It struck like lightning early last year; large and medium-sized landscape contracting companies began to merge into consolidated "national" companies - largely the work of investment bankers anxious to make a public stock offering and cash in on the vitality of this industry. Undoubtedly a move of this size affects the industry. It is a time for the small and mediumsized independent contractors to do some soul searching as to how they will fit in to the future of the industry.
You should know that Walker thinks there remains a tremendous opportunity for smaller, independent companies in the landscape industry. In fact, we believe our "backbone" customer has been and will continue to be the smaller company.
A primary reason this is true is that labor is a major component of this industry. Larger, consolidated companies do not have a particular advantage in that department.
How do smaller landscape contracting companies compete when there are giants? The same way Walker competes with the giants in our industry - find your niche or specialty, move and adjust quickly, play to the strengths of a smaller organization, and treat suppliers, employees and customers right. See the editorial "Big Isn't Always Better" for more on this subject.
One more effect of national-sized companies will be to approach suppliers for a better price (volume buying). Certainly, there will be equipment manufacturers that will sell direct to these big accounts. For our part, Walker has made a decision to not sell direct but to continue to "sell with service" through dealers. We believe our biggest opportunity and fortune rests with customers who need dealer service.
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