Industry experts say demand for landscape design/build services is directly tied to demand for construction and renovation of both residential and commercial buildings.
So as the economy has recovered from the recession and the housing market has grown, construction demand has increased and so, too, has demand for landscape design/build services. This has been slowly on the mend since 2012, according to a recent report from IBIS titled “Landscape Design in the U.S.“
In fact, the report says industry revenue is expected to increase at an annualized rate of 3.3 percent through 2020. “Demand for construction and renovation is expected to continue to increase as businesses and individuals find additional disposable income to spend on building projects,” the report says. “As landscape projects are typically not seen as a necessity, demand for landscape design services increases with disposable income, which is forecast to rise in the five years to 2020. Demand for industry services will also benefit over the same period from increased government investment in infrastructure.”
Looking specifically at profit, this is expected to increase at an annualized rate of 12.9 percent to 6.8 percent of revenue. Also, growing revenue has allowed industry operators to increase wages at an expected annualized rate of 2.1 percent.
What are smart companies doing to take advantage of the slow but steady growth? Read more: Inside the Recent Growth and Trends of Hardscapes