Time to think 2025 budget

The wisdom of planning has been handed down through generations from a diverse range of voices. From philosophers (Confucius: “A man who does not plan long ahead will find trouble at his door.”) to religious leaders (Richard Cushing: “Always plan ahead. It wasn’t raining when Noah built the ark.”) to the general who became the president with a serious passion for golf (Dwight Eisenhower: “Plans are worthless, but planning is everything.”).

Readers of this column know that planning is one of our favorite themes and one we will return to as planning season for 2025 course operations and budgets kicks off. The range of new and different challenges that will arise in the coming year will test the best of golf management professionals. Here are three that are foundational for planning for a successful year ahead.

Diesel will cost more in 2025

According to the U.S. Energy Information Administration, diesel prices are expected to rise from an average of $3.90 to $4 per gallon. This slight increase is less than was recently projected because of increased production. However, the increase also suggests a certain volatility. Superintendents planning for 2025 might expect diesel to climb back to the $4.20 level previously forecast, given global threats to supply and supply chain. Volatility is the only constant when it comes to diesel supply, so hedge toward higher prices for budgeting purposes. Questions to ask ahead of the 2025 budget cycle:

• How much diesel will we need, and can our use of diesel be reduced?
• How can I commit to my 2024 volume of consumption if it buys down 2025 pricing?
• What indicators should I monitor to keep ahead of this mission-critical budget impact?

Wage inflation is slowing
According to the Bureau of Labor Statistics, a part of the U.S. Department of Labor, wage escalation is slowing. Wages and salaries increased 4.3 percent for the 12-month period ending in March 2024, down from the 5.1 percent increase reported in March 2023. Similarly, the cost of benefits increased 3.6 percent for the 12-month period ending in March 2024 following a 4.3 percent increase in March 2023.

While the trend is encouraging, for superintendent’s most critical and expensive budget line-item, labor, we continue to see overall wages rise. Experienced superintendents are watching these metrics carefully. They know they can ill afford to lose carefully trained talent. That’s why everyone needs answers to the following questions:

• What is important – personally and professionally – to each member of my crew? How can I help them achieve their goals?
• What can be done to commit my people even more fully to their jobs? And to our team?

Water is a growing concern for superintendents
Many Golf Course Industry readers are not obliged to pay directly for water; for them, it’s water-taking and management that present the challenges. How golf courses and superintendents take and manage water is becoming an increasingly emphasized matter. Those who understand golf courses know that superintendents are extremely conscientious environmental stewards; those less informed see our beautiful green havens as an indulgence that extracts resources from other priorities, social as well as environmental.

Superintendents should address the following questions as part of their 2025 planning:

• How should I demonstrate my environmental commitment and knowledge to my staff and management?
• What are the potential benefits to our course through programs like the Audubon International sanctuary program?
• How can our course serve our community by setting an example of environmental stewardship?

As many of the most recognized figures throughout history have taught us, sound planning is a bedrock quality of effective and recognized leadership. We remember that after the war, President Eisenhower’s consistent and disciplined approach to planning led to a remarkable period of growth and stability in our nation.

And if planning needed an additional spokesperson, we need only be reminded of Yogi Berra’s feelings on the subject: “If you don’t know where you are going, you’ll end up someplace else.”