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Written by Vicky Urland
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Tuesday, April 23, 2024 12:00 AM |
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Gazing out over the massive mounds of soil, mulch, gravel, and other landscaping and building supplies on the multiacre Colorado Materials property in Longmont, it’s hard to believe the business started in a basement. And not a basement in a building on a construction site or industrial property. An unfinished basement in Chris and Meighan Kerr’s home.
“My desk sat on the concrete floor next to a portable heater,” says Colorado Materials Finance Director Delaney Lawless, Meighan Kerr’s sister. It seems impossible to start a materials company with no space to store the actual materials, but Chris Kerr, who has a background in landscape supplies and trailer sales, believed he could provide better customer service than other materials providers. Using his extensive contacts, he launched Colorado Materials in January 1999 as a broker, transporting materials from suppliers—pits and quarries—to contractors.
For the first few years, Chris and his then wife, Meighan, ran Colorado Materials from their basement, with Lawless assisting on the business end and Chris’s brothers working in sales. Meighan, a certified public accountant, not only balanced the books, but also brought in income from her job with a CPA firm in Boulder. “It truly was a family business because we were the only ones who wanted to work in the owners’ basement,” Lawless jokes.
An organic business plan
As Colorado Materials celebrates its 25th year in business, Lawless says it has expanded organically, capitalizing on opportunities when they arose. In 2002, three years after they launched the business, the Kerrs were offered good deals on large amounts of rock and other building supplies. That spurred them to make the leap from a basement brokerage to leasing land so they could stockpile products.
In about 2008, the Kerrs purchased land near the Longmont space they leased. In the ensuing years, they bought adjoining land, and for the last decade have owned about 13 acres along Longmont’s Boston Avenue.
“There’s been just such a steady climb over the last 25 years,” Lawless says. “We didn’t pursue growth—it just came to us. I think our growth has been comfortable without having a whole lot of extra risk.”
That growth includes expanding the product mix. In the early years, Colorado Materials focused on bulk goods like rocks and soils. Now, it carries more items that cater to smaller landscape customers, like patio tiles and pavers. Colorado Materials also offers wood mulch, compost, base and sand, retaining-wall materials and cinderblocks, ice melt and winter products, building materials like timbers and concrete and masonry products, and landscape supplies and tools.
“Our customer focus is contractors and installers of all sizes. The retail side, the homeowner business, has grown in the last few years and now is maybe 20 percent of our business,” Lawless says. As landscaping philosophies in Boulder County have changed, Colorado Materials has also adapted. Today, it’s a certified vendor of Rooflite, a green media used on living roofs. About a decade ago, Colorado Materials partnered with a dairy farm in Loveland to make Colorado Analytical Laboratories-certified Class II compost from the farm’s animal waste and clippings. The result is CMI Organics, a division of Colorado Materials.
All in the family
Of course, the grass hasn’t always been green for Colorado Materials. The 2008 housing crisis resulted in business pullbacks. In 2013, heavy rains flooded the yard and washed away many of the materials. And about a decade ago, Chris and Meighan Kerr divorced.
The Kerrs still run the business together— Meighan in the back of the house and Chris in operations. “I think it’s one of those things where you decide we’re going to do this and make it work. They keep things professional and not contentious,” Lawless says.
While the Kerrs don’t yet have a succession plan, they have children in their 20s and also think of their employees as family. They give loans and flexible time off to their workers, along with more standard benefits like 401Ks and paid health insurance. A handful of the 40 employees have been with the company for more than 10 years, and Lawless says most of the staff treats the business like they own it.
Colorado Materials also gives back to its community in multiple ways, including supplying materials for the Longmont Veterans Community housing project and the Niwot High School baseball field. On June 14, the company will celebrate its quarter-century anniversary with a community-wide hog roast.
“Twenty-five years for a family-owned, local company—we feel like that’s a big accomplishment,” says Sales Director Emil Anastas
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Written by Steve Coughran
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Tuesday, April 23, 2024 12:00 AM |
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When I owned a landscape company, I made the grave mistake of not paying attention to macroeconomic trends and financial markets. In 2007, amidst the housing market boom, I failed to comprehend the significance behind these indicators. Had I been more vigilant, monitoring trailing building permits as depicted in Exhibit 1, I would have recognized the decline in permit issuance, a leading indicator of housing starts and ultimately the demand for new landscape projects. Instead, I made the misguided decision to acquire trucks, skid-steers and other equipment, anticipating another record-breaking year of construction. This proved to be a significant misstep.
Since this humbling experience, I have dedicated myself to never repeating the same blunder. I developed a comprehensive dashboard featuring key economic indicators presented in a trailing twelve-month format, effectively eliminating seasonality while helping users comprehend the narrative behind the numbers. These resources are available for free when you join boostingyourfinancialiq.com.
I strongly advise closely monitoring essential economic indicators such as the consumer price index (Exhibit 2), which tracks inflation trends, alongside other leading indicators like building permits, new home sales, vacancy rates and national construction spend, among others. By diligently observing and interpreting these indicators, you can make informed decisions, strategically positioning yourself for continued success in the dynamic landscape industry.
Here are steps you can take to remain ahead of the curve.
1. Regularly review and update your rates.
During the busy season, client meetings, bids and managing your team can become overwhelming, but it’s essential to maximize your earning potential within our region’s short 26-week growing period. With so much on your plate, it can be difficult to find time to focus on the numbers.
You may find yourself thinking you’ll address it during the winter when things slow down, but this can create problems. Consider a scenario where you have 100 field employees who, on average, work 2,000 hours per year, totaling 200,000 labor hours. Throughout the season, you may give out raises, experience increased insurance costs and face higher employment taxes. As a result, your hourly rate increases by an average of $2. If you continue bidding projects without adjusting your hourly rate and labor burden, you could end up losing at least $400,000 over the year (a $2 per hour increase multiplied by 200,000 labor hours). That’s a significant loss.
I recommend conducting cost analyses at least once a month, especially in times of inflation. If you don’t have the resources internally, it’s worth hiring an external expert. Additionally, ensure you have current labor rates for different timeframes (six months, 12 months and 18 months ahead) to use when bidding projects in the future. Adjusting your pricing to account for anticipated cost increases is crucial. It’s also wise to learn from successful contractors who are modifying their contracts to address inflation.
2. Negotiate favorable contracts to safeguard your profitability
I recently spoke with several accomplished contractors who have implemented effective strategies to safeguard their businesses against high inflation. Myles Coughran, the owner of Colorado Design Build, has reduced the time bids remain valid from 60 to 30 days. This strategy encourages potential clients to engage with his company promptly while protecting his business from being locked into a volatile cost environment.
Greg Bobich, co-founder of Watermark Landscape and Design, is including escalation clauses in some larger projects to account for potential material cost increases and states in all new contracts that the proposal remains valid for 30 days from issuance. Judd Bryarly, CEO of Timberline One, emphasized the importance of incorporating escalation clauses into proposals and contracts to mitigate the impact of fluctuating material prices.
By following these examples, you can protect yourself contractually against rising prices.
Engage in monthly strategy review (FSR) meetings.
To stay well-informed about your business, I recommend establishing a dashboard to track key performance indicators such as cash flow, throughput, backlog, gross margin and net margin, among others. Think of this dashboard as the instrument panel a pilot uses while flying a plane. It would be absurd for a pilot to climb onto the wing mid-flight to check the landing gear, but many business owners rely on sheer determination and heroics instead of combining data with intuition. In addition, it is essential for you and your management team to regularly review the income statement, balance sheet and statement of cash flows, both on a monthly and trailing twelve-month basis, to eliminate seasonality and identify genuine trends.
To keep your strategy on track, it is imperative to clearly define your strategic problem— the obstacle preventing your company from achieving its purpose and vision. This might be a need to reduce costs because profit margins are decreasing while intense market competition prevents price increases. Once you have a well-defined strategic problem, you can establish focused strategic initiatives that will help your company overcome the identified challenge.
With your financial dashboard, financial reports and strategic initiatives clearly outlined, you are ready to hold monthly FSR meetings, which involve reviewing financial performance and adjusting the strategy accordingly. The most successful companies consistently build, measure, learn and take action to improve performance.
Boost your financial literacy skills
Financial literacy is a crucial skill for individuals at all levels within an organization. I am not referring to being a numbers-oriented person in the back office, but I am emphasizing the ability to interpret key financial statements, comprehend the story behind the numbers and take precise actions to drive greater value.
In the landscaping industry, if you are unaware of the financial drivers that impact your business, your hard work may be in vain. Take profitability as an example. While it is a common approach for business leaders to reduce overhead costs to increase profits, it can actually harm the long-term sustainability of your business if not executed correctly.
Exhibit 3 shows that the most effective value driver in the landscaping industry is increasing prices. But if the perceived value does not exceed the price, customers will not make a purchase. Therefore, it is essential to have a well-developed strategy in place that enables delivery of an exceptional customer experience, high-quality products or services and establishment of a strong brand. On the other hand, failing to adjust your pricing for inflation, as previously mentioned, can have a detrimental effect on profitability. This highlights the critical importance of financial intelligence in running a successful business. |
Read more in this issue of Colorado Green Now:
Meet a new member
Colorado Materials celebrates 25 years
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Written by Colorado Green Now
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Monday, April 22, 2024 12:00 AM |
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Development, opportunity and freedom are Elevate Landscapes' core value
Founded in 2019, Colorado Springs based Elevate Landscapes offers a wide range of landscaping services, from routine maintenance to large commercial and residential projects, in El Paso County. At Elevate Landscapes, development, opportunity and freedom are core values. Founder and owner Joe Ostrand, a retired U.S. Marine, learned from his mentor, Bill Lamberton, that when you free your employees to think and act for themselves, they’ll take ownership, innovate and make the company stronger. Learn more at elevatelandscapesco.com.
Read more in this issue of Colorado Green Now:
Colorado Materials celebrates 25 years
Boost your financial literacy
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Written by Colorado Green Now
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Monday, April 08, 2024 12:00 AM |
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Todd Williams Scholarship - CHRIS GRAHAM - Chris Graham is a senior at Colorado State University, majoring in Environmental Horticulture with a specialization in Landscape Design and Contracting. Graham is the treasurer and engagement coordinator for the Student Organization of Landscape Design and Contracting (SOLDAC). He has competed in the National Collegiate Landscaping Competition for the past two years and has worked with teams who have designed spaces within the City of Castle Rock and the Gardens on Spring Creek in Fort Collins. Graham is interested in working in residential design/build upon graduating.
JBK Scholarship - JOSEPH (JOEY) LONG - Joey Long is a graduate student at Colorado State University studying Horticulture with an emphasis in Landscape Water Conservation. While he was an undergrad, Joey participated in the SOLDAC student organization and the National Collegiate Landscaping Competition. He now serves in an advisory capacity for both. After graduating, he plans to return to his family’s landscape business in Colorado Springs.
Tom Trench Memorial Scholarship - LAUREN DEKOWZAN - Lauren DeKowzan, a senior at Front Range Community College majoring in Horticulture and specializing in Landscape Design, is the lead volunteer at the school garden at her daughter’s elementary school and serves on her neighborhood’s HOA landscape committee. She is also an avid photographer. DeKowzan would like to own her own landscape design business specializing in sustainable landscapes featuring native and low-water plants.
ALCC Scholarship - CIERA CLAWSON - Winner of the Todd Williams Scholarship in 2023, Ciera Clawson attends Colorado State University, majoring in Landscape Design and Contracting with a specialization in Sustainability and Plant Selection. She is the secretary for the SOLDAC student organization. Clawson has a passion for water conservation and implementing proper plant choices for low water use.
Read more in this issue of Colorado Green Now:
Day on the Hill
Turf replacement, pesticides and construction defects top 2024 legislative agenda
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Written by Colorado Green Now
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Monday, March 11, 2024 12:00 AM |
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Save the Date and Book Your Room – H-2B Fly in
ALCC will be joining NALP on May 21 and May 22 in Washington D.C. for our annual “fly-in”. It is vital for Colorado’s landscape community to meet with its’ representatives to keep the pressure on! There are many new staffers we need to educate and our representatives need to understand the labor shortages continue in Colorado. Please save the date and make plans accordingly.
This fly-in will be very similar to those in the past. For new folks, we will provide you with lots of information. Also, ALCC will be scheduling these meetings for you so there is no need for you to worry about that. Here is the anticipated timeline and more details will come as the date gets closer. Please let me know if you plan to attend.
Tuesday May 21st
- 5:00 – 7:00 pm Drinks (Location TBD)
- Dinner on Own, we will organize dine arounds upon request.
Wednesday May 22nd
- 7:00 – 8:30 am Breakfast and Briefing (Location TBD)
- 8:30 – 4:00 Congressional Visits on the Hill
We will do our best to not book meetings past 3:00 so that you can fly home in the evening. We want to minimize your time away from your Company and Family, but this is a crucial time to advocate for H-2B reforms. This is a free event to attend; however, you do need to cover your own expenses for your hotel and transportation to DC. We will provide you with drinks on Tuesday so you can meet other folks in the industry. On Wednesday morning, we will be providing breakfast the morning of along with a briefing to prepare you for your meetings on the Hill.
We have a room block reserved for you at the Hamilton Hotel for a rate of $329 per night. We only have 50 rooms available so if you plan to attend, please use the link to book your hotel quickly. If we run out of rooms, we will try our best to either expand our room block or look for other nearby hotels.
Reserve your room with this link - Hamilton Hotel Washington DC - Reservations - Room Availability (synxis.com)
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Written by Colorado Green Now
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Monday, March 11, 2024 12:00 AM |
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Residential Design/Build — Over $500K Designscapes Colorado | Kianna Creek Ranch, Sedalia
The design for this semi-sustainable working 200-acre ranch incorporated a newly remodeled home, an in-law home, historic barns and a newly constructed barn, a riding area, a round pin, Sedalia’s original homestead, and an existing seasonal pond. The landscape designer was challenged with connecting the ranch with a neighboring property to create one collective ranch, which entailed designing fields to rotate cattle and livestock.
A commercial-grade irrigation system that includes holding tanks and a cistern uses well water to irrigate 2 acres of lawn and gardens surrounding the main house. Stepstone paths lead to the stables, spa and sunken trampoline in one direction and to the chicken coop and orchard in the other. Vegetation and fencing make the house feel like part of the ranch while providing a safe space for the family’s four children.
Read more in this issue of Colorado Green Now:
Save the Date - H-2B Fly in
Sungari redbead cotoneaster shrub
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Written by Plant Select
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Monday, March 11, 2024 12:00 AM |
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Written by Plant Select
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Monday, March 11, 2024 12:00 AM |
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SunGari redbead cotoneaster is a versatile shrub requiring minimal maintenance
Ctoneaster racemiflorus var. soongoricus is a versatile, durable and adaptable large arching deciduous shrub that will reduce your yard maintenance and look beautiful at the same time. The toughest cotoneaster available, it can be planted as a windbreak on the plains or as a casual hedge row to disguise a neighbor’s fence.
In mid-May, you will enjoy masses of half-inch white flower clusters tucked among ovate- shaped, army green leaves. And the bees will be buzzing.
Designers love to use this plant in smaller yards and south- or west-facing courtyards. It will a add a level of interest that active gardeners strive to achieve. Trained into a multistem ornamental tree, the 8-foot-tall size fits nicely under the eaves of a house or elegantly over a split rail fence. The graceful arching branches will crown a magical spot with basal plantings of flax, foxglove, primrose or golden storksbill. Let these low-maintenance perennials reveal their flowers and fall color for the full magical effect.
Redbead’s adaptability means this cotoneaster grows nicely in all the heat and wind that can occur on three sides of a house. It will not look pleasant on the shady north side of any tall solid structure, though it will probably live. After the leaves turn a prosaic yellow brown in the fall, they drop quickly, revealing why it’s called redbead. Small, bright red quarter-inch fruit will hang onto the branches until you pull the holiday lights off in January. Redbead is not as messy as you might surmise. The birds do a good job of gobbling up berries as they ripen. This is a perfect plant for all demanding steppe climates. Read more in our winter magazine issue.
Read more in this issue of Colorado Green Now:
Save the Date - H-2B Fly in
Designscapes Colorado Wins Gold ELITE Award
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Written by GreenCO
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Wednesday, February 28, 2024 12:00 AM |
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Act Now: Advocate for protection of your company at GreenCO’s Annual Hill Visit March 20th!
Your active participation in advocacy can make all the difference. ALCC-GreenCO's Annual Hill Visit at the state capitol on March 20th, from approximately 8:30 a.m. until lunchtime, presents a crucial opportunity for you to join forces with like-minded professionals and champion the interests of our industry. There are several key issues including pesticides, turf replacement, small gas engine conversion and others that could impact your business that ALCC and it’s GreenCO partners are actively working on. Here is a recent report (add Hicks and Assoc report) and real-time bills that are being tracked: https://app.coloradocapitolwatch.com/bill-tracker-votes/0/1550/2024/0/
Here's why your involvement is paramount:
- Empowerment Through Education: Dive deep into the legislative process and gain invaluable insights into how policies are shaped. Arm yourself with knowledge to effectively advocate for the issues that matter most to GreenCO.
- Direct Engagement with Decision-Makers: Your voice matters, and this event offers a direct line of communication with legislators. Seize the opportunity to express your concerns, share your expertise, and influence decision-making at the highest level.
- Strategic Preparation for Impact: We'll provide comprehensive briefing materials and equip you with persuasive talking points on current bills. Be prepared to make a compelling case for the changes our industry needs.
- Experience Democracy in Action: Step into the chambers and witness firsthand the legislative process at work. By observing the Senate or House in action, you'll gain a deeper understanding of the mechanisms driving policy decisions.
- Collaboration and Networking: Connect with fellow advocates and industry leaders who share your commitment to advancing our collective interests. Forge alliances, share best practices, and amplify our impact through unified action.
- Exclusive Access to Decision-Makers: Enjoy a box lunch while engaging in meaningful conversations with legislators who are dedicated to addressing the concerns of GreenCO members. Your insights and perspectives are invaluable in shaping future policies.
Together, we can drive positive change and ensure a vibrant future for our industry. To secure your place, please RSVP by emailing John McMahon at [email protected].
Don't miss this opportunity to be a catalyst for progress. Join us as we advocate for a brighter tomorrow.
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Written by Colorado Green Now
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Monday, February 26, 2024 12:00 AM |
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Through GreenCO, ALCC advocates for members and the industry at the state legislature.
The following policy issues will be closely monitored by GreenCO lobbyists on behalf of ALCC during the 2024 session. There will be additional issues that will come up, and these will be identified by ALCC representatives in the GreenCO Legislative Committee meetings. (Follow them in real time at https://coloradocapitolwatch.com/bill-tracker-votes/0/1550/2021/0/)
The landscape industry in Colorado is facing a pivotal moment as the 2024 legislative session gets underway, with numerous bills introduced, including several that directly affect the industry. Among the key highlights to date are Senate Bill 24-005 focusing on turf replacement, House Bill 24-1178 addressing pesticide regulation, and Senate Bill 24-106 concerning construction defects. Additionally, the sheer volume of bills introduced—nearly 500—underscores the breadth and complexity of issues facing the landscape industry and the broader community. As the session unfolds, stakeholders must navigate this complex and evolving regulatory landscape, remaining vigilant, engaged, and proactive in advocating for their interests. By working collaboratively with policymakers, advocacy groups, and other stakeholders, the ALCC/GreenCO are working to shape policies that promote sustainability, innovation, and resilience in Colorado's built and natural environments.
The Air Quality Control Commission (AQCC) is poised to take final action on the Small Engine Rules in February, 2024. These rules hold particular significance for the landscaping industry, as they pertain to the use of equipment and machinery integral to landscaping operations. As such, landscapers must closely monitor the development of these rules and understand their potential implications on equipment usage and operational practices.
Legislative Update: HB24-1178, introduced in the Colorado House of Representatives, presents a significant shift towards local control in pesticide regulation within the landscaping industry. The bill prioritizes empowering local communities to enact stricter oversight and accountability measures concerning pesticide usage, particularly in outdoor spaces. By granting municipalities and counties greater authority, HB24-1178 is not supported by ALCC/GreenCO.
On the other hand, SB24-005, titled the "Water Conservation and Landscaping Practices Act," represents a significant effort to promote sustainable water usage in outdoor spaces across Colorado. Introduced concurrently in the Colorado Senate, SB24-005 proposes measures to incentivize water-efficient landscaping techniques and establish guidelines for the use of drought-tolerant plants, mulching practices, and smart irrigation systems.
Through rebates, tax incentives, and other incentives, the bill aims to encourage property owners and landscaping professionals to adopt environmentally conscious landscaping practices, contributing to water conservation efforts in the state.
HB24-1008 Wage Claims Construction Industry Contractors Bill Description: Concerning measures to expand general contractor accountability for wage claims involving contractors in the construction industry. GreenCO- Opposes
HB24-1014-Decptive Trade Practices Bill Description: Concerning the elimination of a judicially created requirement that a significant number of consumers be harmed before remedies may be available under the "Colorado Consumer Protection Act" GreenCO-Opposes
HB24-1041- Streamline Filing Sales & Use Tax Returns Bill Description: Concerning the streamlining of processes for filing sales and use tax returns.GreenCO- Monitor
HB24-1083 Construction Professional Insurance Coverage Transparency Bill Description: Concerning insurance coverage for construction professionals. GreenCO Opposed as Introduced
HB24-1178 Local Government Authority to Regulate Pesticides Bill Description: Concerning local government authority to regulate pesticides. GreenCO Opposes
SB24-005 Prohibit Landscaping Practices for Water Conservation Bill Description: Concerning the conservation of water in the state through the prohibition of certain landscaping practices. GreenCO Amending
SB24-023 Hold Harmless for Error in GIS Database Data Bill Description: Concerning the requirement that local taxing jurisdictions hold harmless vendors that rely on erroneous data in certain electronic systems related to sales and use tax that are managed by the department of revenue. GreenCO Monitoring
SB24-025 pdate Local Government Sales & UseTax Collection Bill Description: Concerning local government sales and use taxes administered by the department of revenue, and, in connection therewith, revising, modernizing, and harmonizing various state statues relating to the state-administration of local sales and use tax into one uniform statute. GreenCO Monitoring
SB24-081 Perfluoroalkyl & Polyfluoroalkyl Chemicals Bill Description: Concerning measures to increase protections from perfluoroalkyl and polyfluoroalkyl chemicals. GreenCO Is Reviewing Bill
SB24-100 Commercial Vehicle Highway Safety Measures Bill Description: Concerning commercial vehicle safety measures on Colorado highways. GreenCO is reviewing.
SB24-106 Right to Remedy Construction Defects Bill Description: Concerning legal actions based on claimed defects in construction projects. GreenCO is reviewing-Suggesting Support Position.
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