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Sector Check "The recession has caused some attrition to golf course construction companies and suppliers," he continued. "Many companies that depended solely on the golf course construction market were forced to either sell or merge with other organizations. Many of our current members made the wise choice many years ago and diversified their businesses into other landscape construction, allowing them to weather the economic storm. "Recently, there has been some movement by facilities to move forward with maintenance projects." Rick Boylan, president of MidAmerica Golf and Landscape, Inc., in Lee's Summit, Mo., sees a glimmer of hope on the horizon. "A couple of years ago I would have phrased the industry as both stagnant and struggling," Boylan said. "Since then I believe we have begun to see a small increase of work in the United States, although this work is primarily renovation – greens, bunkers, irrigation, cart paths – of some sort. "Also, before 2013, several companies went overseas, where work was not by any means booming. But for the fortunate companies, it was a way to stay in business, since the golf market matched the housing market and had little or no growth. As with all businesses in a down economy, several of our (GCBAA) members have downsized and also branched out into other forms of construction, utilizing their equipment and personnel. "In the GCBAA we have seen some membership decline. However, I think it is more related to going into another sector of the construction business and waiting for a comeback to the golf construction market." Boylan, 54, is volunteer presidentelect of the GCBAA. Ron Weingartz of Ann Arbor, Mich., has tweaked his equipment business to survive the recessionary times. He is owner of Weingartz Equipment, a 68-year-old company that has five stores in Michigan. "We actually sold golf course maintenance equipment for 16 years," said Weingartz, 50. "We were the John Deere distributor for the state of Michigan. But we got out a year ago because golf courses are running old equipment and not investing in new equipment." Weingartz, who has been working in his family's business since the age of 15, added, "We deal more in landscape equipment, selling to lawn maintenance companies," he said. "Golf course construction is virtually nonexistent, and construction activity is very slim right now. "In the landscaping business, people are still having their lawns cut, so that end of it is doing rather well. Landscaping has been very good for us." In the way of light equipment, Weingartz sells track loaders and other such machinery. The company also purchases attachments such as forks and buckets, from Paladin Light Construction of Dexter, Mich., for landscape contractors. Having opened a new store in Ann Arbor two years ago, Weingartz said his company is not looking at further expansion. "The feedback from our customers is good," he remarked. "Now we're just waiting for good weather. With this cold spring [in April], the grass isn't growing very fast. But, overall, we're very optimistic about this year." Rent Versus Own If renovation currently is the name of the game, what equipment is in demand? "Depending on the type of work," Apel said, "some areas need heavy earthmoving equipment, drilling machines for blasting, large excavators and large haulers. Most renovation projects require specialty equipment that minimizes impact and disruption to the course. I would assume this to be true across any horizontal-type construction in which each need for equipment becomes a case-by-case decision. "Most of our contractor members benefit from the fleet of equipment provided by national rental companies. While the majority of our members are able to mobilize anywhere in the country, the costs associated with mobilizing their equipment becomes challenging. Along with the expense of depreciating large equipment that might not be used for several months, the option to rent or lease over owning is a calculated decision. "In fact, we have provided several educational sessions to our members provided by equipment manufacturers and distributors, along with our rental membership, showing how to calculate the best option based on individual project and company needs." Wadsworth, which has been doing business for 55 years, owns its own primary equipment, Slugocki said, and rents additional machinery near each construction site. "We have outside firms move it to our different locations," he said. Slugocki added, "We bring our key people to the project and then hire locally. The number can vary from 10 to 50, depending on the size and schedule on the job." Wadsworth, based in Plainfield, Ill., has completed about 1,000 golf course projects, according to Slugocki. Boylan said Mid-America has downsized its fleet to smaller equipment. "Currently, we have more equipment than we have ever had, but it's smaller," he said. "I also think that the rental market has grown in recent years. This happens to be a time in our economy that buying new or used equipment does not make sense. If you previously owned and had taken good care of it, you can afford to maintain and repair it. Otherwise, contractors are renting their equipment for a job and sending it back when the job is complete. "In years past, contractors would take equipment on a lease purchase (continued on next page) June 2013 | Construction Equipment Distribution | www.cedmag.com | 21 20_Golf_Sector_Feature_KP.indd 21 5/31/13 2:35 PM