Sales for residential and commercial equipment are expected to grow more than 6 percent in 2015.
According to the report, “Power Lawn & Garden Equipment: US industry forecasts for 2015 & 2020,” US demand for power lawn and garden equipment, including both residential and commercial markets, will increase 6.4 percent annually to $11 billion in 2015, rebounding from the industry declines experienced due to the recent recession. Overall growth in equipment sales will be promoted by an improvement in US housing activity, including new construction and existing single-family home sales, and by a return to growth in the landscaping services business.
While equipment manufacturers will benefit from a strong rebound in US sales over the near term, longer-term growth will be more moderate due to slowing product pricing gains and declining opportunities in some key commercial markets, particularly golf courses.
The residential market dominates power lawn and garden equipment demand, typically accounting for nearly three quarters of industry sales. This share fell through the recent recession because residential do-it-yourself consumers had the freedom to postpone equipment purchases. To 2015, equipment sales to residential users will make a strong turnaround as US housing activity improves and homeowners return to greater discretionary spending.
Sales to users of commercial equipment will see nearly double-digit growth to 2015 as revenues improve for landscaping firms, the largest commercial equipment market. Pent-up demand will also promote strong sales to golf courses and government and to other commercial facilities. Over the longer term, both golf courses and government agencies are expected to reduce their equipment spending on average due to lower operating budgets.
The report “Power Lawn & Garden Equipment: US industry forecasts for 2015 & 2020” is available here from Report Buyer.