'I've never experienced this': NJ landscaping companies face rising costs, labor shortage

After working in the landscaping industry for 40 years, Richard Goldstein never imagined he would face a labor shortage and sky-high fuel costs caused by inflation, both of which he is seeing today.

Goldstein, president of the New Jersey Landscaping Contractors Association and of Green Meadows Landscaping in Oakland, said, “We cannot find people to work. I don’t know where they are. I’m doing this for 40 years, I’ve never experienced this in my life, and I have 46 employees.”

The association offers educational seminars and resources to its members, and many have expressed concerns about high fuel costs and labor, Goldstein said.

Labor shortages and fuel costs are sharply affecting the landscaping industry. Goldstein said many contractors have said they had to decline prospective clients and additional work, and some are three to four weeks behind on jobs because of too little staffing.

Goldstein said he does not have enough laborers to fill the needs of his clients. His company is growing, and he could use the additional help.  

The labor shortage has not hit every company as hard, though. Michael Kolenut, president of Lincoln Landscaping in Franklin Lakes, said that since the start of 2022, he has hired 10 new employees after letting eight go last year.

Robin Brumfield, extension specialist in farm management at Rutgers University New Brunswick, said the landscaping industry is very labor-intensive and with high demand and not enough staff, companies will be forced to raise their prices.

Green Meadows Landscaping’s profit margins are declining, Goldstein said. And in addition to the added expenses caused by the rising cost of fuel, he said, the company's payroll costs have increased. The average wage for each employee has risen 2% to 4%.

Inflation has added about 15% to Lincoln Landscaping’s total expenses, but Kolenut refuses to charge more. He said that by being fair and ethical and not raising prices, he was able to keep his loyal customers and gain new ones.

“I’m doing more business because I’ve held the prices the same," Kolenut said. "At least for this year my intention is not to raise them at all, and I’ll take next year when it comes.”

According to Brumfield, the cost of fuel has fluctuated over the years, and though prices have risen drastically, she presumes that they will decrease eventually.

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“We’re not going to have the low gas prices we had during the pandemic, because it was simply supply and demand,” Brumfield said.

According to Goldstein, the fuel used in his company's trucks is up by 63.1%, and the offload gasoline usage, for powered equipment such as lawn mowers and leaf blowers, is up 105% over last year. The company’s highest fuel usage is diesel, up by 95.6%.

The company currently charges its maintenance clients a 3% fuel surcharge and is seeing only a 33% return while the company absorbs the other 67%.

To fill up a truck would usually cost Kolenut roughly around $90 but now costs $220.

“I’m trying to consolidate my rounds a little bit so there’s not so much driving,” he said.

Brumfield said that in recent years, people have gotten creative in finding ways to combat high fuel costs, such as combining trips and purchasing electric cars.

Last year Kolenut decided to invest over $100,000 in electric mowers, and with the surge in fuel costs, the mowers have proved to be a great investment.

Davaughnia Wilson is an intern reporter for Northjersey.com. Contact Davaughnia at wilsond@northjersey.com.