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

                            Nov 7, 2022 - Nonresidential Building Construction Outlook Improves
                            • The Dodge Momentum Index (DMI) increased 9.6% in October 2022 to 199.7 (2000=100), up from the revised September reading of 182.2. The DMI 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. On a monthly basis, the commercial planning component increased by 13%, and institutional rose by 2.9%. An increase in office and lodging projects boosted the commercial planning pipeline. The institutional sector was mixed amid a growing pipeline of recreation and education projects, but the number of healthcare and public planning projects declined. Developers and project owners continue to see healthy demand, despite recession concerns, although continued inflation, high interest rates and materials costs, and labor shortages have the potential to blunt the flow of new projects.
                            • New single-family home sales, a driver of landscape architectural services, decreased 10.9% month over month and declined 17.6% year over year in September 2022, according to the US Department of Commerce. On a year-to-date basis, new home sales were down 14.3% in the first nine months of 2022 compared to the same period in 2021. According to Freddie Mac, on November 3, 2022, the US weekly average rate on a 30-year fixed mortgage was 6.95%. A year ago, the rate was just over 3%. Industry watchers expect new home sales to remain weak as the Fed uses interest rate hikes to bring down inflation.
                            • A year ago, homeowners could expect multiple competing bids when they put their homes on the market, but rising mortgage rates have narrowed the field of potential buyers, which is prompting more sellers to fix up their homes before listing them, according to The Wall Street Journal. Between mid-July and mid-August, about 95% of sellers made fixes or improvements before putting their homes on the market, compared to 71% who did so a year earlier, according to Realtor.com. Realtors suggest landscaping projects that enhance curb appeal can lure buyers and yield a good return on investment.
                            • The percentage of new homes built with patios hit a record high in 2021, marking the sixth consecutive year of growth, according to the National Association of Home Builders’ analysis of the Census Bureau’s recently released Survey of Construction. In 2021, 63% of new single-family homes in the US included a patio. Regionally, at 73%, the West South Central region had the highest share of new homes with patios, followed by South Atlantic (71%), Mountain (69%), Pacific (57%), East South Central (48%), West North Central (47%), East North Central (50%), New England (28%), and Middle Atlantic (17%). Homeowners with patios might be more inclined to spend on landscaping to make their outdoor spaces more enjoyable.
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