Hass Irrigation Systems
Market Analysis Summary
The city has been growing by 9% annually for the past 10 years. With the population now at 900,000, the new construction in the Lake Charles section of the city is valued at $600 million in home sales next year alone. New construction represents an important customer group for Hass Irrigation Systems.
The other significant customer group are the existing home owner in the Lake Charles area. The revitalization of the area has generated increase remodeling of existing homes. Last year, remodeling projects were up 20% over the previous year and accounted for $15 million paid for remodeling services in the area.
4.1 Market Segmentation
Hass Irrigation Systems will focus on two significant customer groups:
- New home construction;
- Landscaping projects.
| Market Analysis | |||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
| Potential Customers | Growth | CAGR | |||||
| New Home Construction | 7% | 2,000 | 2,140 | 2,290 | 2,450 | 2,622 | 7.00% |
| Landscaping Projects | 5% | 2,200 | 2,310 | 2,426 | 2,547 | 2,674 | 5.00% |
| Total | 5.97% | 4,200 | 4,450 | 4,716 | 4,997 | 5,296 | 5.97% |
4.2 Service Business Analysis
The market for irrigation contracting services is very competitive. Among these, only five are competing for work in the Lake Charles area. These are small businesses with less than four full-time employees, except for J. Dodd Irrigation Services that has a staff of eight. Hass Irrigation Systems’ current niche is its strong relationship with Bentwood Custom Homes, Greenridge Homes, and Landmark Homes.
Andrew Hass’s unique landscaping program and protocols will also be a critical advantage in building Hass Irrigation Systems’ customer base.
By 
