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The
Economic Impact of the Green Industry
The Business of Being Green American consumers spent a total of $39.6 billion on their lawns and gardens in 2002, an increase of $1.9 billion, or 5%, over 2001. During the past five years, total lawn and garden sales have increased at a compounded annual growth rate of 8%. From 1997-2002 lawn and garden sales increased from $26.6 billion to the aforementioned $39.6 billion. Grower cash receipts from nursery and greenhouse sales (on sales of plants to retail and distribution businesses) have grown steadily over the last two decades and are increasing at approximately $500 million per year. On average, consumers spent $466 per household on their lawns and gardens in 2002. Over the past five years, annual spending has grown by about 4% per year and has averaged $452. Eight out of 10 U.S. households (79%) or 85 million households participated in one or more types of do-it-yourself indoor and outdoor lawn and garden activities in 2002. This is the same as in 2001 and is equal to the highest level of participation seen in the past five years. A Gallup survey, taken in 1999 and sponsored in part by ANLA and PLANET (formerly ALCA and PLCAA), found that lawn and landscape maintenance accounted for the largest dollar volume of green home improvements ($6.7 billion) and the greatest household participation (13.1 million), while landscape installation and construction represented the largest average amount spent per household ($1,479). In 1999, Americans age 50 and older represented the largest customer group, accounting for one half ($8.7 billion) of total spending on professional lawn and landscaping services. A Leading Agricultural Producer The United States is the world's largest producer and market for nursery and greenhouse crops. These crops represent an important and unique segment of agriculture, and their impact is felt on the national, state and community level. In terms of economic output, nursery and greenhouse crops are the…
Ten states account for more than two-thirds of all nursery-crop output in the United States:
In October 1999, the U.S. Department of Agriculture’s Economic Research Service reported: “Floriculture and environmental horticulture is the fastest-growing segment in U.S. agriculture in grower cash receipts [for 1998], averaging nine percent annual growth.” A year 2000 study released by the California Green Industry Council reports, “The green industry in California is an economic powerhouse. It’s one of California’s largest industries. University studies have consistently found that this dynamic, growing industry represents more than $12 billion in sales and hires 130,000 employees. What’s more, landscapes cover more than 1.6 million acres in California—making our backyards one of California’s largest and most valuable resources.” A 1994 University of Florida study examined turfgrass in the state and reported, “There was about 4.4 million acres [of turfgrass], with 75% of this area in the residential household sector. Turfgrass-industry employment was 185,000 full-time and part-time workers, or 130,000 full-time equivalents. Value added to Florida’s economy by all sectors of the turfgrass industry totaled $7.3 billion.” Many businesses, including those not associated directly with the landscape industry, can lose income and profits, which can result in employee cutbacks and layoffs. In areas where well-maintained landscapes attract a wide variety of short- and long-term visitors, tourism revenues can drop. Commercial and residential development can also decline as fewer people want to move into an area that cannot provide its citizens with what they view as a reasonable amount of water. When landscape watering restrictions or bans go into effect Who Feels the Impact? Depending on the degree of the restrictions, everyone from a high school student working part-time selling lawn mowers to the owner of a landscape service or irrigation company can be affected. The impact can be economic, aesthetic and even environmental. Direct Impact
Indirect Impact
A Major Provider of Jobs The American nursery and landscape industry employs more than 600,000 workers during peak seasons. Growers employ at least 45,000 workers year-round and 105,000 during peak seasons. Net farm income is the highest of any production specialty in domestic agriculture. At an annual average of $53,589, nursery and greenhouse income is four times higher than the national average ($13,458). Landscape and retail firms employ nearly 500,000 full-time, part-time and seasonal workers. Additional Resources: Research Web Sites — “Horticulture Related Quick Facts, 1998 Census
of Horticultural Facts.” USDA National Agricultural
Statistics Service (NASS). — “Calendar” USDA
Economics and Statistics System (ESS), Mann Library,
Cornell University. |
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