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Tree care business owners face tough decisions every day. One of the biggest might be sitting in your yard right now, piled up and waiting for disposal: your wood waste. As that pile grows, so does the nagging question: “Is it time to invest in a grinder?”

Hansen’s Tree Service expanded its services by adding a Vermeer HG6800TX horizontal grinder.

It’s not a simple yes or no question. Adding a horizontal or tub grinder to your equipment fleet is a significant move that can shake up your entire operation. It could streamline your waste management, open new doors for your business and potentially help your bottom line through additional revenue streams. But it’s also a hefty investment that demands careful consideration.

“We see a lot of tree care pros wrestling with this decision,” says Jeremy Shannon, product specialist for Vermeer recycling and forestry equipment. “They know a grinder could change their business, but they’re not always sure if the numbers will work in their favor. It’s about more than just processing wood waste faster – it’s about reshaping your entire business model.”

Assessing current operations

Before exploring horizontal and tub grinders, it’s essential to evaluate your current business model. Consider your annual wood-waste volume, current disposal expenses and client demand for related services. Shannon advises, “If waste disposal is consuming a significant portion of your budget, or if you’re declining jobs due to debris-processing limitations, it might be time to consider a grinder.”

Rising disposal fees at landfills and wood-waste facilities are becoming a significant concern for many tree care contractors. These fees can vary in price per ton, increasing business expenses and impacting the cost of service to customers. As Ted Dirkx, recycling and forestry sales manager at Vermeer, points out, “Tree care contractors often face substantial annual costs for waste disposal. By investing in a grinder, they could potentially turn that waste into a valuable product.”

Tub grinders excel at processing bulky materials like stumps and large-diameter logs, making them ideal if you frequently handle these types of waste.

Exploring new revenue avenues

A grinder investment can lead to diversified income streams. Possible opportunities include selling processed wood waste as mulch, supplying biomass fuel, offering premium on-site grinding services and expanding into larger land-clearing projects.

“Market research is crucial,” Shannon explains. “Understand the local demand for mulch and wood chips, and strategize your pricing accordingly.”

By processing your wood waste on site, you can create marketable products such as mulch. This not only reduces disposal costs but also provides an opportunity to offer additional services or products to your current customers and potentially attract new ones.

Investment considerations

While the potential benefits are substantial, the costs associated with adding a grinder can be significant. Beyond the initial purchase price, factor in operational expenses, potential additional labor costs, transportation requirements and storage needs.

According to Shannon, it’s essential to consider more than just the initial purchase price. Operational costs play a significant role in your return on investment, so it’s advisable to project total costs over several years to get a clearer financial picture.

Additionally, consider the equipment you’ll need to support your grinding operation. To handle materials efficiently, you may need machines such as an excavator or wheel loader. If you’re planning to expand into colored-mulch production, coloring equipment would be necessary as well.

Equipment selection

When considering a grinder, you’ll need to choose between a tub grinder and a horizontal grinder based on your operational needs. Tub grinders excel at processing bulky materials like stumps and large-diameter logs, making them ideal if you frequently handle these types of waste. They also can be efficient for processing loose green waste. Horizontal grinders are well suited for processing lengthy materials, like long branches and trees, and can handle various wood-waste materials.

“The goal is to find equipment that aligns with your current needs while allowing for future growth,” says Shannon. “It’s about striking the right balance for your specific situation.”

Real-world examples

Jesse Montoya, owner of Your Way Tree Service in Los Angeles, California, found that after adding a Vermeer TG5000 tub grinder to his operation, he was able to save an estimated $30,000 in dump fees each month. Moreover, he opened up new revenue streams by selling mulch to landscapers, garden centers and golf courses, which, according to Montoya, led to an estimated 25% growth in revenue.

Another example is Hansen’s Tree Service, which expanded its services by adding a Vermeer HG6800TX horizontal grinder. According to Chad Hansen, president of Hansen’s Tree Service, “The HG6800TX is highly productive and fairly fuel efficient compared to some of the other machines on the market. In the clearing and construction world, customers expect you to perform. The HG6800TX has been averaging 500 to 600 cubic yards per hour (382 to 459 cubic meters per hour) on the primary grind. This includes large logs and brush.”

Alternative approaches

Alternative financing strategies exist for businesses not ready for outright purchase. These include renting for occasional use, subcontracting grinding services or exploring cooperative ownership with other tree care companies. These approaches can serve as stepping stones, allowing you to assess demand and refine processes before purchasing.

“These alternatives can be valuable learning experiences,” Shannon explains. “They allow you to gauge demand and refine your processes before making a significant investment.”

Renting, in particular, can be an excellent way to test different models and see how a grinder fits into your operation before making a substantial investment.

Return on investment analysis

A comprehensive ROI analysis is essential. Consider potential revenue increases, cost savings from reduced waste disposal and efficiency gains that could allow for increased job capacity. Make sure to factor in both tangible and intangible benefits, such as improved customer satisfaction and environmental stewardship. Shannon emphasizes, “ROI extends beyond immediate financial gains. Consider how a grinder could position your company as a full-service, environmentally responsible provider.”

When calculating ROI, remember to factor in potential time savings. For example, Montoya of Your Way Tree Service estimated that eliminating trips to the landfill would save six to eight hours per day in time and labor.

Jesse Montoya, owner of Your Way Tree Service in Los Angeles, California, found that after adding a Vermeer TG5000 tub grinder to his operation, he was able to save an estimated $30,000 in dump fees each month. (All photos courtesy of Vermeer.)

Strategic investment for growth

The decision to incorporate a grinder into your tree care business requires careful analysis and strategic foresight. While the initial investment is substantial, the potential benefits are significant, including:

• Reduced waste-disposal costs.
• New revenue streams from selling processed wood products.
• Increased operational efficiency.
• Expanded service offerings.

As you weigh this decision, consider your current operational needs, future growth plans and the specific demands of your local market. Assess the potential return on investment, factoring in both immediate cost savings and long-term revenue opportunities.

Shannon concludes, “Each tree care business faces unique economic conditions. A grinder can be a powerful catalyst for business growth when approached strategically. It’s not just about buying a piece of equipment – it’s about investing in the future of your business.”

Kennedy Phillips is a brand experience lead at Vermeer Corporation, a 41-year TCIA corporate member company based in Pella, Iowa.

This article contains third-party observations, advice or experiences that do not necessarily reflect the opinions of Vermeer Corporation, its affiliates or its dealers. Testimonials and/or endorsements by customers in specific circumstances may not be representative of normal circumstances experienced by all customers.

Vermeer Corporation reserves the right to make changes in product engineering, design and specifications; add improvements; or discontinue manufacturing or distribution at any time without notice or obligation. Equipment shown is for illustrative purposes only and may display optional accessories or components specific to their global region. Please contact your local Vermeer dealer for more information on machine specifications.

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