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 104,300 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 7-8 employees and generates $915,000 in annual revenue.

    • The US has about 104,300 landscaping firms that employ 818,700 workers and generate about $95.4 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

                          Nov 17, 2022 - Green Services Revenue up, New Work Down
                          • “Green” services providers – including the lawn care and landscaping industries - saw some mixed results in the third quarter of 2022, according to the Home Service Economic Report released in November 2022 by Jobber, a job tracking and customer management software firm. New work scheduled dropped 5% year over year in Q3 2022. Contract work also declined, dropping 15.9% compared to Q3 2021, but one-off jobs increased by 1.9% over the same period. However, Q3 median revenue was up between 5% and 10% compared to Q3 2021.
                          • 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 2.4% month over month and declined 10.1 year over year in October 2022. Housing starts fell 4.2% month over month and decreased 8.8% year over year in October. Housing completions fell 6.4% month over month but rose 6.6% year over year in October.
                          • Some landscaping firms that pivot to snow and ice removal services during the colder months have reported trouble in securing enough equipment and labor ahead of the winter season, according to Lawn & Landscape. Amid labor shortages that have affected many industries, landscape firms have made investments in labor-saving equipment. However, supply chain disruptions have slowed deliveries of ice and snow removal equipment. Some firms have also reported long wait times for purchases of new trucks used for transporting workers and equipment.
                          • A year ago, homeowners could expect multiple competing bids when they put their homes on the market, but rising mortgage rates have narrowed the field of potential buyers, which is prompting more sellers to fix up their homes before listing them, according to The Wall Street Journal. Realtors suggest landscaping projects that enhance curb appeal can lure buyers and yield a good return on investment.
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