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Mixed messages on landscape industry economy

Following the RHS Hampton Court show I read an article stating many landscape businesses were experiencing unprecedented levels of business.

One business quoted being able to give their staff an across the board 10% pay rise due to more than full order books.

However another landscape business implied that prospective clients were still not appreciating the real costs of a landscape project.

Then contrary to the above, we then see a considerable number of relatively well known landscape businesses going bust/wound down/bankrupt.

Separately, we seen also a merger or two happening.

So, what's going on ?

How do you feel business is this year in your area ?

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  • PRO

    I keep a close eye on business failures.

    I'm sure there are some businesses that are doing well but I don't see industry-wide confidence.

    Just by reading through the London Gazette website (searching on landscape 2014) one is able to get an idea of landscape companies (and individuals) that have had/are having problems.

    https://www.thegazette.co.uk/insolvency/notice?text=landscape%20201...

  • Spoke to two hard landscapers this afternoon and both have reported an up turn and fully booked into next year. Whilst they ddn't mention prices I got the feeling that these were up on previous years. As for grass cutting enquiries are up but they have been year on year anyway and achieving very sensible prices when compared to a few years back which were more competitive due to tighter budgets etc.

    The conservatory company for which I get 1st refusal on their grounds reinstatement etc. are also reporting a record year for bookings.

  • I echo the above - Labour rate is currently rising In Leeds area quite rapidly, alot of enquieries coming in and several businesses have disapeared as people who "had a go" return to sallaried work, and more people want gardening services.

    I'm flat out fully booked and would say prices and volume are both up by about 10-20% on 2013 season, and getting better.

  • PRO Supplier
    There will always be some companies doing well and others failing - it really depends on the data you look at! Larger companies and smaller companies are a totally different ball game too.

    From the forum and chatting with customers here it does seem that things are picking up, and prices are rising slowly but surely. It's good to hear that so many people are fully booked too :)

    Acacia Groundcare Equipment Rental

    01273 494939 | www.acaciarental.com

  • PRO

    I would be concerned that prominent landscape businesses seem to be failing.

    Why is this so ? Overtrading ? They have all the aspects & high profile that many crave for .......

  • PRO

    The government is making access to all company checks available for free.
    http://www.theguardian.com/business/2014/jul/15/company-accounts-ch...

  • PRO

    So are we seeing localised, positive 'bubbles', like the London housing market for the landscaping business ?

    I'd love to learn why they fail; overtrading/cashflow, bad debt, bad business practices, taking eye of the business while doing show gardens etc ?

    Do any of the accreditation schemes available do "due diligence" on financial history ? If I were spending more than a few £k's as a client, I'd be at least checking a contractors financial history, just as they should checking their clients.

    On the commercial maintenance side, for larger contracts it is not unusual to submit basic trading history to show financial stability.

  • From this business's perspective - largely Regular Garden Maintenance and 'green work' from Feb 'til Nov - and more hard landscaping for the intervening months......there is a lot of money around and a passion to see outdoor spaces improved in this locale.

    I am in the position of having two employees and the option to turn work away if it's not what the business is about. That may be client request or simply the potential client themselves. If I am pushed to quote because they want me to I will at a premium and see what happens.

    My rates are considerably stronger than they were this time last year and I continue to push to find the market limit. Partly stronger because there are three of us but nonetheless it is frequent that clients don't want to skimp on their outdoor spaces and are quite content to pay very reasonable sums for the hard work and attention they receive.

    With reference to knowing a client before even going to meet them - there are many ways via the web of determining what is worthwhile quoting and what price will be paid. Ultimately the buck stops with me and so long as I am content that the business and employees are providing excellent VFM my clients remain very contented with this business's performance at their properties.

    I am very open to prospective and existing clients about my business and I am always happy to share with them the mathematics behind charging what I charge. Transparency coupled with hard work and straightforward passion form the backbone here.

    Someone told me the other day that I am based in the fastest growing town in the UK and certainly it appears that everywhere I look new executive housing is being built. Cash rich, time poor and a desire for a lovely outdoor space sums up around half of the clients I love to work for. The others are a mix of urban regulars and older people who simply appreciate the efforts we put in. And in this neck of the woods the first category is enriched by the plethora of F1 employees located in the leafy villages; I have seven on the books from three teams - race days are always very interesting :->

    So I would agree that rates are on the up and support the view that there are certainly 'hot spots' out there when it comes to soft/green maintenance and other 'natural' work.

    At the end of the day though it is how you perform to your clients' expectations and provide bag fulls of VFM that will determine how THEY value your services :->

    Cheer, Eugene

  • PRO

    One only has to look at the London Gazette (https://www.thegazette.co.uk) to see that there are still many prominent landscape businesses going bust or getting into difficulties.

    What is probably not common knowledge (and you won't get the PR departments putting this out) is the amount of installer scheme or association members who are having/had problems.

    It's often said that national awards are a gateway to success. If you have a look at the big names featured on the Gazette you'll see that national award winners are just as vulnerable and no less human than the single-person operative.

    I've found no less that 5 national installer scheme members who are currently being liquidated, or in administration. One of these installer scheme members was a national award winner in 2010.

  • Is it just the landscaping industry? Historically, more businesses fold as the economy comes out of recession and into growth than during a recession. Much comment has been made in the FT, Wall Street Journal, Bloomsburg and elsewhere about how resilient business has been over the past half dozen years or so. Several economists have pointed to this historical fact and posed the question for when the recession ends. Will the story be repeated as after every previous recession since records began? Methinks we're about to find out and the answer is almost certainly going to be "Yes!".

    I haven't seen or heard any mention of landscaping as a distinct sector in all this. If it follows the pattern of construction, under which it is classified, those which have genuinely weathered the storm rather than merely surviving are likely to exit bad times with more strength and come out roaring with life. But it is hardly surprising that some of those who have survived whilst struggling will run out of breath altogether as the overall economy becomes vibrant once more.

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