Industry Spotlight: Landscaping Services in the US

The landscaping services industry enhances residential, commercial, and public spaces by designing, installing, and maintaining outdoor environments. Landscaping firms provide services ranging from lawn care, irrigation, and tree maintenance to hardscaping and outdoor renovations. These professionals work across diverse projects, improving private homes, corporate campuses, municipal parks, recreational facilities, and urban green spaces. By combining aesthetic appeal with functionality, the industry plays a significant role in shaping communities and supporting property values.

The COVID-19 pandemic initially spurred a boom in residential construction, driving higher demand for landscaping services as homeowners invested in outdoor living spaces. Low interest rates supported strong housing market growth, but as rates have risen, residential construction has slowed. Nevertheless, affluent households have continued to drive demand, seeking premium landscaping solutions such as high-end hardscaping, water features, and custom outdoor designs. These services command higher prices, boosting revenue for companies that cater to the upper market segment.

The industry has also faced challenges, particularly related to labor. Stricter labor regulations, increased restrictions on employing foreign workers, and closer monitoring of undocumented workers have constrained the available workforce. As a result, landscapers have had to adapt their hiring and retention strategies while maintaining service quality. Weather conditions also influence performance, with extreme wet, hot, or snowy seasons driving demand for specialized services like pest control, sprinkler installation, and snow removal.

Financially, the landscaping services industry remains strong. In 2024, annual revenue reached $158.9 billion, with growth projected to continue until 2029 before slowing to around 2.2%. The sector employs over 1 million workers, with employment growth expected to average 3.4% per year through 2029. There are approximately 657,000 businesses in the space, generating average annual revenue of $235,300 per company. Profit margins have remained steady at 9.5%, translating to around $22,354 in profit per business, with total industry profit from 2019 to 2024 reaching $15.1 billion.

Growth drivers for the industry include the outsourcing of landscaping by residential, commercial, and government clients, rising disposable incomes, and the expansion of high-earning households. In addition, the trend toward sustainable and environmentally friendly landscaping—such as native plantings, water-efficient irrigation, and pollinator-friendly gardens—presents opportunities for companies to differentiate themselves and appeal to eco-conscious consumers.

Looking ahead, the landscaping industry’s success will depend on its ability to balance demand for premium services with operational challenges, especially in labor availability. Firms that invest in skilled labor, embrace sustainable practices, and diversify service offerings are likely to capture market share and maintain profitability. Strategic support from advisors like Blue Sky Exit Planning can help landscaping companies benchmark performance, identify growth opportunities, and prepare for long-term success.

For a deeper dive into the key takeaways and to see how your business compares to industry benchmarks, contact Joe at Joe@blueskyexitplanning.com.

Citation:

Diment, D. (2024). 56173 Landscaping Services in the U.S. IBISWorld Industry Reports. https://my.ibisworld.com/

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