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Landscapers Seeing Green

Landscapers Seeing Green. According to Lawn & Landscape ’s 2017 State of the Industry Report, 86% of landscapers who participated in the survey said they were profitable during 2016, and the median revenue was $291,000, an increase of 13.7% from 2015 revenues of $256,000.

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Landscapers Seeing Green

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  1. Landscapers Seeing Green • According to Lawn & Landscape’s 2017 State of the Industry Report, 86% of landscapers who participated in the survey said they were profitable during 2016, and the median revenue was $291,000, an increase of 13.7% from 2015 revenues of $256,000. • Almost all (94%) of the landscapers surveyed said they are at least somewhat confident that the industry will grow and 93% had similarly sunny outlooks for their companies. • Almost two-thirds (62%) of landscapers’ revenues were from single-family, residential customers, followed by commercial/industrial, 26%; multi-family structures, 7%; government/institutional, 4%; and other, 1%.

  2. Creating Pleasant Outdoor Living Spaces • According to the 2017 US Houzz Landscape Trends Study, of homeowners’ landscape projects, 48% were a major renovation, 37% a complete overhaul and only 15% minor updates. • The top structural upgrades were patios and terraces at 39%, followed by arbors/gazebos/ pergolas or trellises at 26%. The top non-structural upgrades were beds and borders at 73%, followed by pathways at 42% and planters/plant boxes at 40%. • The top uses for outdoor space were gardening, 56%; entertaining, 40%; family time, 35%; eating, 28%; playing with/keeping pets, 23%; parking, 8%; storage, 3%; working, 3%; exercising, 2%; and other, 5%.

  3. Landscaper Insights • Most landscaping companies have been in business for some time. Only 14% were started fewer than 5 years ago; 12%, 5–9 years; 30%, 10–19 years; 25%, 20–29 years; and 18%, more than 30 years ago. • Almost a quarter (24%) of landscaping companies earned gross revenues between $50,000 and $199,999; 20%, $200,000–$499,999; 16%, $500,000–$1 million; 21%, more than $1 million; and 15%, less than $49,999. • More than half (58%) of landscapers are 45 to 64 years of age, with the next largest age group 25–44, at 32%. Only 2% are younger than 25 and 8% are older than 65.

  4. Ready to Rake in the Money • Landscape maintenance and lawn care/chemical application were the most common services offered (86% and 84%, respectively). More than three-quarters (78%) provided landscape design/construction; 63%, trees and ornamental; and 47%, irrigation. • Almost one-third (32%) of landscapers predicted landscape maintenance would increase during 2017, while 23% said design/build would increase and 15% said lawn care/chemical application. • The Freedonia Group expects global demand for power lawn and garden equipment to increase by 2.5% per year, and total $24.2 billion by 2021, mostly in North America and Europe, despite the number of golf courses in the US is expected to decrease.

  5. Future Outlook • The robotic lawn mower market is expected to increase from $861.6 million for 2016 to $2.23 billion by 2022. This could reduce homeowners’ need for landscape firms. • The expected uptick in new single-family residential construction during 2018 will boost the landscaping industry, both for new installations and maintenance services. • Suburbs and rural areas are not the only places where landscaping is needed; government organizations and non-profit agencies are promoting green spaces and green roofs in cities to counter environmental pollution and global warming.

  6. Advertising Strategies • Television is a perfect advertising medium for landscaping services to target Baby Boomers/seniors who plan to age in their homes, but who are less able and/or less interested in maintaining their lawns and gardens. • Consider partnering with a luxury home builder or real estate broker/agent who specializes in high-end homes to promote landscaping design services, with a discounted or free assessment. • Use direct mail and carefully-targeted TV placements, such as golf, tennis and financial news, to market commercial landscaping services for businesses, corporate campuses and private schools.

  7. New Media Strategies • Make sure your company is listed on all local-services Websites (Angie’s List, Home Advisor, etc.) and review them quarterly to update. Aggressively pursue positive online reviews and immediately resolve problems before they become negative reviews. • Send customers emails when it is time to prune trees before hurricane season, fertilize their lawns and shrubs, plant annuals, install holiday lights, etc. These can also big topics for blogs and social media posts, especially as videos, featuring members of your crew. • Train your crew to be very aware of any customer needs, such as chinch bugs or dead plants, and include them in a daily report. Then, email your customers with a price to address their need.

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