Despite economic predictions for a weaker business cycle in 2026, 42% commercial landscape companies expect the market to improve, and another 38% anticipate it will stay the same as last year, according to Aspire’s 2026 Commercial Landscape Industry Report.
This report surveyed more than 1,000 commercial landscaping professionals across the U.S. and delved into their growth goals, business risks, and strategies for success.
Revenue Growth Goals
The top goal for commercial landscape contractors this year is to grow their revenue at 79%, followed by acquiring new customers at 71%.
To help them reach these goals, 40% of landscape businesses are investing in their sales and marketing. Most are focusing on retaining clients, as 35% of respondents said they bring in the most revenue from repeat customers. Word-of-mouth is the second most common source of revenue for commercial companies at 26%.
When it comes to services, maintenance is king with commercial maintenance making up 83% contractors’ revenue and residential maintenance at 63%. Because recurring services are such a crucial part of the business, 54% say their top goal for the year is to retain their existing customers.
As for projects, two-thirds of survey respondents report the majority of their income is from bid-build clients, with the other third saying the majority is from design-build.
Business Risks and Concerns
While most commercial landscape companies are optimistic about the market, they are still concerned about numerous challenges that could impact their bottom line. Economic uncertainty and a possible recession are the main threats that 60% of contractors are focused on.
Another 54% cited recruiting and retaining staff as a major business risk to meeting their goals. In response to the labor challenge, 70% of participants say they will increase wages (44% by 4% or more). This is mainly due to the wage difference between maintenance and construction workers. The difference between the two is reported to be between $4 and $5 an hour, or $160 to $200 for a five-day, 40-hour week.
Currently, 28% of companies pay their maintenance crews $21-$25 per hour and 30% pay their construction crews the same amount.
The cost of materials was the third greatest concern at 48%. The availability of materials and equipment is also a worry as 58% of respondents predict it could delay projects and create lead times of two to three weeks or more.
Improving cash flow is another top goal for contractors (42%) as many are struggling to be paid in a timely manner. Even with 76% of contractors saying they bill within four days of job completion, only 39% report receiving payments on time. An alarming 60% of companies receive payment at least a week after the terms set in the agreement and 7% receive payments two to three months late, despite 33% sending invoices the same day the work is completed.
Investing in Technology
With 41% of respondents saying they will focus on improving existing processes and workflows, while another 38% will work to increase their profit margins, technology is one of the levers companies are utilizing to give them a competitive advantage.
Currently, 62% of commercial landscape companies are using seven or more software systems and 28% use 10 or more.
The most commonly used software is for accounting (72%), invoicing (67%), estimating/proposals (65%), marketing tools & automation (62%), payroll processing (62%), GPS tracking (58%) and end-to-end business management (55%).
For companies that are looking to change solutions, their top reasons are to automate workflows (58%), improve operational efficiency (51%), address feature gaps (44%), scale effectively (36%), and increase gross margins (30%).
Rather than allowing factors out of their control determine the success of their business, commercial contractors are concentrating on wage increases to solve labor challenges and seeking software tools that will enable them to work more efficiently.
To access the full survey report, click here.
