Status of the Tree Industry-dollars and cents

[wheelloader123]

I wanted to start a post to do some research for all of us.
1. How are you doing currently in the tree business? Has it been a financially tough time in recent months(maybe years) or are things going OK?
2. Are you hopeful about the upcoming year, or are you concerned it may be another tough one?
3. How many of us have had to sell something/s to maintain an acceptable cash flow(eliminate a payment)
4. What is your overall opinion of the current employee pool
5. This is a loaded one. How many of us bought a piece of equipment recently because it was going to do "this,this,&this" , and looking back wish we had just saved our money
6. By the same token has anyone recently bought equipment that truly excedes all expectations in all areas?

I am a seasoned arborist and have been in business a while, but I am seeing a number of very unsettling things out there that really concern me as to the future and profitability of this industry.
Your answers and comments would be appreciated. Thanks!

 

[jim454]

1. I'm hanging in there but it has been one of the worst years I can remember.

2. I'm cautiously optimistic.

3. Haven't had to sell anything to keep things going but I did unload some stuff last spring to lighten the debt load.
4. My opinion is that when ever the economy is in the tank good workers are plentiful. I'm thankful to be working with good guys.
5. Bought a big dump trailer that I rarely use

,fortunately it's paid for. Tried to sell with no luck.
6. Bought a different chipper but wasn't really in the market for one, twice the machine as the other and it didn't strain the bank account. I think it was a good move.

And finally,

I'll do my best to be flexable, changing gears without a huge sacrifice. On a good note, I continue to run more and more efficient as far as debt is concerned. The bad news is that I won't be upgrading with new equipment for awhile. That means equipment won't be as dependable and breakdowns will probably be more common. I'm keeping my fingers crossed.

I really have to stay positive (we all do), people are still buying my service, work continues to keep trickling in. I'm trying to focus more on keeping in touch with my clientel than finding new customers.

These are interesting times to say the least.

 

[jmcscrap]

If I can add one question - have you had to lower your prices to get jobs? As someone that contracts out some work, the bids I have been getting are really starting to be all over the place.

 

[dieselcutter]

Well it has been a snails pace since a little before thanksgiving. Of course I 'm not sure what part is the normal winter slowdown and this is my first year in business full time for myself.

I am looking forward to this year working on getting my name out there more and educating people what proper tree care is.

I haven't had to sell anything yet but planning on selling a few small things that I really don't use much. I'm thankful that I paid cash for everything so I dont have payments, if I did I would be hurting!

I see alot of people calling me for work. 3-4 calls looking for work to 1 customer call. Most are just "tree guys" with little to no experience or spikers. It seems like this slow down could be good because the hacks are starting to go under. I hate to see people in bad shape but at least the aren't hacking stuff.

I was really happy with my last equipment purchase. It was a 252 stump grinder. I wasn't even thinking about buying one but one day I was at vermeer and just went in the back to say hi to my buddies in the shop and they were fixing this machine up. They said "you ought to buy this, he's is wanting to sell it," I kind of blew it off but they went on to say that it was in far better shape than average and they were just fixing a hydraulic leak and new bearings and a few misc things.
I thought about it a couple weeks and did nothing hoping it would sell so I didn't have to decide. It would have eaten most all my saving up to get it. and it was only a couple months after i quit my day job. Then I spent almost 300+ on stumps in that time so I called him. He said he'd take my offer and met him at the vermeer shop and bought it. I didn't know it but he also had the duals and factory trailer too! The trailer needed $100 of frame shop work to be useable. That machine has gottten me more work than I figured it would. I'm glad they tried to talk me into it but didn't pressure me. And I didn't pay Vermeer a cent and not a single problem out of it other than a grease zerk!

Yes I have been bidding lower just to do something rather than nothing. But trying to get away from that now that things seem to be picking up for spring.

 

[vicgartree]

1. It has been going down in volume for about two years. We are still working, but just surviving....still managing to keep up on training and such....but it is a hard.
2. Hopeful because I know we will get more work just because it is NOT winter....but I don't think it will be as good as previous summer seasons.....many layoffs, factory closings, etc. People just don't have the money....
3. We haven't had to sell anything to keep up with everything....we paid off all the equipment in the summer of 2008. We sort of felt this recession coming on.
4. We have a group of good people, but any new ones we hire do not seem to be the go getters that used to be looking for employment a few years ago. Seems like everyone has been beaten down.
5. Haven't bought anything in awhile....just staying at status quo. Want to play it safe for awhile.
6. No new equipment....just maintaining the old.

I think we all are concerned with the economy...but we are trying to stay positive here. We have been continuing our educations in our field. Our company has been in business for 16 years, so we will keep on climging until there is no climbing left in us.

We have not lowered our prices....and there is alot of hacks our way....the factory layoffs are killing us. But we still are not going to lower prices...we can't afford to. We are professionals and once the hack makes a mistake, the homeowner will spread the word that cheaper with no insurance is not better.

 

[treehumper]

1. The pre-Christmas period was slower than usual but we've got a month's worth of work on the books. Only thing holding us back is the weather.
2. I think it will slowly recover this summer. People with money are tired of holding back. The purse strings will be loosened.
3. Not sold anything but certainly not buying anything that isn't necessary.
4. Lot's of people but not necessarily qualified to do the work. Lacking the right aptitude and attitude.

5. Didn't wish I saved the money just made a different purchase.
6. New saddle and a hitch climber that is working out nicely.

Pricing is tough, there's downward pressure but we take more time to sell the work.

As for the future of the business, it's always changing. For those that started out when tree work was a growing business with little competition it's tough to see the change that's come around. That's the nature of business. Other's will come in now and see a world of opportunity and make it work.

Make progress by looking forward not backwards...