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.

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.

Foreign Competition

US manufacturers compete against foreign firms that benefit from government subsidies and/or produce comparable products at a lower cost.

Industry size & Structure

The average lawn and garden equipment manufacturer employs about 118 workers and generates nearly $56 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 50 companies account for over 98% 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
                              Source: Vertical IQ and Inforum

                              Recent Developments

                              Apr 15, 2024 - Prices Rose Amid Escalating Labor Costs in 2023
                              • Employment by agricultural implements producers, including lawn and garden equipment manufacturers, fell 1.3% in December compared to a year ago after growing by 6.7% in the previous annual comparison, according to the US Bureau of Labor Statistics. Still, in 2023, employment by the industry grew to levels not seen in nearly a decade. Meanwhile, wages in agriculture, construction, and mining machinery ended the year just below their peak in November. Average wages for employees were $29.68 per hour in December, a 9.6% change compared to a year ago, per the BLS. Rising producer prices for lawn and garden equipment manufacturers are helping to offset steeply rising wages.
                              • A national survey of US homeowners indicates that Americans’ investment in their outdoor spaces since the pandemic is likely to continue, Turf Magazine reported in April. 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.
                              • A new California law that bans homeowners and landscaping professionals from purchasing gas-powered lawn care equipment (manufactured after Dec. 31, 2023) from retailers in the state took effect in January, reports. California is the world’s 4th-biggest economy and the first US state to phase out fossil fuel-powered landscaping tools, including lawn mowers, leaf blowers, and chainsaws. The new law aims to drastically reduce harmful air quality across the state, by pushing people to use electric or battery-powered equipment instead. The carbon emissions from gas-powered lawn tools, especially lawn mowers and leaf blowers, significantly contribute to air pollution while generating excessive noise. In 2020, lawn tools emitted more than 30 million tons of CO2, according to the EPA. The ban on gasoline-powered lawn equipment in California could signify a transformative shift in the landscape of suburban America and will test Americans’ willingness to embrace cleaner technologies in their daily lives.
                              • Planting natives, minimizing traditional turf lawns, and raising plants for food will be key drivers of garden spending next year, according to the Garden Media Group’s recently released 2024 Garden Trends Report. In the long term, the attitudes and preferences of Gen Z consumers are expected to shape the horticultural industry. Gen Z’s homeownership rate and home ownership aspirations will be significant demand drivers for garden product and equipment sales. According to Redfin, 30% of 25-year-olds owned a home in 2022, compared to 27% for Gen X and 28% of Millennials. More than 71% of Gen Z consumers hope to buy their first home within one to five years. Other trends that are being driven by younger gardeners include planting to attract birds and pollinators, shopping for gardening supplies online, and small-space gardening.
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