2008 Projections / 2007 Results

Discussion in 'Irrigation' started by Flow Control, Jan 7, 2008.

  1. Flow Control

    Flow Control LawnSite Bronze Member
    Posts: 1,267

    In your market area what is your gut feeling on 2008 for growth (material purchases) and how was 2007 compared to 2006 for you.

    I'll go first.


    I think that 2008 is not going to be a good year since all the new construction has pretty much slowed to a crawl. We are pretty much preparing to go lean and mean and look to expand in another area such as LV lighting.

    2007 was better then 2006 for me, but only thanks to a strong commercial install market. Had it not been for commercial work I would not have been able to keep the guys busy.

    I see the Green Industry sliding for the next couple of years, which the downside of that will most likely be a more competitive $$ environment since most company are ran by operators and not business minded individuals. Only if we could all organize. Oups did I say that.
     
  2. AI Inc

    AI Inc LawnSite Fanatic
    Posts: 25,527

    Well in the last 10 yrs I have seen this industry go from a luxury to a nessesity back to a luxury.07 was better then 06. I see 08 about the same as 07 was. A dry Augest help with attitudes towards irrigation and all the snow we are having this winter will help with the water table. I think rebuilds / add ons will continue strong butnew residential will continue to slow.
     
  3. Flow Control

    Flow Control LawnSite Bronze Member
    Posts: 1,267

    Whenever we get a dry summer it seems to have a positive effect for aleast 2 seasons. You get people turning their systems on that have been idol for a while and when you are on a sales call and you mention the dry spells it is fresh in their memory.
     
  4. DanaMac

    DanaMac LawnSite Fanatic
    Posts: 13,156

    Since we are service based only, I don't believe the building slow down will affect us. All the existing systems still need work - service, repairs, preventive maintenance (winterizing). But if the economy is very tight, people may take it into their own hands to repair minor things like replacing heads. Or they may hold off on redesigning a bad system.

    I can get all the work I want, if I want it. it's a matter of finding the right help to cover this work. My company has never been in need of work for at least 10 years. I kind of went to the all service in 2002 when the drought was taking affect here. And the drought affected a lot of install companies at that time.

    I'm actually looking at expanding for this 2008 season with three tech total and fulltime office person, so I believe this year is going to be good.
     
  5. Flow Control

    Flow Control LawnSite Bronze Member
    Posts: 1,267

    Dana,

    I was trying to come up with a ratio this past weekend to justify adding any additional service techs.

    How many residential customers per 1 service tech?

    I am thinking 700 to keep one busy on a regular basis

    Commercial is a different animal so lets just consider residential
     
  6. DanaMac

    DanaMac LawnSite Fanatic
    Posts: 13,156

    I'll PM you with some of my numbers for customers and such. Not sure I want to put a ton of numbers out there for all to see just yet.
     
  7. Mike Leary

    Mike Leary LawnSite Fanatic
    Posts: 22,063

    I'm not sure what you bozos are up to...we only serviced what we sold/installed.
    When "by others" were taken over, they're brought to our specs,
    otherwise, not interesting.
     
  8. DanaMac

    DanaMac LawnSite Fanatic
    Posts: 13,156

    Glad that has worked for you Mike. Not my business model though.
     
  9. Mike Leary

    Mike Leary LawnSite Fanatic
    Posts: 22,063

    Must make for some "from hell" service calls.
     
  10. DanaMac

    DanaMac LawnSite Fanatic
    Posts: 13,156

    yeah it does, but challenges are good. Builds character, and I'm one hell of a character :laugh:
     

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