HindSite Software released its 2020 Green Industry Benchmark Report. With responses from nearly 300 businesses, the 2020 Green Industry Benchmark Report provides comprehensive analysis of the industry. The 63-page is available for free download.
According to the report, 2019 continued a trend of growth for green industry businesses, as 37% of respondents indicated they’d grown their revenue by 10% or more in 2019, and 70% of respondents experienced a revenue increase in 2019.
Most expect more of the same in 2020, with 37% expecting moderate improvement, up 6% from a year ago. However, a labor shortage is still weighing heavily on the green industry, with 88% of respondents finding it very or somewhat difficult to find good employees.
Key report findings include:
- Training matters. Among businesses that grew, just 15% offered no recurring training for their employees. Those that saw their revenue decrease were nearly twice as likely to say they didn’t offer recurring training.
- Despite the labor shortage, businesses expect to grow their staff in 2020, with 70% saying they plan to increase their employee count.
- Profit margins were nearly identical to the previous year, with 33% of businesses reporting profitability in the 11-20% range, while 24% saw profits in excess of 20%.
- The typical green industry business spends roughly 39% of its revenue on wages.
- Service specialization is on the decline, with just 7% of businesses saying they offer just 1 of the 9 most common green industry services. That’s down 5% from the previous year.
- QuickBooks Online continues to slowly gain market share among accounting platforms, gaining 4% and now being used by 30% of the green industry. QuickBooks Desktop tops the list and is used by 44% of the industry.
- Aside from referrals, websites and truck signage continue to be sources of new customers for the typical green industry business. Social media grew slightly – from 14% to 16% — but the biggest mover was online advertising, which was up to 9%, compared to 5% the previous year.