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 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

                            Recent Developments

                            Mar 7, 2023 - Mortgage Applications Drop
                            • As the spring home-buying season nears, high interest rates are crimping demand for home sales, according to The Wall Street Journal. In early February, mortgage rates fell almost a full percentage point from November’s highs, but some economists now expect that stubborn inflation and strong consumer spending will prompt the Federal Reserve to continue its rate hike strategy to tamp down inflation. For the week ended February 24, US mortgage applications for home purchases fell to their lowest level in 28 years, according to the Mortgage Bankers Association (MBA). Spring is typically the busiest time of year for home sales as families prefer to move over the summer and be settled in their new homes before school starts. Home sales are a demand driver for landscape architecture services.
                            • Demand for building design services remained soft in January, according to a February report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI) was 49.3 in January, up from December’s reading of 48.4. Any reading above 50 indicates growth in architectural billings. In January, the score for new project inquiries rose to 55.2 from 52.6 in December. The design contracts score rose to 53.4 from 50.0. The AIA’s Chief Economist, Kermit Baker said, “While the downturn in design activity extended to four months in January, there are signs of easing. In particular, architecture firms reported that new project work has begun to increase, signifying that this decline in billings may reverse in the coming months.” By major sector, billings index growth in January was mostly in contraction territory: mixed practice was 56.0, institutional was 48.6, commercial/industrial was 46.8, and multi-family residential was 45.9.
                            • Multifamily developer confidence improved in the fourth quarter of 2022 but remained in negative territory, according to February’s Multifamily Market Survey (MMS) report by the National Association of Home Builders (NAHB). The Multifamily Production Index (MPI) rose two percentage points in Q4 to 34 compared to the third quarter of 2022. The Multifamily Occupancy Index increased four points to 49 over the same period. An MPI or MOI reading of 50 or more indicates that multifamily production or occupancy, respectively, is growing. While multifamily housing demand is robust, supply is catching up with demand in some markets. The NAHB expects multifamily production will slow significantly over the next two years after rapid growth in 2022. Developers face several challenges, including high regulatory costs, difficulty in securing financing for new projects, and high interest rates.
                            • More than 80% of gardeners say they plan to spend as much or more money on gardening in 2023 as they did in 2022, according to a recent survey by horticulture and landscaping market research firm Axiom. About 88% of survey respondents say they plan to spend more time gardening. Some 87% of men intend to spend more on gardening this year, slightly outpacing women. Axiom’s chief marketing officer Kathleen Hennessy said, “Based on positive feedback from first-time gardeners, those who are newer to gardening, Gen Y, and Gen Z respondents, it appears that pandemic gardeners are hooked, and their interest, time, and spending will continue to grow.”
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