Landscaping Services
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 107,000 landscaping services firms in the US provide planting, fertilizing, mowing, leaf and snow blowing, edging and trimming, construction, cleaning, and pest removal services for commercial and residential customers. Landscaping for commercial properties makes up 53% of industry sales. Residential areas account for 33% of sales, but are often the sole focus of small landscaping firms.
Ongoing Equipment Costs
Landscaping firms need money to purchase, maintain, and repair quickly depreciating equipment.
Worker Documentation
Landscaping services rely on unskilled, low-wage workers to keep overhead low.
Industry size & Structure
An average landscaping service has 7 employees and generates $1 million in annual revenue.
- The US has about 107,000 landscaping firms that employ 719,000 workers and generate about $130.6 billion in annual sales.
- 86% of firms have fewer than 10 employees.
- Some companies operate as franchises, but most are operated independently.
- Segments include commercial, residential, construction, pest extermination, and design.
- Large companies include TruGreen, BrightView, Davey Tree Expert, Lawn Doctor, and US Lawns.
Industry Forecast
Landscaping Services Industry Growth
Recent Developments
Apr 8, 2024 - Growth Forecast for Landscaping Services
- The US landscaping services industry is projected to grow at a CAGR of over 5% between 2024 and 2028, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The growth rate of 5.1% is faster than the projected overall economy's growth. The report noted that consumer confidence levels have improved, which bodes well for the management, administrative and support, and waste management industries. The recent rise in remote work is expected to continue to impact the landscaping services industry. The forecast notes that 30% of employees worked remotely in 2023, compared to less than 10% before the pandemic. Per the report, "This suggests persistently lower demand for office space, mass transit, dry cleaning, and other personal and business needs related to commuting and working in corporate environments." Falling demand for office space can lead to a reduced budget for commercial landscaping services.
- Landscape contractors see a profitable year ahead in 2024, with an expected median net profit margin of 17%, according to the 2024 Benchmarking Your Business report in Lawn & Landscape. About 23% of participants estimate their location will have a net profit margin of 10-14%, 20% estimate a net profit margin of 15-19%, 16% estimate a net profit margin of 20-29%, 12% estimate a net profit margin of 6-9%, and 10% estimate a net profit margin of 30-39%. Each location’s 2023 gross revenue came approximately from the following services: landscape maintenance (36%), landscape construction/design/build (26%), lawn care/chemical application (17%), irrigation installation/maintenance (7%), snow and ice management (6%), tree care (3%), landscape lighting (2%), sports turf (1%), and holiday lighting (1%).
- Consumer confidence levels were essentially unchanged in March 2024, after a dip in February 2024 following three consecutive months of growth, according to data from The Conference Board. The Conference Board’s consumer confidence index was 104.7 in March 2024 from 104.8 in February 2024. According to Dana Peterson, Chief Economist at The Conference Board, “Consumers’ assessment of the present situation improved in March, but they also became more pessimistic about the future.” Peterson added that confidence rose among householders 55 and over but fell for those under 55. Plans to purchase homes, autos, and large appliances decreased slightly on a six-month basis.
- The US Department of Labor has launched a new safety program aimed at reducing injuries and fatalities among landscaping and tree services workers, according to Facilities Dive. The regional emphasis program is designed to raise awareness of job-related hazards for workers in the New Jersey, New York, Puerto Rico, and US Virgin Islands regions. The program is scheduled to run through 2028 and is managed by the Occupational Safety and Health Administration (OSHA). It will conduct inspections to assess employers' compliance with health and safety requirements and provide outreach to raise awareness of the hazards and improve worker safety. According to the DOL, injury and illness rates in the tree, landscaping, and groundskeeping business are higher than national averages. The DOL documented 1,072 work-related fatalities in the landscaping and groundskeeping industry from 2011 through 2021. In 2022, more than 220 grounds maintenance workers had fatal workplace injuries and illnesses. Common worker injuries result from falls from trees and elevated work platforms, being struck by falling branches or trees, electrocution, exposure to heat, and exposure to chemicals.
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