What were the biggest challenges your business faced in 2024?
In the 2023 survey, respondents predicted inflation as the top challenge they’d face in 2024 and they were right. Survey participants were asked to select all challenges that applied to them, and more than half cited inflation as their biggest challenge over the past year. The cost of everything — from equipment to fuel, materials to wages — crept higher and higher, eating into profit margins. Recruiting and retaining staff was the second highest rated challenge, with some respondents suggesting the cost of living is driving qualified people (staff and clients) away. Hiring staff beyond the summer season and replacing experienced workers who were retiring was also a challenge for many. Cancelled or reduced project scopes and low sales, possibly due to lower priced competitors, rounded out some core concerns for many. And yet, there were a lucky few who did not experience any challenges. For the coming year, most respondents anticipate the challenges of 2024 to continue. High inflation remains a constant worry, as does losing sales to lowballing competitors. Many feel enough work is available, but clients may need more education to understand the value of higher prices for quality work. The challenge of finding tradespeople to provide that quality work will certainly continue.
Did your business increase prices in 2024?
Do you expect to increase prices in 2025?
CLIENTS CANCCELLING PROJECTS OR REDUCING SCOPE 36.3 %
Yes 71.9%
Yes 74.8%
NO 28.1%
NO 25.2%
SOURCING MATERIALS OR EQUIPMENT 9.5 %
LOWER PRICED COMPETITORS 35.0 %
LEGISLATIVE/ REGULATORY BURDEN 11.3 %
VEHICLE AND/OR EQUIPMENT THEFT 5.0 %
OTHER 5.0 %
Almost three quarters of respondents said they raised prices in 2024. Most were moderate increases, with over a third raising their prices by up to five per cent, while only a small portion bumped them by more than 20 per cent. A major reason was to offset the higher cost of materials, but also to attract and keep quality employees by offering them a living wage. A quarter of respondents held steady at last year’s rates for a number of reasons, such as fear of scaring off clients who were also feeling stretched by inflation. Others had already raised prices last year and wanted to wait to see how this impacted their business. A very small percentage actually lowered their prices.
Increased costs of overhead and expenses affecting the bottom line. Also, some of the hourly rates of our long- term clients were too low or below the industry standard — hourly prices did not reflect annual cost of living increases. Even with an exclusive clientele and a very reputable bond with suppliers there is no support from the government to allow growth.
We have seen the prices from our suppliers still increase every year, as well as shipping costs, and we unfortunately need to pass this on to our customers. Economy was not good. Didn’t want to turn people off with higher prices. I expect to raise wages for the 2025 season in order to keep my excellent staff.
What do you expect to be your biggest challenges in 2025?
INFLATION - HIGHER MATERIALS/FUEL EQUIP./LABOUR 50.3 %
INFLATION - HIGHER STAFF WAGES 47.6 %
RECRUITING/ RETAINING STAFF 45.8 %
LOWER PRICED COMPETITORS 40.8 %
SOURCING MATERIALS OR EQUIPMENT 11.1 %
FORESEE NO MAJOR CHALLENGES 7.6 %
OTHER 1.8 %
Lower pricing usually comes with less quality, knowledge and service! "
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32 | LANDSCAPE TRADES
DECEMBER 2024 - JANUARY 2025 | 33
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