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
Aug 8, 2024 - Employment Up, Labor Costs Down
- Employment by landscaping companies increased in the first five months of 2024, according to the US Bureau of Labor Statistics (BLS). Wages at landscaping services declined year to date through May 2024. Average wages for nonsupervisory employees were $23.34 per hour in May 2024. Prices for gardening and lawn care services in the US in April 2024 were 3.1% higher compared to a year ago, according to Consumer Price Index data from the BLS. In addition, consumer spending levels increased modestly during the first five months of 2024, according to personal consumption expenditures data from the Bureau of Economic Analysis.
- The Institute for Supply Management reported its services-sector PMI expanded to 51.4% in July 2024 from 48.8% the previous month. The PMI indicated expansion for the 47th time in 50 months, though two of the contractions came in April and June of this year. The report tracked the performance of 18 service sectors, out of which 10 showed an increase in July. Industries reporting growth were Arts, Entertainment & Recreation; Accommodation & Food Services; Mining; Construction; Management of Companies & Support Services; Transportation & Warehousing; Public Administration; Finance & Insurance; Health Care & Social Assistance; and Utilities. Eight sectors showed declines in July: Agriculture, Forestry, Fishing & Hunting; Real Estate, Rental & Leasing; Wholesale Trade; Retail Trade; Professional, Scientific & Technical Services; Information; Educational Services; and Other Services. The Services PMI report is based on data from purchasing and supply executives nationwide compiled by the ISM.
- 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 rose in July 2024, after a decrease in June, according to data from The Conference Board. The Conference Board’s consumer confidence index was 100.3 in July 2024 from 97.8 in June 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those under age 35 and those 55 and older in July. Those in the income category of over $100,000 were the most confident on a six-month moving average basis. Plans for large appliance and smart phone purchases increased on a six-month basis, while plans for home purchases fell to a 12-year low.
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