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
Dec 15, 2024 - Import Tariffs
- US manufacturers have much to lose if a trade war erupts between the US and its top trading partners. President-elect Donald Trump has vowed to impose a 25% tax on all imported goods from Mexico and Canada, along with an additional 10% tax on imports from China, as one of his first orders on taking office. Tariffs on Mexico, Canada, and China would have widespread ramifications for US manufacturers, making it more expensive to produce goods that use foreign components. However, protectionist tariffs could benefit domestic producers that compete with foreign manufacturers of the same products. Still, economists and other tariff skeptics say if the threatened tariffs take effect, US consumers and businesses would 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.
- Producer prices for lawn and garden equipment manufacturers rose 1.6% in September compared to a year ago after increasing 2.6% in the previous September-versus-September annual comparison, according to the latest US Bureau of Labor Statistics data. Employment by makers of agricultural implements, which includes lawn and garden equipment manufacturers, continued to slide, falling 3.2% year over year in September, while average wages at agricultural, construction, and mining machinery firms rose 7.3% over the same period to $31.21 per hour, down $0.30 from their peak in July, BLS data show.
- 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.
- 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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