Landscape Architectural 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 4,800 landscape architectural services in the US plan and design the development of land areas related to private homes, businesses, recreational facilities, campuses, parks, recreational facilities, and other open spaces. Firms may also offer urban planning, residential landscaping, project site master planning, and other consulting services.

Dependence on Construction Market and Economy

Demand for landscape architectural services is dependent on construction activity, which is cyclical and influenced by economic conditions.

Mitigating Climate Change

Public and private sector clients are demanding landscape architecture solutions that address climate change.

Industry size & Structure

The average landscape architectural service provider operates out of a single location, employs about 7 workers, and generates about $1 million annually.

    • The landscape architectural services industry consists of about 4,800 firms that employ 34,800 workers and generate just over $5 billion annually.
    • The industry is fragmented; the top 50 companies account for 20% of industry revenue. More than half of firms generate less than $1 million annually.
    • Stantec is one of the largest architectural firms in the US and offers landscape architectural services. The biggest landscape architectural services companies typically have offices in multiple major metropolitan areas in the US, but none are truly national in scope.
    • The largest client groups are private homeowners, architects, and cities/municipalities, according to the American Society of Landscape Architects (ASLA). The largest client group for firms with four employees or fewer is private homeowners. Large firms typically serve commercial and government clients.
                            Industry Forecast
                            Landscape Architectural Services Industry Growth
                            Source: Vertical IQ and Inforum

                            Recent Developments

                            Mar 8, 2024 - 2024 Building Construction Spending Mixed
                            • Total nonresidential building construction spending is projected to rise 8% in 2024 over 2023, according to FMI’s first-quarter 2024 North American Engineering and Construction Outlook. With growth of 18%, manufacturing will lead 2024 nonresidential building construction, followed by lodging (+12%), educational (+10%), and healthcare (+8%). Some other segments of the nonresidential building sector face headwinds, including high interest rates, inflation, and tighter lending standards. These pressures and high vacancy rates will reduce office project spending by 2% in 2024. Commercial project spending is forecast to decline by 4% in 2024. High interest rates will also challenge the housing market. Single-family construction spending is forecast to drop 5% in 2024 after falling 14% in 2023. Spending for multifamily is expected to decline 15% in 2024 after projects in development peaked at 1 million units in mid-2023. Home improvement project spending will drop 4% in 2024 from 3% growth in 2023.
                            • The US Department of Labor recently announced a regional, multi-year program to promote safety improvements for landscaping and tree workers, according to Facilities Dive. The program will focus on workers in New York, New Jersey, Puerto Rico, and the US Virgin Islands. Administered through the Occupational Safety and Health Administration (OSHA), the program aims to increase awareness of work-related hazards, ensure employer compliance with health and safety requirements and will include targeted job site inspections. The program will run until the fall of 2028 and comes amid a rise in injury and illness rates among landscaping and groundskeeping workers that is higher than the national average.
                            • Homeowners are expected to invest more in their front yards in 2024, according to a recent survey by nursey firm Monrovia. Each year, Monrovia surveys 1,400 homeowners about plant purchases and gardening activities. In the latest survey, interest in redesigning front yards increased by 4% compared to the previous year. Interest in front yard makeovers comes as high interest rates prompt homeowners to make improvements rather than move. During the pandemic, many homeowners fixed up their backyards as people spent more time outside, and now attention is pivoting to front yards. Popular projects include reducing lawn size, water-wise landscapes, and creating a more modern look with fresh plantings.
                            • Pressures, including high interest rates and a shortage of new homes available to purchase, are prompting housing bulls on Wall Street to construct entire build-to-rent communities, according to The Wall Street Journal. In Q3 of 2023, large landlords that own between 100 and 1,000 homes purchased just 1% of homes sold in the US, compared to 3% for all of 2022, according to John Burns Research and Consulting. Once a model that worked well when foreclosure rates were higher, industry watchers suggest that finding and managing investment homes individually has become too time-consuming, costly, and inefficient. While the build-to-rent community market is still small – about 900 neighborhoods in the US, according to the Urban Institute – the National Association of Home Builders believes that soon 10% of new homes will be build-for-rent. A rise in build-for-rent community development represents a potential opportunity for landscape architecture firms.
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