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Landscaping Services Business 2016

Learn about trends in the Landscaping Services business and where to find more info about how to open your own Landscaping Services business. Don’t forget you can receive free or low-cost training and free professional business advice, from your local Small Business Development Center!

Get a free Landscaping Services business plan template on our Business Plans page.

Landscaping Services Business Overview & Trends, 2016

NAICS Code: 561730, SIC Code: 0782

This Landscaping Services industry summary is from First Research which also sells a full version of this report.

Companies in this industry provide landscape care and maintenance services for both commercial and residential customers. Major US companies include Asplundh Tree Expert, Brickman and ValleyCrest (both owned by BrightView), The Davey Tree Expert Company, and TruGreen. Outside the US, major companies include Active Tree Services (Australia) and Idverde (France).

The worldwide gardening and outdoor living market, which includes landscaping services, is expected to reach almost $220 billion by 2016, according to Garden Media. As the world becomes more urban, global interest in green spaces — including trees, lawns, flowers and hedges — is increasing in cities across the globe, driving demand for landscaping services.

The US landscaping services industry includes about 94,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $60 billion.

COMPETITIVE LANDSCAPE

Demand is driven partly by construction of new commercial properties and residences and partly by the economy’s overall health. Because management and equipment costs are mainly fixed, the profitability of individual companies depends on demand volume and operations’ efficiency. Small companies can easily compete with big ones, except in providing services to large customers. Big companies operate mainly through local branches or offices that have operations almost identical to those of local companies. The US industry is highly fragmented: the top 50 companies generate about 15% of revenue.

This Landscaping Services business market research report summary is from IBISWorld which also sells a full version of this report.

  • The Landscaping Services industry is primarily comprised of sole proprietors, accounting for 75% of all enterprises, but only 15% of industry revenue. Starting a landscaping services business is relatively easy, requiring minimal capital investments. As such, growth has remained stable over the five years to 2016.
  • As economic activity continues to improve in the coming years, the landscaping services industry stands to benefit from increases in disposable income and new housing construction. These demand drivers are expected to support annual growth of 2.1% over the next five years, bringing industry revenues to $84.9 billion.
  • The primary markets for the Landscaping Services business are residential, commercial and government entities. Most smaller firms primarily serve the residential market, which accounts for a whopping 73.6% of annual industry revenue. Commercial and government entities often establish service contracts with operators and typically demand a broader array of services than residential customers.

Landscaping Services Business Startup Costs

Landscaping Services Business – Landscaping Startup Costs from Entrepreneur Magazine:

  • Total Startup costs: under $2,000
  • Home based: Can be operated from home
  • Franchises available? Yes

Landscaping Services Business Startup Costs from The Start Your Own Business Bible (F+W Media and Adams Media):

  • Total Startup costs: $500 – $1,500
  • Potential Earnings: $25,000 – $50, 000

Landscaping Services Business Plans

Landscaping Services Business Media Outlets

Landscaping Services Business Associations

Trade associations often are excellent sources of information on an industry. Here are some relevant industry associations:

Landscaping Services Business Employment Trends

Here is the Landscaping Services Business labor market summary from the Bureau of Labor Statistics.

Pay

The median hourly wage for grounds maintenance workers was $11.93 in May 2014. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $8.62, and the highest 10 percent earned more than $19.38.

Work Environment

Grounds maintenance workers held about 1.3 million jobs in 2014. About 41 percent were employed in the services to buildings and dwellings industry, 8 percent were employed in state and local government entities, 7 percent in other amusement and recreation industries and 4 percent in educational institutions.

Grounds maintenance work is done outdoors in all kinds of weather. The work can be repetitive and physically demanding, requiring frequent bending, lifting, and shoveling.

Grounds maintenance workers have a rate of injuries and illnesses that is higher than the national average. Workers who use dangerous equipment, such as lawnmowers and chain saws, must wear protective clothing, eyewear, and earplugs.

Many grounds maintenance jobs are seasonal. Jobs are most common in the spring, summer, and fall, when planting, mowing, and trimming are most frequent. However, many also provide other seasonal services, such as snow removal and installation and removal of holiday décor.

Job Outlook

Employment of landscaping and groundskeeping workers—the largest specialty—is projected to grow 6 percent from 2014 to 2024, about as fast as the average for all occupations. More workers will be needed to keep up with increasing demand for lawn care and landscaping services from large institutions, including universities and corporate campuses. Many aging or busy homeowners also may need lawn care services to help maintain their yards.

Sources

For the full text of any content in this Small Business Market Research Report from SBDCNet, the link has been provided for the report publisher, while a database article can be obtained from the local public or academic library or purchased from a document delivery service for a nominal fee.

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