Lawn Care Industry Insights for Business and Customers

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An adult man replacing a lawn mower bag on a sunny day in the yard.
Credit: pexels.com, An adult man replacing a lawn mower bag on a sunny day in the yard.

The lawn care industry has seen significant growth in recent years, with an estimated global value of $72.5 billion in 2020. This growth is largely driven by the increasing demand for lawn care services among homeowners and commercial properties.

Homeowners are willing to pay a premium for lawn care services, with the average homeowner spending around $3,000 per year on lawn care. This is because a well-manicured lawn can increase a property's value and aesthetic appeal.

Lawn care companies are also shifting towards more sustainable practices, with many adopting eco-friendly products and equipment. This is not only better for the environment but also appeals to customers who are increasingly concerned about the environmental impact of their purchases.

The lawn care industry is experiencing significant growth, with 67% of US adults growing or planning to grow edible plants and maintain sustainable gardens at home. This trend is driven by demographic shifts and lifestyle changes, particularly increased urbanization.

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The industry's growth is also fueled by the rebounding economy and the rise of non-residential construction, which will increase landscaping demand. Environmental restoration projects, such as soil-fortifications works during winter, offer another growth area.

About 40% of all Americans avail of the services of lawn care service providers, leaving considerable room for growth. The low entry barrier attracts new players to the field, offering low rates to garner market share, but this also puts pressure on margins for established companies.

Landscaping is an evergreen business, but it's also very competitive, with low margins and little scope to increase service prices. 62% of Americans who do not hire a professional landscaping company do not do so because they consider the costs too high.

Here are some key statistics on the growth and trends in the lawn care industry:

The median hourly wage for grounds maintenance workers was $14.85 in May 2019, with the lowest 10% earning less than $10.53 and the highest 10% earning more than $23.18. This wage trend is expected to continue, with the mean hourly wage of landscaping and groundskeeping workers in the US projected to grow from 2013 to 2024.

Tech and Tools

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The tech and tools in the lawn care industry are evolving rapidly, and it's essential to stay up-to-date to remain competitive. Tech adoption makes the lawn care business future-proof and more competitive.

Robot lawn mowers like the Terra robot lawn mower, launched by iRobot in 2019, are a game-changer. These robotic lawn mowers cut grass by relying on sensors, and human intervention is only for supervision through a smartphone app.

Technology has also permeated lawn care design and planning. Full-color renderings and 3-D sketches, and Augmented Reality visualizations, offer customers a realistic view of plans.

Field management software is also gaining popularity. The best field service software automates scheduling and dispatching, ensures seamless workflows, enables structured inspections, and auto-generates invoices. Automated software enables field services to easily adopt the latest tech without significant capital investments or workforce learning curves.

Here are some top capabilities of a field service software like ReachOut Suite:

  • Smooth inspection
  • Effective work order management
  • Automated invoicing
  • Accurate estimates
  • Centralized CRM
  • Secure cloud data storage
  • Custom reports
  • Smart inventory management
  • Route optimization
  • Mobility

These features help manage all aspects of field management, including work orders, inspections, audits, scheduling, and dispatching, seamlessly. With automation, complete digitization on the field, and task optimization features, ReachOut Suite helps lawn care and landscaping businesses run smoothly under all circumstances.

Customer and Business

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The lawn care industry is a diverse market with various types of customers. Residential clients provide the highest industry revenue at 48.3%, which includes single- and multi-family homes, home builders, and homeowners associations.

Demand from homeowners is dependent on their disposable income for this service. Residential clients are the largest segment driving industry revenue.

Commercial clients, at 42.5%, account for the next largest segment driving industry revenue. This includes clients such as hotels, retail centers, and other office space. Services are provided to building exteriors as well as to interior green space.

Public sector clients provide 6.7% of industry revenue. Organizations included in this segment are schools, municipal parks, community centers, and other government-owned spaces. Spending from this sector is dependent on annual budgets.

Financial Management Apps

Mastering your lawn care business's finances can be a daunting task, but the right app can make all the difference.

Pros increase their monthly revenue generated through Housecall Pro by 50% after their first year, which is a clear indication of how effective the right financial management app can be.

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To manage your business's finances efficiently, look for an app that streamlines invoicing and payments. A simple invoicing app should support the creation, sending, and tracking of invoices directly from the app.

Easy payment processing is also crucial, as it streamlines the transaction process for both you and your customers. This feature can be a game-changer for your business.

Some of the key features to look for in a financial management app include:

By implementing a financial management app that meets these requirements, you can take your business to the next level and enjoy the benefits of increased revenue and efficiency.

Customer Demographics

Residential clients are the largest segment driving industry revenue, accounting for 48.3% of the market.

They include single- and multi-family homes, as well as home builders and homeowners associations that provide services to ensure compliance with HOA standards. Homeowners' disposable income plays a significant role in determining demand for landscaping services.

Credit: youtube.com, Customer Segmentation

Commercial clients, on the other hand, account for 42.5% of industry revenue and include clients such as hotels, retail centers, and office spaces. These businesses require landscaping services for both exterior and interior green spaces.

Public sector clients, such as schools, municipal parks, and community centers, provide 6.7% of industry revenue. Spending from this sector is often dependent on annual budgets, but some services may be deemed essential to the operation of the community.

Here's a breakdown of the customer demographics:

  • Residential: 48.3%
  • Commercial: 42.5%
  • Public sector: 6.7%

Startup Costs

Starting a landscaping business can be a great venture, and one of the first things to consider is the startup costs. According to Entrepreneur Magazine, you can start a landscaping business for under $2,000.

If you're planning to operate from home, you can save on overhead costs and get started even sooner. This flexibility is one of the benefits of starting a home-based business.

To give you a better idea of what to expect, here are the startup costs and other key details from Entrepreneur Magazine:

  • Startup Costs: Under $2,000
  • Home Based: Can be operated from home.
  • Part Time: Can be operated part-time.
  • Online Operation? No

These details can help you plan and prepare for your new business, and make it easier to get started.

Associations

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Associations are a great way to connect with other professionals in the industry. The National Association of Landscape Professionals is a well-established organization that offers valuable resources and networking opportunities.

For instance, the American Hort organization provides access to a wealth of information on horticulture and landscaping. This can be especially helpful for new business owners looking to stay up-to-date on industry trends.

If you're interested in learning more about sustainable landscaping practices, the Ecological Landscape Alliance is an excellent resource. Their website offers a wealth of information on eco-friendly landscaping techniques and best practices.

The American Society of Landscape Architects is another important organization that can provide valuable insights and guidance for landscaping professionals.

Publications

As a business owner, staying informed about the latest trends and best practices in landscaping is crucial for success.

Landscape Management, a well-respected publication, provides valuable insights and advice for professionals in the industry.

Lawn and Landscape is another trusted resource, offering tips and techniques for creating beautiful and functional outdoor spaces.

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Green Industry Pros covers a wide range of topics, from business management to environmental sustainability.

Horticulture Week is a leading source of news and information for horticulture professionals, keeping them up-to-date on the latest developments.

Landscape Online is a valuable resource for those looking to stay informed about the latest products, services, and trends in the industry.

Here are some of the top publications in the landscaping industry:

  • Landscape Management
  • Lawn and Landscape
  • Green Industry Pros
  • Horticulture Week
  • Landscape Online

COVID-19 Resources

The COVID-19 pandemic has had a significant impact on the landscaping industry, with over 50% of landscaping businesses experiencing a revenue impact.

Many landscaping businesses were considered essential services, but still faced challenges due to stay-at-home orders and physical distancing measures.

A survey conducted in April by Green Industry Pros found that 60% of residential landscaping businesses reported cancellations.

If you're a landscaping business owner, it's essential to have access to relevant COVID-19 resources. Here are some useful resources to consider:

  • SBDCNet’s COVID-19 Small Business Resources
  • SBDCNet’s COVID-19 Industry Resources
  • Coronavirus Resources Center – National Association of Landscape Professionals
  • Coronavirus Resources – Lawn & Landscape
  • Landscape Management – How companies are handling COVID-19 concerns

Additionally, understanding your customer demographics can help you navigate the current market.

Lawn Care and Maintenance

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Grounds Maintenance is a valuable resource for lawn care businesses, offering tips and tricks to take your business to the next level.

Some articles are written with golf industry professionals in mind, but most of the advice applies to any lawn care business. Choosing the right fertilizers and products can be a daunting task, but Grounds Maintenance provides in-depth reviews to help you make informed decisions.

Getting on the email list of Grounds Maintenance will keep you updated on industry trends and new products. This will help you stay ahead of the competition and grow a successful landscaping business.

Lawn & Landscape magazine features in-depth reviews of lawn care products and equipment, helping you make better decisions for your business.

Reading Lawn & Landscape will also keep you informed about major companies in your field and important industry events like trade shows. This will help you stay connected with the industry and identify new opportunities.

For homeowners and lawncare professionals in Georgia, UGA Extension provides valuable advice on caring for and protecting lawns and landscapes from pests and disease. This will help ensure that your grass is always greener and your business is thriving.

Consider reading: Weeds in New Lawn

Job and Workforce

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The lawn care industry is a significant employer in the USA, with over 1.2 million people working in the field. This includes a wide range of professionals, from landscape architects to ground maintenance workers.

The industry is male-dominated, with only 10.2% of landscaping employees being women. This is a notable trend, especially considering the physical demands of the job.

The US Bureau of Labor Statistics reports that the median hourly wage for grounds maintenance workers was $14.85 in May 2019. This wage can vary depending on the specific job and location.

Landscaping architects earn a significantly higher median wage of $32.67 an hour, or $67,950 yearly. This is one of the top-end jobs in the industry.

Here's a breakdown of the median wages for different professions in the lawn care industry:

The industry is not immune to the talent crunch facing most industries, with a high demand for skilled workers. An increase in seasonal workers may help mitigate this issue.

ReachOut Suite

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ReachOut Suite is a field service software that can help lawn care companies like yours stay efficient and competitive in the market. It offers a range of capabilities that can improve your business operations.

Smooth inspection is one of the top capabilities of ReachOut Suite. This feature allows you to conduct inspections seamlessly, which can help you identify areas for improvement and ensure that your customers receive quality service.

Effective work order management is also a key feature of ReachOut Suite. This feature enables you to manage work orders efficiently, from scheduling to dispatching, which can help reduce paperwork and increase productivity.

Automated invoicing is another benefit of using ReachOut Suite. With this feature, you can generate invoices automatically, which can save you time and reduce errors.

Accurate estimates are also crucial for lawn care companies. ReachOut Suite's accurate estimate feature helps you provide reliable estimates to your customers, which can help build trust and increase customer satisfaction.

If this caught your attention, see: How to Get More Lawn Care Customers

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A centralized CRM (customer relationship management) system is also part of ReachOut Suite. This feature allows you to manage all your customer interactions and data in one place, which can help you better understand your customers' needs and preferences.

ReachOut Suite also provides secure cloud data storage, which can help you protect your business data and ensure compliance with industry regulations.

Custom reports are another feature of ReachOut Suite. This feature enables you to generate reports that provide valuable insights into your business operations, which can help you identify areas for improvement and make data-driven decisions.

Smart inventory management is also a key feature of ReachOut Suite. This feature helps you manage your inventory efficiently, which can help reduce waste and increase profitability.

Route optimization is another benefit of using ReachOut Suite. This feature helps you optimize your routes, which can help reduce fuel consumption, lower emissions, and increase productivity.

Mobility is also a key feature of ReachOut Suite. The companion mobile app allows your technicians to execute jobs and reduce paperwork in the field, which can help increase productivity and reduce errors.

Here's a summary of ReachOut Suite's top capabilities:

  • Smooth inspection
  • Effective work order management
  • Automated invoicing
  • Accurate estimates
  • Centralized CRM
  • Secure cloud data storage
  • Custom reports
  • Smart inventory management
  • Route optimization
  • Mobility

Tom Tate

Lead Writer

Tom Tate is a seasoned writer and editor, with years of experience creating compelling content for online audiences. He has a talent for distilling complex topics into clear and concise language that engages readers on a deep level. In addition to his writing skills, Tom is also an expert in digital marketing and web design.

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