The Davey Tree Expert Company, headquartered in Kent, OH, was recently named the 9th largest ESOP company in America according to a report by the National Center for Employee Ownership (NCEO). With approximately 10,500 employee-owners, Davey Tree is among the largest landscaping companies in the US, regardless of ownership structure, and is a good example of how ESOPs are a perfect fit for landscaping businesses.
Davey Tree is celebrating over 40 years of employee ownership in 2020.
Davey Tree, which celebrated its 40th year of employee ownership in 2019, provides residential and commercial landscaping services across North America. They became a billion dollar company in 2018, the same year that Forbes named them #294 on their list of the 500 Best Employers in America.
“Our employees are the reason we’ve enjoyed so much success over the years and have continued to perform despite the challenges posed by today’s business climate,” said Pat Covey, Davey Tree’s president, chairman, and CEO. “Employee ownership is a significant reason why Davey has endured, and it remains central to a prosperous future for our company.”
ESOPs have become increasingly popular in the landscaping industry, and it’s easy to see why. Landscaping businesses live or die by their reputation. Success in the industry relies on building long-term relationships with repeat customers who trust and expect that they will get excellent service time after time. The quality of the service that a company provides—and the level of motivation and engagement felt by the employees—is visible for the world to see. It shows up in the way every tree is cared for, the way every hedge is trimmed, the way every blade of grass is cut.
Maintaining that commitment to excellence across 10 or 20 employees is no small feat. To do it across more than 10,000 employees is a truly incredible achievement. Davey Tree’s growth highlights the impact of giving employees a meaningful stake in the success of your business through an ESOP. When employees have an ownership mentality, it shows up in the care they put into their work every day. Customers value that difference.
That’s why Davey Tree decided to sell the company to its employees in 1979. It’s why landscape architecture firm and Menke client MKSK converted to 100% employee ownership in 2019. It’s why Menke client Applewood Seed Company, a major supplier of the landscaping industry, implemented an ESOP earlier this year. Across all facets of the landscaping industry, companies know this: when the employees win, customers win, and when customers win, businesses win.
Congratulations to the Davey Tree Expert Company on their incredible growth. If you would like to learn how an ESOP can help your business thrive, contact Menke today.
Menke & Associates, Inc. has helped over 3,500 companies successfully transition to employee ownership. Our holistic ESOP approach enables a positive outcome for the company, its employees and its shareholders. We believe ownership is powerful.
