Landscape Architectural Services NAICS 541320

Mar 7, 2026 - Nonresidential Construction Spending Drops

• The total value of nonresidential construction put in place declined 0.6% in December 2025 compared to the prior month, according to the US Census Bureau. Private spending was down 0.7% in December, while public spending was off by 0.4%. Speaking of December's spending results, Associated General Contractors of America (AGC) Chief Economist Anirban Basu said, "This decline was concentrated in the manufacturing segment, which is now down nearly 16% from the August 2024 all-time high. Given trade policy uncertainty and the waning effects of the CHIPS Act, manufacturing-related spending will likely continue to decline over the next several quarters. While manufacturing is the most significant driver of nonresidential weakness, it’s far from the only one. Eight of the 11 private nonresidential subsegments contracted in December, and total private nonresidential spending is now down 1.8% year over year."
• Providers of lawn care and landscaping – “Green” services – saw conditions improve in the fourth quarter of 2025 amid demand for year-end clean-ups and seasonal prep work, according to the recently released Home Service Economic Report by Jobber, a job tracking and customer management software firm. The green sector saw a 3% increase in new work bookings in Q4 compared to the same period in 2024. The median revenue of green firms increased 10% in the fourth quarter compared to the same period a year earlier, and the average invoice size grew by 5% over the same period. The off-season uptick in new work, along with higher invoices and revenue, suggests that green industry firms captured more dollar value per visit in Q4. Milder-than-usual weather late in the year also helped boost job bookings.

• Home remodeling spending growth is expected to moderate in 2026, according to the Leading Indicator of Remodeling Activity (LIRA) report released in January by the Joint Center for Housing Studies at Harvard. Homeowner spending on improvements and repairs is expected to increase 2.9% to $527 billion in the first quarter of 2026, compared to Q1 2025. In the second quarter of 2026, remodeling spending will trend downward to $518 billion but still be up 2.1% from Q2 2025. Spending will then moderate further to $517 billion in Q3 2026, up 2% from Q3 2025. In the fourth quarter of 2026, year-over-year spending is forecast to rise 1.6% to $522 billion. While solid remodeling permitting activity and gradually improving single-family home sales will support remodeling activity, potential headwinds include continued weakness of housing starts and elevated interest rates. Residential remodeling spending is a demand driver for landscape architectural services.
• The National Association of Landscape Professionals states that the landscaping industry is facing severe labor shortages unless the immediate release of 64,716 supplemental H-2B visas authorized by law occurs. More than 2,200 small businesses have urged the Trump administration to act, noting that the program is vital for seasonal employers who cannot find enough qualified US workers. NALP CEO Britt Wood said that confidence in continued support enables landscape companies to invest in growth, purchase necessary equipment, and deliver reliable services. The group emphasized that the visas sustain businesses, protect American jobs, and keep services affordable. For landscaping firms, the program provides resilience against workforce shortages, enabling them to operate at full capacity and maintain quality standards critical to customers nationwide.