Landscaping Services

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, 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

                          Coronavirus Update

                          May 17, 2022 - Fertilizer, Gasoline Prices Up Sharply
                          • Some landscaping firms are coping with cost increases for key inputs, including fuels and fertilizers. Russia is the world’s largest fertilizer producer, and its invasion of Ukraine has reduced exports which has pushed fertilizer prices higher. Oil and natural gas prices have also risen as the war roiled global energy markets. US producer prices for fertilizer were up 70% in April 2022 compared to a year earlier. Prices for nitrogen fertilizers and phosphorous fertilizers were up 112.3% and 63.1%, respectively, over the same period. As of May 17, 2022, the average US price for a gallon of regular gasoline was $4.52, up from $3.04 a year earlier.
                          • Even as pandemic conditions wane, homeowners are expected to continue to invest in home improvements. Home remodeling spending is expected to remain strong for most of 2022 before tapering off in the fourth quarter, according to the Leading Indicator of Remodeling Activity (LIRA) report released in January by the Joint Center for Housing Studies at Harvard. Homeowner improvements and repairs are expected to increase 11.3% to $390 billion in the first quarter of 2022 compared to Q2 2021. On a year-over-year basis, quarterly remodeling spending levels are forecast to rise 15% in Q2, 19.7% in Q3, then moderate slightly to 17.3% in Q4 when spending will reach $430 billion. Landscaping is a popular home improvement category because it’s affordable compared to some more expensive home improvements, and it has a high visual impact.
                          • In March 2022, the Biden Administration announced it would make an additional 35,000 H-2B visas available to seasonal workers. The move could help landscape firms hire temporary workers for the busy summer season at a time when hiring enough workers has been challenging across all industries.
                          • Landscaping firms searching for customer-facing employees may look for them by actively recruiting workers who have left the hospitality industry, according to Total Landscape Care. While the hospitality industry continues to rebound, on a seasonally adjusted basis, leisure and hospitality sector employment in March 2022 was still down nearly 1.5 million jobs compared to February 2020 levels. Landscaping industry insiders say hospitality workers already have the most necessary “soft” people skills needed for quality customer service, and skills specific to landscaping can be taught on the job.
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