OUTLOOK Green Industry 2021
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2021 By Kyle Brown
Green Industry
OUTLOOK
Our annual survey tracks a challenging
year for industry professionals.
®
Sponsored by
2021 Green Industry Outlook sponsored by
Copyright 2021. All rights reserved. No part of this publication may be produced or transmitted in any form or by any means, electronic or
mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from the publisher.
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2021 Green Industry Outlook
TABLE OF CONTENTS
Demographics...................................... 4
Growth................................................... 6
Labor..................................................... 8
Forecast.............................................. 10
W
elcome to Irrigation & Green and those varied viewpoints make all the difference
Industry’s 2021 Green Industry in building confidence in these results.
Outlook. This year’s survey ex- Once again, we had so much information from
pands on trends from the last two this year’s survey that we could not fit it all in the
years of our reports on the wider print edition.
industry, building a more complete picture of the Several parts of our analysis here are expand-
market and providing insights to benchmark your ed online. In the digital edition, the labor section
business against. includes more information on how much employ-
Whether you ended up expanding or struggling, ees are being paid, how many employees respon-
2020 supplied plenty of challenges for irrigation and dents keep on staff, and crew diversity. For the
landscape professionals. Between COVID-19, labor look ahead, it covers which products respondents
issues and a presidential election, there was enough are purchasing for customers in the upcoming year
uncertainty in the past year, even on top of the usual and which trends they expect to grow the most.
struggles for green industry businesses. We also dig deeper into the impact made to the
Our survey tracked how readers made it through industry by COVID-19, including how it affected
2020 and uncovered the larger trends shaping the overall business growth, how it changed employ-
industry. It showed how the demographics have ee headcounts and how respondents expect it to
continued to change through the past few years. We influence the future. Check out the full report on
added several questions to this year’s survey to gauge www.igin.com for all of the details and additional
how contractors dealt with some important issues, statistics.
such as the pandemic and diversity, and refined a few We’d also like to thank our sponsor, Heritage
of the questions from last year to get the best and Landscape Supply Group, which assisted by pro-
most relevant results. viding the two drawing prizes for this year’s survey,
This year’s survey brought back an even larg- a mini quadcopter drone and a $250 gift card to
er response than last year with a total of 1,063 Bass Pro Shops/Cabela’s.
respondents. We’re so grateful for your help in If you’re preparing for the new year with an eye
building an accurate snapshot of the landscape and toward growth or just finding a way to get back
irrigation industry, as well as showing how you’re on your feet after last year, our report is a guide to
taking on those important day-to-day obstacles. how the wider industry is moving forward. Use our
Our respondents came from across the industry data to build a plan to take on whatever 2021 has
with a wide range of job titles and company sizes, in store.
2021 Green Industry Outlook sponsored by Irrigation & Green Industry | page 3
Seeing the BIG PICTURE
T
his year’s survey respondents had a received more than 10%, though govern- our 2019 survey. Younger voices, including
similar distribution across the U.S. to ment and municipality personnel come those between 20 and 39, saw increases
the last two years, with the majority close at 8%. as well. Almost a third of all respondents
(33%) coming from the West. Rep- The vast majority of respondents are ex- (27%) continue to land in the 60+ bracket,
resentation shifted slightly in the Upper and ecutives (53%) and managers (29%), a wider however.
Lower Midwest from last year’s survey, with spread than last year’s survey, which had ex- About half (55%) of these companies
a few more voices in the southern states and ecutives at 66% and managers at 21%. An are family-owned, which is trending down
a few less in the north. The response in the increased number of respondents consider from last year (57%) and 2019 (63%). Pri-
Southeast has remained almost exactly the themselves primarily specialists at 7%, up vately held companies are about the same at
same through all three surveys. With even from 4% two years ago. 32%, but government representatives are up
more responses than last year’s record-setting Survey respondents tend to have plen- slightly at 11%, from 8% last year.
survey, this year’s demographic breakdown is ty of experience, with a total of 37% hav- The total number of companies that have
a reliable representation. ing been around the green industry for been in business for more than 31 years is
The number of respondents who run more than 31 years. That’s down from last exactly the same as last year at 43%. Across
their businesses year-round has held steady year’s 42% for the same group, and 49% for the younger spread, companies between 11
across each survey at 83%, compared to sea- 2019’s survey. Newer contractors are gaining and 20 years gained some ground at 19%
sonal (17%). ground, as those with up to 10 years of expe- after reducing to last year’s 15%, but that
Our respondents are primarily contrac- rience rise to a total of 17% compared to last segment still has a distance to go before
tors, taking up 66% of the total with the top year’s 14%. The largest cohort decade is be- reaching its high of 21% in 2019. The indus-
three spots. Landscape contractors take the tween 21 and 30 years of experience at 27%. try continues to tend to be driven by older
lead with almost a third of all respondents Age range saw a shift from last year’s experts who have been at the lead of their
(31%), with irrigation (21%) and lawn care results, with the 40 to 49 range jumping companies long enough to work past some
(14%) not far behind. No other response to 24% from 18%. That’s more in line with obstacles.
INDUSTRY RESPONDENT REPRESENTATION
n Northeast
n Southeast
n Upper Midwest
n Lower Midwest
n West
18%
33% 16% Is your business
seasonal or
year-round?
15% 17%
SEASONAL
18%
83%
YEAR-ROUND
What types of properties do you service?
85% 85% 50% 17%
Residential Commercial Municipal/parks/sports field Other
2021 Green Industry Outlook sponsored by Irrigation & Green Industry | page 4
What is your company/organization’s primary business? WHICH OF THE
FOLLOWING SERVICES
Contractor (landscape) 31% DOES YOUR COMPANY
Contractor (irrigation) 21% PROVIDE?
Contractor (lawn care) 14%
70%
Government/municipality 8% Irrigation maintenance
Landscape architect/designer/consultant 5%
Consultant 5% 63%
Irrigation design and
Golf course/sports turf manager 4%
installation
In-house lawn and grounds maintenance 4%
Contractor (other services) 2% 57%
2% Lawn maintenance
University
Contractor (chemical applicator) 2%
57%
Water/energy agency/utility 1% Landscape design and
Contractor (tree care) 1% installation
How long has your company How many locations does
52%
Drainage
been in business? your company have?
50%
22%
2% 8%
20%
Turf and landscape
19%
renovation
15%
14%
47%
Disease, insect and
9%
weed control
7%
75%
46%
5%
4%
Hardscaping
n1 n 6-10 45%
n 2 years or less n 21-30 years n 2-5 n 10 or more Chemical application
n 3-5 years n 31-40 years
n
n
6-10 years
11-20 years
n 41-50 years
n 51 years or more
42%
Tree and ornamental care
How long have you
been working in the 40%
27%
Which of the following landscape industry? Landscape lighting
22%
best describes your title? n 5 years or less
19%
Executive n 6-10 years 33%
Owner, partner, CEO, president, 53% n 11-20 years Snow/ice management
13%
general manager n 21-30 years
10%
7%
Manager/supervisor
n 31-40 years 29%
2%
n 41-50 years
Architect, director, superintendent, Water features
29% n 51 years or more
foreman, landscape grounds
manager, consultant 27%
Specialist How old are you? Environmentally friendly
28%
services
27%
Arborist, agronomist, forester, n Under 20
7%
24%
horticulturist, instructor, water n 20-29
manager, researcher, engineer n 30-39 21%
40-49 Hydroseeding/erosion
16%
Sales/marketing/PR/advertising 3% n
control
n 50-59
Service crew member 2%
5%
n 60+
Other 6%
16%
0%
Holiday lighting
2021 Green Industry Outlook sponsored by Irrigation & Green Industry | page 5
Looking FORWARD
T
he industry definitely saw some shake-ups in the past year, lion (25%). Those expecting less than $100,000 increased to 19% for
especially as what was expected to be a strong season opened 2021 from 14% in 2020. Business development might be stifled, but
under the threat of COVID-19. Many contractors found respondents are still finding ways to maintain revenue goals.
ways to push through, but the struggle seems to be a reason Looking back at the year, most contractors didn’t seem to think
for one of the largest swings in this year’s survey. Respondents who COVID-19 heavily impacted overall growth, with 64% saying it
expected their business to have remained flat or decrease rose to a didn’t have an effect or encouraged growth. That still leaves 36%
total of 43%, compared to 20% in the previous year and 25% in 2019. who struggled. Roughly the same group (41%) applied for addi-
That outpaced the next two highest groups combined. Those who tional loans in the past year to help weather the pandemic.
expected a decrease jumped by almost 10% over the past two years. Labor continues to be the largest expense and biggest obstacle
Despite the roughest growth year so far in our survey, respondents for the industry for the second year running. The top three expenses
aren’t expecting a heavy change in gross revenue overall for 2020. and obstacles stayed the same from 2020’s survey, though more re-
The results for this year line up fairly neatly with both of the previ- spondents are concerned about overall economic conditions (16%)
ous surveys, with the highest peaks still for those projecting between than the previous year (10%). That’s no surprise in a year with both
$100,001 and $500,000 (27%) and between $1,000,001 and $5 mil- a pandemic and an election.
Compared to 2019, What is your company’s What barriers most impact
how much do you projected gross your business growth?
expect your business revenue for 2020?
has grown in 2020?
Labor shortage 33%
27%
27%
25%
Economic conditions 16%
21%
20%
Insurance/labor costs 12%
19%
16%
Regulations 7%
13%
Low profit margins 5%
11%
8%
8%
Equipment costs 5%
5%
n 16% or more n Less than $100,000 Weather conditions 5%
n 11%-15% n $100,001-$500,000 4%
Too much competition
n 6%-10% n $500,001-$1 million
n 1%-5% n $1,000,001-$5 million Aging client base 3%
n Flat n $5,000,001-$10 million
3%
n Decrease n Over $10 million Negative perceptions of industry
WHAT ARE YOUR COMPANY’S LARGEST EXPENSES?
64% 43% 27% 25% 20% 18%
Benefits and Supplies Insurance Equipment Fuel and Equipment
compensation acquisition energy maintenance
2021 Green Industry Outlook sponsored by Irrigation & Green Industry | page 6What associations does your business belong to?
Irrigation Association 49%
State/local business association(s) 46%
State/local turf and landscape association(s) 39%
National Association of Landscape Professionals 19%
American Society of Landscape Architects 12%
Tree Care Industry Association 10%
American Society of Irrigation Consultants 6%
Association of Outdoor Lighting Professionals 2%
Latino Landscape Network (Formerly National Hispanic Landscape Alliance) 1%
Which of the following How has COVID-19 affected your business’s growth this year?
regulations has the
most negative impact
on your business?
22%
38%
36%
19%
13%
5%
42%
10%
8%
7%
n It hurt my business’s growth.
n Labor/H-2B n Other n It didn’t have an effect overall.
n Water n Fuel n It encouraged my business’s growth.
n Chemical n Noise
n Safety/OSHA
Did your business apply Have you attended a virtual
for additional loans business conference this year?
because of COVID-19?
No – 74%
Yes – 26%
Yes – 41% No – 59%
2021 Green Industry Outlook sponsored by Irrigation & Green Industry | page 7Putting in THE WORK
B
uilding and maintaining a strong crew continues to be dif- More respondents have no Spanish-speaking employees (36%)
ficult for the industry, and that was made no easier by other than last year (33%), but there’s a slight uptick in the 26% to 75%
obstacles this year. Almost the same exact number of re- range, comparing 23% of respondents this year to last year’s 21%.
spondents (64%) say there aren’t enough qualified workers Some of the new questions on this year’s survey dealt with
this year as in the last two years (65% and 66%, respectively). Out overall diversity among employees. Almost three-quarters (71%)
of that group, 24% strongly believe that their region doesn’t have of respondents say they have a business that is racially diverse, and
enough labor available. almost the same number (70%) say that the business has gender
The trend continues with the number of employees at peak sea- diversity as well. About two-thirds (59%) of respondents have a
son, which again has similar numbers to previous years. Slightly policy or program related to employee diversity.
fewer maintained 1 to 5 employees in 2020 (37%) compared to the More crews are using job management software than not, but
previous year (40%), though both of those are down from 48% in it’s close, with 56% incorporating it consistently into the routine.
2019. There was an uptick of those employing between 6 and 25 That’s still a jump up from last year, when 43% of respondents used
employees (35%) in 2020 compared to the previous year (30%), so job management software regularly. It’s possible that the increase
it’s possible some contractors are still finding enough potential em- was due to contractors rapidly shifting to socially distant business
ployees to see some expansion. practices. It’ll be interesting to see if that trend continues into the
Employers tend to pay their crew members more than $9 over new year as companies see efficiencies from the software beyond
minimum wage (30%), with the next highest group paying $5 to $6 just getting through the pandemic.
more than minimum wage (24%). A wide majority of employers encourage employees to pursue
The H-2B nonimmigrant visa program saw an additional obsta- education and development, with 91% supporting crew devel-
cle last year with executive orders limiting its effectiveness. Slightly opment. That’s even an increase from last year’s 89% in the affir-
fewer respondents used the program for 2020 (7%) as compared to mative, which shows the continued dedication of contractors to
the previous year (9%). The number of respondents who have never empowering their teams to grow. Especially as labor is still such
participated at all (83%) continues to trend downward (84% and a challenge, it’s important for crews to be able to take on more
88%, respectively). The program remains a challenge, but it is useful responsibility.
to some contractors. One-fifth (20%) of respondents perform daily crew safe-
One additional challenge respondents faced this year was main- ty checks or training, and a little more than half (52%) do them
taining a labor force in the face of a pandemic. Almost a third weekly or monthly. A little more unnerving is that 13% don’t do
(29%) of respondents saw a decrease in total employees because of any regular safety checks or training. Getting into a routine of pro-
COVID-19, but 9% gained a few new workers to handle the extra viding safety information and training regularly is one of the best
available work. ways to keep crews safe and healthy and maintain workflow.
What percentage of your employees Does your region offer
speak Spanish? enough qualified
workers to meet your
None 36%
company’s needs?
1%-25% 31%
26%-50% 12%
Hello
No – 64%
51%-75% 11%
Hola
76% or more 10%
64%
Total percentage of Yes – 36%
respondents who employ
workers who speak Spanish
2021 Green Industry Outlook sponsored by Irrigation & Green Industry | page 8On average, do you pay your Does your business have
crew members minimum wage a policy or program
or a higher amount? related to employee
diversity?
2% 7% 18% 24% 19% 30%
Minimum wage $1-$2 more $3-$4 more $5-$6 more $7-$8 more $9+ more
Yes – 59% No – 41%
How many full-time employees does your company
employ at peak season?
11%
6% Do your crews use job
n 1-5
management apps/
37% n 6-10
11% software consistently?
n 11-25
n 26-50
n 51-100 Yes – 56%
19% n 101+
16%
No – 44%
How often do you perform crew safety checks/training?
Does your business
encourage employees
to pursue professional
development?
20% 30% 22%
Daily Weekly Monthly
Yes – 91% No – 9%
15% 13%
Seasonally We don’t do regular
safety checks/training
2021 Green Industry Outlook sponsored by Irrigation & Green Industry | page 9A BETTER YEAR ahead
D
espite a rough year for many contractors, respondents Next year is about “the positive that evolved from COVID-19
are optimistic about what 2021 will bring. A total of that is driving people outdoors, investing and working from
88% expect either moderate or significant growth in home,” writes one respondent.
the upcoming year. That’s even more confident than last Others have taken the time in the past year to really look at
year, when 79% of respondents expected growth. It’s possible that what the business needs to develop. The best opportunity is “gen-
among contractors, the feeling is that the market can’t contract eral growth of the company, fruits of internal growth and devel-
much more. opment through 2020,” writes another respondent.
The majority of respondents believe that COVID-19 won’t “We’re still in business,” writes one respondent. “Some compa-
make a heavy impact on business growth in 2021, with 16% ex- nies haven’t, or won’t, make it through next year.”
pecting a moderate or significant decline. News of potential vac- Many are hopeful about finding better crews in the upcoming
cines are probably buoying those hopes, though relief is likely still year and having a more stabilized economy in the green industry,
some distance off. as well as in the building and construction industries. Others are
Contractors are looking for the continued benefits of clients looking at just the company’s survival through 2020 as the real
who have spent much of 2020 at home and improving their yards. accomplishment.
Which of the following services Which of the following services How do you expect
are you considering expanding are you considering reducing COVID-19 to impact your
or adding in 2021? or eliminating in 2021? business’s growth in 2021?
Irrigation maintenance 28% Chemical application 23%
44%
Irrigation design and installation 23% Snow/ice management 19% 36%
Landscape lighting 22% Holiday lighting 18%
Landscape design and 20% Water features 16% 14%
4%
installation
Lawn maintenance 15% 2%
Environmentally friendly 19%
services Hydroseeding/erosion control 12% n Significant growth
n Moderate growth
Chemical application 17% Disease, insect and weed 11%
control n No change in growth
Hardscaping 17% n Moderate decline in growth
Drainage 9% n Significant decline in growth
Lawn maintenance 17% Hardscaping 9%
Disease, insect and weed 16% How do you rate the
control Irrigation maintenance 8%
expected growth in
Tree and ornamental care 16% Landscape lighting 7% demand for your business’s
Turf and landscape renovation 15% Irrigation design and installation 6% services in 2021?
Drainage 15% Landscape design and 5% 12%
installation Significant growth
Water features 13% Tree and ornamental care 5% Moderate growth 76%
Holiday lighting 12% Turf and landscape renovation 5% Moderate decline 10%
Snow/ice management 10% Environmentally friendly 4% Significant decline 2%
Hydroseeding/erosion control 6% services
2021 Green Industry Outlook sponsored by Irrigation & Green Industry | page 10Which products/services will you invest in for 2021?
Trucks 44%
Construction equipment (attachments, skid steers, loaders, tractors) 34%
Battery-powered equipment 31%
Mowers 30%
Business hardware (computers, tablets, etc.) 27%
Hand-held power equipment 26%
Business management software 23%
Uniforms 22%
Marketing/PR/website 22% Which products will you
Design software 21% purchase for clients in 2021?
Job management apps/services 16% Irrigation equipment/controllers 70%
Drones 15% Nursery/flowers 58%
Mechanical/technical education 13% Hardscape products 57%
Tree equipment 11% Soil/organics/mulch 56%
Chippers/shredders 10% Grass seed 53%
Hiring a business consultant 7% Sod 53%
Remote-operated/autonomous equipment 7% Chemicals (insecticides, herbicides, fungicides) 52%
Financial services 4% Landscape lighting 44%
Non-pneumatic tires 4% Water feature accessories 25%
Which trends do you expect to grow the most in 2021?
Smart irrigation technologies 40% Native/low water landscaping 24% Landscape lighting 14%
Outdoor living spaces 35% Battery-powered equipment 24% Artificial turf installation 10%
Remote irrigation system management 28% Organic fertilizer and weed control 15% Water features 6%
A special thanks
Methodology Thanks to everyone who participated in this
year’s survey. These insights into the wider
The 2021 Green Industry Outlook
industry would not be possible without you.
Survey was developed in Survey-
It was so helpful to have you take the time to respond to our
Monkey with three mail invitations including individual, anony-
survey and make your voice heard.
mous links sent to respondents between Oct. 20 and Nov. 3. An
open link was also shared via Irrigation & Green Industry social me- To show our appreciation, sponsor Heritage Landscape
dia and by sponsor Heritage Landscape Supply Group via email. Supply Group provided prizes for
Responses gathered by the open link were additionally checked for two drawings. That drawing was completed at the end of
duplicates and relevance to the survey. Each invitation included in- November.
formation on the drawings for a DJI Mavic mini quadcopter drone Thanks again for your help in putting together our indus-
or a $250 gift card to Bass Pro Shops/Cabela’s. Survey results were try outlook and for making it the
closed Nov. 3 with 1,063 responses. Irrigation & Green Industry largest so far!
staff analyzed the survey results.
2021 Green Industry Outlook sponsored by Irrigation & Green Industry | page 11You can also read
