GITNUX REPORT 2024

Landscaping Industry Statistics: Key Figures and Trends Revealed in 2023

Exploring the $115 billion US landscaping industry: growth, challenges, and trends from 2023 statistics.

Author: Jannik Lindner

First published: 7/17/2024

Statistic 1

The landscaping industry employs about 1.6 million people in the US

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40% of landscaping businesses report difficulty finding qualified workers

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The average hourly wage for landscaping and groundskeeping workers is $15.56

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The landscaping industry's average employee turnover rate is 30%

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25% of landscaping businesses offer health insurance to their employees

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The landscaping industry has a workplace injury rate of 3.8 per 100 full-time workers

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The average annual revenue for a landscaping company is $1.3 million

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The average profit margin for landscaping businesses is 10-12%

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The average landscaping business spends 5% of revenue on marketing

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65% of landscaping businesses report fuel as their highest operating cost

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The landscaping industry's average accounts receivable period is 45 days

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30% of landscaping businesses offer financing options to customers

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The landscaping industry's average equipment utilization rate is 65%

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The landscaping industry's average customer acquisition cost is $200

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45% of landscaping businesses report increasing prices in the past year due to inflation

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The landscaping industry's average net profit per employee is $15,000

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Residential services account for 60% of the landscaping industry's revenue

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Commercial services make up 30% of the landscaping industry's revenue

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Government contracts contribute to 10% of the landscaping industry's revenue

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The landscaping industry in the US is worth $115 billion in 2023

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The landscaping industry has grown by 2.5% per year on average between 2018 and 2023

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There are approximately 604,163 landscaping businesses in the US as of 2023

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The landscaping industry has a projected annual growth rate of 3.3% from 2023 to 2028

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The landscaping industry has a low market share concentration, with the top 4 companies holding less than 10% of the market

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85% of landscaping businesses have fewer than 10 employees

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40% of landscaping businesses report using subcontractors for specialized services

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The average landscaping business has been in operation for 15 years

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70% of landscaping businesses are family-owned

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The average customer retention rate for landscaping businesses is 85%

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60% of landscaping businesses report word-of-mouth as their primary source of new customers

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The average landscaping business serves 200 regular customers

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35% of landscaping businesses offer recurring service contracts to customers

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50% of landscaping businesses report water conservation as a top customer concern

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40% of landscaping companies offer organic or eco-friendly services

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30% of landscaping businesses report an increase in demand for native plant installations

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25% of landscaping companies offer smart irrigation system installations

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20% of landscaping businesses report an increase in demand for outdoor living spaces

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15% of landscaping companies offer vertical gardening or green wall installations

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10% of landscaping businesses report offering edible landscaping services

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The landscaping industry's busiest season is spring, accounting for 40% of annual revenue

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Summer accounts for 30% of annual landscaping revenue

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Fall contributes to 20% of annual landscaping revenue

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Winter accounts for 10% of annual landscaping revenue

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Lawn care services account for 40% of industry revenue

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Landscape maintenance services make up 30% of industry revenue

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Tree services contribute to 15% of industry revenue

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Landscape design and architecture services account for 10% of industry revenue

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Irrigation installation and maintenance make up 5% of industry revenue

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70% of landscaping businesses offer snow removal services in winter months

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50% of landscaping businesses report using GPS tracking for their fleet

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60% of landscaping companies use specialized software for scheduling and routing

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30% of landscaping businesses have adopted battery-powered equipment

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20% of landscaping companies use drones for surveying and planning

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40% of landscaping businesses use social media for marketing

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Summary

  • The landscaping industry in the US is worth $115 billion in 2023
  • The landscaping industry has grown by 2.5% per year on average between 2018 and 2023
  • There are approximately 604,163 landscaping businesses in the US as of 2023
  • The landscaping industry employs about 1.6 million people in the US
  • The average annual revenue for a landscaping company is $1.3 million
  • The landscaping industry has a projected annual growth rate of 3.3% from 2023 to 2028
  • 40% of landscaping businesses report difficulty finding qualified workers
  • The average hourly wage for landscaping and groundskeeping workers is $15.56
  • Residential services account for 60% of the landscaping industry's revenue
  • Commercial services make up 30% of the landscaping industry's revenue
  • Government contracts contribute to 10% of the landscaping industry's revenue
  • The landscaping industry has a low market share concentration, with the top 4 companies holding less than 10% of the market
  • 85% of landscaping businesses have fewer than 10 employees
  • The average profit margin for landscaping businesses is 10-12%
  • Lawn care services account for 40% of industry revenue

Step right up and behold the green goldmine that is the landscaping industry! With a whopping worth of $115 billion in 2023, its clear that this sector is no small patch of grass. From the 1.6 million hardworking individuals employed to the intricate breakdown of revenue sources, employee benefits, and customer trends, this flourishing field of foliage is more than just a walk in the park—its a thriving ecosystem of business smarts and green thumbs. So grab your pruning shears and lets dive into the verdant world of landscaping, where the grass is not only greener but also more profitable!

Employment

  • The landscaping industry employs about 1.6 million people in the US
  • 40% of landscaping businesses report difficulty finding qualified workers
  • The average hourly wage for landscaping and groundskeeping workers is $15.56
  • The landscaping industry's average employee turnover rate is 30%
  • 25% of landscaping businesses offer health insurance to their employees
  • The landscaping industry has a workplace injury rate of 3.8 per 100 full-time workers

Interpretation

In the evergreen world of landscaping, where dirt is our canvas and shrubs our paintbrushes, the numbers paint a colorful picture. With 1.6 million green-thumbed individuals tending to America's outdoor beauty, it seems that finding qualified workers is like hunting for a rare flower in a vast garden – 40% of businesses agree. While the average hourly wage of $15.56 might make some think they're just in it for the 'horti-culture', the industry's not-so-secret turnover rate of 30% hints at deeper roots needing nurture. And as injuries sprout up at a rate of 3.8 per 100 workers, perhaps it's time for the industry to dig deep and cultivate a safer terrain for its workforce – because, after all, even the most vibrant garden needs a solid foundation to thrive.

Financial Performance

  • The average annual revenue for a landscaping company is $1.3 million
  • The average profit margin for landscaping businesses is 10-12%
  • The average landscaping business spends 5% of revenue on marketing
  • 65% of landscaping businesses report fuel as their highest operating cost
  • The landscaping industry's average accounts receivable period is 45 days
  • 30% of landscaping businesses offer financing options to customers
  • The landscaping industry's average equipment utilization rate is 65%
  • The landscaping industry's average customer acquisition cost is $200
  • 45% of landscaping businesses report increasing prices in the past year due to inflation
  • The landscaping industry's average net profit per employee is $15,000

Interpretation

In the cutthroat world of landscaping, where lush lawns and trimmed hedges reign supreme, the numbers paint an intriguing portrait of profitability and challenges. With an average revenue of $1.3 million, one might assume landscapers are rolling in greenery, but a profit margin of 10-12% reminds us that success doesn't always come cheap. Marketing efforts cost 5% of revenue, fuel bills are enough to make any mower weep at 65% of operating costs, and patience is a virtue with a 45-day accounts receivable period. Offering financing may grow the garden of clientele, but an equipment utilization rate of 65% means there's room for improvement in efficiency. With a customer acquisition cost of $200, landscaping companies must carefully nurture each budding relationship. And with 45% increasing prices due to inflation, the industry knows how to adapt to economic growth. But with an average net profit per employee of $15,000, it seems like the true fruits of labor lie in the sweat of the brow rather than the balance sheet.

Market Segments

  • Residential services account for 60% of the landscaping industry's revenue
  • Commercial services make up 30% of the landscaping industry's revenue
  • Government contracts contribute to 10% of the landscaping industry's revenue

Interpretation

In the ever-evolving world of landscaping, it appears that the grass is indeed greener on the residential side, with homeowners contributing a thriving 60% of the industry's revenue. Meanwhile, commercial properties bring in a respectable 30%, proving that even concrete jungles need a touch of green. And let's not forget the government contracts, adding a modest yet crucial 10% to the mix - after all, even Uncle Sam needs a well-maintained lawn. In the landscape of financial success, it seems diversity truly is the key to a flourishing business.

Market Size

  • The landscaping industry in the US is worth $115 billion in 2023
  • The landscaping industry has grown by 2.5% per year on average between 2018 and 2023
  • There are approximately 604,163 landscaping businesses in the US as of 2023
  • The landscaping industry has a projected annual growth rate of 3.3% from 2023 to 2028

Interpretation

In a world where green is the new black, the landscaping industry is proving to be a lucrative avenue with a worth of $115 billion in 2023. With an average growth of 2.5% per year between 2018 and 2023, it seems like the grass is literally greener on the landscaping side. The 604,163 landscaping businesses sprinkled across the US are a testament to the blooming opportunities in this field. And with a projected annual growth rate of 3.3% from 2023 to 2028, it's safe to say that the seeds of success have been firmly planted in the soil of the landscaping industry.

Market Structure

  • The landscaping industry has a low market share concentration, with the top 4 companies holding less than 10% of the market
  • 85% of landscaping businesses have fewer than 10 employees
  • 40% of landscaping businesses report using subcontractors for specialized services
  • The average landscaping business has been in operation for 15 years
  • 70% of landscaping businesses are family-owned
  • The average customer retention rate for landscaping businesses is 85%
  • 60% of landscaping businesses report word-of-mouth as their primary source of new customers
  • The average landscaping business serves 200 regular customers
  • 35% of landscaping businesses offer recurring service contracts to customers

Interpretation

In the world of landscaping, it's a wild and weedy market out there, with the top 4 companies barely holding onto a patch of turf. With most businesses being small sprouts with under 10 employees, it's a garden of diverse blooms where creativity thrives. These green thumbs aren't afraid to bring in outside help, as 40% of them turn to subcontractors for that extra flourish. And with an average business age of 15 years, these roots run deep. Family ties run strong in this field, with 70% of businesses keeping it in the family. With an impressive 85% customer retention rate, these landscapers sure know how to cultivate lasting relationships. Word-of-mouth is their secret fertilizer, sprouting new customers like daisies in spring. Each business tends to a patch of 200 regulars, offering ongoing care like a faithful gardener. And for those looking for a long-term commitment, 35% of businesses are here to offer recurring service contracts, promising a garden that blooms year after year. In this market, success is not just about mowing lawns, but about nurturing relationships and watching the seeds of hard work bloom into a lush garden of satisfied customers.

Market Trends

  • 50% of landscaping businesses report water conservation as a top customer concern
  • 40% of landscaping companies offer organic or eco-friendly services
  • 30% of landscaping businesses report an increase in demand for native plant installations
  • 25% of landscaping companies offer smart irrigation system installations
  • 20% of landscaping businesses report an increase in demand for outdoor living spaces
  • 15% of landscaping companies offer vertical gardening or green wall installations
  • 10% of landscaping businesses report offering edible landscaping services

Interpretation

In the ever-evolving landscape of the landscaping industry, the numbers paint a picture of a greener and more sustainable future. With 50% of businesses noting water conservation as a top priority, it's clear that consumers are becoming more conscious of their environmental impact. Add in the 40% offering organic services and the 30% seeing a surge in demand for native plants, and it's evident that the industry is adjusting to meet a growing eco-friendly mindset. From smart irrigation systems to edible landscaping services, it seems that innovation is blossoming alongside the traditional blooms. So, while 20% report a rise in outdoor living spaces, it's clear that the true growth lies in cultivating a greener, more sustainable tomorrow.

Seasonal Trends

  • The landscaping industry's busiest season is spring, accounting for 40% of annual revenue
  • Summer accounts for 30% of annual landscaping revenue
  • Fall contributes to 20% of annual landscaping revenue
  • Winter accounts for 10% of annual landscaping revenue

Interpretation

The landscaping industry's revenue cycle is like a four-season drama, where spring is the lead character hogging the spotlight with a commanding 40% of annual revenue, while summer plays the supporting role with 30% of the limelight. Fall gets its moment in the sun with a respectable 20% contribution, leaving winter to be the scene-stealer with a modest 10% of the earnings. Just as in nature, each season in the landscaping business has its role to play, ensuring a balanced and profitable performance year-round.

Services Offered

  • Lawn care services account for 40% of industry revenue
  • Landscape maintenance services make up 30% of industry revenue
  • Tree services contribute to 15% of industry revenue
  • Landscape design and architecture services account for 10% of industry revenue
  • Irrigation installation and maintenance make up 5% of industry revenue
  • 70% of landscaping businesses offer snow removal services in winter months

Interpretation

In the bustling world of landscaping, the numbers paint a vivid picture of where the green really grows. From the meticulous grooming of lawns, which take the biggest slice of the revenue pie at 40%, to the artistic touch of landscape design at 10%, every service plays a crucial role in maintaining the beauty of our outdoor spaces. And let's not forget the unsung heroes of winter – with 70% of these businesses dusting off the shovels and turning into snow removal experts when the chilly season hits. So, next time you admire a lush garden or a masterfully pruned tree, remember that behind it all lies a flourishing industry that keeps our surroundings vibrant and our landscapes thriving.

Technology Adoption

  • 50% of landscaping businesses report using GPS tracking for their fleet
  • 60% of landscaping companies use specialized software for scheduling and routing
  • 30% of landscaping businesses have adopted battery-powered equipment
  • 20% of landscaping companies use drones for surveying and planning
  • 40% of landscaping businesses use social media for marketing

Interpretation

In the world of landscaping, it seems the grass is always greener on the tech-savvy side. With half of the businesses navigating the industry with GPS tracking and nearly two-thirds optimizing their schedules and routes through specialized software, it's clear that the modern gardener is not just handy with a shovel. From the environmentally conscious shift to battery-powered equipment to the futuristic embrace of drones for surveying, it's a landscape of innovation and efficiency. And let's not forget the green thumbs making their mark on social media platforms, proving that in this digital age, even the humble backyard can become an Instagram sensation.

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