Survey Title: State of the Industry Survey
Survey Conducted: August 2001
Responses: 113 (11.3 % response rate)
Lawn & Landscape magazine conducted a survey in August 2001 to find out how landscape contractors felt about the state of the landscaping industry. The survey, which was sent to 1,000 readers, generated an 11.3% response rate. Data compiled from this survey was used for the annual Lawn & Landscape State of the Industry report, published with the October issue and sponsored by LESCO.
Despite the slowing economy, a vast majority of respondents (83.1%) reported that business in 2001 was either somewhat better than or about the same as it was in 2000. However, the number of companies who experienced a decrease in annual revenue did climb from about 11 percent in 2000 to about 14 percent in 2001. In addition, 65.1% reported that business in 2001 was somewhat better than or the same as what was expected, which would seem to indicate contractors were prepared for a business slowdown this year that either didn't impact them or they were able to overcome.
Not surprising, labor continues to be the primary concern for landscape professionals, as it was cited as the No. 1 obstacle to success this year by respondents, followed by competition, the economy and the weather. Looking toward the future, contractors seem relatively confident about the economy,
as they said labor remains their greatest concern, followed by the economy and challenges brought about by low-balling contractors.
One solution to the labor shortage has been the use of Hispanic employees for many contractors, a practice that continues growing. The percent of respondents who indicated they employ at least one Hispanic worker climbed to 58.9% this year. In addition, the fact that, on average, 61.1% of their
employees are Hispanic illustrates the value of this labor force to the landscape industry.
And, despite the challenges offered by a slowing economy, almost 80% of respondents reported that they will boost their prices for repeat services, such as mowing, fertilization and weed control next year -- the average increase is expected to be about 7% from this year's prices.
When asked for long-term concerns that will impact the industry as a whole, respondents said dealing with the economic downturn is secondary to boosting the overall professionalism of the industry.
Survey Questions:
1. How has this year compared to last year for your business?
Much better than last year 11.9%
A little worse than last year 13.5%
Somewhat better than last year 42.4%
A lot worse than last year 0%
The same as last year 40.7%
2. How has this year been compared to your expectations for it?
Much better than expected 3.3%
A little worse than expected 28.3%
Somewhat better than expected 30.0%
A lot worse than expected 3.3%
The same as expected 35.1%
3. On a scale of 1 to 7, how optimistic are you about your company's ability to grow in the next three to five years? (1 being the most optimistic, 7 being the least optimistic)
1 11.9%
2 18.6%
3 33.9%
4 13.5% Average rating: 3.1
5 16.9%
6 1.7%
7 1.7%
4. Which of the following challenges limited your business's success this year (Please rank, 1, 2, 3, etc., based on degree of challenge they presented).
Labor 1.7
Competition 2.4
Economy 2.4
Weather 2.9
Legislative issues 4.2
5. Please rank the following issues in terms of their importance to the industry's future.
Maintaining professionalism 1.6
Dealing with economic downturn 2.5
Integrating new technology 2.6
Complying with legislation 3.3
6. How much does your company pay per hour for the following positions?
Entry-level mower operator $8.45
Entry-level spray technician $10.05
Foreman $13.80
7. What do you think are the industry's three biggest challenges in the future? (Please rank 1, 2, 3, with 1 being the biggest challenge.)
Lack of qualified labor 1.8
The economy 2.2
Low-ballers/price cutters 2.3
Lack of plant availability 3.8
Inability to market its services 3.9
Consolidation 4.2
8. Do you plan on raising your prices for repeat application business next year? (i.e., mowing, fertilization, weed control, etc.)
Yes 79.6%
No 20.4%
If you do plan on raising your prices next year, please estimate the percent increase. 7%
9. Do you employ Hispanic workers?
Yes 58.9%
No 41.1%
If so, what percent of your employees are Hispanic?
0-10% 15.1% 51-60% 0%
11-20% 3.0% 61-70% 12.1%
21-30% 3.0% 71-80% 6.1%
31-40% 6.1% 81-90% 27.3%
41-50% 9.2% 91-100% 18.2%
Ave: 61.1%
10. Please estimate your approximate sales for this year:
Less than $100,000 34.1%
$100,000 - $499,000 40.4%
$500,000 - $1 million 15.9%
More than $1 million 9.6%