Election years often bring uncertainty about the economic outlook, particularly under new leadership. Shifts in consumer behavior and market responses to evolving policies force business owners to reassess budgets and revenue projections.

The coming year is no exception.

Economic reports from Goldman Sachs, The Economist, and other experts forecast a stable U.S. and global economy for 2025. However, consumer spending may slow as the U.S. Federal Reserve is predicted to implement only shallow interest rate cuts in December.

Industry Outlook

The landscaping industry appears resilient heading into 2025.

According to a recent survey, 56% of business owners have neutral expectations for the year, while 32% anticipate increased revenue. The annual Lawn & Landscape survey offers an even more optimistic perspective: 43% of respondents feel very confident about revenue growth, 25% feel confident, and 23% are somewhat confident.

Lee Edwards, president and CEO of The Greenery Inc., expressed optimism during Lawn & Landscape’s 2024 State of the Industry Webinar. Based in South Carolina, The Greenery generates $80 million in annual revenue, focusing on commercial work with a smaller residential segment (12%). Edwards attributed his confidence to market growth and strong real estate sales.

“We’re preparing for a slowdown but not expecting it,” he said.

On the residential side, predictions are mixed. Donna Delaney, owner of Dowco Enterprises Inc. in Chesterfield, Missouri, noted a potential slowdown in new installations among design/build firms in her area.

However, her maintenance business, which specializes in HOAs, has not yet seen similar trends.

Market location could play a role in shaping expectations for 2025. Krisjan Berzins, president and CEO of Kingston Lawn and Landscape in Alexandria, Virginia, offered a cautiously optimistic view.

“All the talk about reducing waste in the government has sent some shock waves through our market, so I’m not sure how it will shake out,” he said in the Lawn & Landscape webinar. “We are cautiously optimistic and preparing for a plateau.”

Labor Challenges Persist

Staffing remains a critical issue. The 2024 State of the Landscape Labor Market Report, sponsored by Olmn in partnership with Lawn & Landscape, revealed that 59% of respondents believe the labor market has worsened compared to pre-COVID-19 levels.

Competition for labor has intensified, not only within the landscaping industry but also from outside the industry from food service, HVAC, and others offering higher pay and less physically demanding work.

The H-2B visa program provides a potential solution to fill labor gaps, but its unpredictable nature adds complexity.

To combat labor shortages, considering technologies like robotic mowers and plant growth regulators can offer solutions to hiring challenges.

Rising material costs

Despite the industry’s overall optimism, rising material costs remain a concern for 52% of contractors. Proposed tariffs could drive prices higher.

Building a strong relationship with a trusted distributor can mitigate these challenges. Negotiated wholesale pricing, flexible credit terms, and access to industry expertise help contractors stay ahead of price hikes.

A reliable distributor provides value beyond pricing by offering creative problem-solving, delivery services, and support to keep businesses running smoothly.

Navigating Regulatory Changes

Evolving regulations around water management, pesticide use, and electric equipment continue to impact the industry. Landscape contractors must stay informed and compliant with these changes, which often vary by municipality.

Even if the incoming administration loosens previous regulations, customer interest in sustainability will likely remain high.

Demonstrating expertise in environmentally friendly products and practices positions contractors as valuable partners for clients looking to maintain eco-conscious landscapes.

4 Tips to Prepare for 2025

To navigate the challenges and seize the opportunities ahead, consider these strategies for success:

1. Evaluate Your Business and Set Goals

Assess your company’s performance and set clear goals for 2025. Decide whether to maintain your current size, scale up, or differentiate yourself from competitors. Identify gaps and develop a plan to achieve your long-term objectives.

2. Get a Pulse on Customer Thinking

Stay connected with customers to understand their priorities for landscape services. Gathering input can help you adapt and tailor services to meet their needs.

3. Showcase Technology to Attract Talent

While landscaping jobs are physically demanding, emphasizing your use of technology can attract forward-thinking candidates. Tools like property data analysis, autonomous mowers, and drones are pivotal innovations in the industry. Highlighting these advancements in recruitment efforts can expand your talent pool.

4. Improve Employee Retention

Retaining employees is just as critical as hiring. More than half (55%) of landscape companies plan to raise wages in 2025. However, pay increases alone aren’t enough—offering professional development, clear advancement paths, and fostering a positive culture are key retention strategies.

At Dowco, Delaney has seen success by engaging employees through social media. Weekly contests encourage crew members to share their best photos or videos of completed projects. Winning crews receive gift cards, while the initiative generates content for the company’s social media.

Positioning Your Company for a Successful Year

While election years and market fluctuations bring uncertainties, the landscaping industry is poised for growth in 2025. By staying proactive—adapting to customer needs, addressing labor challenges, and embracing innovation—contractors can confidently navigate the year ahead and seize opportunities for success