Tree Trimming Business Overview

Tree trimming businesses provide professional services to maintain, prune, and remove trees for residential, commercial, and municipal clients. These services are essential for improving the safety, aesthetics, and health of trees.

Related: Checklist To Start A Business

How Do Tree Trimming Businesses Make Money?

Tree trimming businesses generate revenue by providing essential maintenance and removal services for trees. Most businesses price their services by evaluating factors such as tree size, location, condition, and required equipment.

The common ways tree trimming businesses make money can include:

• Tree Pruning and Trimming: Charging for regular tree maintenance, including trimming branches for safety, health, and aesthetic purposes, forms a large portion of income.
• Tree Removal: Removing dead or hazardous trees is another major revenue source, often involving higher fees due to the complexity and equipment required.
• Stump Grinding and Removal: Offering stump grinding services to clear properties of tree stumps provides an additional income stream.
• Emergency Storm Cleanup: Responding to storm-damaged trees and debris allows businesses to charge premium rates for urgent services.
• Disease Diagnosis and Treatment: Helping clients identify and treat tree diseases or pests can generate specialized income, particularly for arborists.
• Land Clearing Services: Preparing land for construction or landscaping by removing trees and brush can diversify income sources.
• Contracted Maintenance Services: Securing ongoing contracts with municipalities or commercial properties for regular tree care ensures steady revenue.

Industry Statistics

Tree trimming services are classified under NAICS code 561730 – Landscaping Services. This section provides a statistical overview of the tree trimming industry.

Tree Trimming Industry Size & Growth: The tree trimming industry generated $35.6 billion in revenue last year. The industry has shown steady growth, with an average annual increase of 5.8% over the past five years. Growth projections indicate continued expansion due to rising residential property maintenance needs and increasing commercial construction activity (IBISWorld).

Number of Tree Trimming Businesses: The industry consists of approximately 144,000 businesses. Two major companies dominate the commercial sector – Asplundh Tree Expert LLC and The Davey Tree Expert Company. Asplundh Tree Expert LLC leads with $3.66 billion in revenue, while The Davey Tree Expert Company generates $1.75 billion. Together, these companies represent a small portion of the total market, as most tree trimming businesses operate locally (IBISWorld).

Tree Trimming Profit Margin: The average net profit margin in the tree trimming industry is 10.3%, but it will vary based on business size and service mix.

Also See: Ideas for Naming a Tree Trimming Business

Costs To Start a Tree Trimming Business

Starting a tree trimming business can range between $10,000 to $150,000, depending on the scale of operations planned. The lower end assumes using an existing truck, while the higher end includes new commercial equipment and vehicles.

Here are some of the main costs to consider when starting a tree trimming business:

Equipment and Tools: A new business needs basic tree trimming equipment including professional chainsaws, pole saws, safety gear, ropes, harnesses, climbing spikes, and ladders. Basic professional-grade equipment ranges from $3,000 to $8,000.

Vehicles: Many owners start with an existing truck and trailer for hauling equipment and debris. For those needing vehicles, a used commercial-grade truck could cost between $20,000 to $45,000. Adding a chipper increases costs by $15,000 to $35,000.

Insurance Coverage: Tree trimming involves high-risk work, requiring comprehensive liability insurance and workers’ compensation coverage. Initial insurance premiums and bonds range from $5,000 to $15,000 depending on coverage levels and number of employees.

Training and Certifications: Professional certifications from organizations like the International Society of Arboriculture demonstrate expertise and may be required for certain contracts. Training programs and certification costs range from $1,000 to $3,500.

These estimates represent general ranges, and actual costs will vary based on location, business size, and equipment quality.

Resources:
American Society of Consulting Arborists
International Society of Arboriculture
Tree Care Industry Association
Utility Arborist Association