LANDSCAPE INDUSTRY STATISTICS

SIZE OF INDUSTRY

There are a number of market reports that provide data about the size of the industry. Statistics from the January 2014 IBIS World market report show that the landscape services industry has annual revenues of $74 billion, employs 888,426 people, and represents 401,473 businesses.

The Global Industry Analysts Report says “the landscaping services market in the U.S. is expected to recover and poised and reach $80.06 billion by 2015.”

STATE OF THE INDUSTRY

In the Lawn and Landscape State of the Industry 2013 survey, respondents reported business in the following sectors: 67% single family residential, 25% commercial/industrial, 7% multi-family, and 3% governmental/institutional.

The survey showed that companies had the following business lines in 2013: maintenance (45%), design build (18%), lawn care (12%), irrigation (6%), tree care & ornamental (6%), and snow and ice removal (5%). The industry average net company profit for those surveyed in 2013 was 10%.

In the Landscape Management Industry Pulse Report, 75% of those contractors surveyed described the state of the market as very healthy, compared to 56% in 2012.

The contractors surveyed reported profit margins in 2012 as follows: 26% made a profit margin between 5-9.9%; 21% made a profit margin between 1-4.9%; 20% made a profit margin between 10-14.9%; and 14% made a profit margin between 15-19.9%.

CONSUMER STATISTICS

It is clear that Americans love their yards and landscapes. A recent national survey showed that 81 percent of those with a yard/landscape say that the upkeep of their yard/landscape is important to the look of their home. Click here for the results of our national survey, conducted by Harris Interactive, regarding consumer perceptions about yards, landscapes, and landscape companies. This infographic show why people hire landscape professionals.

According to the survey on consumer spending habits conducted by Harris Interactive, spending on landscape contracting should remain steady with the most significant increase in the design build sector. Click here to read the results of the survey.Click here to see the consumer spending infographic.

Most realtors and homeowners feel that investments on landscaping and lawn care offer a good return on investment. The Homegain.com National Home Improvement Survey 2011 recently surveyed nearly 600 real estate agents nationwide to determine the top 10 low cost, do-it-yourself home improvements for people getting their home ready to sell.  Ninety-three percent of real estate agents recommended landscaping as a top five home improvement recommendation responding that at an average cost of $540 a homeowner can expect a $1,932 price increase on their home for a 258% return on investment.

It is also clear that having access to green spaces is important to many people.  The Husqvarna Global Garden Report 2012 showed that “63% of respondents reported being willing to pay more for an apartment or house if it was located in an area with good green spaces, compared with, for instance, 34% willing to pay more for an area with good shopping and 33% for good cultural venues.”

67% is the share of American urban respondents in this year’s survey who believed that having access to a good green space might get them to exercise more regularly.”

52% is the share of urban respondents globally in this year’s survey who identified “green areas” as a feature they would like to see more of in their cities, making it the most frequently mentioned feature.”

The Husqvarna Global Green Space Report 2013, again demonstrates that people value green spaces in their lives. Fifty-five percent of people surveyed in the U.S. say that green spaces contribute a lot to their quality of life, and 32% and said they would take on longer commute times to live closer to nature.  When asked what would boost their work performance; 28% of respondents said getting a cup of coffee, while 72% said getting some fresh air.

For more information about the landscape and lawn care industry, click here.   For statistics and research about the benefits of green spaces, click here.