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The Signal Ahead is….. Green!

Posted by Glenn Beyerl on February 29, 2016 at 12:49 PM
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Landscaping Industry

“We may need to Get External to notice.” 

The Landscape Industry has experienced steady growth between 2010 and 2015, with an average annual increase in revenue of 6%. In their 2016 Industry Outlook, Green Industry Pros writer and associate publisher Gregg Wartgow shares the results of their fall survey of Landscape Contractors, and the future is bright!  Wartgow points out that “Roughly two-thirds expect to grow their sales in the installation, maintenance, and lawn care divisions [this year]”. Wartgow references housing starts, commercial construction and foreseen increase in per capita disposable income as key contributors to sustainable growth through 2020. These increases in new construction also draw in higher demand, which inevitably allows landscaping professionals to increase their profit margins.

 Landscape Industry Defined

The Landscape Industry encompasses a host of services, including Lawn Maintenance, Hardscaping, Lawn Renovation, Arborist, and Snow and Ice Management. IBIS, a market research company, estimates this industry to be $76 billion in 2015, shared among 470,000 companies employing just under 1 million employees. The industry is relatively fragmented with no major market-share leaders, where the top 50 companies make up about 15% of the sector’s revenue. The industry fragmentation often indicates low barriers to entry, so grab your piece of the pie before someone else tries to steal it.

But there’s more good news

Landscape contractors have more support for their positive outlook in their industry. Baby-Boomer Magazine estimates that Baby-boomers account for approximately “78 million Americans today, of which one will turn 65 every 10 seconds (3-4 million per year).” With the aging of this VERY significant sector of our population, their ability to engage in activities such as those served by the Landscape Industry will continue to decline, and in turn, the demand for professional landscape services will grow to serve the properties owned by this coveted group of consumers. And with the Baby Boomers’ wealth, these services will be affordable.

 Employment Growth = Economic Growth

Landscape Contractors polled in the Green Industry Pros 2016 Industry Outlook survey also concluded that well over half will be increasing their hiring in 2016, heavily weighted toward laborers, but with notable growth in sales and administrative positions. Clearly Landscape Contractors see the opportunities ahead; adding sales personnel to generate new business bodes well for their strategy.  

 Outdoor Power Equipment Dealers to See Benefit

Landscape Contractor customers are part of a growing industry, which should translate into more business for the sale of commercial outdoor equipment and accessories. Growth is anticipated not only among existing industry players but through new entrants. The small cost of entry to the industry supports this and the Outdoor Power Equipment Dealers with their channel partners play a critical role in pushing down Landscape Contractors’ costs.  As noted above, only 15% of the Landscape Industry business is done by the top 50 companies. This leaves hundreds of thousands of smaller companies who can benefit from the Outdoor Power Equipment Dealer’s closely held, regional/business personalized approach.

Topics: Insider, business, Landscaping

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