Interview with Pepijn Reijnders, new CEO of Dolmans Landscaping: 'Green contractors should have a minimum return of six percent'

ARTICLE

Hein van Iersel, Tuesday 9 January 2024

188 sec

After thirty years, Erwin Janssen recently stepped down from Dolmans Landscaping, handing over his role as CEO to Pepijn Reijnders. Although Reijnders has no prior experience in the green sector, he has extensive experience in facility management, having worked for companies such as Vebego. High time for editor-in-chief Hein van Iersel to travel to South Limburg and meet this newcomer.

Pepijn Reijnders, CEO of Dolmans Landscaping

Janssen stepping down as CEO does not mean he is leaving the company entirely. That is the first thing the new CEO wants to clarify about his arrival at Dolmans. Reijnders explains: 'Erwin is essentially transitioning from a leadership role as CEO of the family business to a supervisory role. This means he will be part of a newly established supervisory board. This board is effectively my employer and will also serve as a sparring partner for the management team. Besides Janssen, the board will include two experienced entrepreneurs: Jan Willem Neggers, known as the CEO of the investment firm Ramphastos, and Richard Doek, former CEO of Altrex.'

Facility management

Reijnders (52) has no specific background in the green industry but is an experienced entrepreneur, particularly in facility management. According to Reijnders, facility management is fundamentally different from cleaning services. It involves managing and overseeing all possible external business processes, including green maintenance. However, the actual maintenance and cleaning are not necessarily part of it. In 2002, Reijnders founded Kien Facility Management, which grew under his leadership to a team of 150 employees. In 2018, the company was acquired by Vebego subsidiary Yask FM. This merger led to the creation of Vebego Facility Solutions, where Reijnders served as general manager from 2018 until February 2023.

'My goal was first to take a step back and learn how to be relevant to myself again'

Ten-month sabbatical

In February 2023, Reijnders left Vebego Facility Solutions, deliberately without a new job in sight. He does not provide a specific reason for his departure, except to mention that with over 40,000 employees, Vebego had become very large. Ultimately, he feels more comfortable at a much smaller company like Dolmans, where he is only one step removed from the owner. That said, with approximately 900 employees and a revenue of €90 million, Dolmans is certainly not a small business.

'Relevant to myself'

'When I left Dolmans, my goal was to take ten months to truly unwind and rediscover my own relevance. After decades of constantly being in "on" mode, always being relevant for others and the company, I had planned to stay under the radar for ten months. However, after six months, the urge to contribute returned; I started thinking again about ways to be relevant to others. Eventually, I reconnected with Erwin, whom I have known for a long time. We quickly reached an agreement, and I started on November 1st.'

Differences

What does Reijnders see as the major differences and similarities between the green sector and facility management? He believes the difference is not that significant, as both industries revolve around the deployment of people. Based on his previous experience, he understands how money is made and believes he grasps the dynamics of a company like Dolmans. However, he admits that he does not yet fully understand the final product Dolmans delivers. Reijnders: 'I am still in my honeymoon period, getting to know the company. I am particularly impressed by the great things we do, as well as the "no-nonsense, get-it-done" mentality of this sector.'

I am impressed by the great things we do, as well as the "no-nonsense, get-it-done" mentality of this sector

Too cheap

How does Reijnders view the green sector? His perspective is still developing, but he firmly believes that green contractors generally work for too little money. At the same time, he acknowledges that the industry itself is partly to blame for this situation, as it has allowed market forces to drive prices down. When asked what a reasonable profit margin for a green contractor should be, Reijnders does not hesitate: six percent. He believes this level of profitability is necessary for a healthy company to maintain its innovation capabilities. He is also honest enough to admit that Dolmans is not currently achieving this target.

Looking ahead, the CEO sees opportunities to improve profitability for green businesses in general and Dolmans in particular. With societal challenges such as climate adaptation and biodiversity, the green sector has opportunities to add more value for clients. According to Reijnders, Dolmans is well-positioned for this. Out of its roughly 900 employees, the company has 40 advisors focused on driving innovation.

Improving profitability is also possible by carefully analyzing the company's portfolio. Clients who consistently result in losses should be confronted with this reality. Reijnders states, 'My position is that in the long run, no one benefits if we don't make money. Clients are not happy about that either. If you openly discuss this with them, I believe solutions can be found.'

Dolmans Landscaping

Dolmans was founded in 1961 by the father-in-law of the current owner. Under Huub Dolmans' leadership, the company grew into a leading provincial green contractor in South Limburg. When Erwin Janssen took over, the company expanded beyond the province through acquisitions, including Wieringen Prins in Amsterdam and Pius Floris Boomverzorging. Dolmans has also been strong in collaborating with social enterprises (sw-companies). In 2013, 40 percent of its workforce had a social employment background; this has since fallen below 30 percent, and Reijnders expects it to decline further. As of 2023, Dolmans has an annual revenue of approximately €90 million.

Podcast with Pepijn Reijnders

This article was originally published on January 9, 2024, on the Stad + Groen website.

Dolmans Landscaping Group

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