Aspire releases Commercial Landscape Industry Report
Aspire, a software provider for field service businesses, released its 2026 Commercial Landscape Industry Report, highlighting current market conditions, emerging trends, and contractor priorities shaping the year ahead. The report surveyed more than 1,000 commercial landscaping business owners and executives, and the study highlights how contractors are navigating ongoing labor shortages, economic pressures, and rising costs by doubling down on customer retention, tightening operations, and adopting integrated technology solutions.
“Despite industry-wide challenges, contractors are demonstrating resilience by focusing on what they can control, retaining clients, streamlining processes, and investing in scalable tech,” said Jon Gohl, director of customer experience at Aspire. “When companies reduce platform fragmentation and make smarter operational decisions, they position themselves to thrive.”
Contractors Are Focused on Growth and Retention
The report found that while 79% of respondents aim to grow revenue in 2025, the majority don’t plan to add new services. Instead, contractors are prioritizing customer acquisition and retention as primary business goals. Maintenance work remains the industry’s financial backbone, with 59% of contractors earning the majority of their revenue from recurring maintenance services.
Word-of-mouth and repeat business remain critical; 35% of contractors attribute revenue to repeat clients, while 26% cite referrals. With market uncertainty looming, contractors are turning inward to optimize workflows and improve profit margins rather than expanding service offerings.
Labor Shortages and Pay Disparities Prompt Wage Increases
Labor remains a top concern, with 70% of respondents planning to raise wages in 2025—44% by at least 4%. Pay gaps between maintenance and construction crews (often $4–$5 per hour) are compounding recruiting and retention challenges. Subcontractors are primarily paid via flat rates or a combination of pay systems.
“Hiring challenges aren’t just about headcount, they’re about finding quality talent,” said Eli Zevin, General Manager of Landscaping at Aspire. “Many contractors I speak with are raising wages not only to stay competitive in a tight labor market, but because they genuinely believe it’s the right thing to do as costs rise for their teams in everyday life.”
Contractors Battle Delays in Cash Flow
Cash flow delays remain a key barrier to stability. Although 76% of contractors bill within four days of job completion, only half of them report receiving payments on time. Over 60% of respondents say they typically receive payments at least one week late, and 7% report delays of two to three months.
To address this, contractors are being urged to reevaluate invoicing strategies and consider automated solutions like ACH payments and better customer communication to align expectations.
Technology Investment a Strategic Priority
The report reveals widespread fragmentation in software usage: 62% of contractors use seven or more solutions for end-to-end operations, and 29% use ten or more. This inefficiency is prompting a shift toward integrated, all-in-one platforms. Contractors cited the top reasons for changing providers as: automating workflows, improving efficiency, addressing feature gaps, and scaling effectively.
While only 55% of contractors currently use end-to-end business management solutions, 31% plan to invest in these platforms in 2025. Other planned tech investments include process automation, customer notifications, and smart routing.
Looking Ahead: Smarter, Leaner, More Resilient
As contractors enter 2025, economic uncertainty, cost fluctuations, and staffing challenges remain ongoing risks. However, the report makes clear that forward-thinking businesses are already adapting—tightening processes, making strategic tech investments, and prioritizing client relationships.
