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 107,000 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 107,000 landscaping firms that employ 719,000 workers and generate about $112.4 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
                          Source: Vertical IQ and Inforum

                          Recent Developments

                          Feb 9, 2024 - Employment Costs, Consumer Spending Up
                          • Employment levels for the landscaping sector trended higher in December 2023, up slightly from a year ago and growing 10% since 2019. Employment costs have climbed significantly in recent years, with wages remaining higher than $23 an hour throughout most of 2023 and increasing more than 26% since December 2019. Consumer spending levels grew in the last half of 2023, a 3.1% increase in the third quarter and 2.8% in the fourth quarter, according to Reuters.
                          • The US Department of Labor has launched a new safety program aimed at reducing injuries and fatalities among landscaping and tree services workers, according to Facilities Dive. The regional emphasis program is designed to raise awareness of job-related hazards for workers in the New Jersey, New York, Puerto Rico, and US Virgin Islands regions. The program is scheduled to run through 2028 and is managed by the Occupational Safety and Health Administration (OSHA). It will conduct inspections to assess employers' compliance with health and safety requirements and provide outreach to raise awareness of the hazards and improve worker safety. According to the DOL, injury and illness rates in the tree, landscaping, and groundskeeping business are higher than national averages. The DOL documented 1,072 work-related fatalities in the landscaping and groundskeeping industry from 2011 through 2021. In 2022, more than 220 grounds maintenance workers had fatal workplace injuries and illnesses. Common worker injuries result from falls from trees and elevated work platforms, being struck by falling branches or trees, electrocution, exposure to heat, and exposure to chemicals.
                          • Landscaping companies will have to monitor minimum wage changes, as 22 states increased their minimum wages in January 2024, according to USA Today. About half of the increases are automatic adjustments linked to inflation. States that raised their minimum wages in January 2024 include Hawaii ($14), Maryland ($15), Nebraska ($12), and Washington ($16.28). Several states are set to boost their minimum wage levels later this year, including Florida (up to $13 in September) and Nevada (up to $12 in July). According to the Economic Policy Institute, nearly 40 US cities and counties will increase their minimum wage rates above state levels at the start of the new year. The federal minimum wage is $7.25 an hour, and more than 20 states, primarily located in the South and the Midwest, use the federal minimum as their wage floor.
                          • Building permits, housing starts, and housing completions are indicators of future landscaping demand. The number of building permits issued for privately-owned housing units decreased by 2.5% month over month but grew by 4.1% year over year in November 2023, according to government sources. Housing starts rose 14.8% month over month and increased 9.3% year over year in November. Housing completions climbed 5% month over month but fell 6.2% year over year in November.
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