Learn about trends in the landscaping services industry and find more information on starting
a 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!
View our related business report here: Cleaning Services Business
Get a free Landscaping Services business plan template on our Business Plans
page.
Landscaping Services COVID-19 Resources
In response to the global COVID-19 pandemic, shelter-in-place orders and physical distancing
measures have affected many businesses. Here is a look at the impact to the landscaping
industry. Landscape services are considered essential services in most of the U.S., but
COVID-19 is still impacting the landscape industry in many ways. A survey conducted in April
by Green Industry Pros reveals that more than 50% of landscaping businesses have
experienced an impact to their revenue. Due to stay at home orders, people are spending
more time in their yards as noted by the 60% reported cancellations in the residential
market. Here are additional COVID-19 business resources specific to this industry:
SBDCNet’s COVID-19 Small Business Resources
Landscaping Services Business Overview & Trends
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, BrightView Landscapes, The Davey Tree Expert Company, and TruGreen.
Outside the US, major companies include Active Tree Services (Australia) and Idverde
(France). As the world becomes more urban, interest in green spaces — including trees,
lawns, flowers and hedges — is increasing in cities around the globe, driving demand
for landscaping services. Global demand is driven mainly by factors such as housing
starts, employment, and consumer spending. The US landscaping services industry
includes more than 100,000 establishments (single-location companies and units of
multi-location companies) with combined annual revenue of about $82 billion.
Competitive Landscape: Demand is driven partly by construction spending 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.
Products, Operations & Technology: Landscaping services include commercial and
residential landscape maintenance, landscape construction, irrigation systems, tree
services, chemical lawn care and pest control, and “line-clearing,” or branch removal
around utility lines. ”
Additional resources on the landscaping industry and trends include:
Lawn & Landscape – 2019 State of the Industry Report
National Association of Landscape Professionals – Landscape Industry Statistics
Landscaping Services Business Customer Demographics
Major customer segments for landscaping services are reported by IBISWorld, which offers
full version of the report for purchase here.
Landscaping businesses provide services to residential, commercial, and public sector
clients.
Residential clients provide the highest industry revenue at 48.3%. The segment include
single- and multi-family homes. Demand from homeowners is dependent on their
disposable income for this service. The segment would also include home builders and
homeowners association (HOA), the latter providing the service to ensure compliance
with HOA standards.
Commercial clients, at 42.5%, account for the next largest segment driving industry
revenue. The category includes clients such as hotels, retail centers and other office
space. For customers in this segment, services are provided to building exteriors as well
as to interior green space.
Public sector clients provide 6.7% of industry revenue. Organizations included in this
segment are schools, municipal parks, community centers and other government-
owned spaces. Spending from this sector is dependent on annual budgets; however,
some services may be included for being deemed essential to the operation of the
community.
Additional information on landscaping customers can be found in a variety of trade
associations and publications, including:
Landscaping Business – Understanding the Demographics of your customer
Landscaping Industry Analysis – Chron
Landscaping Services Business Startup Costs
According to Entrepreneur Magazine, the costs to start a landscaping business are as follow:
“Startup Costs: Under $2,000
Home Based: Can be operated from home.
Part Time: Can be operated part-time.
Online Operation? No”
Additional landscaping startup costs can be found at:
Costs to Open a Landscaping Business
Landscaping Services Business Associations
Trade associations often are excellent sources of information on an industry. Here are some
relevant landscaping services industry associations:
National Association of Landscape Professionals
American Hort
Ecological Landscape Alliance
American Society of Landscape Architects
Lawn Care Business Regulations
Although there is no one agency regulating landscaping businesses, the Occupational Safety
and Health Administration (OSHA) provides resources for employers in the landscaping
industry. The resources covered include professional standards and a guide to identify
hazardous chemicals oftentimes used in the industry.
Landscaping Services Business Employment Trends
Labors costs are significant expense for a landscaping service. The following are insights from
the Bureau of Labor Statistics focused on grounds maintenance workers. A more specific
breakdown of wages for Landscaping Services businesses in the US can be found here.
“Pay: The median hourly wage for grounds maintenance workers was $14.85 in May
2019. 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
$10.53, and the highest 10 percent earned more than $23.18.
Work Environment: Grounds maintenance workers held about 1.3 million jobs in 2018.
Employment in the detailed occupations that make up grounds maintenance workers
was distributed as follows:
Landscaping and groundskeeping workers – 1,205,200
Tree trimmers and pruners – 55,600
Pesticide handlers, sprayers, and applicators, vegetation – 35,700
Grounds maintenance workers, all other – 17,700
Grounds maintenance work is done outdoors in all kinds of weather. The work can be
repetitive a physically demanding, requiring frequent bending, lifting, and shoveling.
Job Outlook: Overall employment of grounds maintenance workers is projected to grow
9 percent from 2018 to 2028, faster than the average for all occupations. Employment
growth will vary by specialty. Employment of landscaping and groundskeeping
workers—the largest specialty—is projected to grow 9 percent from 2018 to 2028,
faster than the average for all occupations. More workers will be needed to keep up
with increasing demand for lawn care and landscaping services from aging or busy
homeowners and large institutions, such as universities and corporate campuses. The
growing popularity of outdoor kitchen and living areas should also increase demand for
the services these workers provide. Employment of tree trimmers and pruners is
projected to grow 10 percent from 2018 to 2028, faster than the average for all
occupations. Many municipalities are planting more trees in urban areas, likely
increasing the demand for these workers.”
Additional Small Business Resources
Already in business or thinking about starting your own small business? Check out our
various small business resources:
View more business reports here: Small Business Snapshots
View small business help topics here: Small Business Information Center
View industry-specific research here: Market Research Links
View business plans samples here: Sample Business Plans
Remember, you can also receive free professional business advice and free or low-cost
business training from your local Small Business Development Center!
