Archive for September, 2009

By Definition, Leaders ‘Lead’

Monday, September 28th, 2009

On page 10 of PRO’s Oct/Nov 2009 issue, a design/build contractor relates that he has “been in business over 20 years and has never seen economic times like this.” His D/B sales are off 40% from last year, and without additional maintenance sales and practicing a rather conservative growth strategy over the last few years, his company would be in trouble. Despite the murky outlook, he’s forward-thinking and making plans to recover fast with the economic recovery.

By definition, isn’t that what leaders do? Leaders look ahead and make plans today for a brighter and more profitable tomorrow. This past year, it has been all too easy to get mired down in the economic muck. Layoffs, wage reductions and other cost-cutting, along with spending more hours selling and worker harder, have been key components to contractor survival kits.

But a survival kit isn’t complete without a plan for moving forward, and “making plans” is what savvy contractors do. As you read through this issue, you’ll discover how contractors are finding ways to succeed in a changing market, how holding effective strategic planning meetings can help identify new opportunities, and how making a few on-site adjustments can set a company apart from the competition and reduce costs for customers.

Do you have the stomach to succeed in the new normal—in what promises to be a more competitive business environment driven by even higher customer expectations? Certainly, the above contractor whose D/B sales are off significantly has the stomach, as do three of his peers, all of whom share growth plans and strategies in the toughest of markets.

This issue provides an opportunity to find out what industry leaders are saying about next year. Also take a moment to read through the GIE preview section on page 24 for a look at some of the new products being introduced at the upcoming GIE+EXPO to be held in Louisville October 29-31. For an even closer look at the show, visit gie-expo.com.

Then there’s the Green Industry Conference, which is also being held in Louisville October 28-31. The GIC’s keynote address features three industry leaders who will share their vast knowledge and experience. Also, readers have always told me that just attending the GIC’s PLANET Breakfast with Champions is well worth the trip. Listen to a conversation with contractor Bob Grover at greenindustrypros.com/procast for a rundown of five “can’t miss” events.

GIE/GIC is indeed a “can’t miss” opportunity this year, especially for leaders looking for new ideas to build for the future. While there, please stop by PRO’s exhibit on the show floor (Booth #2138) to say hello and share some of your thoughts about the industry.

Finally, the winners of the 2009 Pros in Excellence landscape contractor recognition awards will be announced at a press conference on Friday, October 30 at 3 p.m. So stop by the New Products Arena stage on the show floor to see who this year’s winners are. The awards are sponsored by Ariens, Stihl and GIE+EXPO.

~ Rod Dickens, senior editor of PRO

A Relationship Business Built on Business Relationships

Tuesday, September 22nd, 2009

It didn’t come as a huge surprise when news broke back in March that Echo Inc. and Shindaiwa Inc. would be merging, since an eventual merger had been in the works since May 2007. The announcement that the Echo and Shindaiwa U.S. distributor networks would be consolidated wasn’t really a shock either (page 38 of Yard & Garden’s Sep/Oct issue), as consolidation has long been a trend in this and many other industries.

What has surprised me has been the somewhat apathetic response from many of the dealers I’ve talked to. If there ever was an industry with an element of “good ole boy” to it, I guess it would be this one. And when a dealer has been doing business with a certain distributor for years and years, only to have an OEM tell him that he’ll now have to start working through a different distributor, you can expect a certain level of anxiety on the part of the dealer.

But I haven’t really sensed that anxiety. Most of the dealers I’ve talked with are taking the changes in stride. Sure, they feel bad for their long-time distributor who can no longer carry Shindaiwa (there’s that personal element), but realize they must do what is in the best long-term interest of their dealership (there’s the business element).

As one Shindaiwa dealer put it, “You bet I’m going to continue carrying Shindaiwa. My commercial guys are hooked on it, and I can’t chance losing them to another dealer.” Another dealer who has been selling both Echo and Shindaiwa says he will forego plans to get rid of Shindaiwa now that he can purchase both lines through a single distributor, allowing him to combine orders.

On the other hand, one Shindaiwa dealer says he will likely drop the line and focus on his other handheld line (Stihl) now that it looks like a nearby Echo dealer will also be selling Shindaiwa. It is up to the individual distributors to decide which dealers can carry which brands. Time will tell how this plays out.

Then there are some Shindaiwa dealers who are looking at alternative handheld lines. Many are considering Maruyama, which is now partnered with several ex-Shindaiwa distributors. Efco has also picked up a couple of ex-Shindy distributors. RedMax is a third name I’ve heard come up, although dealers remain cautious as they wait to see how things pan out now that the RedMax Georgia operation has been consolidated into Husqvarna’s Charlotte operation. Boy, talk about an industry segment in flux right now.

As the new Shind-Echo starts to take shape, it will be interesting to see which side of the fence dealers land on. Today’s dealer network is not the same as it was 20 or even 10 years ago.

Dealers these days are more sophisticated and business-savvy. They realize that even though this is still a relationship business, their business must be built on strong business relationships. And you can bet dealers are going to do what’s in the best long-term interest of their business. So let the best man win.

 ~ Gregg Wartgow, editor-in-chief of Yard & Garden