Crystal balling

The outlook for the landscape industry in 2026 indicates that while the industry is expanding, profitability will favour businesses that can adapt to environmental regulations, leverage technology to overcome labour shortages, and deliver high-value, sustainable, and durable projects.

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The latest Landscaping Services in Australia - Market Research Report (2015-2030) has identified a downturn in industry revenue of 11 per cent for the five-year period from 2020 to 2025. This downturn is largely due to the slump in construction of new houses that accompanied the mortgage interest rate hikes in 2022-23 and 2023-24. That dealt a blow to the performance of many small-scale landscaping contractors. The good news is that there are strengthening conditions in the residential building market in response to mounting population pressures, and analysts predict the situation will support moderate industry revenue growth.

Still, the focus of growth in residential construction will be towards higher density apartment and townhouse developments, which typically have a lower land area for gardens and lawns per dwelling unit than traditional housing. So, while growth is predicted to be strong in 2026, the industry is navigating pressures on several fronts. This includes labour shortages, volatility in material costs, and a shift toward sustainable, climate-resilient, and technologically advanced design solutions.

The trick for the industry will be to adapt to these changes rapidly.

Current drivers and influencing factors

Change is said to be inevitable while adaptation is optional. If you're not willing to adapt to the factors that influence the industry, you'll be left in the wake of those who do. There will always be those business pressures that remain relevant. But there will always be new ones on the horizon that will require landscape contractors to pivot their business models to remain viable as the environment changes.

These themes are not exhaustive, but they are worth exploring.