Why Are So Many Landscapers Going Out Of Business?

With the recent economic conditions, times have been tougher for many across the country. As “The Great Resignation” takes place, people are leaving their jobs at unprecedented numbers, paired with inflation climbing at an ever-increasing rate. The COVID-19 pandemic has added another element to the mix, as many companies are still reeling from the effects of lockdowns, vaccination drama, and general uncertainty. Unfortunately, the landscape industry has not been immune to these issues, even facing some specific problems of our own. Hiring has been a struggle, as has retention and training. If companies are unable to adapt, then their survival is put in jeopardy. With that being said, we wanted to discuss how we have been able to see continued success throughout, as well as why so many landscapers are going out of business.

Increased Material Prices

With inflation and supply chain issues becoming increasingly prevalent, this has increased the costs of not only materials but transportation. Rather than dump this cost directly onto customers by jacking up prices, many landscaping companies are eating into their profits and driving themselves out of business. However, this can be combated by good business practice and the use of low maintenance and local resources from plant material to mulch. Keeping in communication with our customers, and having discussions about balancing cost, aesthetic, and delivery times have enabled us to continue to provide our customers the materials they need, without jeopardizing our business, or theirs.

Hiring Issues: Employee Retention

It may seem counterintuitive, but the landscaping industry has actually been booming as of late in relation to new business. However, the problem lies in maintaining the number of staff required to take on larger accounts. The only way for a landscaping company to grow is by acquiring more accounts, whether they be commercial, residential, or municipal. For a variety of economic reasons, employees have been tougher to hire, especially with troubles regarding the H1-B visa, which allows individuals to immigrate in order to work. Retention has been even more difficult, with increased expectations in pay, and bonuses. Meeting the needs of our employees, we treat them well, knowing if we do, they will be around long term. This is how we stay competitive and keep well-trained employees to maintain your landscape.

Poor Image and Marketing Efforts

In the digital age, the way landscaping companies make contact with potential customers has changed wildly. Touchpoints are almost always technology-based, as this is where everyone spends their time. Landscaping companies must adapt, updating their websites on a more frequent basis, and utilizing digital marketing campaigns to expand their outreach. Email marketing is common, as well as social media, and blogs just like this one. The companies that are on their way out the door, are the ones not willing to adapt to this innovation in the industry. If landscaping companies cannot acquire new business, let alone get in touch with decision-makers on their preferred medium, they will soon find themselves well behind the pack.

Pezza Landscape, Inc. is a full-service landscaping company proudly serving the Chicagoland area and its surrounding suburbs. Give us a call at (630) 393-7373 or visit our website to get in touch.