When landscape professionals headed into 2024, there were concerns surrounding the election and talk of a recession. Now, with 2025 on the horizon, businesses are optimistic about their growth next year.
“The landscape industry has a good mix of technology coupled with a continuing need for customer service provided by actual people,” says Nada Duna, COO of Gothic Landscape, based in Valencia, California. “This industry plays a big role in enhancing and appreciating assets that provide a value that is economic, aesthetic and environmental, so growth will continue both in revenue, careers and innovation.”
Growth Expectations and Client Behaviors
Commercial landscape companies like Visterra Landscape Group, based in Rosemont, Illinois, and Landscape Workshop, based in Birmingham, Alabama, are planning for significant growth in 2025.
J.T. Price, CEO of Landscape Workshop, says their growth will be driven by increased penetration rates, organic contractual growth, and continued acquisitions.
On the residential side, Seneca Hull, president of Franz Witte Landscape Contracting, Inc., based in Nampa, Idaho, says while their housing market has slowed, they are still experiencing a large influx of people moving to their state and area.
“There are still a lot of projects out there to build and we continuously see new subdivisions going in,” Hull says. “Someone has to build those landscapes, and someone has to maintain them; we anticipate our current contracted projects for 2025 to grow in the coming months.”
While there seems to be less buyer uncertainty now that the election has passed, landscape companies are seeing a continued push for cost management with maintenance contracts. Price says they’ve seen more resistance toward price increases as inflation slows.
“We believe many of our clients are savvy business owners and leaders who will always consider cost reduction in their operations,” says Allen Sweeney, CEO of APHIX, based in Frankfort, Kentucky. “As good partners, it is our responsibility to innovate new technology and processes that create win/win opportunities for our team and customers.”
Alan Handley, CEO of Visterra Landscape Group, says they’ve seen more of an aggregation of services as property managers seek out one point of contact for all their outdoor needs from landscape maintenance to parking lot sweeping.
“I think that they’re really looking more for ease and predictability of service and quality than they are price sensitive, at least in the markets we’re in right now,” Handley says.
Duna says in her market, clients are trying to cut costs as the tech industry is downsizing, HOAs are trying to contain costs due to HOA dues, and commercial real estate is still grappling with office space usage and leasing.
Speaking of office space, some landscape companies have started to see enhancement efforts to beautify corporate campuses as RTO policies ramp up.
“We have a very large presence in the Northeast and the Boston market, and the money they’re spending on enhancements to their campuses is pretty significant,” Handley says. “There’s bocce ball courts going in and different outside entertainment sort of things being built because they’re bringing more and more people back.”
Regulatory Concerns
The main external factor that concerns landscape businesses is the possible economic and regulatory changes with the Trump administration. Many are watching the status of the H-2B program and the availability of visas closely.
“The H-2B program is critical for us so I hope there is progress in that area, but it’s definitely up in the air given all of the immigration issues going on now,” Hull says.
Duna notes that a potential change in interest rates will impact pricing and the tariffs might create supply chain issues. However, Sweeney believes the economic conditions will be favorable for business growth and success in 2025.
“I think on the economic side, I’d say we’re cautiously optimistic and slightly bullish, and I think on the immigration side, we’re more cautious,” Handley says.
Opportunities to Improve
Although labor remains top of mind for companies, there are other challenges that can be seen as opportunities to improve or grow.
“While many would say labor is the biggest challenge, I would argue that the lack of business acumen and leadership in the industry is one of the greatest challenges,” Sweeney says. “Many business owners just think of themselves as ‘landscapers’ and haven’t realized the opportunity that this industry presents. As an organization that prioritizes people, culture, and profitability; we build systems and processes that support those items and competing against the lack of is sometimes difficult.”
Duna agrees that the inconsistent pricing of services is moving things in the wrong direction.
“Companies are still hungry for market shares and many are driving pricing down at a time when costs continue increasing,” Duna says. “That is not healthy for our industry. We need to reduce the commoditization of our industry so we can continue attracting people who can perform the work so we can continue to provide professional careers to people.”
Price also sees next year as a time for the industry to deliver more consistent service more efficiently through the better use of data via GPS, cameras, software and more. Sweeney agrees that autonomous mowing, software advancement, and battery power will continue to be spaces of innovation for the industry.
“We need to figure out ways to shorten the learning curve,” says Toby Mancini, operations manager for Franz Witte. “There are so many new tools and systems that could be utilized to improve communication and efficiencies, but taking/having the time to learn them is frustrating.”
