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
                          Source: Vertical IQ and Inforum

                          Recent Developments

                          Jun 7, 2024 - Labor Costs, Consumer Spending Higher
                          • Employment and wages for landscaping services companies were on the rise in March 2023 over a year ago, according to data from the Bureau of Labor Statistics (BLS). Employment by landscaping services grew by 2.3% in March 2024 compared to a year ago. Average wages for nonsupervisory employees at landscaping services rose 2.3% in March 2024, reaching $23.78 per hour, per the BLS. Industry wages have risen by nearly a third since 2019. Sustained consumer spending, which continued modest growth in April 2024, is driving revenues and supporting higher wages, according to data from the Bureau of Economic Analysis.
                          • The Institute for Supply Management reported its services-sector PMI improved to 53.8% in May 2024 from 49.4% the previous month. The rebound marked a return to growth, after a decline in April following 15 consecutive months above the baseline growth. The report tracked the performance of 18 service sectors, out of which 13 showed gains in May. These sectors include Real Estate, Rental & Leasing; Health Care & Social Assistance; Other Services; Educational Services; Utilities; Wholesale Trade; Construction; Transportation & Warehousing; Public Administration; Management of Companies & Support Services; Finance & Insurance; Information; and Professional, Scientific & Technical Services. Five sectors reported a decrease in May, including Retail Trade; Agriculture, Forestry, Fishing & Hunting; Arts, Entertainment & Recreation; Accommodation & Food Services; and Mining. 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.
                          • Consumer confidence levels increased in May 2024 following three consecutive months of declines, according to data from The Conference Board. The Conference Board’s consumer confidence index was 102 in May 2024 from 97.5 in April 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence improved among consumers of all age groups, and those in the income category of over $100,000 had the largest rise in confidence. Plans for auto and large appliance purchases rose on a six-month basis.
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