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Just as there is distinction in how a slowing economy effects the design/build vs. the maintenance companies in landscaping, there is probably also a difference between the commercial and the residential landscape construction companies.
The "low-ballers" are perhaps more apt to survive a down turn in commercial work (as long as they still get paid) because quality is less of an issue than price (from my experience).
In residential, however, it's not just a "project," it's their home. Inevitably quality will matter more. At least for those that take pride in their property. Those that just want "something green across the front foundation," may just be price hunting like the GC's but there are plenty of people still interested in quality landscaping that will not tolerate the "fly-by-nighters." When the economy is booming and the quality landscapers have a long waiting list, many of those people grow impatient and hire the low-ballers, rather than wait. But when the economy cools, much of the backlog disappears and those good customers won't be forced to deal with the low-ballers.
....at lease this seems to be the flow of things in my area. And I greatly prefer to deal with a blank slate when designing/installing, rather than ripping out, replanting and rebuillding someone else's crappy designs and plant and hardscaping installations. And that inevitably means there's less money (and trust) in the landscaping construction budget because it's now being redone a second time.
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