The US landscape design market is currently worth almost $7 billion and growing roughly 2% every year. The pandemic and global supply chain instability affected this market as much as many others, but there are additional challenges faced by landscape design companies navigating this competitive market. Today, we’ll explore the five big challenges facing landscape design companies.
1. Personnel Shortages
Two types of labor shortages affect landscape design companies:
Qualified Team Members
Finding and keeping qualified team members has become a significant struggle. Recent statistics show that this is the biggest challenge facing the industry. Building and training an expert team that encompasses creative design, project management, financial planning, and dependable subcontractors is a challenge in itself. Keeping that team happy and functioning is another story altogether.
At times, companies may take on larger projects that require additional personnel for some time. Finding qualified people who can be quickly integrated into the team without affecting the dynamics can be a real challenge. You may also need to decide how much to invest in recruitment, training, engagement, and retention, balancing the current needs with long-term budget constraints and existing commitments.
2. Staying Competitive
Staying competitive is also a multi-faceted challenge with several factors, including:
- Tools. With an increase in the availability of digital tools, companies need to adapt by staying up-to-date with the latest software and cloud-based applications available in the industry. This often requires extensive training.
- Prices. In any competitive market, there are always companies that try to drive down prices, believing that maintaining the competitive edge is only possible through “low-balling” project bids. This presents a challenge to companies that strive to offer more professional services.
- Professionalism. Being professional often translates to being selective. Bidding against the low-ballers can be frustrating and fruitless, so a company that wants to provide a more professional, high-quality service may have to be more deliberate in choosing what jobs to bid on and what customer base to develop and invest in.
3. Growth Management
Managing the growth of your landscape design company means juggling your project workload with other aspects of the day-to-day operations of an expanding company. How you manage your business accounting, customer service, marketing, supply-chain management, and other factors will affect profit and growth. Some organizations choose to outsource some of this work to professionals.
4. Government Regulation
Businesses need to factor in the impact of maintaining compliance with local and federal laws and regulations. This can affect your taxes, equipment costs, human resource management, and other aspects of your business that affect profitability. For businesses that operate in more than one state, maintaining compliance can be even more challenging. As a result, many have chosen options such as outsourced accounting services and tax preparation outsourcing to ensure compliance.
Accounting challenges affect all aspects of your business, from profit and loss tracking to cash flow, to supply-chain management, hiring, bidding, and project oversight. There are several developments that have contributed to the challenges faced in accounting.
- Digitalization. Digital transformation is driving a change from traditional accounting methods to multi-faceted software suites and cloud platforms that provide increased visualization, flexibility, and scalability.
- Automation. The move to digital platforms has also prompted opportunities to automate processes and implement artificial intelligence (AI) solutions to such aspects as analytics, budgeting, and forecasting.
- Regulation. The landscape design industry and the accounting industry itself are constantly undergoing regulatory changes, so maintaining compliance and navigating the legal implications can be quite the challenge for SMBs.
An increasingly attractive solution for these challenges is to outsource some of the workload to professional teams. For example, outsource engineering design and outsource accounting to experts who know the intricacies of maintaining financial stability and landscape design and can give your organization the competitive edge it requires. Pacific Accounting and Business Services (PABS) has been providing outsourced engineering design and outsourced accounting services to a wide range of SMBs for over a decade. Contact PABS today with specific questions or requests.