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
Jul 9, 2024 - Proposed DOL Rule to Protect Workers from Extreme Heat
- Landscaping services will want to monitor a new proposed rule from the US Department of Labor (DOL) designed to protect workers from extreme workplace heat. The proposed rule requires employers to form an injury and illness prevention plan to control heat hazards in workplaces affected by excessive heat, per the DOL. The rule asks employers to evaluate heat risks and implement requirements for drinking water and taking rest breaks. In addition, employers will have to provide training, develop procedures to respond to employees who show signs of heat-related illness, and assist workers experiencing a heat emergency. The DOL expects to hold a public hearing at the end of the rule’s written comment period. The Occupational Safety and Health Administration (OSHA) currently conducts heat-related inspections under a program launched in 2022, in which agents inspect workplaces with the highest exposures to heat-related hazards to prevent worker injuries and illness.
- Consumer confidence levels fell in June 2024, after an uptick in May, according to data from The Conference Board. The Conference Board’s consumer confidence index was 100.4 in June 2024 from 101.3 in May 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those under age 35 and those in the income category of over $100,000. Plans for large appliance and smart phone purchases rose on a six-month basis, while plans for car purchases stalled.
- The Institute for Supply Management reported its services-sector PMI contracted to 48.8% in June 2024 from 53.8% the previous month. It was the second contraction in a three-month period, following 15 consecutive months above the baseline growth. The report tracked the performance of 18 service sectors, out of which eight posted gains in June. Growth sectors include Other Services; Management of Companies & Support Services; Health Care & Social Assistance; Construction; Utilities; Finance & Insurance; Educational Services; and Professional, Scientific & Technical Services. Eight sectors showed a decrease in June, including Agriculture, Forestry, Fishing & Hunting; Real Estate, Rental & Leasing; Mining; Retail Trade; Public Administration; Wholesale Trade; Transportation & Warehousing; and Information. The Services PMI report is based on data from purchasing and supply executives nationwide compiled by the ISM.
- A new landscaping and outdoor survey by G&S Business Communications shows that over a third of respondents plan to increase their lawn and landscape care investment in the upcoming year. About 47% plan to spend the same amount on lawn and landscape care as in 2023, and 50% of consumers expect to pay $100 or more on ornamental plans in 2024. Nearly 70% of respondents said having and maintaining natural grass helps the environment. However, 72% of respondents said they had a moderate-to-no understanding of the actual impact their lawn and landscape can have on the environment. The survey results reveal an opportunity for landscaping companies to educate customers about the positive environmental impacts of grass and natural landscapes. Almost 64% of respondents reported owning battery-powered lawn equipment, and a third said they would prefer to use a company that uses battery-powered equipment if paying for yard maintenance.
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