiring new commercial development
wants it. Finally, delivering all this at a value ato obtain 50% of their landscape water
customer expects is what separates you in therequirement from rainwater harvesting.
market. Quality has never been more important.Currently, rainwater harvesting is seen as a
3. Couragemethod to conserve the amount of water used in
Great leaders know tough times createa landscape, however, stormwater mitigation is
opportunity to drive change and innovation.the largest benefit from rainwater harvesting. Like
Historically, the companies that invest in marketingrain gardens and bioswales, rainwater harvesting
and sale fare best in economic downturns.takes the landscape from an aesthetic to a
Increasing sales and marketing expenses whenfunctional aspect. Developing a functional landscape
your company is slashing everything feels counteressential for sustainable site development.
intuitive. It takes courage. Your competition is"The over-borrowing, over-consuming, and
cutting expenses in sales and marketing makingunder-innovation is now in the US..." Antonio van
your marketing efforts even more lucrative. YourAqtmael said in an October 2007 issue of
marketing will standout. How do you communicateNewsweek. Every organization has the power and
with potential customers without marketing andthe talent when unleashed, will result in dramatic
sales?change. In order to create success, drive up your
4. Transformational Leadershipmental tenacity, keep a positive attitude, and
Transformational leadership requires the couragedrive fear out of your organization. The best way
to hold a vision and an inspiration that people canto work with change is to create it.