Outlook 2008: In spite of it all, sales to continue rising - Landscape Management
Outlook 2008: In spite of it all, sales to continue rising


Landscape Management



In September and October we polled readers with our annual "Outlook" survey. We were gratified when 487 of you, our readers, responded to our online survey. Thank you. The number and quality of your responses provide an adequate sampling for an accurate snapshot of the industry as it is now and of your perceptions heading into the 2008 season.

Were we surprised by the results? Yes, we were. A bit anyway.



In spite of the national media's tom-tom beat of depressing news and economic forecasts since August — the sub-prime lending fiasco, falling home prices, stalled home building activity, severe drought in the Southeast and West — you remain surprisingly optimistic.

For example, 78% of you told us you expect sales to increase in 2008. Another 18% expect sales to remain the same and only 4% of respondents expect sales to drop in '08. If these projections play out, this would be better than this past season when 64% said sales improved in from '06 to '07, and 15% said sales decreased from '06 to '07.



You validated your optimism by telling us that, for the most part, you feel the markets where you offer services remain strong with 64% describing your markets as "healthy." Only 8% of you responded "depressed" and another 13% say the Green Industry markets are stagnant where you do business.



That's a reflection of the regional nature of the North American professional landscape and lawn service industry. In fact, apart from agriculture, the Green Industry is one of North America's most regional industries due to obvious differences in climate and geography. Even so, markets sharing similar climates and located in the same region of the country often display big differences in vitality and opportunity. For example, the challenges and prospects for landscape operators in southeast Michigan, where the depressed automobile industry casts a chill over every segment of that region's economy, are certainly different than, say, Indianapolis or Milwaukee, with their more diversified economies.



Likewise, different service segments of our industry — landscaping (mowing/maintenance), irrigation, chemical lawn care — take on greater or lesser importance depending upon economic conditions and the public's changing perceptions and desires. For the sake of simplicity we break the industry's contracted services into maintenance, design/build and lawn care. We fit services such design/build, snow/ice management, and property enhancements into the broader category of landscape maintenance.

This special "Outlook" report contains results of our proprietary annual survey along with the valuable opinions and thoughts of people just like you, knowledgeable landscape and lawn service business owners and managers.

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