Pro and Consumer Trends in Landscaping. February 2017

Transcription

1 Pro and Consumer Trends in Landscaping February 2017

2 THE FARNSWORTH GROUP RESEARCH. INSIGHTS. ANSWERS. Providing custom research to the building products, home improvement, lawn & garden industries for 30 years to help manufacturers and retailers evaluate Consumer and Professional markets. 3

3 ON GOING RESEARCH OF DIYERS, PROS AND DEALERS CONSUMERS RESIDENTIAL PROFESSIONALS COMMERCIAL/ INDUSTRIAL PROFESSIONALS DIFM Light DIY Moderate DIY Heavy DIY Small Medium Large Specialist Generalist Specifier Installer Decision Maker TO ANSWER VARIOUS STRATEGIC QUESTIONS THROUGH OUR PRIMARY RESEARCH PROCESS. Market Sizing/ Brand Share End-user usage & attitudes Brand awareness & performance Product development Customer satisfaction Merchandising 3

4 INDUSTRY RESEARCHER AND CUSTOMER 4

5 LAWN & GARDEN FORECAST Near-term optimism, long-term concerns (labor, inflation, material costs, interest rates). Lawn and Garden following similar trends to building and home improvement growth. NOTE: I am not an economic, simply restate economists analysis and forecasts 3

6 LAWN & GARDEN MARKET SIZE FORECAST (excluding labor) Lawn and Garden Market Size Estimates: Total Lawn & Garden Nursery Stock & Soil Treatments Lawn & Garden Equipment and Supplies In billions Home Improvement Research Institute: Size of Market September

7 LAWN & GARDEN MARKET GROWTH FORECAST (excluding labor) 12.0% Lawn and Garden Market Annual Rate of Change: Total Lawn & Garden Nursery Stock & Soil Treatments Lawn & Garden Equipment and Supplies 10.0% 9.8% 8.0% 6.0% 4.0% 5.8% 7.2% 4.8% 7.3% 5.3% 5.3% 5.1% 4.9% 4.3% 4.3% 4.1% 3.8% 3.0% 4.5% 6.0% 5.3% 6.6% 4.3% 3.5% 4.8% 4.7% 4.0% 5.3% 5.6% 5.5% 5.0% 5.0% 4.2% 4.3% 2.0% 0.0% In billions Home Improvement Research Institute: Size of Market September

8 RESIDENTIAL REMODELING FORECAST Source: Joint Center for Housing, Remodeling Futures Program. LIRA Q4,

9 RESIDENTIAL REMODELING FORECAST (excluding labor) Home Improvement Products: Market Annual Growth (%) Consumer Professionals Home Improvement Research Institute: Size of Market September

10 RESIDENTIAL HOUSING FORECAST Source: Hanley Wood, Metrostudy. Mark Boud, Jan

11 HOMEOWNER LAWN & GARDEN ACTIVITY Homeowners will do it themselves (DIY), and many plan to. Increased spending on fundamental lawn & garden projects Home buyers remain more active with landscape projects than current home owners, which will only continue as the housing market grows. 11

12 PLANNING LAWN & GARDEN PROJECTS Plans for lawn/garden projects consistently have the highest incidence rate per quarter compared to other DIY activities o Project plans are very seasonal, with 2Q being the highest of the year o Nearly 80% of landscaping projects planed are DIY 50.0% % of homeowners planning a lawn and garden project Lawn and Garden Projects completed by: 45.0% 40.0% 35.0% 40.70% 40.8% 10.4% 11.4% 30.0% 25.0% 31.20% 28.90% 28.0% 34.5% 27.8% 26.4% 20.0% 78.2% 15.0% 10.0% 5.0% DIY BIY Pro 0.0% 2Q Q Q Q Q Q Q Q 2017 Home Improvement Research Institute: Project and Sentiment Tracking Study 1Q17

13 RECENT HOME BUYERS o o When buying a home, landscaping projects are some of the first projects undertaken by buy the homeowners All landscaping projects show a consistent rate of 75%-80% of the work done as DIY, which is lower than current home owners Amount Of Work By Paid Contractor 2016 Average Percentage: 23% Current Landscaping/Cement Work Improvements 2016 Added landscaping 62% Tree or shrub removal 59% Installed, repaired, or replaced landscape lighting 21% Installed, repaired, or replaced a driveway 17% Installed, repaired, or replaced a sprinkler system 15% Installed, repaired, or replaced sidewalks 13% Installed, repaired, or replaced curbing 10% Some other work 7% Home Improvement Research Institute: Recent Home Buyer Study 2016

14 PLANNED LAWN & GARDEN PROJECTS o Of those planning Lawn & Garden Projects, maintenance projects like mowing and weed trimming are most prominent Types of Lawn & Garden Projects Undertaken 90% 80% 70% 84% 80% 73% 69% 67% 66% 66% 60% 58% 57% 51% 50% 43% 40% 30% 20% 10% 0% FieldAgent: The Green Scene 2017

15 LAWN & GARDEN PRODUCT SPENDING AVERAGE ANTICIPATED SPEND FOR SPRING 2017 $ $ $ $ $ % of Lawn a& Garden DIYers are expecting to spend just as much, if not more than last year $80.00 $60.00 $86.67 $68.52 $61.84 $58.75 Nearly all (95%) of these lawn & garden purchases are expected to be instore vs. online $40.00 $20.00 $- $35.19 $ % of purchases are expected to be at a home improvement center (Lowe s, Depot, Menards) 13% Mass 9% Local Garden Center FieldAgent: The Green Scene 2017

16 OPE PURCHASED BY AGE Of those that recently purchased: Which type of outdoor power equipment have you purchased in the last 12 months? Ages % 5% 4% 20% 18% 12% 3% 2% 3% 14% 13% 9% 2% 0% 1% 7% 7% 5% 2% 1% 2% Walk behind mower (push or self propelled) Lawn trimmer/edger Chainsaw Blower Pressure washer Hedge trimmer Snow thrower/blower Of those planning to purchase: Which type of outdoor power equipment do you plan to purchase in the next 6-12 months? 7% 2% 8% 17% 14% 12% 9% 7% 8% 20% 14% 15% 4% 5% 5% 12% 10% 12% 4% 0% 2% Walk behind mower (push or self propelled) Lawn trimmer/edger Chainsaw Blower Pressure washer Hedge trimmer Snow thrower/blower 16

17 LAWN & GARDEN SERVICES PURCHASED While the average lawn/landscaping job is less than tree service, annual homeowner spend on lawn/landscaping is higher. Lawn/landscaping services** Lawn/Landscaping/Tree Services Purchased in 2015 Lawn & Garden (% of Homeowners) % Lawn/Landscaping Services** 2015 Average Number of Purchases 2015 Average Spend Per Purchase Occasion 9.9 $78 Tree service 1.9 $339 Tree service 8.5% Mean (Among Purchasers) 2013 Average Annual Spend 2015 Average Annual Spend 8.0% 0% 5% 10% 15% 20% 25% 30% Lawn/Landscaping Services** N/A $775 Tree service $629 $645 **New Level in 2015 Home Improvement Research Institute: Project Purchase Tracking Study

18 LAWN & GARDEN SERVICES PURCHASED Avoiding the work drives lawn/landscaping services hiring, while inability to do the work drives tree services Reason For Hiring Lawn & Garden Services How They Found Lawn & Garden Services LAWN/LANDSCAPING SERVICES LAWN/LANDSCAPING SERVICES TREE SERVICE TREE SERVICE Home Improvement Research Institute: Project Purchase Tracking Study

19 WORD OF MOUTH DEFINED HOMEOWNER WHAT THEY DEFINE AS WORD OF MOUTH PROS WHAT THEY DEFINE AS WORD OF MOUTH 76% Verbal Communication 83% 43% Facebook 55% 13% 11% 12% 17% 7% Instagram LinkedIn Twitter NextDoor Pinterest 13% 9% 13% 17% 9% 29% Home service sites/apps 17% 2% Houzz 22% 11% 14% 11% Online ads Print ads Manufacturer site or app 5% 9% 12% 3% Other social site or app 15% 4% *Includes top responses. May exceed 100% due to multiple responses Other websites 5% 19

20 BATTERY POWERED OPE - HOMEOWNERS Light DIY Females of the Boomer generation may be more likely to consider battery based on their perceived benefits of mobility. Environmental friendliness follows convenience and mobility as being a major benefit of battery powered OPE. All ages, genders and DIY level question the battery life, which is the main hurdle preventing homeowners from buying battery powered OPE. Performance and power were also major concerns of battery powered OPE. Homeowners are not averse to the technology so long as the performance, durability and length of use equals that of gas. Big box retailers play a major role in education and purchasing. Online sources for reviews and online retail also has an impact. 20

21 OPE PURCHASED BY TYPE Which type of outdoor power equipment have you purchased in the last 12 months? (n=474)) 48% 38% Gas powered Battery Powered Corded 5% 3% 17% 10% 26% 2% 7% 21% 15% 12% 16% 11% 13% 8% 6% 8% 1% 2% 1% Walk behind mower (push or self propelled) Lawn trimmer/edger Chainsaw Blower Pressure washer Hedge trimmer Snow thrower/blower Which type of outdoor power equipment do you plan to purchase in the next 6-12 months? (n=216) 39% 6% 1% 30% 28% 14% 19% 16% 7% 8% 5% 7% 26% 10% 12% 11% 8% 5% 16% 2% 2% Walk behind mower (push or self propelled) Lawn trimmer/edger Chainsaw Blower Pressure washer Hedge trimmer Snow thrower/blower 21

22 AWARENESS: BATTERY POWERED OPE TYPES When you think of battery powered outdoor power equipment, which types of equipment first come to mind?* (Open end response) GENDER DIY LEVEL AGE Total (n=594) Male (n=298) Female (n=296) Light (n=181) Moderate (n=288) Heavy (n=125) (n=197) (n=199) (n=198) Weed eater/ trimmer 41% 39% 44% 49% 39% 36% 35% 45% 45% Blower/ leaf blower 28% 23% 34% 34% 26% 24% 29% 32% 23% Lawn mower 21% 22% 20% 19% 24% 15% 19% 20% 24% Hedge trimmer 12% 13% 12% 16% 12% 8% 10% 13% 14% Edger 8% 7% 9% 12% 7% 6% 4% 9% 12% Chainsaw 7% 8% 6% 6% 8% 6% 7% 7% 7% Pressure washer/ power washer 3% 3% 2% 3% 3% 1% 4% 2% 3% Saws 3% 3% 3% 2% 4% 2% 3% 2% 4% *Includes top responses. Totals may exceed 100% due to multiple responses. 22

23 GAS PURCHASERS: CONSIDERATION OF BATTERY OPE (Those that purchased gas only) - How much did you consider battery powered equipment? Battery powered equipment does not use gasoline and does not use a cord plugged into an electrical outlet. (n=151) 21% Mean rating % 27% 17% 19% Age: % % % Age: % % % Age: % % % Age: % % % Age: % % % Never considered battery powered OPE Seriously considered Why was it not much of a consideration? (n=57) 4 If considered, why didn t you purchase battery powered OPE? (n=94) 5 Battery charge doesn't last Not enough power/not strong Hassle to charge the battery Too much land Prefer a different form of power More expensive/price 11% 11% 7% 23% 19% 32% More expensive/price Battery charge doesn't last Hassle to charge the battery 14% Not enough power/not strong 12% Females 24% Males 6% Prefer a different form of power 6% 21% 23 35%

24 GAS PURCHASERS: REQUIREMENTS FOR CONSIDERATION OF BATTERY POWERED OPE What would manufacturers of battery powered equipment, such as trimmers, blowers, and other equipment, have to do before you would consider using such equipment?* (n=151) Extended battery life 42% Lower price More powerful 19% 18% Extra battery included Lighter Gives a brand name More advertising Cheaper replacement batteries More information/proof of performance Warranty Faster charge None/Nothing Don't know 6% 5% 5% 3% 3% 3% 3% 2% 8% 2% *Includes top responses. Totals may exceed 100% due to multiple responses. 24

25 OPE CONCERNS (Of all OPE buyers and those that intend to buy) - When you think of battery powered outdoor power equipment, what would be your 3 biggest concerns?* (Open end response) Battery life/how long it holds a charge 76% Power/amount of power 50% Price Durability Charging time Weight/how heavy Charging/recharging Replacing battery/needing extras Cost of batteries/battery replacement costs Quality 16% 13% 12% 9% 7% 6% 6% 5% *Includes top responses. Totals may exceed 100% due to multiple responses. 25

26 OPE CONCERNS When you think of battery powered outdoor power equipment, what would be your 3 biggest concerns?* (Open end response) GENDER DIY LEVEL AGE Battery life/how long it holds a charge Total (n=594) Male (n=298) Female (n=296) Light (n=181) Moderate (n=288) Heavy (n=125) (n=197) (n=199) (n=198) 76% 78% 74% 76% 75% 80% 74% 76% 78% Power/amount of power 50% 55% 45% 53% 50% 48% 41% 56% 54% Price 16% 12% 20% 22% 13% 15% 14% 17% 18% Durability 13% 17% 9% 8% 15% 14% 15% 11% 13% Charging time 12% 11% 13% 12% 11% 16% 11% 11% 15% Weight/how heavy 9% 5% 12% 13% 8% 5% 7% 8% 12% Charging/recharging 7% 4% 11% 8% 8% 3% 7% 6% 9% Replacing battery/needing extras Cost of batteries/battery replacement costs 6% 5% 6% 4% 8% 2% 7% 6% 5% 6% 5% 6% 6% 5% 7% 5% 4% 8% Quality 5% 7% 3% 5% 6% 5% 6% 7% 4% *Includes top responses. Totals may exceed 100% due to multiple responses. 26

27 OPE BENEFITS (Of all OPE buyers and those that intend to buy) - What are the biggest benefits of using battery powered outdoor power equipment?* (Open end response) Cordless/don't have to deal with cords 36% Don't have to buy gas/no gas 33% Mobility/can go anywhere 17% Better for the environment 15% Ease of use/easier to start 7% Quieter 6% Lightweight 5% Cheaper to run/ no fuel costs 3% Don't have to mix gas and oil 3% *Includes top responses. Totals may exceed 100% due to multiple responses. 27

28 OPE BENEFITS What are the biggest benefits of using battery powered outdoor power equipment?* GENDER DIY LEVEL AGE Cordless/don't have to deal with cords Don't have to buy gas/no gas Mobility/can go anywhere Better for the environment Ease of use/easier to start Total (n=594) Male (n=298) Female (n=296) Light (n=181) Moderate (n=288) Heavy (n=125) (n=197) (n=199) (n=198) 36% 35% 37% 40% 32% 38% 31% 34% 42% 33% 27% 39% 37% 34% 26% 36% 33% 31% 17% 21% 12% 13% 18% 18% 17% 14% 19% 15% 15% 15% 19% 15% 9% 11% 17% 16% 7% 8% 5% 8% 4% 10% 6% 4% 10% Quieter 6% 8% 3% 5% 7% 5% 2% 10% 6% Lightweight 5% 6% 4% 4% 5% 6% 5% 5% 6% Cheaper to run/no fuel costs Don't have to mix gas and oil 3% 2% 4% 4% 3% 2% 5% 3% 2% 3% 3% 3% 1% 2% 8% 1% 5% 4% *Includes top responses. Totals may exceed 100% due to multiple responses. 28

29 BATTERY OR GAS PREFERENCE If battery powered outdoor equipment and gas powered outdoor equipment had the exact same brand, specs, price and performance, which would you prefer? 32% 28% 14% 15% 11% Battery over gas without question Battery over gas, but I d have to think about it Not sure Gas over battery, but I d have to think about it Gas over battery without question Why did you select?* (n=359) (n=152) Better for the environment 29% Prefer/more familiar with other options 23% Don't have to buy gas/ no gas Ease of use/easier to start 20% 16% More power Last longer/batteries don't last as long Performance 13% 11% 20% *Includes top responses. Totals may exceed 100% due to multiple responses. 29

30 MEAN SUMMARIES OF IMPORTANCE AND PERFORMANCE FOR GAS AND BATTERY How important were each of the following when you made your recent outdoor power equipment purchase OR when deciding which outdoor power equipment you plan to purchase? How well do you think gas powered and battery powered outdoor equipment performs or will perform on each of the following? Importance Performance - Gas Performance - Battery Performance - does its job well Reliability - starts up every time Speed - does the job quickly Competitive price Warranty Various features/ adjustments Well-known brand name 30

31 BATTERY POWERED OPE - LANDSCAPERS Landscapers are much less likely to use battery power OPE primarily due to perceptions of short batter life. Landscapers frequently cited the need to run their machines for several hours at a time, and the lack of resources (time, materials) needed to regularly charge batteries. Landscapers, much more than homeowners, would prefer a gas powered manufacturer make battery powered equipment. This is due to a strong dealer/service relationship many have in place. Landscapers also see bigger benefits of noise reduction and gas savings compared to homeowners. Landscapers clearly expect battery OPE to become more prevalent. However, adoption will continue to be stunted until they know the batteries will last to meet their needs, and their dealer /service network will support the products. 31

32 OPE PURCHASED What types of outdoor power equipment have you purchased or specified in the past 24 months for your landscaping firm?* Trimmer/edger Leaf blower Chainsaw Walk behind mower (push or self-propelled) ZTR or Zero Turn Radius Mower Rear engine riding mower Lawn tractor (front engine riding mower) Snow blower Pressure washer 90.0% 80.0% 75.0% 72.5% 60.0% 50.0% 42.5% 37.5% 37.5% Chipper, logger or splitter 17.5% *Includes top responses. Totals may exceed 100% due to multiple responses. 32

33 OPE PURCHASED GAS VERSUS BATTERY What percentage of the equipment you purchased in the last 24 months is gas powered and what percent is battery powered? Gas v Battery Purchases 3% 97% Gas Battery What percent of all your company s outdoor power equipment is battery powered? (n=7) 1-10% N= % N=1 If using, what types of battery powered, outdoor equipment does your company use? (n=7) Leaf blowers 3 pros Hedge trimmers 2 pros Backpack sprayer 1 pro Pressure washer 1 pro Saws 1 pro Edger/trimmer 1 pro 33

34 BATTERY POWERED OPE TOP OF MIND TYPES When you think of battery powered outdoor power equipment, which types of equipment do you think of? (Open end response) Leaf blower 37.5% Hedge trimmers Edger/trimmer Weed wacker 30.0% 27.5% 25.0% Lawnmower Saws 17.5% 17.5% Backpack blowers 7.5% Backpack sprayer Shears 2.5% 2.5% *Includes top responses. Totals may exceed 100% due to multiple responses. 34

35 TOP CONCERNS OF BATTERY POWERED OPE What are your biggest concerns with battery powered outdoor power equipment?* Batteries charge not lasting/ Run time 60.0% Reliable power source/ No down time Performance/ Power Time needed to charge Weight compared to gas Charging stations/ Location to charge Expensive/ Cost 15.0% 10.0% 7.5% 7.5% 7.5% 42.5% Not being able to rebuild or refurbish them. Compared to gas, we can completely tear the engines down and rebuild them ourselves. Being very remote, a lot of times we're off the grid when it comes to landscape jobs we may be out in the middle of nowhere with no power source other than a generator. Convenient chargeability. Lack of truck inversion charging systems, there aren't a lot of them on the market to make it work. I want something that's going to last and hold a charge. Price, it seems to be expensive for battery operated prods, and the batteries don't last forever so you have to replace the battery. *Includes top responses. Totals may exceed 100% due to multiple responses. 35

36 BENEFITS OF BATTERY POWERED OPE What are the biggest benefits of battery powered outdoor power equipment?* Quieter Fuel savings/ not having to use gas 30.0% 35.0% Savings on maintenance and noise for your customers. No gas, no oil, no repairs. Lighter in weight than gas powered. Environmentally friendly Reliable/ durable Fewer repair problems/low maintenance No cords Mobility/ portability Ease of use Lightweight Less smoke 17.5% 10.0% 7.5% 7.5% 7.5% 5.0% 5.0% 2.5% I wouldn't have to worry about OSHA standards when I'm working on a beachfront where you really aren't supposed to use fuel or worry about fuel leaking. You can use it inside a building without making exhaust, you don't have to carry around fuel. The quietness around the neighborhood. People go to work at different hours of the day and some people are trying to sleep so they can work at night and a lot of my customers ask for a particular time that I need to come by because they're sleeping because of their night work. *Includes top responses. Totals may exceed 100% due to multiple responses. 36

37 LIKELIHOOD TO PURCHASE BATTERY POWERED OPE How likely is your company to purchase battery powered outdoor power equipment in the next 5 years? 33% 33% 8% 13% 15% Very Unlikely Somewhat Unlikely Neither likely nor unlikely Somewhat Likely Extremely Likely Why do you say?* (n=16) (n=5) (n=19) Don't need/ don't use 38% Don't know anything about them 40% Performance/ reliability 21% Not as much power as gas Performance/ reliability 19% 25% Too new/ needs to be around longer No one offers here I may try it 20% 20% 20% I may try it Needs to be more environmentally friendly 11% 16% Don't know 20% Would be quieter 11% *Includes top responses. Totals may exceed 100% due to multiple responses. 37

38 INCENTIVES TO PURCHASE BATTERY POWERED OPE What must manufacturers of battery powered OPE, such as mowers, trimmers, and blowers, do to get you to purchase more battery powered equipment?* Extend the battery life/ stamina/ last longer More availability for commercial use/ have more dealers Less expensive More power Offer demonstrations Offer by top selling brands 22.5% 15.0% 10.0% 7.5% 7.5% 7.5% They should create a battery backpack where you can just plug the equipment in. They're going have to create a better warranty. Reduce the weight of equipment and increase run time. Getting into a local marketplace and displaying and demonstrating or having it available to use, or another option would be to have a return policy if you're not happy with it in a certain amount of time. Offer locally Have storage for replacement battery/ battery backpack More information about product Nothing/ Don't know 5.0% 5.0% 5.0% 22.5% To be able to have more of a commercial stance when it comes to their battery operated equipment, it feels like it's more of a residential homeowner, but when we're doing 20 to 30 yards a day by the time I get to number 15 and your batteries aren't working right I'm slowing down for no reason. *Includes top responses. Totals may exceed 100% due to multiple responses. 38

39 FUTURE BATTERY POWERED OPE TRENDS What outdoor power equipment product trends do you think will become more prevalent in the next 5-10 years?* Battery powered equipment 25% Propane powered equipment 20% Products that are quieter Equipment that is more emissions friendly More electric powered equipment 10% 10% 10% Products that don't use as much gas 5% Less horsepower 5% Don't know 28% *Includes top responses. Totals may exceed 100% due to multiple responses. 39

40 Contact Grant Farnsworth x Intech Blvd., Suite 100 Indianapolis, IN 46278