PRESIDENT’S MESSAGE
all need someone to lean on
What does your support network look like? Do you have a mix of individuals from across the trades or do you pull in people from beyond landscaping? Do you rely on one person — like a spouse, partner or friend — or do you have a circle of people you trust depending on your needs or stage of life? Do you run your business solo because you know best, or do you rely on mentors to check in with you throughout the year and especially in the “silly season” from April through June?
Business owners can become isolated by the daily hustle and the long hours spent running our companies. It can be very lonely. Yes, your company may be large enough to have a strong leadership team that mentors, listens and directs the crews and staff, but does anyone mentor you? Who can you count on for support? Where do you go if you are struggling personally or professionally? Don’t hesitate to ask for help — speak up when you need support.
A strong support system means something different to everyone, but it is so important to cultivate. Chances are very good that you or someone you know has struggled with a serious illness, injury, or mental wellness crisis. And if you haven’t,
you might in the future. Personally, I know my supportive network of peers and friends has helped me at my lowest and most vulnerable. They have also been there to celebrate the highs.
I encourage you to pick up the phone — yes, the phone — and call that friend, colleague, or family member you haven’t heard from in a while. Let them know you’ve been thinking of them and you just want to say “hi.“ Ask “how are you?” and then really listen for the answer. This is the first step in (re)connecting and starting a conversation to help build up your own community. Building, and being part of, a supportive community can lead to a stronger sense of belonging, as well as better physical and mental well-being.
By the way, did you know June 13 is Men’s Mental Health Awareness Day in Canada? People of all genders struggle from time to time, but men are less likely to talk about it and seek help. Collectively, we can banish the stigma that you have to be tough to survive in this business. Let’s make space for the stoic types to speak up so no one suffers in silence.
As always, please reach out to me if you have a question or comment. I welcome your conversations.
With kindness,
SEEKING HELP IS A SIGN OF STRENGTH
If you are struggling with your mental health, please consider reaching out to CAMH for support at www.camh.ca/en/health-info/crisis-resources and www.camh.ca/en/health-info/crisis-resources/i-am-worried-about-someone-i-know In addition, there is always someone available to listen at Talk Suicide: 1-833-456-4566
DREAMS Showcase of
DREAMS
VISUALIZING THE FUTURE WITH M.E. CONTRACTING
By Karina SinclairThe home of M.E. Contracting is tucked inside an unassuming industrial park in North York, Ont. It’s the kind of building you’d drive by without ever knowing an oasis awaits inside, but if you went in, you might never want to leave.
The front office walls are decorated with numerous awards, including several Landscape Ontario Awards of Excellence for residential and special interest projects. If you could drag your attention away from the inspiring photos, you’d be led to a 7,000 sq. ft. showroom with everything from pergolas and outdoor kitchens to landscape lighting and tile choices. A full-size fibreglass pool, complete with a spouting water feature, delivers the ultimate wow factor.
THE SHOW STOPPER
This is where co-owners Keren and Eitan Abu help clients dream up their new landscapes, even when there’s snow on the ground and summer seems a distant memory. “It’s very hard for potential clients to visualize,” Eitan said. “So to bring them to a showroom, I can show everything: pools, pergolas, decks, retaining walls, you name it.”
Having everything in one place lets a client get a better sense of scale and allows them to see how different materials look and feel side by side. “It’s a 3D experience, I like to call it,” Keren adds. “It's very hard for people to visualize sizing or square feet. So when we say the show pool is 12 by 35, clients say ‘Oh, that's amazing. This is exactly what we need. I want this.’”
Daryl Ellis, M.E. Contracting’s sales and project manager, feels the showroom signifies stability for the company. That helps ease client anxiety as they hand over a deposit. “It's a bit of a comfort that we're not just going to get up in the middle of the night and take off and you're not going to be able to find us,” said Ellis. “We've invested the time and the money into the showroom. We're not going anywhere.”
Another benefit of the showroom is that it allows crews to get a head start on projects as soon as weather allows. Decisions have been made, materials have been ordered, and no time is wasted. “We can sit comfortably and talk about the project. And then we’re ready to go as soon as the snow melts,” Aiten said. Keren adds, “That’s how we have 70-100 projects booked each year, from medium to big. That’s a very big accomplishment for us.”
“Our season is typically about eight months,” said project coordinator Casey Ross. “We're pretty much nonstop from March all the way until December, and it's just go, go, go seven days a week.”
With stylish displays and samples of raw materials, the Abus acknowledged it was expensive to create this space. “An investment, I call it,” said Keren. “Yes, it’s a lot of money to create, but we invest to grow. We see ourselves years from today, knowing that we are the leading company for landscaping.”
INVESTING IN PEOPLE
Another key investment is in staff. Ross says COVID-19 restrictions put a big strain on their labour supply, so M.E. Contracting strives to take care of their year-round and seasonal staff. “The client is obviously the most important,” said Ross. “But our contractors are right up there with them and we keep our contractors happy. They stick around and their quality of work is what the client expects.”
It’s as simple as showing respect and understanding their contractors have lives outside of work, explained Ross. “We also compensated them accordingly,” said Ross. “We tried to bring ourselves up to the standard of other trades, such as electricians, plumbers, that sort of thing.”
Ellis feels this is why M.E. Contracting has a number of long-term employees. “Treat your employees well and they'll stick around. You pay them what they deserve to be paid,” Ellis said. “I'd rather pay somebody a little bit more and keep them, than pay somebody less and have to continuously train new guys to do the same thing. It'll cost the company more in the long run to pay people less.”
“We’re very picky with our employees. We’re willing to pay good money to find people and we train them. Step by step, we have a system,” Eitan said. “If my staff and
employees are happy and they wake up in the morning enjoying what they do and they're happy to come to work, that makes my day. I love it.”
With a wide range of services, the crews are kept busy. “We do anything from decks and patios to pools, essentially anything landscaping or outdoor related. We can take care of it,” Ellis said. With the amount of referrals they get each season, he believes their success is due to “the quality of our workmanship and being able to handle projects from start to finish.” As the showroom demonstrates, M.E. Contracting can take a client from initial design to final decor.
Ross agrees their success is due to high quality work, but also “good communication and kindness between all the colleagues within the organization. Also time management and just project management as a whole. We really take our time and things just come together perfectly.”
INTERNATIONAL INFLUENCE
Originally from Israel and France, Keren and Eitan pull on their European roots to create fresh landscape designs that combine clean, modern lines with raw organic materials. “When we came to Canada, we saw that most of the houses are still in the traditional look of heavy stone, less airy, lots of pillars,” Keren said. “We decided to clean it a little bit and get it very smooth, very clean. And that's basically the influence from Greece and from Israel, a little of it from Paris.”
The couple feels this approach helps maximize a space to make it more functional. And Keren admires her husband’s ability to interpret a client’s needs and wants to then dream up the perfect space. “He's the smartest. Eitan can go into a backyard, scan it with his eyes and he already knows what the future will be like for the client,” Keren boasted, quick to add that their talented team, including Ross and Ellis, helps make those dreams into reality.
LANDSCAPING PATTERNS AND TRENDS
While Eitan takes care of design and manages the crews, Keren handles marketing while staying on top of trends. She thinks the future of M.E. Contracting will focus on the kinds of jobs “that have a very unique feature that maybe only people with a lot of guts would do.”
Keren has also noticed raw and organic types of materials have become more available. “Less straight lines, more organic, more things from nature. That's what I see for the future,” she said. “I see less cutting around the trees and more giving it the wild look. If it's stone, just let the stone be. That's, I think, the future where we see ourselves.”
“We want to take care of the
environment,” Eitan said. “To use materials that are good for the environment. More green walls, green roofs. We need to take more care of the Earth. And that's our goal for the coming years.”
Ross, who is working on his Masters of Landscape Architecture, is excited by this prospect. “My own personal values around that are really trying to use native and local entities within the landscape, also trying to maximize value within the landscape. So I'm not installing or designing anything that doesn't add or maximize value within residential backyards or anywhere else.” This includes being purposeful about the process and minimizing waste whenever possible.
FROM ONE SMALL DECK TO WINNING AWARDS
M.E. Contracting began with a single wood deck Eitan built for a friend shortly after immigrating to Canada. A neighbour saw it and asked for one of his own. And as Eitan built more decks, the more people wanted them. Keren designed a brochure and started going door to door to introduce their new services. They created a website and clients left glowing reviews on HomeStars and similar directories. Keren says one of the best things they did next was join Landscape Ontario.
As Landscape Ontario members, the Abus took the opportunity to expand their knowledge of the trade. “Usually in the winter we take all the training and workshops. We got to know a lot of new colleagues,” Keren said. She enjoyed being active with the Toronto Chapter, even sitting as Director for a while before her last pregnancy. “It was a beautiful experience for me. I learned a lot. Absolutely, Landscape Ontario contributed to my success. It’s not a question. I have learned from my competition! When they were able to share with me their challenges when I was the newbie, they taught me what to do, what not to do. I learned so many things that helped us to create and grow M.E. Contracting.”
Ellis said he found his first job through an ad on Landscape Ontario. “I think it's super helpful, especially if you're starting out or you've been in the business for a long time, there's always something that you can learn. And Landscape Ontario would probably be the number one resource for that,” he said.
The Landscape Ontario Awards of Excellence are another favourite benefit. “The event itself is a beautiful event. I'm not missing it for any price in the world,” Keren laughed. “To get the Landscape
Ontario Award of Excellence, it gives us credibility for our clients. And they say, ‘oh, they just got an award, they are probably a legitimate company.’ That builds their credibility with us, which is great.”
When they learned they had won their first Award of Excellence in 2017, Keren said “We felt we finally belonged to Landscape Ontario. It’s like, ‘good job guys.’ It's not just us, it's all our teams together.”
And with that kind of credibility, Keren said potential employees and clients come to them already ‘half-sold.’ “Employees who see us as a place to grow and learn, and clients who say “I prefer to work with a legit company, with high reviews, who is winning awards and I’m willing to pay even a little bit more to have this umbrella of services.”
For a duo who started from scratch in a new country, reaching this level of success brings great satisfaction. “I wake up every morning excited about new projects and how we can provide better service to our customers,” Eitan said.
Keren loves that moment when a project wraps up and the client says ‘wow, we love it!’ Knowing the client “chose right” by hiring their company confirms that M.E. Contracting is doing exactly what they’re meant to do. “That’s our name behind that effort. That’s why we do that.”
Unfinished BUSINESS
Margaret and Ivan Stinson were a couple of retired school teachers who decided (in their 80s) to adopt our Landscape Ontario family. They volunteered at many of our events and spread goodwill and positivity everywhere they went. You may have seen their smiling faces at Congress, introducing speakers and helping out where they could.
Landscape Ontario presented them with a Legacy Award a number years ago for their immense contributions to Landscape Ontario, Communities in Bloom, Canada Blooms, University of Guelph Arboretum, National Tree Day, and much more. They were awesome role models.
In 2018, Ivan passed away and Margaret asked me to be a speaker at his Celebration of Life. The last time I saw Margaret was February 10, 2020. She and her daughter Lisa Crawford came to the Landscape Ontario office to attend a meeting. Even in her early 90s, Margaret served on the board of the Green Cities Foundation. I had the pleasure of giving her a hug as she came through the door.
The next day, I received a wonderful and touching email from her. In her customary positive fashion, Margaret talked about aspects of “sunshine” she experienced during her visit. There was “sunshine” because the predicted snowfall did not arrive and her daughter was able to drive her to the meeting on time. There was “sunshine” because the living wall at the entrance to our building was welcoming and because she was greeted with a hug and smile. The email talked about the lasting friendships she and her “beloved Ivan” had made and how Landscape Ontario was her extended family. In Margaret’s own words, here is the most touching part of the email for me.
“Just as at the celebration of Ivan’s life, when you paid tribute to an honest, humble, hard-working gentleman, I would be honoured and grateful, if you would do the same for me — when I leave to join Ivan in Heaven.”
Margaret joined Ivan in Heaven on November 4, 2020. Unfortunately, this was in the middle of COVID restrictions that did not allow for gatherings and celebrations of life. This is the unfinished business this article hopes to complete.
I am thankful and honoured to pay tribute to Margaret Stinson. Through her positive and loving manner and her contribution ethic, Margaret made a huge difference in the lives of many. She reflected care and warmth, enriching the lives of everyone she came into contact with. Margaret was a wonderful and inspiring role model.
I am in possession of hundreds of wonderful emails sent by Margaret. Some were sent right after she and Ivan spent hours volunteering at one of our events, thanking us for the opportunity. Of course, it is us who should be doing the thanking.
By Tony DiGiovanniThere are congratulation messages, messages of encouragement and goodwill, messages marking Christmas, Easter and other holidays. There is an annual message “of peace, happiness, prosperity and good health for all.”
Landscape Ontario says goodbye to an exceptional volunteer
There are messages offering advice on how Landscape Ontario might extend our reach to different audiences. There were emails urging us to spread the green stewardship message to young people who would teach, enthuse and engage older members of the family. There are thoughtful notes informing us that someone in our extended community was ill or had lost a loved one.
The most touching and heart-wrenching (and inspiring) was a note sent to apologize for missing one of our events. The Stinsons’ son was diagnosed with cancer and had to have emergency surgery. He later passed away. In the midst of their anguish, there was still room in their large hearts to think of others and to send well wishes for a successful event.
Here is an excerpt from one beautiful email providing a glimpse into Margaret’s selfless character:
“Since Ivan left for Heaven on October 4, 2018, I have endeavoured to do that which he would have done if he were here. His and my wonderful family provide their love and support for all my needs. I am so blessed with family and friends such as you.
I am a Director on the Green Cites Foundation and try to contribute a little.
As an Ambassador at Stone Lodge, Guelph (where I have called home since my beloved Ivan left for Heaven) I welcome residents new to the facility. It is so comforting to see a smile on each face!
Of course, there are challenges, but I tell them that, whatever it is, it could be worse, much worse! So let us keep each other company and thank the team who diligently take care of our needs.
I have 12 new residents to whom I try to welcome and chat with twice a day. It feels great to put a smile on someone’s face.
I count my blessings that, at 90 years young, I am able to bring some joy to some. For example, one of my new residents is in a wheelchair and is receiving treatments for cancer.
Each day, I try to chat and take fresh fruit juice, made from real oranges, for her to enjoy .
I shall always be thankful to my parents, who instilled, often by unspoken words, leadership values, mores and beliefs to live by, into each of my siblings and me!
To bring me more joy, I shall imagine that I am at Congress!
With kind regards and respect, Margaret
Margaret Stinson was a blessing. Her Landscape Ontario extended family are honoured that she and Ivan adopted us. Her positive spirit has left a wonderful legacy. Our organization has been enriched by her example of selfless contribution.
INCLUSION CREATES OPPORTUNITIES TO BLOOM
MacArthur's was just really good at understanding and gave me everything I needed to succeed. Especially with multiple tasks in a row, I would tend to forget and I need to pay even harder attention. And I just need a little extra reassurance of what I'm doing. And so that was when I logged what to do and when on my phone, taking a bunch of pictures. I learned a lot about myself through the co-op program and spending time at MacArthur's.
Tell me more about the physical benefits you discovered while working in a nursery.
Joe Steeves is a young man who exemplifies how a passion for plants can overcome physical challenges and anxiety. He was born with cerebral palsy, which can cause shaky hands and a reduction in fine motor skills due to damage to the part of the brain that controls movement. His family would say he was also born with a green thumb.
Joe got his first exposure to the green sector when he got a part-time job in a Superstore garden centre. That led to a high school co-op placement at a local
What inspired you to pursue a career in the green sector?
I have a really, really great passion for the horticulture sector. And as soon as I got exposed to this sector, I just fell right in love. So my journey began at MacArthur's on a co-op program through the high school, and I got my foot in the door there. I got a feel for the workforce and I really clicked with my coworkers. I have cerebral palsy, so they gave me a lot of patience and dedication. And I learned a lot about myself
Oh my gosh, I would be here all day explaining to you. It was so, so awesome. When I was pruning and cleaning the plants, like a lot of the tropicals, it's really those fine motor hand movements with the pruners. And so basically it was a little rough at first. I was very shaky and stuff. But just those hand movements and my muscle memory gave my hands the work out that they need. And I built up a lot of strength at McArthur's, and plant care is so, so good for my fine motor. It was great. When I was young, we used to have a private occupational therapist come to the house and I'd work on little games with them with a lot of pieces and stuff like that just to work on those hand movements. So being at MacArthur's, tending to those plants all day was basically therapy and I found a really marked improvement and everyday tasks got easier. It's so, so good for me because it's my passion, but it's also really benefiting me in life.
How did MacArthur's Nurseries, which happens to be a member of Landscape New Brunswick, accommodate your physical challenges so you could contribute while avoiding injury?
A very good question. They had a lot of inclusion at MacArthur's. For example, when I was watering a plant I had to work on my dexterity a lot and I would be hunched over a lot during the time I was watering. So they actually made my own personalized watering cart. It had a grill and a two-tier cart with the bucket to catch the excess draining water so I would just set each plant down, water it, and any spilled water would come out the drain holes and into the bucket. And just wonderful, wonderful people there; Thomas and Ashley really changed my life because they're the ones that had this wonderful idea to make my own watering station. Thomas made it for me and he put a spout on it so I could walk the cart up as soon as it would get full and then drain it in the draining system at MacArthur's, it was perfect.
It just made my every day a lot easier. And everybody's so awesome there. They just gave me the time I needed and were so supportive. And every day I would go in there with a smile on my face because all of them, they really, really understood. Tony, who hired me, is a great, great guy and Trudy, another manager there took me under their wing and really, really trusted me. Now, working at a few more jobs, that confidence is always staying with me, and that's because of MacArthur's. I can't say enough good things about them because I've learned a lot about myself to succeed in this sector I love.
What do you think makes the difference between somebody just giving you a job and somebody making you feel like a valued member of the team?
Well, it speaks volumes of the company because somebody with cerebral palsy like I do, I’ve had to overcome challenges all my life and them hiring me was just the great, great confidence booster that I wanted to experience in the workforce. And thanks to them hiring me and I got some really good relationships and that workplace balance to really get to know what I need in a workplace and they welcomed with open arms for me to go on and achieve my dreams.
Do you like flower gardening as well? Or houseplants?
I love houseplants. When I started at MacArthur's on a co-op program, I had
one houseplant. Now I have over 60. And any time they need care I'm always there and watering them and tending to them and cleaning them up because again, it's so therapeutic. Tropicals and annuals and perennials and outdoor garden plants are a lot different care-wise, but they're still a plant. And obviously I just love tending to them, it's relaxing and soothes me.
I've started propagating my plants. I'm just in the starter phase of it, so there's still a lot to learn. I kind of know the basics of propagating for now and I'm looking to get some more experience about propagating, but a lot of my plants now I have at home I can start them in water and they'll root with the rooting powder, some of them. It was a great learning experience for me. I took a super rare tropical plant I have to a
ASSOCIATION NEWS
friend that taught me a lot about the nodes in propagating plants. And she helped me bring it back to life too. With the proper care, with supplies and everything, you can actually make new plants, which I find so fascinating.
Tell us more about the people who helped you build your greenhouse and gardens by sharing supplies and tools.
Well, it just goes without saying, but this part was incredible. I have to shout out to Cormier Landscaping and Property Management. They came and put down patio stones and laid out concrete blocks to put on my greenhouse. And the crew was fantastic. And my dad and uncle helped me build a pergola for it. And I put a bunch of hanging baskets around my greenhouse, and it's just so pretty and comforts me so much.
What would you like to learn about next?
I'm very interested in little seedlings, planting from seed. And I already tested it out in my own greenhouse. But I'm just so fascinated by watering the little seedlings, starting them in the corrugated trays. We actually have a germination room at Farmer Brown's and I really would like to, down the road, get some one-on-one experience in there. I'm so fascinated by that.
Do you have any final words of advice for others who might want to explore a career in landscaping or horticulture, but think that they can't handle the physical challenges?
I just say if you really like this sector, I know I do. Like I said to my coworkers today when I was transplanting, I wasn't even keeping track of time and was like, ‘Whoa! It's noon already? It feels like I just started!’ I just get lost in it. I love it. It's so therapeutic. And anybody who wants to start it, if you have nerves, that's totally natural. Even I was a nervous wreck my first day, but I tried to spin it positively. And I really thought in my head, I'm there to learn. And if you're worried about not understanding it right away, just go after it because it's a great sector. And I've already learned so much, and I absolutely love it.
Snow removal sector meets to discuss insurance crisis
BY GERALD BOOT Chair, LO Snow and Ice Sector GroupThe Insurance Crisis Part 2 was an in-person and virtual event held at Landscape Ontario’s home office in Milton, Ont., on May 25. Over 100 members of the snow and ice sector met to discuss the insurance crisis. This was a follow-up to an initial meeting held Jan. 9, 2020 at Congress where over 300 members expressed their disappointment and frustration with the availability and cost of insurance. Since that time, Landscape Ontario’s Snow and Ice Sector Group (LOSIS) has been extremely busy working on solving this serious problem. An update of our activities was presented at this most recent meeting, and it is clear there is light at the end of the tunnel.
In July 2022, sector group board rep Jon Agg was introduced to Daisy Group Consulting via his neighbour, Tara. Daisy Group was ultimately selected as the government and public relations firm to represent our group. At the May 25 meeting, Daisy Group president Warren Kinsella explained their approach on combining government and public relations and recapped the main issues:
• Face an insurance liability crisis.
• The availability, capacity, and price of insurance is unstable. Many are being driven out of the industry.
• Declining numbers of snow and ice contractors will result in a lack of service next winter without changes by government.
• Bill 118 has not solved the problem.
• Winter safety should be a shared responsibility for all involved: managers, owners and contractors.
• Snow and ice contractors are currently
shouldering all the liability risk for safety and the environment (safety and environmental duties are in conflict and need to be shared responsibilities), the result being many are shutting down their snow management business.
LOSIS has developed a vision of how the industry should operate and it requires reform. We have the attention of the Ontario premier’s chief of staff and meetings have and are being held with other ministries to promote our vision.
Your stories are needed
As was the case with Bill 118, we need the industry to participate in order to take this campaign to the next level. Snow contractors work in a dangerous environment and help keep millions of Ontarians safe each year. We need you to tell us how you may have helped someone during a snowstorm, drove someone to an emergency appointment, or whatever else you may have done. These good news moments of our industry tells the story that can sway public opinion. These stories are important to our success. Stories of the many hardships that your business has had or is facing are also important to collect, along with cost of insurance or changes to your insurance — including availability of insurance.
We need these stories (good and bad) and data to demonstrate there is a widespread problem, but also widespread support for changes to the sector. We have heard the cry from members and our vision requires significant and urgent legislative and policy change. We need your help to accomplish this.
Financial support needed
Since we have retained the services of Daisy Group there is a call for financial support from Landscape Ontario and the Canadian Nursery Landscape Association. Both associations have contributed, however, we also need member companies to contribute financially. Many companies have already pledged support or donated. Please consider supporting this important activity — it's much needed and greatly appreciated.
Standard training developed
The afternoon session included a recap of the work the sector group has done to get us to the point of obtaining the services of Daisy Group. The impetus came from the CSA Group’s Workshop Agreement on Assessing the Need for a Snow and Ice Management
Standard of Canada, published in May of 2022. The report identified the four key issues facing the sector: liability, training and competency, environmental impacts, and regulatory frameworks.
CSA Group indicated they could not develop a standard at that time, so rather than wait for them, the sector group continued to work toward that initiative on its own. In July 2022, a curriculum for training employees in the snow and ice industry was developed with the intent to improve safety, establish industry practices and ensure environmental concerns are a component of the training, allowing a person starting out in the industry to achieve a level of knowledge and competency equivalent to someone who has operated in the industry for many years.
Thanks to all those who attended and
participated in this event. Please consider supporting our campaign with your stories and a financial contribution.
HELP SUPPORT OUR CAMPAIGN!
Share your good news stories
Provide financial support
Read the CSA Snow and Ice Workshop Agreement
Learn more about the curriculum that was developed
VISIT
gfl.me/hbBj
London Chapter completes project at Indwell residence
southwestern Ontario, with plans to more than double that amount in the coming years.
Julie Ryan, Community Engagement Coordinator at Indwell, took the opportunity to thank the project organizers. “On behalf of Indwell, we are really grateful for this donation. It’s a lot of money, but it’s also a lot of love.”
London Chapter president Greg Schaafsma explained the project all began about three and a half years ago when London Chapter member Jay Murray brought Indwell’s Julie Ryan to a London Chapter meeting. Ryan explained Indwell’s mission to build more supportive housing units in the province and the chapter board soon after visited Indwell’s Woodfield Gate apartments in London. Schaafsma said the chapter board then committed to raising funds for the project.
8.
The new $22 million building located at 740 Dundas St. contains 72 mostly single, affordable, supportive housing units. Indwell has over 1,000 such units in
Schaafsma explained some of the funds were raised via a charity casino night and silent auction organized by the chapter that also helped to “raise awareness of Indwell’s supportive housing model.”
Jay Murray, owner of TLC Professional Landscaping explained that Indwell secured the vacant site at 740 Dundas Street from a developer a few years ago.
“I’ve been a Landscape Ontario member for 35 years and what I’ve seen again and again is how dedicated landscape people are to gardens and to having a positive impact on people’s lives,” Murray said. “We’ve done three or four projects this big in the last 15 years and there’s a lot of generosity there, which says a lot about the kind of people that are in the landscaping industry.”
Murray said he was very impressed with the amount of money Landscape Ontario was able to raise and also the willingness of people to step up and contribute. Murray said he is equally impressed by how professional and good Indwell are at building buildings — from planning to securing funding from various levels of government. “Not only can they build it, but they can run it,” Murray explained.
At the garden unveiling on June 8, London Chapter volunteers, LO executive director Joe Salemi, staff from Indwell, and a few of the building’s residents held a small planting to put the finishing touches on the project.
It is with great sadness we share with you that Pasquale (Lino) Ammaturo passed away on May 23, 2023. Lino was a member of Landscape Ontario for more than 25 years.
Born Feb. 26, 1940, Lino immigrated to Toronto from Italy at the age of 22 with a degree in horticulture and the dream of owning a garden centre. He married the love of his life Marie in 1964, and together they created a beautiful family, and enjoyed a good life by travelling, celebrating, and working. They also built a successful business — Woodhill Garden Centre. Located in Thornhill, Ont., Woodhill celebrated its 40th anniversary in 2016. Lino’s mantra, “honesty, passion and hard work,” was clear from the beginning, and he took pride in having instilled
those qualities within his family and his staff.
Beloved husband to Marie (nee Battaglia) for 59 years. Dear father to Donna (Nazzareno), Joe (Tina), Robert (Lucia) and Tina (Robert). Loving Nonno to Federico, Enrica, Julia, Felicia, Valerio, Luca, Elisa, Stefano, Anthony and Alexander. A special thank you to his many caregivers who worked together as a team and whom he loved like family. The patriarch of the family, Lino will be honoured every day as the family continues his legacy. He will be dearly missed and will always be in our hearts.
In lieu of flowers, donations may be made to Parkinson Canada.
A link to an online obituary and condolences can be found online at gfl.me/hbB3
Industry feedback provides opportunities for growth and innovation
Landscape Ontario recently undertook an online survey to gain a deeper understanding of the industry’s current operation statistics on various aspects, including: fleet management, equipment usage, training, and marketing
We appreciate the time our members and some nonmembers (at least, not members yet!) spent responding to the survey. The data collected will help us to offer the best possible services to our members.
Below are the key findings from the survey. For an analysis of the data, including key findings and conclusions, see the Membership column on page 28 of this issue.
Primary focus and sizes
The survey revealed the average company size during the busy season falls within the medium to larger range, employing between five and 15 employees (38% of respondents). The primary focus of the majority of companies was Grounds Management (11%) and general Landscape Contractors (10%). Turf management, snow and ice removal, and irrigation were identified as the least common primary focuses.
Fleet size and usage
Most companies in the industry said they have an equal number of cars/ vans (smaller vehicles), and trucks — typically ranging from one to three vehicles in each category. Companies tend to refuel trucks twice as often as smaller vehicles, averaging two refills per week, per truck. Additionally, a significant number of companies tend to have either no non-road going/ heavy equipment, or have a substantial fleet of six or more units. A considerable portion of companies expressed interest in purchasing a new truck/vehicle annually, while larger cargo vans are in high demand 26%.
The survey indicated the majority of companies have annual auto insurance premiums below $10,000, with increases of around 10% over the past few years.
Equipment types and reasons
Although electric-powered equipment is gaining traction in various industries, most respondents (74%) indicated they have not made the switch to using primarily electric equipment. About the same number (76%) said they are not planning to make the switch within the next three years.
DELIVERING SUPERIOR SOD WITH QUALITY SERVICE
The top reasons for not adopting electric equipment were: insufficient run times, lack of power, and slow charge times.
Among the companies that have made the switch to using primarily electric equipment, (26%) said the key motivations included: reduced emissions, ease of use, and quieter operation.
Software and other consumables
The survey shed light on technology adoption and usage within the industry. A significant portion of respondents (62%) reported not using 3D modelling software in their projects, while 67% indicated they do not use drones and 65% have no plans to incorporate them into their operation.
Most companies (70%) own between one and four computers, with most older than three years. Tablets are widely used on job sites (57%), and 58% of respondents reported incidents of broken devices during projects.
The industry also displayed a consistent need for multiple safety equipment items (72%) and work clothing replacements (74%) per person on a yearly basis — a notable operating/ consumable expense.
DO YOU USE PRIMARILY ELECTRIC OR BATTERY POWERED EQUIPMENT?
DO YOU PLAN ON SWITCHING TO BATTERY EQUIPMENT IN THE NEXT 1-3 YEARS?
WHAT NEW VEHICLES ARE YOU PLANNING TO PURCHASE?
Education and training
A significant majority of companies (86%) reported minimal to no training through Landscape Ontario or the Canadian Nursery Landscape Association, while a similar proportion (84%) did not engage in external training programs. First aid and WHMIS training were the most popular training courses taken outside of LO’s course offerings.
Marketing and social media
When it comes to marketing, 55% of companies said they manage their own promotions. Additionally, 6% of companies said they do not engage in any form of marketing/ advertising/ social media.
Future outlook
Finally, we asked how each company felt the industry was going to fair as a whole over the next year, with 81% of respondents indicating they feel good about the future.
WHY DO YOU NOT USE MOSTLY ELECTRIC/ BATTERY EQUIPMENT? (CHOOSE UP TO 3)
avknursery.com
Sophia Bearden swaps flour for flowers
BY KARINA SINCLAIRher the $1,000 Horst Dickert Memorial Scholarship from the Ontario Horticultural Trades Foundation (Foundation). Sophia graduated in Spring 2023 and is eager to gain more real world experience.
What work experience do you have relating to landscape/ horticulture?
What prompted you to pivot your career toward landscaping?
I worked as a baker for nearly seven years with Motherdough Mill and Bakery. I learned a lot working as a baker and enjoyed the work, but after having my second child I found the overnight shifts hard to manage with my family.
Previously a baker, Sophia Bearden was prompted to re-evaluate her career during the pandemic. Exploring city parks and spending more time in nature with her two children made Sophia realize she wanted to work outdoors. Her experience in the Landscape Technician program at Humber College sparked a keen interest in using native plants for restoration, which earned
Growing up I took on occasional odd jobs doing garden maintenance for neighbours, mostly weeding gardens or cutting grass. I grew up in a rural area surrounded by many farms, and in high school would spend a couple weeks of the summer picking strawberries. I also spent a summer working as a tree planter in northern Ontario. Although these jobs were very physically demanding and didn’t pay particularly well, spending the summer working outside was something I valued and found rewarding.
I was on parental leave when the pandemic started. With the school and daycares closed it wasn’t practical for me to return to work during that time.
During the pandemic, I spent a lot of time exploring Toronto’s many parks with my two children. As life began to normalize, I decided I didn’t want to go back to the night shifts. The pandemic had given me an awareness of how important parks and public green spaces are to quality of life in cities.
That’s what got me interested in pursuing a career in the landscape industry.
What career path do you plan to take after graduation?
I have just been hired by EllisDon to work on the Port Lands Flood Protection Project. I am very excited to be working on this project. I had the opportunity to visit the port lands work site on a field trip with my Sustainable Horticulture course at Humber College and was really inspired by the project.
Last summer I worked for the Humber Arboretum, doing invasive species control, and assisting with native landscape restoration. This experience inspired me to pursue a career in landscape restoration, either in maintaining existing natural green spaces or building new ones. Public parks and nature conservation areas are something I am very passionate about and hope to build a career that is beneficial to these spaces.
Do you plan to pursue more education?
I don’t have any plans for more formal education at the moment. I’m really excited to get working in the industry, and the demand for people with landscape training
is really high right now. I look forward to a lot of on-the-job learning opportunities.
I have found people in the landscape industry very passionate about their work and generally very enthusiastic to share their knowledge and experience. This has made entering the industry very inspiring and rewarding for me so far.
How did you hear about the Foundation scholarships?
I learned about scholarships from my instructors at Humber College. I was fortunate to learn about the work that Landscape Ontario does from a presentation during one of our programs weekly “Town Hall” lectures, where each week someone working in the landscape industry would come and speak to our class. I learned a lot during the talks and got to see the wide range of employment opportunities there are in the landscape industry.
How did earning this scholarship make a difference for you?
Receiving a scholarship from the Foundation not only helped reduce some of the financial pressures of being a student, but was also helpful in attracting the notice of potential employers. All the potential employers that
I had job interviews with asked about the scholarship when they noticed it on my resume. Being totally new to the landscape field it was nice to have the recognition of a scholarship from the Foundation.
Who do you respect or look up to in the profession?
I really enjoyed working at the Humber Arboretum last summer and learned a lot from all the staff there, especially Lynn Short, the Environmental Stewardship Coordinator. After receiving the Horst Dickert memorial award from the Foundation, I had the opportunity to learn about Horst Dickert. It was fascinating to hear stories of his innovative influence on the landscape industry in Ontario.
What has been your favourite part about learning about landscaping and horticulture?
I am really interested in how plants function together, and learning how to use native plants in combinations to create more environmentally sustainable landscapes. Learning about how plants can be used to restore lands that have suffered environmental degradation is also something I have found particularly fascinating.
VOLUNTEER PROFILE
Clearing the way for a level playing field
This month we’re highlighting Jim Monk, president of Markham Property Services (MPS). MPS offers residential landscape design/ build services and commercial maintenance in Markham, Ont., and surrounding communities. It also offers snow and ice management services to a growing portfolio of impressive clients, such as Sunnybrook Hospital, the Ontario Science Centre, and American Express.
Monk is a regular contributor to Landscape Ontario’s Snow and Ice Sector Group. “This sector has a lot of room to improve,” Monk said, “but also needs to have the ‘playing field’ levelled. It’s currently slanted against contractors, and is inherently unfair in terms of who bears liability.” The sector group has been working closely with different levels of government to establish legal liability protections, professional best practices, and educational curriculum for training employees in the snow and ice industry.
LO: How did you get involved in the landscaping and snow management profession?
Monk: Well, I sort of stumbled into the industry. I didn’t have a summer job lined up when I was finishing high school, but I had an entrepreneurial spirit and thought I could run a business. I began mowing lawns that summer and haven’t looked back!
What inspired you to commit your time and energy to th Snow and Ice Sector Group?
Why is it important to make time to give back when you’re already very busy?
I was very involved in the Snow and Ice Management Association (SIMA), including holding a board seat, as well as serving a term as president. I learned a tremendous amount through this engagement, and felt like I could offer a little to Landscape Ontario, but also felt that I could facilitate the two associations working more closely together. I think this has been successful, and benefits both associations.
What do you enjoy most about volunteering?
It’s nice to be able to advance the goals of the industry, but it really feels good when
providing advice or assistance helps a young business owner see issues more clearly or avoid mistakes. I was so appreciative of this type of help and guidance when I was younger.
What advice do you have for people who may want to volunteer?
Do it! You’ll be surprised at what you can offer, but I think a big thing that is often overlooked is how much you get back when you give. It’s not something you necessarily look for, but beyond feeling good about volunteering, there is huge value from networking and understanding the issues and opportunities that are occurring in the industry. These unexpected discoveries can be invaluable!
Get involved!
Are there any other ways you have donated your time and effort beyond Landscape Ontario?
Beyond my involvement in trade associations, I have spent countless hours coaching hockey and rugby over the years. They’re great games, but the real value is in seeing young people experience and benefit from the sportsmanship, teamwork and work ethic that the games demand and instill. Priceless!
What is your favourite piece of equipment or technology?
Although I don’t get to use them that much anymore, I still love hopping into our skid steers, excavators and loaders. Learning to skillfully run equipment was always one of the big draws to the industry for me!
Only Landscape Ontario members can attend a Sector Group meeting or be on its board. If you would like to attend a meeting of this group to see what it’s all about, please reach out to Karri Bylsma at kbylsma@landscapeontario.com or 1-800-265-5656, ext. 2342.
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The Canadian Food Inspection Agency (CFIA) recently confirmed the first detection of oak wilt rot in Canada.
Oak wilt rot is a serious disease of oak trees caused by the fungus Bretziella fagacearum which grows on the outer sapwood of all oak trees. The origin of the fungus is currently unknown, and although it has varying degrees of severity across the different species of oak, it appears red, black and pin oaks are most susceptible.
The initial case in Canada was found in a residential area of Niagara Falls, Ont. CFIA has implemented movement restrictions on the affected properties in order to help prevent the spread of the fungus that can kill a tree in just one season. CFIA is working with other federal, provincial and municipal governments to survey the area and determine next steps.
A vascular disease, oak wilt can spread from roots to the top of the tree through its vessels to restrict water and nutrient flow. Affected red oaks are often identified with the disease through their pointed lobes. White and bur oaks can be identified by their rounded lobes. Leaf bronzing at the top of the tree, sudden wilt of a healthy tree, premature shedding of leaves in spring, summer or early fall, and vertical cracks in trunk bark caused by fungal mats are all signs a tree is likely infected.
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In addition to the movement of affected wood (ie: firewood), 90 per cent of oak wilt is spread via interconnected roots of nearby trees. Wounded trees (including those harvested or pruned) release a sap that attracts sap beetles and picnic beetles, who then transport the spores to healthy trees.
Thus, members of the landscape horticulture community are asked to avoid harvesting or pruning oak trees from April to August and to be on the lookout for affected trees. All possible sightings should be reported immediately to either the Invasive Species Centre (via their website or at 1-800-563-7711), CFIA, or by using the EDDMapS app.
Best practices for third-party hiring agencies
With the unprecedented demands for labour currently facing the landscape sector, many members are looking at all avenues to meet their needs. As such, the Canadian Nursery Landscape Association (CNLA) is aware that more third-party labour agencies (temp agencies) are focusing efforts on our sector as one with a high need. We have compiled some best practices below to ensure members know their obligations and help limit their liability when using such services.
Nursery/ landscape employers are legally responsible for all workers in their organization, including agency workers. If agency workers do not have proper documents showing they are legally able to work in Canada, then the employer would be liable.
SINs that begin with a "9" are issued to temporary workers who are neither Canadian citizens nor permanent residents. These SINs are temporary and are valid only until the expiry date indicated on the immigration document authorizing them to work in Canada. If a worker presents a SIN starting with a 9, it is imperative that you request a copy of the work permit (Government of Canada, 2020).
AGENCY WORKER BEST PRACTICES
• Identify a lead person coordinating agency workers for the business through a reputable agency. The lead person must contact the reputable agency and explain the procedure for all agency workers.
• Schedule orientation for agency workers when they arrive at the business. No workers will begin work until orientation is completed, work permit and photo id are photocopied.
• Verify agency workers’ work permit, photo identification, and SIN card.
• Photocopy work permit and other documents for the business human resources file. Photocopy the work permit, SIN card, and photo id and then return to the worker.
• Complete company orientation and safety training.
• It is important that no agency worker begins work with the company until the company has validated their work permit status. This is protection for the company and the employer if questioned by provincial, federal or police authorities now or in the future.
Much of this advice applies to direct hire individuals as well but is often skipped when hiring via an agency. We suggest that all proper steps occur to protect both the employees and you as the employer (via agency).
For a more in-depth look at your requirements as an employer a webinar provided by CNLA and Zaifman Law is available via the online version of this article at gfl.me/hbAq
ELD Certified!
Plant propagators conference coming to Hamilton
Mark your calendars and prepare to experience the ultimate horticultural extravaganza — the International Plant Propagators Society (IPPS) conference will return to Ontario Sept. 26-29.
With the theme of "Keys to the Future!" the diverse society of plant propagators includes members from all corners of horticulture, including: botanical garden managers, estate gardening specialists, growers, researchers, educators, and more.
This year's conference promises an incredible lineup of speakers that will discuss cutting-edge propagation and breeding techniques, revolutionary tree-growing methods, and how public gardens tackle invasive species. Afternoon tours will whisk attendees away to visit innovative nurseries, trial irrigation setups, and fields embracing the best soil practices.
In addition to education and tours, there are incredible dining experiences, including a scrumptious barbecue dinner at NVK Nurseries, plus a dinner at the host hotel.
The conference is your opportunity to connect, network, and make lifelong connections with old friends, fellow horticulturists from across North America, and students seeking their first career opportunities. Plus, engage in captivating conversations with inspiring speakers and industry experts.
#WhyGambleWithYourFleet
Registration is easy. Choose the package that suits you best — a four-day package that includes an exciting pre-tour, a flexible three-day package, or individual day passes.
Don't miss out on this remarkable event that will leave you inspired, motivated and eager for more. Visit ippseasternregion.org for more information or register online at gfl.me/hbns
Temporary Foreign Worker Program updates
In its June 2023, News Bulletin, Employment and Social Development Canada included a number of updates in regards to the Temporary Foreign Worker Program (TFWP).
EMPLOYERS’ RESPONSIBILITIES
TOWARD TEMPORARY FOREIGN WORKERS
The communication contains important clarifications on questions from stakeholders about employers’ responsibilities toward temporary foreign workers affected by work stoppage situations, including those caused by labour disputes or unforeseen events (e.g., flooding, forest fires, etc.).
TEMPORARY FOREIGN WORKER PROGRAM: EMPLOYMENT AGREEMENT
Employment Agreement sample templates for all streams under the Temporary Foreign Worker (TFW) Program (including agriculture) are now available online.
PROVINCES/ TERRITORIAL MEDIAN HOURLY WAGE UPDATE FOR THE TEMPORARY FOREIGN WORKER PROGRAM
The updated median wages for 2023 that went into effect on May 31, 2023 are now available online.
More details, including the entire News Bulletin and links to the templates mentioned can be found online at gfl.me/hbAX
EXECUTIVE DESK
Government advocacy work is crucial
Landscape Ontario plays a vital role in advocating for the interests and wellbeing of the landscape horticulture community in Ontario. One key aspect of this work involves engaging in government advocacy to influence policy decisions and create a favourable business environment.
Amplifying the collective voice
Landscape Ontario brings together businesses and organizations with shared interests and concerns. By pooling our resources, expertise and influence, we effectively amplify the collective voice of our members. Through government advocacy efforts, we communicate your needs and priorities to policymakers, ensuring your concerns are heard and considered during the decision-making process. This collective strength allows associations to advocate for policies that promote growth, innovation, and sustainability within your respective sectors.
Shaping public policy
Landscape Ontario engages in government advocacy to actively shape public policy that affects the landscape horticulture trades. We provide policymakers with valuable insights, research, and data-driven analyses that inform policy creation. By engaging in dialogue with government officials, Landscape Ontario helps craft regulations, legislation and initiatives that are fair, balanced and responsive to the needs of your members.
Promoting economic growth and job creation
Government policies have a significant impact on economic growth and job creation. Landscape Ontario plays a crucial
role in advocating for policies that foster a supportive business environment, promote entrepreneurship, and facilitate job opportunities. By working with governments, Landscape Ontario influences policies related to taxation, trade, infrastructure development, research and development funding, and workforce development and training, among others. Such policies can have a direct and positive impact on the growth and competitiveness of industries, leading to increased investment, innovation and job creation.
Protecting member interests
Landscape Ontario acts as an advocate and guardian of your interests. Through government advocacy, we address issues such as regulatory barriers that may hinder your ability to operate effectively. By proactively engaging with policymakers, Landscape Ontario prevents the enactment of detrimental policies and regulations, and instead, works toward a regulatory framework that supports fair competition, consumer protection and industry sustainability.
Ensuring effective regulation and compliance
Government regulations are essential to safeguard public interests, protect consumers and ensure industry accountability. Landscape Ontario, through our government advocacy work, contributes to the development of effective regulations that strike a balance between protection and fostering industry growth. We provide industry-specific knowledge and expertise to help policymakers understand the potential impact of
proposed regulations and identify any unintended consequences. Landscape Ontario also assists you in understanding and complying with regulations, thus promoting responsible business practices.
Shaping a sustainable future
The government advocacy work of Landscape Ontario is of paramount importance in shaping policies, driving economic growth, protecting your interests, and ensuring effective regulation. By representing your collective voice, we become powerful catalysts for positive change, advancing the landscape horticulture trades for years to come. Our ability to engage with governments, influence policy decisions and drive sustainable development is instrumental in creating a conducive business environment that benefits society as a whole. As we recognize the critical role of Landscape Ontario in government advocacy, it becomes imperative to support and value your work as key stakeholders in shaping our future.
Current government advocacy work
Landscape Ontario is presently engaged in several direct interactions with federal, provincial and municipal levels of government. For a brief overview of what we are working on for you, read the online version of this article at gfl.me/hbBi
Joe Salemi CAE LO Executive DirectorMEMBERSHIP
Member feedback will help improve benefits and services
Arecent online survey of Landscape Ontario members (and some nonmembers) provided your Landscape Ontario membership services team with some valuable information that will help us to help you get the most for your membership dollars.
About 250 members completed the
Landscape Ontario Industry Operating Stats Survey this spring. To read about the data collected, see page 18 of this issue.
Expanding benefit offerings and more promotion of current ones
Considering the industry’s higher than expected demand for smaller vehicles and cargo vans, we will need to make it more clear through promotions and newsletters that there are current discounts available with our current providers on smaller vehicles and cargo vans. Overall, this is a positive sign that many companies are finding out that more work can be accomplished with smaller or more efficient vehicles.
Promote fuel cost savings
Given the average number of vehicles and weekly refuelling frequency, more promotion of the various fuel discounts available could potentially save even more members approximately $500-600 per year on fuel, making membership more costeffective than originally anticipated for many of them.
Insurance provider evaluation
With a lack of membership uptake in LO supported insurance programs, we need to provide more opportunities for members to interact with and get quotes from the current provider, HortProtect, as their offerings have been optimized for industry members.
Encourage electric equipment adoption
Regarding the use of electric equipment, an interesting finding was that the higher cost of batteries was not one of the top three reasons for the lack of adoption. This indicates that cost is not a barrier, but
rather the lower overall productivity of these devices is what is causing hesitation.
LO and CNLA currently have partnerships with Echo and Wacker Neuson that offer electric equipment in many categories. LO and CNLA will continue negotiating deals and opportunities with such providers in hopes of facilitating this transition.
Embracing technology
The survey responses also indicated a low usage of helpful software and technologies, such as 3D modelling and drones in projects and proposals. With customers having more and more access to comparison shopping/ quotes, and with the cost of most projects rising, clients are expecting to essentially see what their money will be getting them before they agree to any contract. Companies that do not provide these insights via the new technologies available may be missing out on potential clients.
Investigating companies that provide these software and hardware solutions and related training sessions could enable industry professionals to enhance their operations, improve project efficiency, and meet customer expectations. Similarly, exploring partnerships with computer accessory companies could help reduce on-site damages and worry about using these devices in the field.
Fostering training initiatives
Encouraging companies to take advantage of LO training sessions and expanding the range of courses available can enhance industry professionalism and skill sets.
Strengthening marketing efforts
Emphasizing the importance of marketing, advertising, and a social media presence to industry members could help them reach a wider audience — particularly newcomers to an area where landscaping companies may work predominantly by word-of-mouth. With new neighbourhoods and cultures coming into the province, referrals could become less and less effective, as more clients look to online reviews and search engines to conduct cross company comparisons. Companies with no online presence might find themselves missing potential clients.
By leveraging these proposals and addressing the identified challenges, we hope Landscape Ontario can help facilitate a future of sustainable growth, improved efficiency, and increased customer satisfaction in the industry for years to come.
Kole Member Engagement SpecialistOverhead Recovery 101 PROSPERITY PARTNERS
If you find yourself asking why you don’t have enough profit at the end of every year, you’re not alone. Many small business entrepreneurs (under $10M in revenue) work very hard on the operations and sales sides of their business, keeping all of the balls in the air to ensure customers receive great service and bills get paid on time. Often, working ‘in’ the business trumps working ‘on’ the business. Herein lies the problem.
We all gravitate to do what we prefer. Most entrepreneurs lean away from ‘the numbers’ and the nitty-gritty decisions that build a healthy balance sheet (and bank account). While operational excellence is important, unfortunately, neither the balance sheet nor overhead recovery factors can perform at their best when left on autopilot.
What the heck is ‘overhead recovery’ (OHR)? It’s the act of making sure that the company’s ‘fixed costs’ are fully recovered in the prices charged to customers for products and services. Notice I said that it’s the ‘act’ of recovering costs. It doesn’t happen automatically, and unless you intentionally add the right percentage to your Cost of Goods Sold (COGS), plus a margin for profit (see last month’s column) into the price you charge customers, you will always fall short of the money you’d hoped to make.
For most entrepreneurs, the business and the value that’s built into it over the years is often their plan to fund their retirement. Whether planning to develop a business for sale, or for making additional acquisitions, taking on partners, or franchising — eventually, the track record of profit and assets acquired determines the value of the business, and how comfortably you can retire. So to get there from here, overhead recovery (OHR) and Return on Investment (ROI) are important.
We commonly refer to numbers on the
Profit and Loss (P&L) statement as either ‘above the line’ or ‘below the line’. The ‘line’ is Gross Profit. Gross Profit is calculated from the numbers ‘above’ it on the P&L: Sales minus the Cost Of Goods Sold (materials, equipment, field/billable labour, subcontractors) = Gross Profit.
Depending on how your accountant has set up your chart of accounts, you may have to do a bit of fiddling around with numbers to be able to compare your COGS, Gross Profit and OH Expenses on the P&L (income statement) with the industry standards method. Accountants typically put field labour into ‘expenses,’ below the (gross profit) line. If you want to benchmark alongside your peers, you’ll need to move labour above the line.
Everything in ‘overhead expenses’ should be ‘fixed’ — and not proportionate to sales. Here are a few examples of overhead expenses: rent, utilities, communications (phones, internet, software), small tool purchases, shop expenses, business insurance, professional services, bank charges, management and admin salaries, and vehicles (not billable in the field). Note that truck lease expenses aren’t in this list. If you have one or two trucks leased, it’s okay to include them and their related costs here in ‘overhead’ for a SORS (Single Overhead Recovery) method ‘below the line’. If either your trucks or equipment are financed, their loans will appear only on the balance sheet. If you have a larger fleet, all field trucks, equipment and their related costs should be reported ‘above the line’ in Cost Of Goods Sold.
Let’s use an example on calculating OHR: If sales are $700,000 (100 per cent of revenue), COGS are $455,000 (65 per cent of revenue) and Overhead Expenses (including the owner’s salary or income) are $175,000 (25 per cent of revenue), then profit would
be $70,000 (10 per cent of revenue).
So here’s the calculation in this example to price a contract that includes recovering overhead:
Let’s say the Cost of Goods Sold for a soft landscape installation is $2,500 and you want to make 15 per cent profit after recovering all of your overhead. Using the JPL formula I explained in last month’s column (refresh your memory: gfl.me/ hbzK), here’s the answer:
$2,500 divided by 0.75
(100% revenue - 25% overhead expenses which is 75% or 0.75) = $3,300.
THIS IS YOUR BREAK-EVEN COST.
Now let’s add your desired profit of 15 per cent: $3,300 divided by 0.85
(break-even cost divided by 0.85 which is 100% - 15% or 85%) = $3,882.35.
THIS IS YOUR PRICE TO YOUR CUSTOMER.
If you use the incorrect, but commonly deployed markup method, your price to your customer would be $2,500 x 1.25 (incorrectly adding 25 per cent overhead recovery) = $3,125 break-even price x 1.15 (incorrectly adding 15 per cent profit), your price would be $3,593.75. This would have left $288.60 in the customer’s pocket instead of yours. So, on $2,500 worth of labour, materials, etc., if you don’t properly recover overhead and profit margin, you have fallen short of your profit projections for the end of the year by almost $300 bucks.
Many of you reading this might be glazing over, and you might not have actually read the numbers, thought about them and tried it on your own calculator to see if there’s a typo. And you might not yet have tested this out on your own P&L against your own quotes. I encourage you to suck it up and try.
If you are falling short of your goals, then please reread this, plus my last column which you can find at gfl.me/hbzK . Use your budget for the year, and at the very least, if you don’t have one, then use your Quickbooks Profit and Loss Statement to get your total Overhead Expenses as a percentage of the total sales from last year, and make necessary adjustments to forecast your best guess on how things will turn out this year for Overhead Expenses as a percentage of sales this year.
Recover your company overhead in every charge-out hourly rate, and every material or subcontractor cost you incur on a job. You work hard. You’ve earned it. You just might be lousy at math.
Jacki Hart CLM Prosperity Partners Program Manager info.peertopeer@landscapeontario.com*NANOBLAST OPTION ONLY
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