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

                          Mar 11, 2024 - Revenues Rise Per Benchmark Report
                          • According to the latest “Benchmark Your Business” report from Lawn & Landscape, landscapers reported gross revenue increases in 2023 compared to 2022 in the following categories: landscape maintenance (11%), landscape construction/design/build (9%), irrigation installation/maintenance (8%), and lawn care/chemical application (8%). Landscapers identified the following issues that they may face in 2024: labor shortage (47%), rising costs (47%), customers cutting back/canceling services (29%), inflation (23%), lower margins on work (16%), bad weather (9%), delinquent payments (9%), and supply chain delays (4%). Inflation has affected the cost of landscaping services, per the report. About 87% of companies said they charged more for their services in 2023 compared to three years ago. Additionally, landscapers shared what they charged on average for labor for the following services: landscaping maintenance ($66.22), lawn care and chemical application ($76.06), landscape construction/design/build ($76.97), irrigation installation and maintenance ($81.07), tree care ($89.57), and snow and ice management ($106.60).
                          • Consumer confidence levels fell in February 2024 after increasing for three consecutive months, according to data from The Conference Board. The Conference Board’s consumer confidence index fell to 106.7 in February 2024 from 110.9 in January 2024. According to Dana Peterson, Chief Economist at The Conference Board, “The decline in consumer confidence in February interrupted a three-month rise, reflecting persistent uncertainty about the US economy. The drop in confidence was broad-based, affecting all income groups except households earning less than $15,000 and those earning more than $125,000.” Peterson added that the decline in consumer confidence was largest in householders over 55 and those under 35. Plans to purchase homes, autos, and large appliances decreased slightly on a six-month basis.
                          • 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.
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