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Professional landscaping, lawn care and grounds maintenance have become burgeoning industries, a strong and growing force within the U.S. Economy. Harris Interactive recently released a report stating that in 2002, "more than 24.7 U.S. households spent $28.9 billion dollars" on goods and services in the lawn care/landscaping industry. The landscaping industry is made up primarily of small businesses. 72% of the businesses in this industry have fewer than 5 employees.

Landscaping Management magazine recently tapped industry experts on the future of the landscaping/lawn care market which can be distilled into 3 major trends:

1. There will be continued industry growth along with challenges including the labor market, the availability of water, and the consolidation of distribution channels within the market.
2. The housing surge of the last few years, driven by lower interest rates, will increase the demand for products and services in the lawn care and landscaping industries.
3. Customers will continue to demand better quality of service and products as they become more sophisticated and savvy. More attention needs to be paid to the quality of service and products. The "push for more powerful and, thus more productive equipment" will help business owners deal with increased expectations and demand.

Source: Landscape Management, September 1, 2003, Ron Hall, http://www.landscapemanagement.net
Source: The Professional Lawn Care Association of America, April 2004, April Hobbs, http://www.plcaa.org

-Carolyn Ellis

Industry Snapshot: Landscaping

The professional lawn, landscape and tree trimming industry is a significant part of the service sector. As a result of a strong housing market boosted by low interest rates, this industry has seen tremendous growth. In 2002, $28.9 billion was spent in this industry and it continues to grow – partly attributed to the “do-it-for-me” mind set of the 77 million baby boomers who have more money than time. This industry is made up primarily of small businesses – 72% of which have 5 or fewer employees. A quarter of these businesses are located in California, Florida, New York and New Jersey.

Take a look at our full industry report on the landscaping industry (PDF Format). If you are interested in other industry snapshots, visit our SBDC Business Advisors' Toolkit.

- Judith Johnson

Links of Interest

American Nursery & Landscape Association
Landscape Online
Professional Lawn Care Association of America
Landscape Management

- Carolyn Ellis

Did You Know?

"Pre-venture SBDC Clients Show a 65% Survival Rate"

According to research conducted by Drs. James J. Chrisman and W. Ed McMullan, SBDC counseled start-up businesses survive longer than those who do not receive outside assistance. They uncovered a survival rate of 65% among pre-venture SBDC clients compared to a 47% rate among all start-up businesses. Their 2001 survey included clients of the Pennsylvania SBDC who received assistance in 1992, 1994 and 1996. In their study, 65% of the 1992 clients, 61% of the 1994 clients and 70% of the 1996 clients remained in business through 2000 (an overall survival rate of 65%).

In addition, Chrisman and McMullan found that counseling positively influences the survivability of small businesses. The study, entitled, “Outsider Assistance as a Knowledge Resource for New Venture Survival” will be published this summer in the Journal of Small Business Management. We've developed a bibliography of other published and unpublished academic research of the Small Business Development Center program.

- Michael Cline

Are You Paying Attention to
Demographic Trends?

Hispanic Marketing firms caution against over-generalizing when targeting Hispanics as the market is so diverse. According to the U.S. Census: We the American…Hispanics report, Hispanics come from fourteen Latin American countries. Even within Hispanic groups, differing dialects and terminology impact the response to advertising messages. For example, although 64% of the U.S. Hispanic population are of Mexican descent, language, experiences and culture differ.

In present day Mexico alone, there are at least 40 distinct dialects spoken (Facts About Mexico). These are some of the many elements that businesses should consider prior to marketing to Hispanics. For additional information, visit the sites linked above as well as reports available on the U.S. Census website. Also, see our website for more information on demographics.

- Peter Morales

Contact Us

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