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

                            Jul 5, 2022 - New Home Buyers Spend the Most on Residential Landscaping
                            • Purchasers of new homes spend considerably more money on home improvements in the first year after closing than buyers of existing homes, according to a June 2022 National Association of Home Builders (NAHB) analysis of US Bureau of Labor Statistics data. New home buyers spend nearly $12,000 on alterations and repairs in the first year after closing compared to less than $3,000 spent by purchasers of existing homes. A new home buyer typically spends $3,100 on landscaping and more than $4,000 on outdoor features, including patios, walkways, fences, driveways, and pools. Purchasers of existing homes spend about $335 and $500 on landscaping and outdoor features, respectively.
                            • The Dodge Momentum Index increased 7% in May 2022 to 176.2 (2000=100), up from the revised April reading of 165.2. 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 6%, and institutional planning rose by 9%. The commercial planning pipeline was robust due to increased office and hotel projects. Institutional growth was driven by higher education and healthcare planning. Despite higher interest rates and recession concerns, nonresidential building projects continue to enter the planning pipeline.
                            • Demand for building design services moderated slightly in May but remains strong, according to a June report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI), an indicator of future building construction demand, was 53.5 in May, a slight drop from 56.5 in April. Any reading above 50 indicates growth in architectural billings. AIA Chief Economist Kermit Baker said, “With the improvement in inquiries and new design projects, demand for design services will likely remain high for the next several months, despite strong economic headwinds.” All major sectors showed billings growth in April, including commercial/industrial (ABI reading of 60.7), mixed practice (52.2), multi-family residential (55.4), and institutional (51.7). On a regional basis, the West registered the most robust May ABI score with 57.7, followed by the Midwest (55.8), the South (52.3), and the Northeast (51.4).
                            • Total construction spending, an indicator of landscaping architecture demand, decreased 0.1% in value month over month on a seasonally adjusted basis and 10.3% in value year over year on an unadjusted basis in May 2022, according to the US Census Bureau. Residential construction spending increased 0.2% month over month and 19.9% year over year in May. Nonresidential construction spending declined 0.6% month over month and increased 0.9% year over year in May.
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