Budget

2016 State of the Industry Report - 2016 State of the Industry Report

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January 25, 2016

Want a compelling reason to believe 2016 will be a better year for the industry than its immediate predecessors?

Study the budget numbers on these pages.

The average non-capital operations budget is increasing from $697,000 to $750,000, a robust and encouraging 13.2 percent increase. For those wondering, the average maintenance budgets in 2012 and 2013 were $651,392 and $622,500, respectively. More than half of superintendents (52 percent) will see their maintenance budgets increase in 2016 while only 16 percent will be forced to trim expenses.

Of the 18 budgetary line items annually included in the survey, 12 will experience spikes in 2016, including all forms of pesticides and fertilizers. Equipment suppliers should be primed for a solid 2016. The biggest budgetary rise will be in mowing/cultivating equipment, with the average course spending $42,800 on iron in 2016 compared to $31,300 in 2015.

Receiving the necessary financial resources to produce a quality product isn’t a major concern among superintendents entering 2016. Forty-three percent of superintendents say they are “very confident” the maintenance department will have the financial resources to succeed in 2016. Only 4 percent say they are “not confident at all.”

Spending on capital projects should be conservative in 2016, with the average facility devoting $94,500 to course improvements, a 31.5 percent decrease over 2015. Only 3 percent of superintendents indicated their facilities will spend more than $500,000 on capital improvements this year.

Budget changes

2015 vs. 2016

Confidence maintenance department will have financial resources to succeed in 2016

Budget chart

Projected non-capital operations budget, including labor and overhead but excluding water costs, for 2016

Projected capital budget for 2016