Landscaping sector comes under pressure

23 January 2009

The landscaping sector is coming under pressure as the recession forces business to scale back discretionary spending.

As private business starts to struggle, spending on big external landscaping projects is being reduced. Firms are also trimming expenditure on plants and fresh flowers in reception areas and atria.

Jeremy Ward of Incentive FM said: “Most of the things in the built environment are seen as necessities. You have to clean your building, perform basic maintenance and provide security. But people are now looking hard for non-essentials to cut.”

“Specifications are going. And fripperies and one-offs are disappearing from the private sector,” he continued.

Ward also reported that landscaping firms are experiencing pressure on margins. He was aware of another landscaping firm which was forced to reduce its price by 5 per cent by a big shopping centre client or lose the contract.

John Gillan, chairman of the British Association of Landscape Industries, also saw evidence of projects being delayed or cancelled: “We are already getting vibes of projects being shelved, and I don’t know when the upturn will come”.

However, he expressed confidence that the sector would be sustained by public sector spending. “Big projects like the Olympics and Thames Gateway are very good for industry, even if it means only the larger companies will be working on them. That will create gaps elsewhere in the market, which will be good for smaller companies.”