Davey Tree Flipbooks

4 THE DAVEY BULLETIN | July/August 2024 Davey now has all four of our service lines working in the greater Minneapolis market, performing a wide variety of services representing over $40 million in annual sales. That is quite a run from the $3.5 million in tree care we were doing there just 12 years ago. Along with pure financial growth, we have developed one of the strongest markets for a young and diverse team of professionals. As an example, Travis McDonald was recently promoted from district manager of the South Minneapolis R/C office to market manager for the Minneapolis R/C offices. Travis oversees a very talented team within the R/C group, and we also have terrific managers in Gail Nozal in DRG, Brett Crowe in CLS, and through the addition of the Mickman management team led by John Mickman and Jeff Sutter. This group creates a real managerial powerhouse in the Twin Cities. The market also has a very diverse employee base, with women accounting for 22% of the employee population in the R/C offices there, which is higher than the companywide comparison of 14%. Over the past decade, Minneapolis has developed into one of our flagship markets through organic expansion and growth through acquisitions. The market is comparable with Chicago, Detroit, San Francisco, Toronto and other Davey markets that contribute large sales volume, strong diversity of services, and the ability to showcase all our service lines. Minneapolis also exemplifies the incredible sales growth, resource leveraging and employee promotional opportunities that can be achieved through the combined strategy of acquisitions and territory splits in an R/C market. All these reasons are why Minneapolis is a great Davey market to immerse the board in a day of operational experiences and exposure to Davey personnel, while holding our normal board meetings around that field experience day. Turn to page 14 to learn about why the board visited the Twin Cities and see photos from the trip. A. In addition to getting regular updates on operations at every board meeting, each year in July we choose a market where Davey has a heavy concentration of services, and we take our board of directors there to learn about company operations and interact with the local management teams. In recent years we've taken our board to San Francisco, Houston, Toronto, Washington, D.C., and Cleveland. We try to identify a market where our board members can learn about a mix of our core operations and experience new or different services we offer. This year, we traveled to Minneapolis. Minneapolis truly exemplifies how we can take a strong tree services market that we are underrepresented in, and build it into a Davey-dominated market that leverages multiple service lines, through both organic growth and acquisitions. About 12 years ago, we had one Residential/Commercial (R/C) services office focused on tree care generating about $3.5 million in annual sales. Since then, we have split and grown that office to create organic growth in the market and supplemented that base of operations with several acquisitions over the past decade. The first acquisition was S&S Tree & Landscaping Specialists, a family-owned tree care and wood waste management company established in 1976, which joined the Davey family of brands in 2013. Maier Tree and Lawn, in Rochester, joined Davey a year later. Outdoor Lab Landscape Design, Inc., a firm in the St. Paul area specializing in stormwater and green infrastructure services, joined Davey Resource Group (DRG) in 2021. In 2023, Mickman Brothers, Inc., joined Davey, expanding our opportunities for Commercial Landscape Services (CLS) in the market and bringing their unique, seasonal Christmas-wreath sales. And Eastern Utility services recently started managing line clearance work for a large electric and natural gas utility provider in the region. Q. HOW DOES OUR BOARD OF DIRECTORS LEARN ABOUT COMPANY OPERATIONS AND WHY IS IT IMPORTANT? ASK THE CEO Pat Covey Davey Chairman, President and CEO

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