The landscaping industry is a complex economic sector spanning horticulture, construction, and specialized services. This multi-faceted nature challenges formal economic systems designed to categorize businesses for statistical, regulatory, and taxation purposes. Understanding the official division requires examining the specific services rendered and the formal codes used by government and commerce agencies. The primary classification is driven by the fact that the majority of landscaping work involves ongoing maintenance and support functions rather than large-scale initial construction projects.
Defining the Scope of Landscaping Services
The scope of a landscaping business is typically divided into three primary service categories that define the industry’s boundaries. These distinct functions are instrumental in determining how a firm is formally classified.
Installation and Construction
Installation services involve creating new landscapes or renovating existing ones. This work includes softscaping, such as planting trees, shrubs, flowers, and installing sod or hydroseeding. Firms also integrate hardscaping activities, covering the construction of non-living elements like patios, walkways, retaining walls, and outdoor lighting systems.
Maintenance and Groundskeeping
Maintenance and groundskeeping represent the recurring, service-based portion of the industry and often constitute the largest revenue stream. These activities encompass routine services, including weekly lawn mowing, trimming, pest control, fertilization programs, and seasonal cleanups. The repetitive nature of this work is a primary reason the industry is placed within a service-based economic division.
Design and Consulting
Design and consulting services focus on the planning and conceptualization of outdoor spaces rather than the physical labor. This function is typically performed by landscape architects and designers who produce technical drawings, site plans, and planting specifications. These professionals consult on land characteristics, water management, and the arrangement of structures, providing the intellectual groundwork for installation and construction crews.
The Major Economic Sector Classification
The multi-disciplinary nature of landscaping leads to confusion about its major economic sector classification, particularly whether it belongs in Construction or Services. While activities like building retaining walls resemble traditional construction work, the industry’s official grouping prioritizes its predominant activities. The high volume of recurring maintenance and specialized support functions ultimately places most landscaping firms outside the Construction sector.
The industry is generally grouped under the broader Administrative and Support Services sector. This reflects its role in providing specialized support to businesses and private households. This designation acknowledges that the core business model relies on continuous service contracts rather than one-time project completion.
Official Industry Classification Codes
The North American Industry Classification System (NAICS) provides the official, detailed classification for the landscaping industry. The primary code is NAICS 561730, which specifically denotes Landscaping Services. The initial digits, 56, place the industry within the Administrative and Support and Waste Management and Remediation Services sector.
The six-digit code signifies businesses primarily engaged in providing landscape care, maintenance, softscaping installation, and related hardscaping elements. Government agencies use these codes for collecting statistical data, determining eligibility for business loans, and setting taxation rates. The older Standard Industrial Classification (SIC) system previously used codes filed under the Agriculture division, highlighting the industry’s historical tie to horticultural practices.
Subdivisions within the Landscaping Market
The landscaping market is subdivided based on the type of client and the scale of the project, which dictates the necessary operational infrastructure. These subdivisions—Residential, Commercial, and Institutional—require fundamentally different approaches to equipment, insurance, and contract structures.
Residential Landscaping
Residential services focus on individual homeowners, emphasizing personalized design, aesthetics, and family functionality. This work typically utilizes smaller, versatile tools and involves informal, personalized maintenance agreements.
Commercial Landscaping
Commercial landscaping caters to businesses, office parks, and multi-family housing, requiring a focus on durability, safety, and professional image. These large-scale projects necessitate heavy-duty, industrial-grade equipment. Contracts are typically long-term, comprehensive maintenance agreements that often require specific insurance coverage, such as higher general liability limits and additional insured endorsements.
Institutional and Governmental Work
This work, such as for parks or schools, involves the most stringent requirements, often demanding compliance with regulations like the Americans with Disabilities Act (ADA) for hardscaping. These projects frequently require contractors to furnish performance bonds and adhere to complex public bidding and contracting processes.
Professional Divisions and Certifications
The workforce includes distinct professional divisions based on expertise and legal credentialing requirements. The most formally regulated division is the Landscape Architect, who must hold a state license following an accredited degree and a rigorous examination. These licensed professionals specialize in large-scale design, planning, and consultation services.
Other professional divisions are recognized through industry certifications that validate specialized knowledge and skills. For instance, a Certified Horticulturist demonstrates expertise in plant health, soil science, and pest management. Technicians can earn credentials like the Landscape Industry Certified designation, confirming proficiency in practical skills such as installation, maintenance, or irrigation techniques. These certifications serve to establish expertise and elevate professional standards among general landscape contractors.