Despite the pandemic, the tree care industry has experienced strong growth since 2016, generating just over $37 billion in revenue annually and is estimated to grow to more than $44 billion by 2028.1 State and local government support plus uptrends in commercial and residential demand contribute to a robust economic outlook for the tree care industry.
On the downside, tree care employers will likely continue to deal with challenges related to the economy, national average minimum wage, and labor disputes as we move into 2023. But overall, there is much to be hopeful about.
The Impact of Macroeconomic Changes
Residents, business owners, and governments often do not have the equipment or workers to take care of their tree care needs. And considering the various industry risks, it makes sense that they prefer to outsource their tree care needs to professionals.
Public-sector clients like local and state parks, forestry departments, planning and zoning departments, and others, have maintained strong spending habits on tree care services. These government agencies regularly call on tree care services to address debris removal after strong winds and storms. In addition to the need for tree services for emergencies, governments also allocate their budgets for tree services as part of utilities construction and maintenance, as trees can damage power equipment, sewage systems, and water supplies.
Additionally, utilities construction will continue to drive demand in 2023, as they require pruning, cabling, bracing, storm response, and debris management.
When real estate and construction were booming, these new projects spurred growth in the landscaping and tree care industries. Residential customers with disposable income continue to propel industry growth, while commercial construction – resorts, retail centers, etc. – is more of a mixed bag.
Want to learn how the national average minimum wage, labor disputes, and E-Verify is affecting the tree industry? Download the full report here.
Source:
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Diment, D. Tree Trimming Services in the US. Updated February 2023.
