NATIONAL FEATURES
Executive Outlook

Manufacturers share their thoughts on the industry

Leading manufacturers make their predictions of what’s in store for the green industry for

Kerry Overton
Marketing manager of Monsanto Industrial Turf and Ornamental
“As the green industry grows more complex, the general public will have more interest in it, and also more questions. At Monsanto, we believe this creates an opportunity for companies to deliver innovative solutions and also clearly communicate the value of those solutions.

“An example of this is our newest product, Roundup PROMAX. Launched just over a year ago, Roundup PROMAX has received exceedingly positive feedback. Another product that continues to exceed expectations is QuikPRO. Customers appreciate the fact that the product weighs less than liquid formulations and doesn’t freeze.

“We believe that to be successful, top-performing products and unique services must go hand in hand. And, with all the growing interest in the industry, it’s critical to deliver new and innovative products and services. This year, we look to demonstrate value and exceed expectations through technical recommendations, environmental stewardship and providing information to the public.”

Paul Syracuse
General manager of Buffalo Turbine LLC
“Product integrity, innovative designs and customer service are part of the formulated efforts that are required to be an industry leader. With the copycat mentality running ramped, it is more critical now than ever for the turf professionals to demand to see a product demonstration prior to making that critical purchase. As the grounds chairman for Gowanda Country Club in western New York, I see budgets and hiring practices remaining under close scrutiny for years to come. Because membership quotas dictate course solvency, superintendents, with help from their board of directors, have to try and reduce overhead, as well as make purchases that will increase productivity relative to the grounds and equipment maintenance. As a consumer, my demands are high. Turf professionals need that same respect.

“Being cautiously optimistic may be a good philosophy for 2010. An attempt to remain on top of the competition will be the result of offering good, quality products, but not limiting them strictly to the turf markets. Most importantly, Buffalo Turbine will remain very proactive in our attempt to provide the best customer service available in this industry. Establishing a dealer network that agrees ‘our customers are why we are in business today,’ will be part of our future team for years to come. 2010 will bring new product development, aggressive marketing/advertising, participation in numerous trade shows and more focus with international sales.”

Nick Cusick
CEO and president of SourceOne Outdoor Power Equipment
“The economic climate has slowed what would otherwise be a trend away from do-it-yourself lawn care and toward commercial lawn care. There is no question that Americans desire quality turfgrass lawns, and as the economy improves, demand for turf maintenance and renovation will also improve.

“SourceOne turf renovation equipment has not been immune to the economy, but there has still been increased interest in aeration. Efficient water and fertilizer use has increased the popularity of aeration, especially in parts of the country where soil types and turf varieties make aeration a significant contributor to quality lawns. I expect smart contractors will capitalize on this interest as they look for ways to maintain or grow their businesses in 2010. There will always be property owners who will spend money to maintain their lawns at peak levels. SourceOne offers a ‘Why Aerate?’ handout to help contractors sell aeration services.

“When contractors add services like turf renovation, I remind them to choose equipment that can be operated by the entire crew. This is especially true for walk-behind aeration equipment that traditionally has required linebacker strength to operate. SourceOne Plugr aerators are designed for maximum maneuverability and reduced operator fatigue.”

Jason Sentell
Business development manager of STEC, Inc.
“As we move into this new year, there is no doubt that many companies have bid farewell to 2009 with a sigh of relief. With the multitude of dismal stories from our industry, it has become increasingly important to highlight both the successes of the past year, and those with a positive outlook for the future. 2010 brings many wonderful changes for us, including launching a new company name. STEC, short for Specialized Turf Equipment Company, has been a project in the works for quite some time and is an exciting step forward for what was BLEC USA.

“This new name marks an important change, better noting who we are as a company and incorporating the other major lines that we distribute. STEC is steamrolling into 2010 offering several new machines, additional staff members and plans for a move into a larger facility.

“2010 will be a ‘make or break’ year for many companies. Those who have scaled back will face a slow recovery, while those poised to grow should see a positive return on this investment. STEC is poised and ready to grow because of our commitment to strengthen our product line and distribution channels, even in the face of a weak economy. We look forward to a very strong 2010, and wish a happy and prosperous new year to all.”

Bob Walker
President of Walker Mfg.
“We are cautiously optimistic for a turnaround in the coming year. We believe that small American manufacturers are still a strong part of our economy and will be for years to come.”

Carey Parrish
Vice president of First Products
“Hopefully, at worst, 2010 is a repeat of 2009; I personally hope we are just on bottom!

“I won’t say a lot about 2009, other than it was a challenge. Like most companies, we were forced to make some adjustments to our company size and structure, and hopefully the economy has bottomed out and things will start to pick up in 2010. As everyone in manufacturing is aware, the current economic conditions make for some interesting times in forecasting production, and basically it’s a guessing game.

“Dealers and manufacturers are in the same game trying to determine stocking levels and monitoring budgets closer than ever. Dealers are concerned with financing options and preseason stocking requirements required from manufacturers. Dealer stocking commitment establishes the discount level and basically, we all know how it works: stocking dealers receive larger discounts. When a dealer refuses to stock, he is forcing all inventory cost back to the manufacturer, thus non-stocking dealers receive les discount—simple as that.

“Bottom line is that manufacturers and dealers need each other, and finding the balanced to satisfy both ends of the chain is important for everyone, and working together will be more crucial than ever to survive in the new year.”

Scott Griffeth
Technical contact at Rubbertrax, Inc.
“In this industry, these have been tough economic times for many. However, as a fiscally strong and responsible business, we are very optimistic for a bright future, not five years out, but as soon as 2010. When we offer an aftermarket product to the budget-conscious consumer and offer what we call ‘The best track for your machine ... and your budget,’ then we bring true value to the customer. That helps in the short term, but over time carefully maintaining your machines and undercarriage will prevent unnecessary expenses down the road. After eight years of offering this type of value to the construction industry and standing behind our products, we find that aftermarket options are received with much appreciation these days, and although cost is less, the customer expects service that is still of the highest quality in support of their needs. We consider response time along with being well-trained in the technical aspects of the manufacturing process of the tracks and the environment in which the operator works in to be essential to the education of the buyers/operators. More and more vendors are offering discounted products and flexible payment terms, which are helpful steps to the smaller construction and landscaping companies. Every step helps, and with more machine operators and company owners conducting business with cost savings and efficiency, we’ll continue to do our part to help the industry as a whole.”

Byron Riese
Turf sales manager of Harper Industries
“I believe that the long-term outlook for the turf industry is very bright. There will always be a need for turf maintenance and care, and there are more and more acres dedicated to turf each year. We have certainly seen a substantial down cycle over the past couple of years, but prior to that there was a long, sustained trend upward. I believe that once things turn around, we could see a strong demand for turf maintenance equipment, because the equipment buying has been placed on hold the past couple of years has forced the use of existing machines beyond their normal life cycle. There will come a point when there is no other choice but to get new equipment. Hopefully, that will be in the coming year.

“At Harper Industries, we have utilized this down market to refocus our engineering efforts and further refine our product offering. We have invested in expanding our vacuum product line to add a self-propelled unit that features our patented recirculating air technology and high dump lift. This is an exciting new product that really rounds out our vaccum product family.”

Dave Polisky
Director of sales and marketing, Cleveland Tubing, Inc.
“2009 was a year of significant market volatility with regard to raw materials, and overall sales of just about anything related to building materials seemed to suffer. As a company, we have increased our efficiencies to ensure we maintain our profitability so that we can continue to invest in our future.

“By taking an aggressive advertising and marketing approach in 2009, we were able to expand our customer base and sales for FLEX-Drain. 2009 was a successful entry into the commercial drainage market, and we more than tripled our customer and user base due to implementing a complete drainage solution center, including a full line in-store merchandising unit. We have also hired outside sales representatives beginning in January 2010 throughout the country to support our growth. We recently launched our new flexible T/Y that functions both as a tee and a wye, and expands to fit the need of every application. The initial response to our complete drainage solution package has been fantastic, and we are expecting to see increased sales and a larger portion of the market share moving toward FLEX-Drain.”

Dallas Steiner
President of Ventrac by Venture Products, Inc.
“As 2010 approaches, Ventrac is going forward in its growth as a company. With continued developments in new innovative equipment, Ventrac is on the cutting edge of new products that will move forward for a strong upcoming year.

“The continued growth and expansion of international markets will bring new opportunities for increased export sales. Strong global markets have been a solid part of Ventrac, and will continue to be in 2010.

“In what has been seen by some as a less than positive economy, Ventrac will continue to be a strong force in the commercial equipment business. With a versatile line of tractors and attachments, Ventrac will continue to supply the specialty markets with an exclusive product that will stand the test of time.”

Fred Baswell
Owner of Performance Outdoor Products
“If rain and snow are any indication what type of year we are going to have, it looks good for most of the country. We feel equipment sales are going to be down for part of the year, but with that being said, as long as you can buy parts to keep your equipment going, you can stay in business. We sell all types of parts to keep equipment running like new, and the parts are priced to save you money so you can buy new equipment when the time comes.”

Carl Pawlowski
Manager of residuals, operations and engineering at MWRA Bay State Fertilizer
“Landscape and turf care professionals could be in for a rough go of it next year. It is my personal opinion that policy decisions made today will have a negative impact on our economy for at least the first half of 2010. I fear that one of the easier decisions people make will be to reduce their expenses with regard to landscaping and lawn care.

“Therefore, I feel it is important to provide low-cost options that will give customers real value for their hard-earned dollars. Bay State Fertilizer is one of the best values. Our costs are fixed, and therefore so are our prices. There isn’t a more cost-effective and environmentally sensitive way to fertilize grass. Bay State Fertilizer provides macro and micronutrients, providing a unique deep green color. It is rich in organic matter, reducing the need for watering. It also provides nutrients in organic form that break down slowly over time; it feeds slowly over time and can be applied as frequently as two times each growing season.”

Rhett Clark
President of Gregson Clark
“Versatility of application equipment has become increasingly important. In addition to conventional lawn spraying, customers are using our sprayers as a nurse tank for ride-on sprayers, for applying liquid deicing products and for spraying compost tea and other organic products.

“Ride-on machines are very fast and effective, however most LCOs still find a need for tank sprayers for precise applications on smaller lawns and to avoid run-off of misapplied granular fertilizers.

“A great deal has been learned recently about the effective production, storage and application of compost tea. Ten years ago this was a tiny segment of our market, and today we have a significant number of customers successfully using compost tea in their program. A popular accessory for applying compost tea has been our Eco-505 injection system. Because compost tea contains living organisms, other control products cannot be tank mixed. The Eco-505 mixes on demand at the gun, allowing applicators to spot-spray pesticides only as needed while blanket applying nutrients.

“Sprayers that might otherwise be in storage for the winter are being utilized, with only minor modifications, to apply the many effective liquid ice control products now available.”

Jim Stubbs
CEO of CDS-John Blue Company
“The demand for efficient application of nutrients will drive the high-tech equipment available today. This trend, of course, will continue, and thus the turns on equipment and components will remain steady. Technology is here and evolving to make better use of our resources.

“Water issues increase every year as our need for water sources are strained. This is due in part to the current realization of how precious this limited commodity is and thus preservation and usage become litigated issues.

“With this comes the need for better usage and management of water. The days when you could find very inexpensive water and not worry about the efficiency of usage are ending. Cities, recreation and our habitat require our better use of this. Thus, looking forward, proper application to make the best use of the water will be most important.”

James R. Day
General manager of Turf Teq
“The next time I hear someone use the term ‘cautiously optimistic,’ I think I might scream. The term is severely overused, however it truly describes where we currently see our industry. The majority of our customer base is commercial landscapers, rental yards and institutions. Turf Teq has worked very hard to listen to our customers and refine our niche market products to meet their demands. This has paid off as 2009 exceeded our expectations, and was on par with 2008. We adapted our marketing, sales and product line to accommodate the existing economic climate. We are very optimistic about 2010 as we have spoken to many of our customers and prospects. We are planning for increased sales in 2010 due to pent up machinery demand and our expanded product offerings.

“Turf Teq designs, manufactures and markets a full line of commercial landscaping equipment. The company was founded in 2000 and began marketing their first self-propelled Power Edger in 2002. Based on customer feedback, we have expanded our product line over the past seven years to include both dedicated and multiuse Power Edgers, Power Brooms, Power Rakes and the award-winning Brush Cutter.”

Eric Levine
President of Obex Data Services, Inc.
“Our outlook is based more on what we hear from our clients rather than speculation. The economic downturn caused our client’s customers to cut back on design and installation work more than maintenance. Even though the maintenance was not as badly affected, what has been difficult is getting paid on time. 2009 will be known as the year of a breakdown in confidence in our financial institutions. From all accounts, that appears to be moderating as the economy improves. It is confidence that allows customers, both residential and commercial, to begin to make their disposable income available for the types of services the green industry provides. When your customers are apprehensive about their finances, they will do anything to cut back. Our clients have learned that going back to basics is the best strategy. That way, maybe the customer will cut back on something else. Our clients tell us that the best way to get back to basics is to focus on quality and customer service. We have been successful because our billing service allows our clients to focus on quality and customer service, while we make sure all their billing is handled professionally and in a timely manner. With that strategy, 2010 is going to be a good year.”

Tom Rich
President of L.T. Rich Products
“The year 2009 was a successful one for L.T. Rich Products. The year started out rough as sales were down 27 percent in the first quarter, but things rebounded rapidly as we expected to finish 2009 with 5 percent growth over 2008. Even more impressive is that we have seen new entries in the market as well, but we continue to grow. The year has seen us expand to states where we did not previously have a presence, as we now have machines in 48 U.S. states, as well as Canada.

“We expect to grow even more in 2010. We continue to make improvements in our product line and gain more market share as word of our product and support reaches the consumer. Our sales force intends to reach out to more customers through increasing our trade show presence and a more aggressive marketing campaign.

“Our hard work paid off as we are one of the few bright spots in the green industry. We are thankful for the continued support of our past customers combined with the gained trust of new customers.”

Mark Crosswell
President of Tygar Mfg.
“This past year was difficult for most businesses, and landscape curbing was no exception.

“However, we were very encouraged that most curbing contractors were both profitable and reasonably busy despite a challenging market. As we’ve always known, landscape curbing tends to remain strong in soft markets because it offers such a unique value—it dramatically improves a home’s appearance while providing a practical, permanent form of edging. Curbing contractors also generate much more profit from curbing compared to landscape maintenance and most other hardscape projects. Each job is a one-day turnaround, so contractors quickly move on to the next job, yet they retain the ongoing maintenance of each home they curb. Curbing is also very predictable, with the material costs averaging about $1 per foot, and retail prices for decorative curbing ranging between $6 and $10 per foot. As a result, a landscape contractor can make great money at curbing, even if they only curb one job a week.”

John Quinley
Marketing manager of Land Pride
“It would be surprising if anyone has been immune from the sudden drop off of business some months ago. However, in downturns like the one we are experiencing, those who want to survive dig in, do what they do best and forge ahead cautiously.

“It may be a long couple of months before we get to spring, but we at Land Pride feel fairly optimistic of what is to come. Our retail activity the past several months has been good, and in many of our product lines, better than last year. With this decent retail activity, and coupled with dealers’ reluctance to order back in as heavily as before, our inventory levels in the field are coming down quite nicely. When spring retail activity begins, dealers will not pass up these sales, and will cautiously order in the equipment they need, and, I believe, will order more single units to ship LTL for those immediate sales.

“A great deal of our business is tied into housing starts, construction, landscape and tractor sales; at this time, I do not see a super bright spot on the horizon. However, we feel fairly optimistic for the spring season.

“We’re doing what we do best: introducing new products, taking care of the customer and supplying excellent products.”

Dan Williams
Technical sales manager of Eureka Chemical Company
“With increased awareness over environmental impact, corrosion preventives and lubricants are being scrutinized like never before. The problem with the new, eco-friendly products is the lack of performance. They simply cannot compete with the more traditional, solvent-based products. This leads to a serious problem for those wishing to be more environmentally conscious while still maintaining the same level of protection for vital equipment. Proper equipment maintenance is crucial to its health and longevity.

“The solution, however, lies not in the future, but in the past. Fluid Film is a lanolin-based product that has been successfully protecting military, industrial and farm equipment for over 60 years. From its inception, Fluid Film has remained solvent-free, outperforming all the traditional-based products while offering a better solution for the environment. Fluid Film is classified as nontoxic and non-hazardous, is safe to use on paint, plastic and synthetic rubbers, and will not burn greenery when used on cutting devices. Fluid Film will also not freeze, making it an excellent release agent for snow and ice. It is perfect for winterizing equipment and protecting snow handling equipment through the harshest winter season.”

Meredith DeWitt
Vice president of DeWitt Company
“The future of the lawn, landscape and garden industries is not only bright, but also beaming with opportunities to grow, learn and evolve.

“For more than 30 years I have watched my family build a company from the ground up, focused on quality products, exceptional customer service and dependable fulfillment. We found our inspiration from our concern for the environment and have continued to create lines of lawn and garden products that are not only innovative, but also dedicated to our philosophy of promoting environmentally responsible products.

“Now is the time to continue to design and create products using state-of-the-art research and development, innovative marketing strategies and widespread distribution throughout the industry. We strive to find environmentally responsible solutions for everyday applications, while continuing to offer the products that our customers can use and service they can rely on from a company they can trust.”

Steve Wahls
Owner of IBBZ, Inc.
“2010 promises to be another challenging year with the economic situation we find our nation in. IBBZ is looking forward to the challenges of this year because IBBZ believes it’s during these times we are forced to refine our operations and hone our skills as successful businesses becoming leaner and better prepared to forge ahead. If you are in business now and survive these times things are looking greener ahead.

“Businesses we work with are having tough times with competition in their situations because when money gets tight people tend to tighten their belts by doing more for themselves, thus shrinking the customer pool. Finding niches and being thrifty can make the difference of red ink or black.

“Some are looking at taking advantage of obscure areas of their businesses by thinking green and positioning themselves to take advantage of opportunities to educate themselves about things like saving water and issues like renewable fuels grown in some of the 50,000 square miles of lawns in the USA.

“Yes, 2010 should be interesting.”