Brant Kukuk, compact equipment product manager, Ditch Witch, discusses trends and challenges within the landscape industry.
Green Industry Pros: How would you describe the current state of the landscape industry?
Kukuk: The current state of the landscape industry remains strong, with continued robust demand in areas such as landscape, tree care, hardscape, pipe and cable installation. The fiber-to-the-home market is also expected to stay strong, driving significant business in 2024. The market's health is closely linked to economic fluctuations, with equipment demand often tied to housing and consumer spending. However, there has been a notable increase in demand for bigger stand-on skid-steers, which provide contractors with the power and versatility needed to excel in tree care and hardscaping projects. Overall, the industry remains strong, with related markets demonstrating resilience and growth, ensuring a positive outlook for the coming year.
Green Industry Pros: What trends have you noticed within the past year or so?
Kukuk: In the past year, we have seen a clear trend toward contractors demanding larger and more powerful machines. These machines are increasingly utilized in tree care, hardscaping and to easily maneuver heavy items such as sod, tree stumps and lawn ornaments on the jobsite.
We have also noticed that rental yards are more cautious with new purchases unless utilization rates justify them. Smaller landscaping tasks that require walk-behind trenchers or smaller stand-on skid-steers have been impacted by inflation and reduced disposable income, leading to a decrease in demand for these machines.
Contractors can maximize the utility of their equipment by diversifying their fleet of attachments, enabling them to take on different jobs and avoid dependence on seasonal work. By branching into other segments, contractors can ensure a more stable and diversified business, especially when seasonal work, like snow removal, is unreliable. This strategy allows them to tap into new revenue streams and sustain their business while waiting for an uptick in work in specific industry segments.
Green Industry Pros: What challenges are you hearing from landscape customers? How are they contending with those challenges?
Kukuk: Landscape contractors are currently facing the challenge of having too many options in the market, reminiscent of pre-COVID times. With inventory levels back to prepandemic norms, contractors now have a plethora of choices. And OEMs like Ditch Witch are well-prepared to meet this demand with ample inventory.
While this abundance provides more choices, it can also be overwhelming. One of the key challenges is finding the right equipment to meet their needs. To address this, many contractors are taking advantage of opportunities to demo machines side by side, allowing them to make more informed decisions. It is recommended that contractors lean on their dealership to help them compare different options and find the best fit for their specific requirements.
Green Industry Pros: What are your expectations for 2025?
In 2025, we will see significant improvements in the landscape industry as interest rates decrease, leading to positive spending trends. With state funding for broadband infrastructure, we anticipate an uptick in fiber installation projects. Inventory levels have returned to pre-COVID norms, allowing for steady operations.
A notable trend will be toward battery-powered and electric machinery. Driven by the need for more productive and efficient solutions, the shift to electric extends beyond smaller tools to include ground-engaging equipment as well. Electric equipment offers numerous benefits including increased efficiency, significant time savings and enhanced power. As the industry embraces electrification, it’s crucial for contractors to stay ahead of the curve. By considering electric equipment now, contractors can position themselves for success in the future.
