Landscape industry strong, but labor presents challenges

Photo: z_wei | iStockphoto

This year’s State of the Industry Report conducted by sister publication Lawn & Landscape magazine shows similar results from the past few years, with the majority of contractors doing well overall. While median revenue slightly decreased by $4,000 to $287,000 in 2017 compared to 2016, those who turned a profit slightly increased to 87% in 2017 compared to 86% in 2016.

A dearth of quality labor continues to be the major roadblock for growth, with 66% saying it hindered growth a lot or a fair amount compared to 51% answering that way last year.

Lawn care took the top spot back from maintenance as the most popular service provided.

Confidence continues to grow, with 79% answering they were either very confident or confident their business will grow in revenue in 2019, compared to 75% saying the same for 2018. Contractors are confident in industry growth as well with 78% being either very confident or confident the industry will grow, compared to 75% last year.

Not addressed in this year’s State of the Industry report, but still trending is the continued interest from private equity firms in the industry and the amount of mergers and acquisitions activity.

While still not common in the industry, robomowers are becoming more popular with contractors hoping that will relieve some of the need for field labor.

The lack of labor is also causing contractors to become more interested in technology. Contractors are hoping better software and equipment can make the business more efficient with less employees.

Brian is the editor of sister publication Lawn & Landscape.