🔦 Welcome to this week’s edition of Sector Spotlight!

Every Tuesday we highlight an under-the-radar and often underappreciated industry. This week we take a closer look at the Tree Trimming sector.

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-Harry & Carter

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🔎 We identified 239 tree trimming service companies* as strong, potential targets. Click here to access this list.
 
*These companies have verified contact, location, and financial data. We limit the number of downloads for each company list (so we don’t overwhelm the sellers).
Revenue between $1.5M - $20M

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Tree Trimming Services

🏢 Size of Industry: $163.89B
📈 Industry Projected Growth: 2.5% (CAGR)
💰 Average Profit Margin: 8.4%

🔑 Key Highlights

• Steady Revenue Growth: The increase in construction activity is providing a nice tailwind to this industry providing overall revenue growth.

• Resilience in Residential Market: With an aging population and increasing homeownership, demand for tree trimming services from residential clients is expected to remain strong.

• Stable Public-Sector Demand: Strong federal spending and investment in infrastructure have supported public-sector budgets, ensuring consistent demand for tree trimming services.

• Targeting Senior Citizens: With the aging American population, there is an opportunity for tree trimming businesses to target senior citizens who require maintenance services for their homes. Offering senior discounts and catering to this demographic could provide a reliable source of revenue.

📋 Industry breakdown

Trimming and Pruning Services stand as the cornerstone of the industry, encompassing a diverse array of vegetation management tasks. The largest market for trimming and pruning services is found among single-family households in suburban areas. However, a notable portion of revenue in this segment is also derived from electric utility and wired telecommunication companies. These entities often contract specialized vegetation management firms like Asplundh Tree Expert and Davey Tree Experts for branch clearance services.

Emergency Tree Services offer lucrative margins, providing 24-hour response services in the aftermath of severe weather events such as strong winds or snowstorms. These services are primarily utilized by utility companies, though households and commercial clients also seek assistance in clearing fallen trees and debris obstructing roads and pathways. The increasing frequency of severe storm events, particularly in regions like the Mid-Atlantic and Southeast, has spurred heightened demand for emergency response services.

Tree Felling and Stump Removal services remain in perpetual demand, involving the removal of dead or obstructive trees, often to facilitate new construction. These services typically entail the removal of the aboveground portion of the tree, with additional charges for hauling and stump removal. Given the inherent dangers and complexities associated with tree felling, companies offering these services command premium rates. However, they also necessitate greater insurance coverage and training due to the heightened risks involved.

 📱 Relevant listen

Thanks for reading and don’t hesitate to reach out! - Harry & Carter

👀 Have a favorite industry and need SMB targets? Check out our verified Company Lists compiled by our expert team.