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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 5,000 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 5 workers, and generates between $800,000 and $900,000 annually.

    • The landscape architectural services industry consists of about 5,000 firms that employ almost 27,000 workers and generate just over $4 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

                            Coronavirus Update

                            Jun 2, 2022 - Strong Nonresidential Backlog
                            • The Dodge Momentum Index increased 6% in April 2022 to 164.8 (2000=100), up from the revised March reading of 155. The Momentum Index is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which has been shown to lead construction spending for nonresidential buildings by a full year. The commercial planning component increased by 9%, and institutional planning rose by 2%. The commercial planning pipeline was robust due to data center, warehouse, and hotel projects. While the backlog of nonresidential building projects is strong and should remain solid in the coming months, rising interest rates and higher materials costs could moderate construction activity through 2022.
                            • Demand for building design services is strong, according to a May report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI), an indicator of future building construction demand, was 56.5 in April, a slight drop from 58 in February. Any reading above 50 indicates growth in architectural billings. The AIA noted that reconstruction billings exceeded new construction for the first time in 20 years in April. The AIA expects reconstruction’s share of architectural billings to continue. All major sectors showed billings growth in April, including mixed practice (ABI reading of 61.2), commercial/industrial (60.7), multi-family residential (57.2), and institutional (51.8). On a regional basis, the West registered the most robust March ABI score with 58.2, followed by the Midwest (57.6), the South (57.3), and the Northeast (53.1).
                            • Total construction spending, an indicator of landscaping architecture demand, increased 0.2% in value month over month on an adjusted basis and 12% in value year over year on an unadjusted basis in April 2022, according to the US Census Bureau. Residential construction spending increased 0.9% month over month and 18.8% year over year in April. Nonresidential construction spending declined 0.4% month over month and increased 5.8% year over year in April.
                            • Interest in "walkable suburbs" is increasing due to pandemic-driven moves out of densely-populated metropolitan areas. Marc Draisen, executive director of the Boston, MA, Metropolitan Area Planning Council, said that several Boston suburbs are working to provide the amenities that both retirees and young workers want: Walkable, transit-oriented neighborhoods.
                            • David Dixon, vice president at landscape design and consulting firm Stantec, said that building a strong commercial tax base has gotten harder for suburban areas because a mix of consumers of all ages is needed. The best way to attract a commercial tax base is to create a walkable, mixed-use, vibrant center.
                            Get A Demo

                            Vertical IQ’s Industry Intelligence Platform

                            See for yourself why nearly 40,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.

                            Build valuable, lasting relationships by having smarter conversations -
                            check out Vertical IQ today.

                            Request A Demo