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

                          Mar 17, 2023 - Ohio Bans Blooming Pear Trees
                          • An Ohio ban on selling, growing, or planting Callery pear trees went into effect in 2023, according to Garden Center Magazine. Native to Asia, the trees were prohibited due to their invasive qualities and their likelihood to cause economic or environmental harm. The trees were added to the Ohio Department of Natural Resources (ODNR) “invasive species” list in 2018, and landscapers, growers, and nurseries had five years’ notice before the regulation went into effect. The most popular version of the tree is the Bradford pear tree. According to ODNR Division of Forestry Chief Dan Balser, “Callery pear often dominates young, regenerating forest areas and inhibits the growth and establishment of native plant species. Halting the further sale and intentional propagation of Callery pear will help reduce the further introduction of this environmentally harmful tree species.” Similar bans on the tree will go into effect in South Carolina and Pennsylvania in 2024.
                          • Consumer confidence levels declined in February 2023 for the second consecutive month, according to data from The Conference Board. The Conference Board’s consumer confidence index fell to 102.9 in February 2023 from 106 in January 2023, as high prices and rising interest rates affected consumers’ willingness to spend. According to Ataman Ozyildirim, a senior director of economics at The Conference Board, “Consumer confidence declined again in February. The decrease reflected large drops in confidence for households aged 35 to 54 and for households earning $35,000 or more.” Plans to purchase homes, vehicles, and appliances have cooled, in addition to a drop in vacation intentions, per Ozyildirim.
                          • A bill has been introduced in the Minnesota House to ban the sale of new gas-powered landscaping equipment starting in 2025, according to the Minnesota Reformer. Authored by Democratic Representatives Jerry Newton and Heather Edelson, the bill requires all new garden equipment to be solely powered by electricity. It would apply to all lawn and garden equipment powered at or below 19 kilowatts or 25 gross horsepower. The regulation would not include snow blowers. Across the US, states and cities have been enacting gas-powered equipment bans and encouraging alternative-powered tools to reduce pollution. California Governor Gavin Newsom has signed a ban on gas-powered landscaping equipment expected to go into effect as early as 2024. According to CNET, more than 100 cities and towns in the US already outlaw gas-powered tools.
                          • Nearly 60% of owners reported hiring or trying to hire staff in January 2023, up two points from the previous month, according to the monthly jobs report from the National Federation of Independent Businesses (NFIB). Of those companies hiring or trying to hire, 91% of owners reported few or no qualified applicants for the positions they were trying to fill. About 24% of owners reported labor quality as their top business operating problem, and 10% reported labor costs as a top concern. According to NFIB Chief Economist Bill Dunkelberg, “The labor shortage continues to be a major concern for small businesses in the New Year as nearly all owners trying to hire are reporting no or few qualified applicants. Small businesses’ sales opportunities are limited because of the staffing shortage but owners continue to make changes in business operations to compensate.”
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