Arboriculture the future ?

[Lee Winger]

What direction do you see arboriculture heading in the next 10 years? where do you think we will be? how will firms operate? what services will we be offering? what size firms will prosper? what kit will we be using? your thoughts please.......

 

This question was ''always'' asked by Mick, he asked anyone and everyone this question, today I'm asking for him.......

 

 

I personally see big firms and micro firms operating , with no room for any firms in between, other than that I see very little change.

 

When I say small firms I mean 3 men and a transit and for big firms 15+ employees. Your big firms will carry out most if not all LA and contract work and the small firms will undertake the vast majority of domestic work......

 

I also think small firms will have to diversify, I don't think we will have the luxury of doing tree work all the time

Edited January 13, 2010 by Lee Winger

[Rupe]

I think the new generation of arbos will tie themselves in knots with health and safety legislation to the extent that no satisfactory work will get done (domestically) and those who are prepared to bend the rules the most will survive!

[Treejedi]

I thnk your spot on, so long as the powers that be keep their feet on the ground and their practical hats on with regards to safe working practices etc etc. Y' know what i mean ??

[Andy Clark]

Personally, I think the time of the little guy is upon us.......

 

O.k, at the moment all the big contracts are tied up with the big boys, but don't forget that most of those contracts were quoted/won pre "recession". So it's fine for now, as the term of the contract guarantees bread and butter work to keep the big boys afloat, but what about next time around?? What about when they're quoting to renew the contract in a much cheaper and more competitive marketplace?

 

Take a housing assoc. contract for example........ less income for the tenant/prospective tenant, means rent has to drop in order for the assoc. to remain competitive - less income for the assoc. means less available funding for capital expenditure - which means outsourced works will have to be sourced at a lower cost.

 

 

And it's already happeing to a certain extent. Take all the redundancies..... nothing more than a company cutting it's overheads, so as to ensure maximum profit with the limited income. But that can only last for so long.

 

Simple economics chaps...... it's all relative.

[Rupe]

True, the last LA contract that went out here before christmas went at crazy cheap prices because the companies were all fightign to get that "bread and butter" work, and the ones that lost out will go even cheaper on the next round of contracts etc etc.

[Stuart A-C]

I think the LA's will be looking to use smaller companies rather than the large ones, smaller firms with less overheads will be able to under-cut the larger ones. The LA have already been told to spread the work around down this way.

Smaller firms will also be able to diversefy(sp) into things like garden matinence, log sales, even subbing a lot easier than larger firms.

[Rupe]

I think the LA's will be looking to use smaller companies rather than the large ones, smaller firms with less overheads will be able to under-cut the larger ones. The LA have already been told to spread the work around down this way.

Smaller firms will also be able to diversefy(sp) into things like garden matinence, log sales, even subbing a lot easier than larger firms.

 

I am as small as they go and I'm on the LA's contractor list and they are happy to use me. Probelm is the larger companies have more to lose by not getting the work, so I may be able to undercut them and/or work to a higher profit margin but at the same time I dont HAVE to, and I choose not to quote at stupid prices.

 

The prices are so low already that smaller companies can't compete. We may have smaller overheads but I don't have staff on a pittance who will work in all weathers for fear of losing their jobs. We work nicely and do nicely and thats how I want it to stay. I leave the others to their price wars!

 

HAvign said that I'm skint now and could have done with a cheapo LA contract to tide me over through the snow!

[gingertreeninja]

the big firm i used to work for has the electric board contract and the housing excutive contract. he undercut everyone to get them and now makes a loss every time he sends a squad out to the electric work. the HE work is just paying and as he only has 3 climbers out of 16 guys they are tied up in the contract work so the hatchet men get sent to the domestic work ( i have had 4 of his old clients on the phone looking me to come round and sort out bad work). i think he will have to downsize soon or go under

[Arborist]

Theres a largeish firm by me that expanded quite quickly and is feeling the pinch.

One of the lead climber / team leader is on £80 a day and most of the groung crew are on the arb aprentaship and are being paid £25 per day.

[Lee Winger]

I fear that unless you're arb approved or ISO you won't get a look in on larger contract work, as we all know its mainly the larger firms who can afford to become AA approved or ISO accredited. I see can lots of medium to larger firms folding, lets face it lots of bigger firms can't compete with the small firm in the domestic market.....

Edited January 13, 2010 by Lee Winger