The U.S. tree care industry entered 2016 on strong footing.
Revenues were up significantly in 2015, although profits, while holding up, weren’t quite as strong because expenses for contractors also were on the rise, according to Mark Garvin, president of the Tree Care Industry Association (TCIA).
“The industry is very, very strong right now,” he says.
Here are some other tree care trends Garvin identified.
New owners, finding labor
The industry is in a good position, but it is in a time of transition. Baby boomers are retiring, leaving established tree care companies with succession decisions to make. Like most other small businesses, tree care companies typically follow one of four paths: A family member takes over, sell to another company, sell to employees or close the doors.
At the same time, finding qualified labor continues to be a struggle. And once those employees are hired, tree contractors are finding that they have to pay more to keep them as the overall economy continues to improve following the recession.
The recession also brought more fly-by-night contractors to the industry looking to make a quick buck. The low-ball bids and lack of professionalism are hurting legitimate companies, Garvin says.
“I’ve seen a widening gap between professional companies and those who aren’t,” he says.
Technology brings changes
Tree care contractors are not as far along as other industries when it comes to adopting technology, according to Garvin, but this is changing. Estimators are using tablets to give instant paperless bids to customers. Crews are arriving at jobsites with a digital report detailing all aspects of the job, not with a handwritten work order. The increasing use of vehicle telematics is letting contractors track the location and performance of their fleet.
Technology also is creating better-informed customers. For example, someone worried about an invasive species may research their trees and how to treat them before calling a tree care contractor.
“The salesman who shows up only somewhat prepared — good luck,” Garvin says.
Customers also are doing research to help them pick a contractor. Gone are the days when people looked for who had the biggest ad in the phone book, Garvin says. Now they look at company websites and review sites like Yelp and Angie’s List.
Pests a long-term threat
The emerald ash borer has gotten a lot of attention in recent years, but it’s far from the only invasive species threatening trees.
In the short term, these pests give contractors an opportunity to make good money on removals. But in the long term, those lost trees are no longer there to maintain. Garvin says everyone in the industry needs to support tree planting and other initiatives. And even those programs will take a while to make a difference.
“You plant those trees now, they’re really not going to need much maintenance or care for 10, 15, 20 years,” Garvin says.
He suggests all contractors visit www.hungrypests.com, a website run by the U.S. Department of Agriculture, to familiarize themselves with invasive pests that are in their area or could be coming their way.