Shake the Eight BallA candid look at the state of the landscape and lawn care industry.

Chuck BowenEditor and Associate PublisherLawn & Landscape

What we’ll cover today• The ‘average’ landscaper

• The state of the lawn and landscape industry nationwide

• Mobile and social trends

• Specific segment trends for the rest of 2015 and beyond

The ‘average’ landscaper• (Caveat: This person doesn’t exist.)

• But, in 2014 the average landscaper:• Employs 15 people (seasonal and year-round) • Pays himself $68,414• Pulls in net profit of 11 percent

• Does full service landscaping for mostly residential accounts

• The owner is the primary salesman, especially in a design/build business

• He’s also still working in a production capacity during the day and doing back-office work in the evenings and weekends

Impact of the Great Recession• Leaner (and meaner)

landscapers

• High profits and high stress

• More focus on the business

• Consolidation of the market

Landscapers go mobile• 8 out of 10 contractors use a smartphone for

work.

• About 60% of landscapers are on Facebook. The next biggest platform is Linkedin, and then Twitter.

• They’re using these devices to take photos and text with their employees and customers, as well as to access urgent information like the weather reports on the go.

6 key trends for 2015 and beyond1. Water, water, water

2. Labor challenges (H-2B vs. domestic)

3. Stress

4. Business systems/technology

5. M&A/private equity investment

6. Fuel (alternatives, ethanol and cost)

Trend #1 – water• Rates are going up

• It’s only getting drier

• Infrastructure is crumbling

• This is an opportunity

Source: 2015 Circle of Blue research

Trend #2 – labor

Trend #2 – labor• You need a recruiting and

retention program

• This requires investment of money and time for training

• What’s going on with H-2B? That’s a great question. Let me know if you have the answer.

Trend #3 – stress• Not new, but more openness to discuss it

• “My truck feels more like a prison every day.”

• Aging owners stuck with no place to turn

Trend #4 – technology• Software systems

• Taylor Milliken

• Cub Cadet and Bluetooth

• Exmark and Red technology

• Mowz/Plowz/Pros.com

Trend #5 – M&A• KKR is not LandCare by a long shot

• John Deere Landscapes on the move

• Opportunity for regionals to grow

Segment trends• Lawn Care

• Continued impact of Imprelis on branded product purchases

• Regulations (Clean Water Act, pollinators)• Adoption of other services/move away from pure

chemical apps• Contractors’ top concern: Price of inputs

Segment trends• Irrigation

• Drought challenges and opportunities• Smarter and smarter technology in the field• Influx of capital to renovate and update systems• Contractors’ top concern: Communication of value

of water management

Segment trends• Maintenance

• Propane/alternative fuels• Turf conversions in west • Commercial market coming back • Contractors’ top concern: productivity and uptime

Segment trends• Hardscapes

• Outdoor living spending growth• Patios, walls, pathways, fire pits • Great backlog numbers • Contractors’ top concern: Keeping up with demand

Marketing trends• Integration & Multiplatform approach

• Use print for branding and credibility• Use web display ads for branding and site traffic

(call to action)• Use digital direct (eblasts and enewsletters) for

specific messaging, data-gathering, targeting and measurability

• Use social to “echo” your program

Marketing trends• Brand alignment

• Align your display/messaging with content that creates awareness of your category

• Print alignment = adjacency or sponsorship• Digital alignment = sponsorship or content

marketing• Social alignment = collaborative programs

Marketing trends• Brand alignment

• Align your display/messaging with content that creates awareness of your category

• Print alignment = adjacency or sponsorship• Digital alignment = sponsorship or content

marketing• Social alignment = collaborative programs

Marketing trends• Examples

• Partnering to develop a campaign around a particular topic

• Category e-newsletters• Sponsored content series• Sponsored research programs• Cooperative social media initiatives• EOP programs

2016 Planning Tips• Multiplatform

• Mobile

• Print for branding, digital for messaging

• Collaborate

• Measure

Questions, comments, concerns? • Chuck Bowen

• cbowen@gie.net

• 216-393-0227

• Pat Jones

• pjones@gie.net

• 216-393-0293