GLS-003 - Ver 1.0 (Aug 23)
Confidential & Proprietary | 2023 CBRE Inc.
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Market Intelligence
Grounds, Landscaping & Snow
Industry Trends
Market Intelligence
- Control costs - given the overall inflationary environment and rising interest rates
- Adaptation of services post-pandemic - hybrid working dictating remodeling of internal and external meeting spaces / breakout areas
- Environment - ESG initiatives commensurate to climate change
- The need for trusted partners - who offer flexible, holistic services and can adapt to change
- Continuation of tight monetary conditions and FM refinancing will drive GLS (grounds, landscaping & snow management) future solutions, service optimization, and innovative design / re-design
- As investment in digitization accelerates across most industries, clients will need to access data on labor and water consumption management to adhere to CSR / ESG commitments and legislation
- Automation and AI technologies will boost the productivity of employees and fill the void of unavailable labor
- Suppliers will need to leverage both customer and external data for competitive advantages in areas such as customer behavior and market dynamics
- The global supply chain crisis has put a strain on the supply of new trucks and heavy equipment, as well as the parts that keep them running
- Post Covid the industry has responded to the need for more outdoor meetings and collaborative spaces to make their employees feel safe - requiring landscape maintenance and related services
- Besides adherence to cost, CSR, and employee welfare, FM offerings are starting to focus on 'immersive spaces' (to aid employee well-being), low-carbon landscaping, drought tolerant plants, designing gardens with wildlife in mind, and utilization of recycled and reclaimed materials
- Access to Global agreements across multiple service lines within CBRE
- Leadership advantage and industry knowledge
- Supplier Selection Tool will provide a platform for expedited coverage and spend analysis
- Global / Regional / Local consistency in Supplier partners
- CBRE has a strong ESG platform that is being integrated across multiple category / workstreams and leveraged through the Category Playbooks (CBRE GLS offerings will focus on biodiverse and biophilic design)
- Labor - outsourcing will continue to increase due to existing labor shortages and the number of in-house landscaping professionals who are set to retire over the next few years
- Industry consolidation - the number of merger and acquisition (M&A) transactions in commercial landscaping and the pace at which they are taking place has been increasing (local providers, for example, currently account for 80% to 90% of the market)
- Benefits of scale - scale brings benefits and the capacity to better weather labor, and material shortages (obtain supplies and equipment more quickly), and the ability to leverage the potential of technology. Larger players may also be able to offer improved career paths to employees - and potentially, higher wages
Information sourced from:
- 2022 Beroe Report - Landscaping & Snow Removal Service
- Forbes Landscaping Trends 2022
- LEK Insights