Cutbacks in consumer spending are not expected to impact many large and small area lawn maintenance and landscaping companies this summer.
Rick Clark, "head outside guy" for Signature Landscapes LLC, one of the largest landscaping and maintenance companies in Reno with 225 employees, says despite the severe economic challenges curtailing business in the region, Signature still is holding strong heading into the warmer spring and summer months.
With the collapse of the housing market, Signature has seen a substantial dip in residential landscaping installation, but Clark says the company still has a significant amount of business in that sector. Another of the company's main revenue sources these days, he says, is the installation of water-saving Xeriscape features that feature drought-tolerant plants and artfully placed boulders, rock beds and paver walls, as well as conversion of regular sprinkler systems to water-saving drip irrigation.
"We are getting real creative and doing a lot of things to help people save money," Clark says. "We work with clients on Xericsape conversion to reduce turf areas and cut back on water usage and maintenance
costs.
"Water rates are going up, and people are getting motivated to do what they can to save on long-term
costs," he adds. "Plus, it adds to the curb appeal. It gives a property a kind of facelift."
Signature also hasn't seen a large amount of cancellations from residential homeowners who decide they'll trim their own grass this year to rein in household spending. Clark cautions that improper landscape maintenance can be more costly in the long run.
"Ultimately it is a mistake," he says. "I've seen it happen time and again where people think they can take it on, and it's really out of their area of expertise. You have to know the material and the intent for that material, whether it was meant to grow and be natural or be sheared."
Companies big and small say commercial maintenance is their strongest business segment. Paul Stevenson, owner of Custom Lawn and Landscaping, hasn't yet seen a significant drop in overall business mostly because he began pursuing commercial accounts several years ago.
With commercial and industrial maintenance accounts carrying the weight, the decline in new custom and tract home landscaping and residential maintenance accounts hasn't hurt Custom's bottom line.
"Commercial maintenance is strong you have to have it done when you have tenants," Stevenson says.
"Homeowner maintenance hasn't really dropped off at all, but on the install end it has for sure."
Stevenson's small employee base of nine workers stayed busy throughout the year except for a few snowy weeks. And low overhead means slowdowns don't hurt his business as it would the region's larger landscape companies.
"A few good jobs will hold us through," he says. "We have been lucky to stay pretty busy."
Stevenson has owned the business for a dozen years and gets 100 percent of his jobs from referrals or word of mouth. He says many commercial maintenance accounts have come his way because of the higher levels of customer service a little company can provide.
"We are smaller and don't have all that overhead and we keep our equipment paid for. A lot of bigger guys have a bunch of trucks, tractors, big huge shops and lots, and they have got to pay for that even when there is no work going on."
Jon and Aaron Hess bought Clean Cut Lawns three years ago and are heading into their fourth spring and summer season. The brothers expect 3 to 5 percent growth this year due to low costs and higher service levels.
"We are able to take care of the customers we have rather than try and mow-and-blow through everybody and get as much business as we can," Jon Hess says. "We are not as expensive as some of bigger companies, so haven't seen a big hit."
Hess says customers who have had their laws mowed for years often lack the tools to do it themselves and face significant costs in mowers, blowers, weed-whackers and edge trimmers. To keep current customers happy the brothers are providing extra services free of charge.
"What we are trying to do this year is incentivize, give a little more return of service."
