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State of the Industry
What landscapers and lawn care operatorsneed to know to grow in in 2017.
Chuck BowenEditor and Associate Publisher
Lawn & Landscape
5 things we’ll cover today• What the ‘average’
landscaper looks like• The state of the industry• What customers think of you• Key trends for your business
in 2017 and beyond• How you can take advantage
of them to grow
The ‘average’ landscaper• (Caveat: This person doesn’t exist.)• But, in 2016 the average landscaper:
• Employs 10 people • Earns $339,000 in annual revenue • Pays himself about $59,000 (if he pays himself)• Pulls in net profit of 16 percent
• Does full-service landscaping for mostly residential accounts
• The owner is the primary salesman, especially in a design/build business
• He’s also still working in a production capacity during the day and doing back-office work in the evenings and weekends
30%
29%
24%
6%
6%5%
How do you pay yourself?Trial and error Weekly budget plus bonsues A little when it's slow; a lot when it's busyLike a crewmember, hourly A percentage of profit Other
Service by profits
Fastest-growing service in 2015
2015 revenue
Landscapers go mobile• 8 out of 10 contractors use a smartphone for
work. • About 60% of landscapers are on Facebook. The
next biggest platform is Linkedin, and then Twitter.
• They’re using these devices to take photos and text with their employees and customers, as well as to access urgent information like the weather reports on the go.
Customer perceptions• Grow the Market study in 2016• Homeowner and commercial property
managers• Shows challenges and promise
• Trust and price• Value of greenspaces• Planned work
Homeowner perceptions• 62% say landscape installations are prohibitively
expensive (down from 2013)• 73% say landscaping increases the value of their
home • 54% say green space around a home is an
important contributor to the environment • 46% say landscapers are professional
businesspeople• 39% trust the recommendations they get from
landscapers and LCOs they hire
Whom they ask first
But what about hardscaping/installs?
• 20% of homeowners are planning a major hardscape job in the next 2 years• Walkways• Patios• Outdoor kitchen
• More than half will likely hire a contractor
Property managers• What's most important when you decide
to hire a landscaper?• 52% say quality of work (jobs on time and
within budget)• Next highest is 19% a high level of customer
service• 8% relationship with the account manager
Why they fire• 69% – problems with services/jobs are
completed properly• 19% – poor customer service• 5% – poor communication
How to win their hearts• What one thing could a service provider do to
instill your confidence in their company?• 53% – have excellent communication• 13% – offer multiple services • 1% – at the bottom of the list is have the lowest bid
• You need good account managers who can communicate your company’s value to your commercial clients.
Key trends for 2017 and beyond1. Water, water, water 2. Labor challenges (H-2B vs. domestic)3. Stress4. Business systems/technology 5. M&A/private equity investment 6. Regulations
Trend #1 – water
Trend #1 – water• Rates are going up• It’s only getting drier• Infrastructure is crumbling• This is an opportunity
Source: 2015 Circle of Blue research
What you can do• Remember: Customers need water, want to save money• Expand irrigation services• Focus on water management • System upgrades• Permeable pavers
Trend #2 – labor• Biggest bottleneck for
landscapers, regardless of geography, services or size
• H-2B isn’t perfect, but it’s what we’ve got
• Other sources• Focus on recruitment
Trend #2 – labor
How does labor hold you up?
How do you use the H-2B program?
What you can do• Stop complaining• Develop a solid recruitment and retention plan• Attend the National Collegiate Landscape Competition
Trend #3 – technology• Software systems• Taylor Milliken• Cub Cadet and Bluetooth• Exmark and Red technology• Mowz/Plowz/Pros.com
What you can do • Automate and integrate what you can• Find a software that makes sense for you (and your team)• Use the data you have• Schedule time to review this on you calendar
Trend #4 – M&A/PE investment • KKR and BrightView is not LandCare USA by a
long shot• TruGreen buying Scotts LawnService• SiteOne on the move with more acquisitions • (And these are just the major ones)• Opportunities for you:
• Making your own acquisitions • Cashing out• Finding new, talented employees
What you can do • Test the waters for acquisitions or sales• Helps you fix what’s broken before you need to • Keep a lookout for good hires • Focus on your “local” message and make hay while the big guys are
busy with integration
Trend #5 – regulations• H2-B is consistently inconsistent • Minimum wage hikes in states and at the
federal level• Overtime regulations at the DOL• Patchwork regulations of other inputs • Stormwater taxes• WOTUS
What you can do • Join the National Association of Landscape Professionals• Join your state association • Talk with your local representatives• You pay taxes• You employ constituents • You invest in your community • Put a face on the industry
Trend #6• Trump overshadows
everything we’ve discussed today. • He could make these
changes worse or eliminate them entirely. • Time will tell if he can
work with Congress to change EPA, DOL, or H-2B
Final thought(s)• It’s a great time to be a landscaper – unprecedented optimism and
growth• The industry has a great story to tell and you are all ambassadors for
that story• As much as is wrong in the industry – H-2B and the labor crisis and
chemical regulations – a lot is right and it’s incumbent upon everyone in this room to spread that message and do something – anything – to effect some positive change, however small
Cool stuff from L&L• Our iOS app and new digital magazine• The Lawn Care Radio Network on iTunes• Our scholarship fund for college students • The Benchmarking Your Business web
app • Our many social media outlets
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