Tariffs are weighing heavily on the minds of many of us these days, including commercial property owners. And you have legitimate reasons to be concerned about tariffs potentially increasing costs of landscaping. However, as is often the case, the 24-hour news cycle and always-on mobile devices may be making things scarier than need be.
Yes, imported goods could see price increases due to potential tariffs. That can impact some industries. But commercial landscaping? Not so much. You can relax because materials subject to foreign tariffs are not the primary driver of landscaping costs. And they aren’t even close to the main factors that affect landscaping-related expenses.
In this article, we’ll break down what really are the biggest expenses affecting landscaping cost and your budget. Then, we will sort through some less impactful factors that you may have thought would be more significant. Our hope is that this cost breakdown will help you sleep easier tonight. Not only that, if your provider uses the long-range planning discussed below, tariffs will be even less of a worry for you.
Labor: The #1 Driver of Landscape Service Costs
For every dollar you spend on commercial landscaping services, around 50 cents out of each of those dollars goes back to the landscape professionals performing the work. Higher-skilled professionals with years of experience get paid more than inexperienced landscape employees. It’s vitally important for you, the buyer, to understand this, because this is often the primary cost difference between two otherwise equal landscaping bids.
One company has a higher-quality workforce that’s paid properly, while the other pays lower wages that don’t keep up with the cost of living.
Yellowstone Landscape believes all employees deserve the dignity of a living wage. And each employee should have proper training and educational opportunities to advance their career. So, we invest more in our people than other firms do.
It’s the right thing. Plus, well-compensated employees are more attentive, safety-minded, and invested in your property’s appearance.
Commercial Landscaping Labor Costs Are Ever Rising
The skilled labor shortage in the green industry is one reason, along with the following factors:
- Stricter immigration laws reduce the number candidates available to work in landscaping
- Younger workers are seeking jobs without the harsh physical demands of landscaping
- There is a lack of workers with knowledge of sustainable, modern landscaping practices
With fewer qualified candidates, landscape firms are increasing starting pay, benefits, and providing annual pay raises to keep up with rising costs of living. And companies are offering year-round employment instead of seasonal work to attract knowledgeable landscapers in some regions of the country.
All those factors impact property owners’ costs for landscape services.
The average landscaping crew member now earns $24 per hour (source: ZipRecruiter). Highly technical positions (e.g. designers and irrigation specialists) are paid higher wages. This is a statistic that shocks almost everyone when they see it for the first time.
Equipment Costs and Maintenance
While labor is far and away the main driver of commercial landscaping costs, equipment-related expenses have to be considered too.
Fuel prices for trucks and equipment affect the cost of services. Especially when fuel costs spike during natural disasters like during hurricane season. Also, the updated Tier 4 Emission Compliance regulations increase the cost of new mowers, trucks, and loaders. And as repairs are needed, specialized parts and training are needed to stay compliant.
“We estimate these annual emission reductions will prevent 12,000 premature deaths, over 8,900 hospitalizations, 15,000 nonfatal heart attacks, and approximately 1 million days that people miss work because of respiratory symptoms.” ~EPA
Regular equipment maintenance contributes to commercial landscaping costs, too. Skilled technicians must maintain truck engines, transmissions, braking systems, etc. They’re tasked with keeping landscape equipment running properly also. Without proper maintenance, there would be costly downtime—leading to delayed property service and inefficiencies due to employees sidelined without usable equipment.
Replacement Costs
Despite professional upkeep of equipment and vehicles, wear and tear in harsh environments means replacement is unavoidable. Replacement costs are one area of our industry that have spiked due to recent news concerning tariffs.
Fortunately, at Yellowstone Landscape, our multi-year forecasting kept us ahead of unexpected replacement costs. We aren’t put in a position to need to buy new equipment “in a pinch,” which keeps costs down for us (and our customers).
In the next section, we look at “invisible” landscaping cost factors.
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Insurance, Compliance, and Administrative Overhead
Other not-so-obvious landscaping costs are related to regulations, safety training, and administrative support. As a property owner or manager, you don’t want landscapers who aren’t following municipal or OSHA guidelines. It would reflect poorly on your reputation and create unnecessary risk on your property.
Another issue? Landscaping employees without proper safety training using potentially dangerous equipment. Even skipping simple steps like wearing safety glasses sets property owners up for liability issues.
Protecting you from those problems is where a landscape company’s administrative support comes in. The support ensures insurance policies are up-to-date, regulatory paperwork is submitted on time, and safety programs are actually utilized.
Two things to look for to reduce potential costs and hassles for you:
- A commercial provider with regular OSHA training in place
- Bilingual crew leadership initiatives
Yellowstone has those in place. We go further with annual Safety Rodeos as well.
Landscape Material Costs: A Smaller Slice of the Pie
Tariff headlines and related supply chain hurdles have rung alarm bells for property owners needing landscape materials. However, supplies are not a large portion of landscape project expenses.
Labor costs greatly overshadow material costs, such as:
- Replacement plants
- Pine straw
- Fertilizer
- Pavers
- Mulch
- Sod
That’s good news, right? Tariffs on landscaping supplies shouldn’t affect your property’s maintenance budget. Yellowstone Landscape helps protect our clients’ budgets even more by buying materials in bulk. This locks in favorable pricing over longer periods while avoiding sudden price spikes. It also helps ensure a dependable supply chain.
What about service levels and innovation?
Quality Standards and Technology Investment
You already know that you get what you pay for. Superior service, reliability, and communication cost more in any service industry, including commercial landscaping.
To be certain your property’s receiving top-tier landscape services, look for the following standards and innovations from your provider:
- Routing software to maximize efficiency, reduce fuel costs and environmental impact, and deliver timely service.
- Client portals let property managers have real-time access to schedules, invoices, and project updates.
- Irrigation sensors save water, reduce water bills, and improve plant health with optimal moisture.
- Drones speed up site surveys and inspections while reducing the labor costs of manual methods.
- Project management tools centralize job tracking, client data, and billing.
- Autonomous mowers can reduce labor costs and provide mowing services on properties with unique scheduling needs.
Does using modern technology drive landscaping costs up? For the provider in the short term,, yes. But over the length of a service agreement, we believe these advancements add value that offsets the initial investment.
All this technology offers the following benefits to property owners:
- Precise reports
- Reduced utility costs
- Faster response times
- Smaller carbon footprint
- Lower fuel-related costs
- Meet sustainability goals
- Fewer natural resources wasted
- Fewer mistakes and miscommunication
- Reduced risk of injury and property damage
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Why Yellowstone Remains Competitive
At Yellowstone Landscape, we know costs are on the minds of the clients we serve. Being transparent about factors that affect what you pay for commercial landscaping helps you maximize your budget.
We strive to save our customers money by working with major manufacturers to get the best deal on high-quality equipment and supplies. Solid relationships with manufacturers reduce our costs. So, we pass the savings along to clients whenever possible.
Clients benefit from our world-class employees as well. Yellowstone employees are expertly trained and provided with vast educational opportunities. The result?
- Lowers safety risks on job sites
- Builds our company culture
- Ramps up productivity
- Reduces turnover
“Always treat your employees exactly as you want them to treat your best customers.” ~Stephen R. Covey
Finally, we value long-term client partnerships. This helps spread costs out while avoiding surprise expenses. With a long term agreement, we all know what to expect. A trusted partnership reduces the roller-coaster ride of headlines concerning fuel prices, tariffs, labor shortages, etc.
What Can You Do to Manage Costs?
Property owners and managers have several options for managing landscaping costs while still receiving excellent service. When your provider is willing to listen, it simplifies your cost-management efforts. Let's start with your account manager.
- Proactive Meetings: Regularly check in with your account manager. Go over current service levels, upcoming needs, and any property changes on the horizon. Use this relationship to manage issues before they require costly fixes.
- Service Levels and Enhancement Phases: There may be flexibility in some landscaping services’ frequency. For example, leaf removal might be set for a single clean-up versus four times each fall. Or your budget might be better suited to enhance hardscapes in the winter and upgrade the irrigation in the spring. Prioritize the areas you want to shine (e.g. entryways and high-traffic areas).
- Water Audits, Plant Health Care Plans, and Sustainability Initiatives: These work together to improve your entire landscape. Plants, grass, and trees properly cared for will live longer. This reduces waste and your replacement costs while lowering irrigation and fertilization expenses.
Conclusion
Tariffs are a legitimate concern for property owners and anyone else running a business right now. However, tariffs are just a small part of the story when it comes to commercial landscaping costs. Labor has been and always will be the number one driver of landscape expenses.
Highly-qualified landscape employees do increase labor costs. The value added by skilled professionals is worth the short-term expense, though. That’s not just our company’s opinion. Our customers have told us the same thing over and over.
Yellowstone Landscape will continue to be committed to transparency, genuine partnerships, and providing long-term value. None of us can control global economic ups and downs. Yet, there are always opportunities in the green industry to improve service quality and reduce our customers’ costs through innovation, consistent communication, and equipment and material purchase forecasting.
When you’re ready for a tailored landscape plan that enhances curb appeal while catering to your budget, contact Yellowstone Landscape for a consultation.
