Lawn and Garden Equipment Manufacturers
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 150 lawn and garden equipment manufacturers in the US produce tractors, lawnmowers, snowblowers, and related attachments and equipment like tillers, shredders, and leaf blowers. Firms typically offer products designed for residential and/or commercial use and offer warranty coverage for products sold. Channels of distribution include distributors, dealers, various retailers, and rental centers. Firms may also sell products directly to government entities or end-users through websites.
Foreign Competition
US manufacturers compete against foreign firms that benefit from government subsidies and/or produce comparable products at a lower cost.
Uneven Demand
Demand for lawn and garden equipment is seasonal and typically higher during the spring and summer when lawn care and maintenance activity rises.
Industry size & Structure
The average lawn and garden equipment manufacturer employs about 113 workers and generates about $53 million annually.
- The industry consists of about 150 firms that employ over 17,000 workers and generate over $8 billion annually.
- The industry is highly concentrated; the top 20 companies account for over 95% of industry revenue. Firms that generate $100 million or more annually account for 8.1% of firms and 91.8% of industry revenue.
- Large firms include Toro, MTD Holdings (Stanley Black & Decker), Husqvarna Group (Sweden), and Echo (Yamabiko - Japan). John Deere also offers lawn and garden equipment as part of its agricultural and turf operations.
Industry Forecast
Lawn and Garden Equipment Manufacturers Industry Growth
Recent Developments
Feb 14, 2025 - 2004 Existing Home Sales Weakest in 30 Years
- Sales of existing US homes increased by 2.2% in December from November and were up 9.3% year-over-year, according to the National Association of Realtors (NAR). The pace of December existing home sales was the strongest since February 2024 and the most robust year-over-year improvement since June 2021. However, despite stronger demand near the end of the year, 2024 saw the weakest existing home sales in nearly 30 years. NAR chief economist Lawrence Yun said, "Home sales in the final months of the year showed solid recovery despite elevated mortgage rates. Home sales during the winter are typically softer than the spring and summer, but momentum is rising with sales climbing year-over-year for three straight months. Consumers clearly understand the long-term benefits of homeownership. Job and wage gains, along with increased inventory, are positively impacting the market." Existing home sales help drive demand for lawn and garden equipment.
- Young adults are staying in their parents’ homes longer amid a lack of affordable rents, the run-down in pandemic-era savings, and high mortgage rates, according to National Association of Home Builders’ analysis of recently released US Census data. In 2023, 19% of adults ages 25-34 lived with parents, which was unchanged from 2022. While the percentage of adults living with parents in 2023 was the second lowest since 2011, it was elevated by historical standards. Young adults typically account for about half of first-time homebuyers, so continuing to live with parents reduces household formations, which puts downward pressure on housing demand. Weak household formations could reduce demand for lawn and garden equipment.
- US manufacturers have much to lose if a trade war erupts between the US and its top trading partners. On January 21, 2025, President Trump declared that a 25% tariff would be imposed on imports from Canada and Mexico beginning on February 1, 2025. On February 3, Trump agreed to pause the tariffs for 30 days after Canada and Mexico agreed to increase their border security and drug interdiction efforts. A 10% tariff on all imports from China went into effect on February 1, and Trump later announced that starting March 14, the US would levy a 20% tariff against all steel and aluminum imports. Tariffs on Mexico, Canada, and China would have widespread ramifications for US manufacturers, making it more expensive to produce goods that use foreign components, including steel and aluminum. However, protectionist tariffs could benefit domestic producers that compete with foreign manufacturers of the same products. Still, economists and other tariff skeptics say US consumers and businesses would likely end up footing the bill. The US is a net importer of lawn and garden tractors and home lawn and garden equipment, primarily from China and Mexico.
- Home mortgage rates remain stubbornly high despite recent interest rate cuts, freezing spending on home improvement projects, The Wall Street Journal reported in November. High borrowing costs put a damper on home buying, typically a big driver of home-improvement spending and demand for landscaping services. In an earnings call in November, Ted Decker, CEO of Home Depot, noted housing turnover stood at roughly 3% – a 40-year low – compared to a historical turnover rate of 4.5% to 5%. The percentage of GDP that households spent on their homes – including new construction, remodeling and home improvement – was near 4% in 2024, which is also below the historical average of 4.5%, according to the report from Truist Securities. Decker said expectations around mortgage rates is what’s needed to unlock spending. Without stability, demand for home improvement could remain in a deep freeze for some time, according to WSJ.
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