Landtech thrives on 30 years of commercial maintenance |
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Wednesday, March 14, 2018 07:00 AM |
Overley founded Landtech in Pitkin County on the Western Slope in 1987 with six people. Kevin Overley, the younger brother by 12 years started part-time back then while going to college in Denver and has been there ever since. Two years later Landtech moved to the Front Range and opened an office in Aurora. Today, with more than 300 employees, this commercial landscape construction and maintenance company services all of the Front Range from three offices with yards and has plans for more growth.” Strategic growth model “Lateral growth is our model. We wanted to spread out, not stay concentrated in the same region,” he says. “We set up in a location and grow to support costs. Then continue to grow until we are maximized in the location while looking for new locations. That’s our model.” Here’s how it worked for Landtech With southern Colorado and the Metro Denver areas covered, Landtech continued to close service area gaps in northern areas by opening a third branch in Longmont in 1999 and in 2017 moved to their new facility in Loveland. In 2003, Landtech built a large state-of-the-art facility in Aurora on 5 acres that accommodates a fleet of trucks and plenty of equipment, as well as 12,000 sq. ft. of office space. “For the Denver-Aurora region, our Aurora facility is operating near maximum,” Overley discloses. But he believes there are multiple opportunities for lateral expansion. Landtech strives to be one of the largest players in its service areas but not necessarily the biggest in a region. The management team is constantly looking ahead for new opportunities. Before a location reaches its maximum, they are planning future lateral expansions. For example, there may be opportunity in west Metro Denver such as Golden. Already Landtech does business in Cheyenne, Wyoming and is licensed for work in Utah and Nevada. Additional out-of-state options could have promise such as New Mexico and Arizona. Big, fast production requires the latest and greatest Professionalism at Landtech also includes staying at the leading edge of technology. “We were early adopters of GPS, electronic time capture and using mobile phones and tablets in the field,” says Larry. “Job files are stored in the cloud and are accessible by tablets in the field. Accounting and project management systems are state-of-the-art and systems talk with each other. These electronic systems have improved efficiency and effectiveness of the business by sharing information faster and easier.” Invest in people As Kevin Overley points out “the customers make our company who we are. They provide referrals and give us repeat business. Of course, that speaks to the workmanship of our crews—the quality of their landscape and irrigation installations and maintenance activities. We also warrant plant health, typically for a year.” Branches and maintenance departments are profit centers Branch leadership are “given” the facility, fleet, and equipment and then empowered to carry out production and manage projects. Branch department heads are responsible for their own financial condition and statements and are fundamentally stand-alone entities. Branches do their own hiring and conduct extensive training. Sometimes branches do their own estimates. The general manager of maintenance manages three separate maintenance profit centers—Aurora, Colorado Springs and Loveland. Each is reviewed separately and then rolled into one statement monthly. Key administrative processes, such as payroll, budget reports, and various project management reports are centralized and handled through the main office in Aurora. Administrative costs are fixed for branches and they know their percentages of costs. Most of the bidding is also done through the main office. “Good things happen between our branch profit centers,” says Larry. “Branches share information, including gross profits, and support each other. It’s working for us.” “We have accomplished a lot in these 30 years but I still remember the time and effort I put in during the early years. I like to share my experience with employees. It creates cohesion which is what it’s about. I think that’s how we’ve grown into one of the top commercial landscape companies in the state.” Read more in this issue of Colorado Green NOW: |