As the landscape industry begins a new year, it is an apt time to look towards the specific economic and policy indicators that will shape 2026’s business conditions. In an exclusive interview with Pro Landscaper USA, Brittram Wood, CEO of the National Association of Landscape Professionals (NALP), provides his perspective on the economic forecast and key policy decision that will shape the coming months.

He begins by highlighting two key macroeconomic factors which top the watch list.

“Personally, the first thing I watch is interest rates, especially mortgage rates and the cost of capital for businesses,” Wood says. “When financing loosens, homeowners move, remodel and invest. Commercial clients approve projects and upgrades. When rates stay tight, larger discretionary projects slow and decision timelines stretch.”

The second critical indicator is the labor market, including job growth, unemployment and wage pressure. “Landscaping demand closely follows household and business confidence. When people feel secure in their income, they spend on improvements,” Wood notes. He added that Federal Reserve policy signals are crucial for this indicator as they influence both consumer demand and member companies’ operating costs.

Beyond broad economic trends, Wood points to specific “events” that will determine the landscaping market’s trajectory. Momentum in construction and remodeling is a primary driver, as residential resale activity, home improvement spending and nonresidential construction trends feed directly into industry pipelines.

Furthermore, federal policy will continue to remain a major and direct factor. “H-2B timing and any supplemental visa decisions are always critical for seasonal employers,” Wood states. He emphasized NALP’s ongoing advocacy, saying its government relations team works to push for “the timely release of the maximum number of visas and for long-term improvements to the program.”

With consumer spending on discretionary services forecasted to face pressure, Wood concedes that the industry will experience some buffeting. However, he identified routine maintenance for residential, HOA and commercial properties as the most resilient segment. “Customers may trim frequency or delay extras, but they rarely abandon core upkeep,” he explains. Strategies mitigating cash flow pressure will here focus on protecting retention and margins through operational efficiency.

Part 2 published next week will examine Wood’s thoughts on business strategies for navigating labor challenges and capturing growth opportunities in 2026.