Confidential & Proprietary | 2023 CBRE Inc.
GLS-005 - Ver 1.0 (Aug 23)
External Factors - Landscaping
Construction activity has been stalling, with total construction spending decreasing by 0.2% since the beginning of the year
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Market Intelligence
Grounds, Landscaping & Snow
Global Market Analysis
Market Intelligence
- In 2022, the global Landscaping and Snow Removal services market was valued at $124 billion. The combined market is forecasted to grow at the CAGR of 6.4%. Demand is expected to increase given the enhanced focus on keeping workplaces clean and safe employees
- North America, Europe, and some parts of the APAC, such as Australia, have high market maturity
- The APAC region and parts of LATAM are expected to be the future growth-driving markets for landscaping services
AMS
LATAM
EMEA
APAC
- $114 Bn
- Growing at 7 - 9% in 2022
- $1 Bn
- Growing at 5 - 6% in 2022
- $2.16 Bn
- Growing at 6 - 8% in 2022
- $3.1 Bn
- Growing at 6 - 8% in 2022
Market Maturity
High
Medium
Low
Interest rate hikes are having an immediate effect of raising the cost of financing construction projects
Construction Activity Stalling - spending on pause
Higher Interest Rates - affecting new projects and refinancing existing buildings
Top 10 Global Landscaping Providers
- BrightView Holdings
- Trugreen
- The Davey Tree Expert Co
- Yellowstone Landscape
- Bartlett Tree Experts
- HeartLand
- SavATree
- Sperber Landscape Co
- Weed Man
- Gothic Landscape
CBRE Suppliers
- Brightview Landscaping
- SMS Assist
- Landscape Effects Group
- Northeast Landscaping & Tree Service
- Winter Services
- RWC Landscape Services
- Schuchart Corp
- PC Maintenance
- Grounds Group Landscaping
- Tovar Snow Professionals
Information sourced from:
- 2022 Beroe Reports - Landscaping & Snow Removal Services
The Landscape Maintenance and Snow Removal marketplace is highly fragmented with circa 15m and 5m suppliers associated with landscaping and snow removal respectively. Market characteristics are suited for buyers to develop a local strategies with independent execution. because the market does not present a viable pool of suppliers that can meet buyers’ needs across most geographies
Slow down in new construction and refinancing together with gas and oil prices peaking mean more favourable conditions for buyers
External Factors - Snow Removal
Consumable Risk - Rocksalt
Price of rocksalt is moderately unstable (imposition of tariffs on rock salt from China, which has complicated the procurement process)
Minimal competition among equipment suppliers, leaving little negotiation room for snow removal companies
Equipment Supply Chain - buying power
Reliance on snowfall for revenue creates further risk as unseasonably mild winters dramatically reduce demand, negatively impacting supplier financial stability
Climate Change - uncertain demand
Global Supplier Numbers
Landscaping & Grounds Maintenance
Snow Removal
Service Offerings
- Most landscape maintenance services (e.g., lawn mowing, tree and shrub pruning, and turf installation) are standardized
- Customized options, such as retaining wall construction and irrigation pipe installation, are also available to buyers
- Customized options are not offered through every vendor, though, which limits the number of suppliers able to meet each buyer’s needs
- Many smaller firms subcontract customizable services to outside firms, increasing the price buyers pay as a result
- Buyers can generally receive necessary services from most suppliers, thereby increasing their negotiation power
- Specialization in the market is moderate, primarily as a result of varying materials, equipment, and capacity of suppliers
- Buyers may opt for suppliers to use calcium chloride or magnesium chloride for de-icing, which are considered more effective but also more expensive options
- Seeking a supplier that offers customizations may limit the number of viable suppliers for certain jobs
- Buyer power is slightly reduced in these instances; however, areas with significant snowfall still typically have many larger-capacity suppliers in competition with one another, which allows for some price-based competition despite the moderate specialization
Landscaping & Grounds Maintenance
Snow Removal