sponsored by 2024 GREEN INDUSTRY OUTLOOK – CONTRACTORS
Growth and challenges M
ore than half of contractors believe that their businesses have had moderate to significant growth in the past year (56%), climbing to 63% if you’re a contractor under the age of 40.
Tat follows trends from last year, coming off of another season in which the market has tended to have more work available than the capacity to meet it in some regions. Whether a respondent reported they had enough labor in the past year or not didn’t significantly affect this result. Even more overall (63%) expect that next year’s growth in demand will continue, and for contractors under 40, that jumps to 80%. Tat’s showing trust in the market, as most (70%) have projects planned through next June, but not beyond. For contractors under 40, 29% have projects scheduled through the end of 2024. Tere’s no question what most contractors see as their biggest chal-
lenge again this year: labor. Discussing barriers to growth, 72% point to labor availability and retention, with a 29% drop to the next high- est response, economic conditions (43%). However, respondents who reported having enough labor for the past year led this list with eco- nomic conditions (55%), followed by labor (52%) and insurance (31%). Respondents who said they couldn’t find enough labor pushed it even higher at 82%, followed by economic conditions (38%). Labor also leads company expenses (82%) by a wide margin, com-
pared to second place, equipment, tools and materials (37%). But opportunities are available, as most contractors (54%) expect
smart irrigation technologies to impact their growth in the coming year. Irrigation contractors are even more confident, as 71% are watch- ing smart irrigation closely, about 20% higher than their next ranking, remote irrigation system management (47%).
All questions related to revenues specified an end date of June 30, 2023, and are related to information relevant prior to that date.
How much do you expect your business has grown in the past year?
2% 12% 31% 9% 47%
Significant growth Moderate growth About the same Moderate decline Significant decline
What was your business’s revenue for the past year?
Less than $100,000 $100,001-$500,000 $500,001-$1 million $1,000,001-$5 million
$5,000,001-$10 million More than $10 million
10% 23% 16% 29% 9% 13%
How far do you currently have scheduled projects, not counting maintenance/service visits?
What’s your expected growth in demand for your business’s services in 2024?
1% 7% 30%
49% 14%
Significant growth Moderate growth About the same Moderate decline Significant decline
3% 21% 70% 6%
Through June 2024 or sooner Through December 2024 Through June 2025 Through December 2025 or longer
14 Irrigation & Lighting November 2023
irrigationandlighting.org
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