Landscaping Services

First Research, Inc.
November 24, 2014
10 Pages - SKU: FRRS5392161
Countries covered: United States

Landscaping Services

Brief Excerpt from Industry Overview Chapter:

Companies in this industry provide landscape care and maintenance services for both commercial and residential customers. Major US companies include Asplundh Tree Expert, Brickman and ValleyCrest (which are under common ownership), The Davey Tree Expert Company, and TruGreen. Outside the US, major companies include Active Tree Services (Australia) and Idverde (France).

As the world becomes more urban, global interest in green spaces -- including trees, lawns, flowers and hedges -- is increasing in cities across the globe, driving demand for landscaping services. Rapid urbanization in Asia and Africa presents an opportunity for commercial and residential landscaping companies to provide services to growing businesses and an increasing number of middle-class home owners in these emerging markets.

The US landscaping services industry includes about 93,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $57 billion.

COMPETITIVE LANDSCAPE

Demand is driven partly by construction of new commercial properties and residences and partly by the economy's overall health. Because management and equipment costs are mainly fixed, the profitability of individual companies depends on demand volume and operations' efficiency. Small companies can easily compete with big ones, except in providing services to large customers. Big companies operate mainly through local branches or offices that have operations almost identical to those of local companies. The US industry is highly fragmented: the top 50 companies generate about 15 percent of revenue....



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