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
Oct 15, 2024 - Prices and Wages Rising
- Producer prices for lawn and garden equipment manufacturers rose 1.9% in July compared to a year ago after increasing 3.3% in the previous July-versus-July annual comparison, according to the latest US Bureau of Labor Statistics data. Meanwhile, employment by makers of agricultural implements, which includes lawn and garden equipment manufacturers, continued to slide, falling 2.1% year over year in July, while average wages at agricultural, construction, and mining machinery firms climbed 8.6% over the same period to a new high of $31.53 per hour, BLS data show.
- The Home Depot – a leading seller of lawn and garden equipment – reported disappointing results in the second quarter and said it expects sales to weaken in the second half of the year as high interest rates cause consumers to become more cautious, according to an August press release. Excluding acquisitions, comparable sales (sales at stores open more than a year) for the second quarter decreased 3.3%, and comparable sales in the US fell 3.6%. Looking ahead, the company reported it expects comparable sales to decline between 3% and 4% for the 52-week period compared to fiscal 2023. The company’s CFO told CNBC that homeowners are now deferring projects due to a “sense of greater uncertainty in the economy.”
- Landscaping ranks as the #1 project homeowners want to tackle this summer, Outdoor Power Equipment Magazine (OPE+) reported in June. A nationwide survey of more than 1,000 homeowners found that nearly two-thirds (62%) are planning a landscaping project, with 28% of homeowners prioritizing sustainable design for their yard and 40% saying they grow their own fruits and vegetables. Atlanta topped the list for the city with the best backyards, with a big focus on lawn care and landscape design. Dallas, Washington, DC., Seattle, and Orlando round out the top 5, according to backyard trend tracker Thumbtack’s 2024 Curb Appeal Trends Report. Notably, nearly one-third (29%) of those surveyed said they intend to spend up to $5,000 on improving their outdoor spaces this summer, according to Thumbtack.
- A national survey of US homeowners indicates that Americans’ investment in their outdoor spaces since the pandemic is likely to continue, Turf Magazine reports. A large majority (85%) of respondents reported making some improvements to their yards (landscaping, patios, decks, fire pits, and playscapes as top investments) during the last five years, and 74% said they are likely to make more improvements over the next two years. Moreover, 76% of homeowners polled said that if they were looking for a new home, it would be important that it had a well-maintained lawn. Two-thirds of those surveyed said “yard shame” prevents them from hosting outdoor gatherings as much as they’d like, and 56% of homeowners said they’re less likely to host an event inside if their yard doesn’t look great. According to Turf Magazine, the survey found that homeowners care deeply about home landscaping and having a well-maintained lawn.
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