Table of Contents

Executive Summary

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TABLE OF CONTENTS

1. Introduction 4

2. Summary 6

3. Economic Environment 10

4. Landscaping Market 13

5. Product Mix 29

6. Buying & Specification Process 43

7. Landscape Contractors 52

8. Distribution & Suppliers 56

9. Key Market Influences 68

10 Future Prospects 76

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EXECUTIVE SUMMARY

'Landscaping' encompasses such a wide range of products and activities that defining the market is extremely complex. In the widest context, the total market can be estimated at over £3 billion but, in the context of this report, is estimated at around £1 billion in 1992.

The market size relates to a combination of domestic and commercial activities incorporating horticultural, paving, fencing and decorative/ornamental products. Excluded are specialist sectors such as golf courses, grounds maintenance, tree surgery, chemicals, sports/leisure, motorway projects etc.

Market growth in the mid-late 1980s reflects a combination of buoyant conditions in the domestic market, coupled with a boom in major construction projects.

Changing use of the garden, rising incomes and increased levels of housebuilding and housemoving all contributed to a stimulus of the domestic market, while office construction and major urban pedestrianisation projects created growth markets in the commercial sector.

If the labour costs are excluded, the total value of materials is estimated at £684m, with `soft' landscaping products accounting for 58 percent and `hard' products accounting for the remaining 42 percent.

Within `soft' materials, nursery stock accounts for an estimated £235m, with bedding plants at £62m and turf, bulbs and seeds valued at £102m (excluding sports and indoor usage).

Paving/walling and fencing are the dominant materials in the hard landscaping sector accounting for 32 percent and 22 percent respectively, with pots/planters and water products also taking a significant share of the market.

Analysis of the buying and specification process in the commercial market indicates the strong influence of architects in the product specification process, though contractors are influential, particularly in horticultural products.

In terms of brand specification, there are significant variations between the private and public sector, where there is much less brand specification to encourage more competitive pricing. Equally, there are major variations between product sectors with only 17 percent of horticultural products specified by brand/manufacturer in the private commercial market, but 59 percent of paving specified by brand in the same sector.

The landscape contracting industry is very fragmented with a large number of small companies. Barriers to entry are relatively low with minimal investment to become established, particularly in the domestic market.

Estimates of the total number of contractors vary, but we estimate there are approximately 2,000 companies in the UK, with a combined turnover of approximately £800m (excluding any sub-contracting activities between contractors).

The major distribution channels for professionally installed landscaping materials in this sector are Nurseries, Builders Merchants, Direct from manufacturers and Wholesaler / Distributors. Large-scale projects are more likely to involve supply direct from manufacturers for hard materials, with nurseries and specialist growers the major source for horticultural products.

In the DIY market, Garden Centres and DIY Multiples are the dominant distribution channels, with Builders Merchants, Mail Order and High Street stores also active.

While in the short term the prospects for the industry are not optimistic, the longer term should provide reasonable opportunities for growth.

Growing consumer confidence should result in an improved domestic market over the next 2 years, though a revival in commercial construction output is not expected to develop until 1995/96. In addition, restrictions on public spending are likely to remain in the medium term as central government attempts to reduce borrowing levels.

As a result, growth in the short-term will be led by the domestic market, with the commercial market unlikely to see major growth until the mid-late 1990s.

This comprehensive report represents a detailed assessment of the market, reviewing major trends, key factors influencing developments and future prospects for the sector. Analysis is both quantitative and qualitative, based on our substantial experience of the building and home improvement markets.

Text © 1993 AMA Research

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