State of the Landscape Industry

Contractors continue to settle back in — and then some — since the end of the Great Recession, making 2016 another solid year for the green industry. Landscaping companies had a median revenue of $291,000, which is up from $256,000 in 2015 and $217,000 in 2014. Slightly more contractors turned a profit in 2016 (86%) than in 2015 (84%) and 2014 (78%).

Landscape maintenance stayed as the most profitable service offered, and it regained the top spot as the most popular service provided after losing that spot to lawn care last year.

A lack of quality labor continues to be the top concern in the industry, especially for companies making more than $1 million in revenue. On a 1-10 scale (10 being a major concern), those companies ranked hiring a 7.8, compared to the average ranking from all companies, which was 6.5.

Personal stress, low-ball competitors and high health insurance costs also ranked as major concerns for landscapers. Bad weather fell in the middle of the pack this year as a concern, though this survey was taken before the hurricanes in Texas and Florida.

Two major issues Lawn & Landscape covered in last year’s State of the Industry were changed. One being a cosmetic chemical ban on lawns in Montgomery County, which was overturned in August. The other being a federal overtime rule that would have made employees making less than $47,476 annually eligible for overtime pay, doubling the current threshold of $23,660.