Why are the commercial lawn care businesses ready for market consolidation?

Last Updated on: 22nd November 2023, 03:23 pm

While expansion might be the scenario for most lawn care organizations, it’s not certainly true for most lawn care businesses. One can say that the law care domain is getting primed for market consolidation.

The pandemic outbreak has increased demand for lawn care services and home improvement. Also, the demand doesn’t show any sign of decline, more so when we are progressing to the lawn care season. And one of the points of conversation is how the business owners who are within this domain are getting prepared to scale and grow. To know more about it, you can check out the U.S. Lawns Franchise.

Most businesses witness return consumers

There is an existing misconception that the process of lawn care maintenance must occur in spring. Providing a green, healthy lawn beyond the summer and spring months would need constant maintenance and other essential services, such as overseeding and aeration, well-timed all through the year.

Usually, the lawn care businesses have repeat consumers annually along with various touchpoints and scopes to upsell the consumers all through the year at the time of service. And this in-built, annualized audience is lucrative to the probable acquirers due to the increased potential for consumer acquisition, retention, and recurring revenue.

The crucial businesses have an influx of consumers

Based on a new study, about 75% of the homeowners reported that their outdoor space was indispensable because of the pandemic. Also, with an increased number of Americans spending their time parenting, working from home than before, it has become essential to enhance the home and place the funds to improve it. Furthermore, according to a few studies, over 50% of Americans have invested in outdoor spaces in the past year and spent over $1,900 on the improvements. And with an increased focus on home enhancements, along with the continuous maintenance needed by the homeowners, the businesses witnessed the return of consumers who didn’t just want the services but also them.

The aging ownership all over the industry is searching for the exit strategy

According to the reports, there has been a reduction in the people wanting or willing to work in the skilled labor section for several years. Based on the current data, almost 60% of small businesses don’t have succession plans. As the older generation searches for the exit strategy, some people can do the job and take charge of the company.

And despite this increasing demand for the home service domain, along with maximized wages to incentivize applicants, there exists a gap between the eager workers and the business demand, which seems to be rising from the generational gap. Gen Z and millennials usually don’t grow up with a similar trade program in their early academic career, similar to the older generations. Hence, without an increased buy-in from the younger section of people for owning the lawn-service organization, as the leadership ages away from the industry, the consolidation by the similar-minded business can be the only profitable choice.

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