Structure of landscape installation companies is changing due to labor shortages
Change is coming to the landscape industry by way of labor reform. These changes are being seen across the country. Business owners who are unwilling to raise wages for skilled labor like hardscapers will lose this crucial entity over the next few years. Many of these types of workers have started their own businesses hoping they can get a bigger piece of the pie. The hardscape industry is booming in Knoxville and many other growing cities across the country with plenty of work to go around.
As prices have gone up for these types of installations since COVID, many times that has not resulted in higher wages for workers. As a result, many installation companies are turning to subs to complete the jobs they sell. These companies end up hiring the same workers that just left them except with one exception – higher wages. Instead of companies controlling how much the workers make via hourly wages, the new structure is the worker, now a sub, naming their price for completing a job. This change causes the worker to get what they wanted, higher wages, and the installation company has little choice but to hire them.
Finding skilled labor in the landscape business is not easy right now and some would say it is almost impossible. No skilled hardscape laborer is going to work for a company making $25 an hour when they can work on their own for 4 times that. I have heard installation companies say they have run ads for foreman positions for years and not been able to land one. The problem for landscape companies is these workers now know what they are worth and are willing to take a chance to get the money they deserve.

This trend does not fall in the category of redistribution of wealth but it does change the industry in many ways. Some of these changes have already been felt, but many are still taking shape as some involved in the industry are taking a while to catch up to the game. Those that are to slow will miss out on new opportunity.
Landscape designers’ roles are changing as well, many are starting their own businesses instead of working for installation companies as designers/salesman. Designers use to rely on the company they worked for to provide labor, equipment and most importantly, leads. Now, with many companies having to turn to subs to complete work, the only thing these companies provide is leads which can in many cases be obtained in other ways.
Designers fuel the industry by generating the work for the companies through sales and project managing the jobs to completion. Experienced designers that go out on their own have relationships with many subs, including at previous jobs, so the transition in the way projects are completed is relatively seamless. The end result is more money for subs and designers because the huge cut the installation company previously received (up to 50%) is now being split up between the designer and the laborer. This usually results in lower prices for the client which can only help the industry in the long run.
Change has been in the air for the last few years in all phases of life and the landscape installation industry is no different. Restructuring is occurring and those that hope or wish for things to stay the same may miss the bigger message. Hopefully the end result is more money for workers, both laborers and designers, and potential clients might be looking at slightly lower prices. The ones that might suffer are the owners of large installation companies that rely on in-house labor to meet their profit margins. These companies will either have to adjust to using subs for their projects or decide to close up shop altogether. The ones that do resist change and do not realize that things are not going to go back to the way they were will possibly go out of business for good.


As the drawing illustrates each plant species has it soil horizon or layer that its root system resides. By planting groundcovers you are giving your soil a great start towards sustaining a great plant community and high nutrient levels.
