What to Expect in 2014

With an economy slowly reviving and clients finding time and money to invest in landscaping, many organizations are predicting what may or may not happen in 2014 when it comes to the landscaping industry.

Houzz recently conducted a study, the Houzz Residential Design & Renovation Outlook, which examined the 2013 business performance and the 2014 growth expectations.

Conducted in February of this year, the study was made up of 6,680 architects, builders, remodelers, landscapers and interior designers.

The study showed key findings, including a strong confidence in project growth and revenue through 2014.

Of those surveyed, 92 percent saw growth in average revenue per project, as well as the number of projects (81 percent).

Additionally, 90 percent surveyed expect to see revenue to grow this year.

Houzz Residential Design & Renovation OutlookHouzz Residential Design & Renovation Outlook

Clients are not hiring for just small projects and maintenance anymore. In fact, in a recent survey by the American Society of Landscape Architects, residential landscapes designed for entertaining and relaxing are a continuing and growing trend through 2014. Even more so, clients want sustainable and low-maintenance designs.

Belgard Hardscapes also named a few outdoor living trends, which are large-scale projects. One of which is creating outdoor cooking areas.

Outdoor cooking continues to grow in popularity, and it’s not just about the basic grill anymore,” Belgard says. “Homeowners are customizing their outdoor kitchens with virtually any indoor modern convenience that fits their lifestyle, from built-in gourmet cooking stations and brick ovens to wine coolers and beer taps.”

Manufacturers aren’t the only ones picking up on the 2014 trends.

HighGrove Partners recently released the 32-page “2014 Atlanta Commercial Property Trends” report.

“Commercial property managers and building owners who have held off on capital improvements for their landscapes are now starting to spend more money to enhance their properties,” says Gib Durden, vice president of business development for HighGrove Partners. “These improvements and enhancements include everything from renovating overgrown and outdated landscapes to adding new, fresh spaces to liven up their properties.”

As for the growth, landscape professionals saw a jump in revenue growth through 2013, especially for businesses with six or more employees.

Houzz Residential Design & Renovation OutlookHouzz Residential Design & Renovation Outlook

“Among sole proprietors, more than 60 percent of interior designers and landscape professionals reported growth in project dollar size, as compared with 55 percent of architects,” the Houzz report states. “Eighty percent of firms who reported an increase in project volume also reported an increase in average revenue per project.”

Houzz Residential Design & Renovation OutlookHouzz Residential Design & Renovation Outlook

Because landscape companies are made up of designers, architects and professional landscapers, the project revenue growth in 2014 varies. 

“Of the group, designers are most likely to be sole proprietors (51 percent), while the other categories are more likely to have more than six employees (57 percent) or between two and five employees (29 percent),” the Houzz report states.

Houzz Residential Design & Renovation OutlookHouzz Residential Design & Renovation Outlook
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