Here are seven long-term industry trends from 2024 to keep front and center as we move into 2025.
1. Sustainability:
This decade will present challenges and opportunities. On the one hand, harsher, chaotic weather is creating the need for restorative services, along with better stormwater management, tree services, etc. On the other hand, the more significant trend of battery power will continue to grow. It’s not just robotics; electrification will have a far-reaching impact this decade. Make sure your leadership team anticipates these changes.
2. Technological integration:
Every year, there are more and better options to automate your business. Your clients and employees want ease of doing business; if you can marry these two sets of needs, you will have stellar results.
Pro tip: Make a two-year onboarding plan for new technologies to keep you non-reactive, but update it quarterly so you stay current. Most companies underutilize their current tech, so task someone with ensuring you maximize utilization.
3. Workforce development:
The workforce challenge will not be eliminated with automation or immigration, so it’s important you become the employer of choice in your market, as I wrote in my book, “Destination Company.” Reframe your mission. Embrace the mindset that “we are a people-development company with expertise in landscaping.” Nurture a training mindset and methodology to upskill your team. Technology will help, but not without investing in both trainers and other resources.
Pro tip: Don’t let pay become a stumbling block. Better employees pay for themselves.
4. Financial management:
Ironically, last year’s financial winners mastered their marketing and sales funnels. Yes, know your numbers, but don’t stop there. Everything in our industry has been in flux — costs, demand, supplies, competition, etc. You have to stay nimble.
Two pro tips: First, revisit pricing, capacity and cost assumptions quarterly. Develop your own executive scoreboard to stay on top of your metrics. And second, have one person review all your purchases throughout the year and negotiate from that annual vantage point.
5. The leadership advantage:
The companies with the best leaders win. The key is having people who can grow as your company grows. This requires you to think bigger when making your next hire. Don’t be afraid to look outside the industry for great people with a growth mindset. It’s these fresh minds that will change our industry.
Pro tip: Develop an organization chart for a company two to three times your size, and then consider the advanced leaders you would need in key positions at that company.
6. Acquisition mania:
Every week you read about another transaction. At Jeffrey Scott Consulting, we have helped owners sell their companies for high value, and we also help companies do the acquiring. The compelling benefit of acquisitions is that you can grow your enterprise value in multiple ways. When you buy a smaller company for X, for example, it can become worth +/- 2X as part of your larger company, assuming you have a well-run company that can take advantage of the synergies. Also, the realized acquisition cost decreases as you increase the revenue (and contribution) from the new client base and sales funnel.
Pro tip: Only buy from owners (sellers) that align with your values. Otherwise, you may buy a surprise problem you had not counted on.
7. Retire in place:
Besides selling, you also have the option to “retire in place,” which we have helped more companies do in 2024 than ever before. Look for this trend to continue.
2025 is going to be chaotic and high growth. Be prepared for both. This requires a great infrastructure and a super leadership team working well together, one that won’t drop balls when you’re ready to pivot.
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