Landscaping 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 113,000 landscaping services firms in the US provide planting, fertilizing, mowing, leaf and snow blowing, edging and trimming, construction, cleaning, and pest removal services for commercial and residential customers. Landscaping for commercial properties makes up 53% of industry sales. Residential areas account for 33% of sales, but are often the sole focus of small landscaping firms.
Ongoing Equipment Costs
Landscaping firms need money to purchase, maintain, and repair quickly depreciating equipment.
Worker Documentation
Landscaping services rely on unskilled, low-wage workers to keep overhead low.
Industry size & Structure
An average landscaping service has 7 employees and generates $1 million in annual revenue.
- The US has about 113,000 landscaping firms that employ 887,000 workers and generate about $130.7 billion in annual sales.
- 86% of firms have fewer than 10 employees.
- Some companies operate as franchises, but most are operated independently.
- Segments include commercial, residential, construction, pest extermination, and design.
- Large companies include TruGreen, BrightView, Davey Tree Expert, Lawn Doctor, and US Lawns.
Industry Forecast
Landscaping Services Industry Growth
Recent Developments
Dec 15, 2024 - New Work Scheduled Slowed in Q3: Jobber
- “Green” services providers – including the lawn care and landscaping industries – saw slower growth as consumers focused on smaller recurring outdoor services, according to the Q3 Home Service Economic Report released in November 2024 by Jobber, a job tracking and customer management software firm. Per the report, “There was a mixed outlook for this category—while new work scheduled saw growth early in 2024, it slowed down in Q3, with the exception of July.” The report noted that median revenue for green services providers remained steady as consumers were still prioritizing outdoor maintenance while cutting back on large renovations. The future outlook for the home services sector is promising as interest rate cuts are expected to encourage consumer spending. The forecast for 2025 shows sustained expansion for the sector, as an aging housing stock and an increased focus on essential updates amid economic uncertainty drive demand.
- Consumer confidence levels increased in November 2024, improving by 2.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 111.7 in November 2024 from 109.6 in October 2024. Dana Peterson, chief economist at The Conference Board, noted that those remaining most confident on a six-month moving average basis confidence were those aged under 35 and those in the income category of over $100,000. Per Peterson, “Consumer confidence continued to improve in November and reached the top of the range that has prevailed over the past two years.” Purchasing plans for homes stalled while plans to buy new cars rose slightly in November 2024 on a six-month average basis.
- The US landscaping services industry is projected to grow at a CAGR of 5.4% between 2024 and 2028, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth is faster than the overall economy‘s anticipated growth. According to the report, the management, administrative support, and waste management sector is well along into recovery post pandemic. However, a lingering impact from the COVID-19 pandemic was a jump in remote work, rising from some 10% prior to the pandemic to approximately 30% of employees working remotely at least some of the time in June 2024. This suggests a lower demand for commercial landscaping as businesses and property managers keep expenses in check. Factors that continue to limit spending are lower consumer sentiment levels, higher interest levels, and elevated price levels. Price growth, however, is diminishing and likely to stabilize soon near intended rates.
- The US Chamber of Commerce and Q3 2024 Metlife Small Business Index, which measures small business owner confidence, reached its highest score since Q1 2020 as small business owners see signs of improvement in the economy. The score hit 71.2 in Q3 from 69.5 in the previous quarter due to a boost in the share of small businesses that say the economy is in good health. Two-thirds of small businesses report their business is in good health, and 68% say they are comfortable with their cash flow. Small businesses report challenges with inflation (56%) and revenue (28%). According to MetLife EVP Bradd Chignoli, “As we head into the final quarter of 2024, it is encouraging to see the continued optimism of small business owners driving the Index score to near pre-pandemic highs.”
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