Architecture, Engineering, and Related Services [NAICS 5413]

NAICS 541320-LANDSCAPE ARCHITECTURAL SERVICES
NAICS Description:
This industry comprises establishments primarily engaged in planning and designing the
development of land areas for projects, such as parks and other recreational areas; airports;
highways; hospitals; schools; land subdivisions; and commercial, industrial, and residential areas, by
applying knowledge of land characteristics, location of buildings and structures, use of land areas,
and design of landscape projects.
From the US Census
SMALL BUSINESS MARKETPLACE
The small business marketplace for the Landscape Architectural services industry is comprised of
more than 35,000 businesses and dominated by firms with 0-4 people as this represents 67% of the
marketplace (Culbert, 2011). Furthermore, 42.7% of the industry is made up of sole proprietorships
(ASLA, 2012). Both Culbert and the ASLA survey report that 16-20% of the industry is comprised of
firms with 5-9 people. The largest percent of contracts come from the West Coast region due to its
malleable landscapes and the population’s desire for outdoor recreational facilities. Landscape
design comprises half of the market while urban planning, park and recreation planning, site
planning and other services make up the other half of the market.
INDUSTRY OUTLOOK
The industry is highly dependent on downstream forces like construction as well as the general
economic well-being in the region of operation. The residential market took a large hit during the
recent recession but is due to grow at roughly 4.6% through 2016. The growth in Landscape
Architecture jobs during the 2010-2020 time frame is estimated to be average (Bureau of Labor
Statistics, 2012). As key drivers (residential construction, non-residential construction) grow in the
years following the recession and government funds more infrastructure projects the outlook of the
industry is expected to improve.
CHALLENGES
The market of Landscape Architecture can be divided into four client types: residential, commercial,
public and multidisciplinary. Residential and Multidisciplinary represent greater than half of the
market and provides insight as to why the Landscape Architecture industry is so dependent on
downstream housing market forces. During the housing bubble leading up to the recession the
industry was prospering, but following the housing market crash during the 2008 financial crisis the
industry has suffered greatly and growth has been negative (Culbert, 2011). It is clear that
government stimulus will drive growth in the public sphere, but residential and commercial growth
will be dependent on property value. As property value increases residents will be more likely to
invest in remodeling; therefore industry revenue will not likely return to its pre-recession levels until
2014.
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