It's no secret that consumers are spending more time at home, and spending more money on their homes. In recent years,
this has painted a rosy picture for landscape design-build professionals. Demand for decks, patios, pools, gardens, outdoor
kitchens and anything else that turns a family's backyard into a destination nearly outstripped contractors' abilities to
fulfill that need.
Though real estate pundits have predicted another 12% drop in new-home construction in 2007, demand for landscape design-build
professionals isn't cooling. That may be because there's still more than a six-month inventory of new homes for sale at the
current sales pace, according to the U.S. Commerce Department.
What's old is new
But even if the new home construction slump does catch up with the design-build business, it's unlikely to be too detrimental
in 2007. That's because new homes aren't the only market indicator for the design-build segment of the landscape industry.
Many homeowners are calling on contractors to renovate the landscapes of their existing homes.
"Most of our work is renovation work," says Jeff Rak, president of Land Creations Landscaping Inc., Columbia Station, OH.
The 16-year-old company focuses on residential hardscapes. "We didn't notice when the housing bubble burst this year. In fact,
it was a record year for sales."
Rak says renovations have become a niche for the 12-employee design-build firm. And most of its business – 76% to be precise
– comes from previous customers and referrals.
Referrals are powerful
JTS Landscaping, Seville, OH, also relies on his current customers. The 10-employee firm does about $1.5 million in annual
sales, largely by reminding it customers how important their referrals are.
"Referrals and word-of-mouth advertising are our number one marketing tool," says Joe Pavlovicz, president of JTS Landscaping.
"And most of them are justified leads, in terms of panning out, because they know what to expect from us."
Referrals and repeat business is so high, in part, because keeping up with the Jones' yard these days means a lot more than
having a perfectly manicured lawn. It means outdoor living spaces that make the home the place to be.
Brian Helgoe, general manager of Estate Gardens by ValleyCrest, agrees that there is a definite trend toward outdoor living
and entertaining. ValleyCrest is one of the top providers of landscape development and maintenance services in the United
States. Earlier this year, it acquired two landscape architecture firms, HRP LanDesign, Orange County, CA, and Site Works,
Fairhope, AL, to further capitalize on the popularity of the design-build segment. Estate Gardens by ValleyCrest was then
launched in October as a full-service residential landscape design, construction and maintenance practice.
"Generally, our clients who live on larger properties are requesting gardens that create a destination at home," Helgoe says.
"We see more focus on child- and family-friendly landscapes — including athletic features, eco-friendly habitat programs (bird/butterfly
gardens), and comfortable, functional and livable outdoor spaces for entertaining. Garden art and sculpture gardens are becoming
very popular, be it museum quality or just something quirky."
Though the companies are at opposite ends of the spectrum in terms of size, ValleyCrest is noticing the same design-build
trends as Land Creations and JTS Landscaping.
