• TABLE OF CONTENTS
HIDE
 Copyright
 Title Page
 Executive summary
 Table of Contents
 List of Tables
 List of Figures
 Acknowledgement
 Introduction
 Methods
 Overall results
 Results for wholesale nurserie...
 Results for horticultural...
 Results for landscape service...
 Results for households consume...
 Results for commercial and institutional...
 Questionnaire for wholesale...






Group Title: Economic information report - Food and Resource Economics Department - EIR 99-1
Title: Economic impact of Florida's environmental horticulture industry, 1997
CITATION PAGE IMAGE ZOOMABLE PAGE TEXT
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00027370/00001
 Material Information
Title: Economic impact of Florida's environmental horticulture industry, 1997
Series Title: Economic information report
Physical Description: 48 p. : map ; 28 cm.
Language: English
Creator: Hodges, Alan W ( Alan Wade ), 1959-
Haydu, John J
University of Florida -- Food and Resource Economics Dept
Publisher: University of Florida, Institute of Food and Agricultural Sciences, Food and Economics Dept., Florida Agricultural Experiment Station, Florida Cooperative Extension Service
Place of Publication: Gainesville FL
Publication Date: <1999>
 Subjects
Subject: Ornamental plant industry -- Florida   ( lcsh )
Plants, Ornamental -- Economic aspects -- Florida   ( lcsh )
Horticultural products industry -- Economic aspects -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
bibliography   ( marcgt )
non-fiction   ( marcgt )
 Notes
Bibliography: Includes bibliographical references.
Statement of Responsibility: by Alan W. Hodges and John J. Haydu.
General Note: Caption title.
General Note: "March 1999"-- Cover.
Funding: Economic information report (Gainesville, Fla.) ;
 Record Information
Bibliographic ID: UF00027370
Volume ID: VID00001
Source Institution: Marston Science Library, George A. Smathers Libraries, University of Florida
Holding Location: Florida Agricultural Experiment Station, Florida Cooperative Extension Service, Florida Department of Agriculture and Consumer Services, and the Engineering and Industrial Experiment Station; Institute for Food and Agricultural Services (IFAS), University of Florida
Rights Management: All rights reserved, Board of Trustees of the University of Florida
Resource Identifier: aleph - 002681753
oclc - 46371511
notis - ANE9000

Table of Contents
    Copyright
        Copyright
    Title Page
        Title Page
    Executive summary
        Page i
        Page ii
    Table of Contents
        Page iii
    List of Tables
        Page iv
    List of Figures
        Page v
    Acknowledgement
        Page vi
    Introduction
        Page 1
        Project background and purpose
            Page 1
        The United States horticulture industry
            Page 1
        Florida's horticultural industry
            Page 2
        Trends in Florida nursery firm performance
            Page 3
            Page 4
    Methods
        Page 5
        Survey populations and sampling
            Page 5
            Page 6
        Survey interviews and respondent qualification
            Page 7
        Survey information collected
            Page 8
        Analysis of survey data
            Page 8
            Page 9
        Estimation of economic impacts
            Page 10
            Page 11
    Overall results
        Page 12
        General characteristics of industry firms and households
            Page 12
        Sales by industry firms
            Page 12
        Purchases by consumers
            Page 12
        Employment by industry firms
            Page 13
        Geographic distribution of sales
            Page 13
        Economic impacts
            Page 14
            Page 15
            Page 16
            Page 17
        Marketing practices of industry firms
            Page 18
        Business outlook
            Page 18
            Page 19
    Results for wholesale nurseries
        Page 20
        Sales revenue
            Page 20
        Production area
            Page 21
        Sales of plant product types
            Page 21
        Regional sales, employment and production area
            Page 22
        Economic impacts
            Page 22
        Marketing of nursery products
            Page 23
        Financial borrowing characteristics and needs
            Page 24
            Page 25
    Results for horticultural retailers
        Page 26
        Product sales
            Page 26
        Retail sales area
            Page 27
        Retail markets
            Page 27
        Geographic sales
            Page 28
        Economic impacts
            Page 28
            Page 29
    Results for landscape service firms
        Page 30
        Sales by landscape service films
            Page 30
        Product and service sales
            Page 30
        Markets for landscape services
            Page 31
        Geographic sales
            Page 32
        Economic impacts
            Page 32
    Results for households consumers
        Page 33
        Purchases of horticultural goods and services
            Page 33
        Types of plant products purchased
            Page 34
        Vendors for horticultural goods and services
            Page 35
        Factors for purchasing
            Page 35
            Page 36
    Results for commercial and institutional consumers
        Page 37
        Value of purchases
            Page 37
            Page 38
        Types of plants purchased
            Page 39
        Vendors purchased from
            Page 40
        Regional purchases
            Page 40
        Factors for purchasing
            Page 40
        Business outlook
            Page 41
    Questionnaire for wholesale nurseries
        Page 42
        Page 43
        Page 44
        Page 45
        Page 46
        Page 47
        Page 48
Full Text





HISTORIC NOTE


The publications in this collection do
not reflect current scientific knowledge
or recommendations. These texts
represent the historic publishing
record of the Institute for Food and
Agricultural Sciences and should be
used only to trace the historic work of
the Institute and its staff. Current IFAS
research may be found on the
Electronic Data Information Source
(EDIS)

site maintained by the Florida
Cooperative Extension Service.






Copyright 2005, Board of Trustees, University
of Florida




0 Al


Alan W. Hodges


Economic Information Report


John J. Haydu


EIR 99-1


Economic Impact of Florida's


Environmental Horticulture Industry,






4:











UNIVERSITY OF
FLORIDA
InSTITUTE OF FOOD AND AGRICULTURAL SCIENCES
Food and Resource Economics Department
Florida Agricultural Experiment Station
Florida Cooperative Extension Service
Gainesville, FL 32611


1997


March 1999









Economic Impact of Florida's
Environmental Horticulture Industry, 1997

by Alan W. Hodges and John J. Haydu1


Executive Summary

The economic impact of Florida's horticultural industries for fiscal year 1997 was estimated based on
primary information collected in 2217 telephone survey interviews in mid-1998 with wholesale nurseries,
horticultural retailers, landscape service firms, residential households and commercial/institutional
consumers of horticultural products and services. Sales of ornamental plant products by nurseries totaled
$1.462 billion, including $503 million (M) or 34 percent in tropical foliage plants or palms, $420M (29%) in
woody ornamental trees and shrubs, $265M (18%) in potted flowering plants and bedding plants, and
$255M (17%) in other plant products. Also, $101M (7%) of sales were considered native Florida plants.
Nursery area totaled 38 thousand acres in greenhouses and shade houses, open container and field
production areas. Major customers served by nurseries were other growers (28%), landscapers (23%),
retail mass merchandisers (15%), retail garden centers (10%), re-wholesalers and brokers (12%), property
developers and mangers (3%), and the public at-large (9%). Horticultural retailers had total sales of
$1.751 billion, including plants (24%), lawn and garden supplies (12%) and hard goods (7%), and other
items. Total retail sales area managed was 64.7 million square feet. Landscape service firms had total
sales of $2.704 billion, including plants and lawn and garden supplies (20%), and landscape services for
maintenance (25%), installation (42%), and design (14%). Domestic and international exports of
horticultural products and services from the state of Florida amounted to $659M. Employment by nurseries
and landscape service firms totaled about 33,000 and 87,000 persons, respectively. Florida's single-family
households purchased plants and other horticultural goods and services valued at $2.891 billion, and
maintained a landscape area of 3.084 million acres. Commercial and institutional consumers, such as
hotels, restaurants, schools/colleges, governments, and commercial building managers, purchased $195
million in horticultural products and services and maintained 1.50 million acres of landscape. Total
economic output associated with the horticulture industries was estimated at $6.363 billion, including the
multiplier effect of direct, indirect and induced impacts of local/state and export sales associated with
purchased inputs and employee spending. Total employment associated with the horticulture industries
was estimated at 187,000 jobs. Total value added generated by the horticulture industries was $5.424
billion, including personal income of $3.600 billion, employee compensation of $2.999 billion, and indirect
business taxes paid amounting to $501 million. Information for the nursery sector on sales, employment,
production area, output and economic value added were estimated for seven regions of the state. Survey
information is also presented on types of services offered and marketing practices of industry firms,
financing of nurseries, trends in business conditions, the mid-term business outlook, and factors
considered by consumers for purchase of plant products, and selection of vendors of horticultural goods
and services.

Keywords: Florida, horticulture industry, economic impact, economic multipliers, economic output,
employment, value added, plant nurseries, landscape services, horticultural retailers,
commercial/institutional consumers, households, marketing.






Alan Hodges is Coordinator of Economic Analysis, University of Florida, Food & Resource
Economics Department, PO Box 110240, Gainesville FL 32611; tel 352-392-1881 x312; fax 352-
392-3646; hodges@fred.ifas.ufl.edu.
John Haydu is Associate Professor, University of Florida, Central Florida Research and
Education Center, 2807 Binion Rd., Apopka FL 32703; tel 407-884-2034; jjh@gnv.ifas.ufl.edu.

i


UNIVER'Si i T"









Table of Contents

Executive Summary .................................................................. i

Acknowledgments ................................................................ vi

1: Introduction ............................................ ............................ 1
Project Background and Purpose .................................................. 1
The United States Horticulture Industry ............................................. 1
Florida's Horticultural Industry .................................................... 2
Trends in Florida Nursery Firm Performance ......................................... 3

2: Methods ................................................................... 5
Survey Populations and Sampling ................................................. 5
Survey Interviews and Respondent Qualification ................................... ... 7
Survey Information Collected ............................................... 8
Analysis of Survey Data .................................................... 8
Estimation of Economic Impacts .................................................. 10

3: Overall Results ............. .................................................. 12
General Characteristics of Industry Firms and Households .............................. 12
Sales by Industry Firms ........................................................ 12
Purchases by Consumers ...................................................... 12
Employment by Industry Firms .................................................. 13
Geographic Distribution of Sales .................................. ............. 13
Economic Impacts ..................................................... ........ 14
Marketing Practices of Industry Firms ............... ... ... ........................ 18
Business Outlook ....................................... ..................... 18

4: Results for Wholesale Nurseries ..................................................... 20
Sales Revenues .............................................................. 20
Production Area ............................................................... 21
Sales of Plant Product Types ................................. .. ................ 21
Regional Sales, Employment and Production Area ..................... .............. 22
Economic Impacts .............................................................22
Marketing of Nursery Products ............ ........................ ...... ......... 23
Financial Borrowing Characteristics and Needs ............ .. ...................... .24

5: Results for Horticultural Retailers ..................................... .... ......... ... 26
Product Sales ............ ................................. ......... ........... 26
Retail Sales Area ............................................................. 27
Retail Markets ................................................................ 27
Geographic Sales ............................................................. 28
Economic Impacts ............................................................ 28

6: Results for Landscape Service Firms .................................................. 30
Sales by Landscape Service Firms ................................................ 30
Product and Service Sales .................................... ................ 30
Markets for Landscape Services ................................................. 31
Geographic Sales ............................................................. 32
Economic Impacts ................................... ........................32










Table of Contents (continued)

7: Results for Households Consumers ................ ................................. 33
Purchases of Horticultural Goods and Services ....................................... 33
Types of Plant Products Purchased .............................................. 34
Vendors for Horticultural Goods and Services ........................................ 35
Factors for Purchasing ......................................................... 35

8: Results for Commercial and Institutional Consumers .................................. .. 37
Value of Purchases ............................................................ 37
Types of Plants Purchased ................................... ................. 39
Vendors Purchased From ......................................... ............. 40
Regional Purchases .......................................................... 40
Factors for Purchasing ....................................... .................. 40
Business Outlook ............... ........................................... 41

Appendix-Questionnaire for Wholesale Nurseries .................... .......... ........... 42


List of Tables

Table 1.1. United States and Florida Grower Cash Receipts for Nursery and Greenhouse Crops,
1989-96.......... .................................... ........................ 2
Table 1.2. Financial Characteristics of Florida Nursery Firms, 1985-95 .......... ............... 4
Table 1.3. Net Profit Margin of Florida Nursery Firms, by Industry Group, 1985-95 ................... 4
Table 2.1. Number of Firms and Households Sampled for Survey ................................ 5
Table 2.2. Number of Commercial and Institutional Consumer Businesses Sampled for Survey. ....... 5
Table 2.3. Survey Respondents by Florida Telephone Area Code ................................ 6
Table 2.4. Florida Regions Analyzed for Wholesale Nurseries ................................... 6
Table 2.5. Number and Disposition of Telephone Calls for Survey, by Survey Group ................ 8
Table 2.6. Estimated Values for Annual Sales Categories. .................................... 9
Table 2.7. Estimated Values for Annual Purchases by Consumers. ............................. 9
Table 2.8. Survey Expansion Factors. .................................................... 9
Table 2.9. Statewide Economic Impact Multipliers for Florida's Horticultural Industry. ............... 10
Table 2.10. Economic Impact Multipliers for Nurseries in Florida Regions. ....................... 11
Table 3.1. Age and Number of Separate Locations of Florida Horticultural Businesses Surveyed 1997 12
Table 3.2. Sales by Florida Nurseries, Retailers and Landscapers, 1997...................... 12
Table 3.3. Value of Purchases of Horticultural Goods and Services by Florida Households and
Commercial/Institutional Consumers, 1997. .................. ................... .... ...13
Table 3.4. Employment by Florida Nurseries and Landscapers, 1997. .......................... 13
Table 3.5. Geographic Distribution of Sales by Florida Nurseries, Horticultural Retailers and
Landscapers, 1997......... .................................. ............... .. 13
Table 3.6. Economic Impacts of Florida's Horticultural Industries, 1997 .......................... 15
Table 3.8. Marketing Practices of Florida Nurseries, Retailers and Landscapers, 1997. ............. 18
Table 3.9. Historical and Expected Changes in Sales and Prices for Florida Nurseries, Retailers and
Landscapers, 1997................... .................................... 19
Table 4.1. Distribution of Annual Sales for Florida Nurseries Surveyed, 1997 ...................... 20
Table 4.2. Florida Nursery Sales by Firm Inventory Size Class, 1997. .......................... 20
Table 4.3. Production Area Managed by Florida Nurseries, 1997 ................................ 21
Table 4.4. Sales of Plant Product Types by Florida Nurseries, 1997. ........................... 21
Table 4.5. Sales of Native Plants by Florida Nurseries, 1997 .................................. 22
Table 4.6. Regional Sales, Employment and Production Area for Florida Nurseries, 1997 ........... 22
Table 4.7. Economic Impacts of Florida's Nurseries, 1997. .................................... 23
Table 4.8. Regional Economic Impacts of the Florida Nursery Industry, 1997. ..................... 23
Table 4.9. Sales to Different Types of Customer by Florida Nurseries, 1997 ......................... 24
Table 4.10. Services Offered by Florida Nurseries, 1997. ..................................... 24









List of Tables (continued)


Table 4.11. Factors Considered for Choosing Financial Lenders by Florida Nurseries, 1997. ......... 25
Table 4.12. Expectations for Credit Needs Next Year by Florida Nurseries, 1997 ................... 25
Table 5.1. Sales by Horticultural Retailers in Florida, 1997. .................. ................ 26
Table 5.2. Sales of Types of Plants by Florida Horticultural Retailers, 1997. ....................... 26
Table 5.3. Sales of Native Plants by Florida Horticultural Retailers, 1997 ........................ 27
Table 5.4. Sales Area Managed by Florida Horticultural Retailers, 1997. ........................ 27
Table 5.5. Sales for Florida Horticultural Retailers by Type of Customer, 1997 .................... 28
Table 5.6. Services and Product Features Offered by Florida Horticultural Retailers, 1997. .......... 28
Table 5.7. Geographic Sales for Florida Horticultural Retailers, 1997. .......................... 28
Table 5.8. Economic Impacts of Florida Horticultural Retailers, 1997 ............................ 29
Table 6.1. Florida Landscape Service Firm Sales and Employment by Firm Size, 1997 ............. 30
Table 6.2. Sales of Goods and Services by Florida Landscape Service Firms, 1997. ............... 30
Table 6.3. Sales of Types of Plants by Florida Landscape Service Firms, 1997. .................. 31
Table 6.4. Sales of Native Plants by Florida Landscapers, 1997. .............................. 31
Table 6.5. Sales for Florida Landscape Service Firms by Type of Customer, 1997 ................. 32
Table 6.6. Geographic Sales by Florida Landscape Service Firms, 1997. ....................... 32
Table 6.7. Economic Impacts of Florida Landscape Service Firms, 1997. ....................... 32
Table 7.1. Number of survey respondent households by income level. ......................... 33
Table 7.2. Purchases of Horticultural Goods and Services by Florida Households, 1997. ........... 33
Table 7.3. Horticultural Services Purchased by Florida Households, 1997. ..................... .34
Table 7.4. Distribution of Florida Households by Value of Annual Purchases of Plants, Equipment and
Horticultural Services, 1997. .............. ................................... 34
Table 7.5. Purchases of Types of Plants by Florida Households, 1997 ........................ 34
Table 7.6. Distribution of Purchases of Native Plants by Florida Households, 1997. ................ 35
Table 7.7. Purchases of Horticultural Goods and Services by Florida Households from Different Types
of Vendors, 1997. .............................................................. 35
Table 7.8. Factors Considered for Purchasing Plants by Florida Institutions and Households, 1997. ... 36
Table 7.9. Factors Considered for Selecting a Vendor for Purchase of Horticultural Goods or Services
by Florida Households, 1997. ................................................... 36
Table 8.1. Commercial/Institutional Consumer Firms Sampled. ............................... 37
Table 8.2. Employment by Florida Institutions Surveyed, 1997 ................................ 37
Table 8.3. Purchases of Horticultural Goods and Services by Florida Institutions, 1997. ............. 38
Table 8.4. Services Purchased by Florida Commercial/Institutional Consumers, 1997. .............. 38
Table 8.5. Distribution of Annual Purchases of Plants, Equipment and Horticultural Services by Florida
Institutions, 1997. ............. ......... ... ........... .. ............... 38
Table 8.6. Purchases of Horticultural Goods/Services and Landscape Area of Florida Institutions,
by Firm Size, 1997 ............ .......................................... 39
Table 8.5. Types of Plants Purchased by Florida Institutions, 1997. ........................... 39
Table 8.6. Purchases for Florida Institutions, by Type of Vendor, 1997. ......................... 40
Table 8.7. Regional Purchases by Florida Institutions, 1997. .................................. 40
Table 8.8. Factors Considered for Purchasing Plants by Florida Institutions, 1997 .................. 41
Table 8.9. Expected Changes in Purchases of Horticultural Goods/Services Over Next Five Years by
Florida Institutions, 1997. ....................................................... 41


List of Figures

Figure 2.1. Florida Regions Evaluated for the Nursery Sector of the Horticultural Industry. ............ 7










Acknowledgments


This project was made possible by the financial support of the Florida Nurserymen and Growers
Association, Orlando, Florida, under the leadership of Earl Wells, Executive Director (retired) Alan
Shapiro, Past-President and George Finora, President-elect. The project was also partially underwritten by
AgFirst Farm Credit Bank, represented by Greg Steinmier, Alma Evans, and Don Rice. The telephone
surveys were supervised by Chris McCarty and David Kennedy of the University of Florida's Bureau of
Economic and Business Research. Ken Portier of the UF/IFAS Statistics Department consulted on
analysis of the survey data, and David Mulkey and Robert Degner of the UF/IFAS Food and Resource
Economics Department reviewed this report. Industry representatives who consulted on questionnaires
included Roger Remelius, Classic Growers, Marty Pearson, Rood Landscape, Melody Abell, Abell's
Nursery, Joe Cialone, Tropical Ornamentals, Michael Hackmann, Yoder Brothers, Jim Pugh, American
Farms, Al O'Donnell, O'Donnell Landscapes, Kerry Herndon, Kerry's Bromeliads, David Vanderlaan,
Vanderlaan's Nursery, George Butler, Jr., Butler's Nursery West, Charles Martin, H.B. Martin, Inc., Amy
Sears and Joe Gilman, Foliage by Flora, and Mark Kurkin, Wal-Mart.









1: Introduction


Project Background and Purpose

For more than 10 years there has been a keen interest by certain people in Florida's nursery industry and
the University of Florida to capture the economic importance of ornamental crops. Although some data
has been collected by various State and Federal agencies, the information has tended to be either
incomplete or too general to accurately depict the full scope of the industry. For example, for many years
the Florida Agricultural Statistics Service has closely monitored the production and sale of foliage,
floriculture and cut greens but has not measured other sectors, such as field-grown and container-grown
landscape plants, a significant and vital component of the industry. Similarly the U.S. Department of
Agriculture's Economic Research Service has conducted national surveys and has provided the only
consistent economic measures available of nursery crops. However, because of the sheer size and
complexity of these industries in the larger producing states, gathering detailed economic data at the state-
level has not been feasible. In both cases the reason for this deficiency is largely due to the very high cost
of collecting, analyzing and publishing agricultural data on a regular basis. Prohibitive costs combined with
the desire to down-size government bureaucracy, has resulted in fewer and less comprehensive
information services available to the public.

In response to this change in government policy, many private sector organizations have begun
implementing their own studies particularly those industries representing some of the more non-
traditional commodities. In 1997 grant funding was provided to the University of Florida's Institute of Food
and Agricultural Sciences by the Florida Nurseryman & Growers Association ($43,000) and AgFirst-Farm
Credit Bank of Columbia, SC ($12,000), to undertake an economic impact assessment of the nursery
industry. This was supplemented with an additional $6,000 in intramural funds by UF/IFAS. The study,
implemented in January of 1998, represents the first such comprehensive assessment of the economic
impacts of Florida's floriculture and environmental horticultural industry.


The United States Horticulture Industry

Nursery and greenhouse crops represent the sixth largest agricultural commodity group in the United
States, with a farm gate value of $10.9 billion in 19962. Floriculture and environmental horticulture is the
fastest growing segment of U.S. agriculture, averaging 9 percent annual growth during 1982-91, and has
expanded its contribution from two percent of total farm cash receipts in 1976 to 11 percent today3. This
striking growth is due to the recent strong demand for landscape plants and the relatively high unit value of
nursery crops. Demand for landscape plants has been driven by a strong national economy and growth of
new housing developments, which are large consumers of landscape plants, bedding plants and sod. The
high unit value of ornamental crops is illustrated by the fact that nursery farms account for only one fiftieth
of all U.S. farms yet they generate nearly one-eighth of total farm receipts. The average floriculture and
environmental horticulture farm yields nearly four times the net income as does the average "traditional"
food and fiber farm, and horticulture crops out performed all other farm commodities in terms of net income
per farm.

The U.S. Department of Agriculture classifies nursery and greenhouse products as floriculture crops,
including bedding plants, cut flowers, cut cultivated greens, potted flowering plants and foliage plants, and
as environmental horticulture products, including landscape nursery plants, unfinished plant material, sod,
and flower and vegetable seeds. In terms of value, environmental horticulture products comprise roughly


2 Floriculture and Environmental Horticulture: Situation and Outlook Report, D.
Johnson, USDA/ERS, FLO-1997, 1997.
3 Financial Performance of US Floriculture and Environmental Horticulture Farm
Businesses, 1987-91, D. Johnson and T. Johnson, USDA/ERS, Statistical Bulletin 862; and
USDA/ERS, 1998 http://www.econ.ag.gov/briefing/floral/).









1: Introduction


Project Background and Purpose

For more than 10 years there has been a keen interest by certain people in Florida's nursery industry and
the University of Florida to capture the economic importance of ornamental crops. Although some data
has been collected by various State and Federal agencies, the information has tended to be either
incomplete or too general to accurately depict the full scope of the industry. For example, for many years
the Florida Agricultural Statistics Service has closely monitored the production and sale of foliage,
floriculture and cut greens but has not measured other sectors, such as field-grown and container-grown
landscape plants, a significant and vital component of the industry. Similarly the U.S. Department of
Agriculture's Economic Research Service has conducted national surveys and has provided the only
consistent economic measures available of nursery crops. However, because of the sheer size and
complexity of these industries in the larger producing states, gathering detailed economic data at the state-
level has not been feasible. In both cases the reason for this deficiency is largely due to the very high cost
of collecting, analyzing and publishing agricultural data on a regular basis. Prohibitive costs combined with
the desire to down-size government bureaucracy, has resulted in fewer and less comprehensive
information services available to the public.

In response to this change in government policy, many private sector organizations have begun
implementing their own studies particularly those industries representing some of the more non-
traditional commodities. In 1997 grant funding was provided to the University of Florida's Institute of Food
and Agricultural Sciences by the Florida Nurseryman & Growers Association ($43,000) and AgFirst-Farm
Credit Bank of Columbia, SC ($12,000), to undertake an economic impact assessment of the nursery
industry. This was supplemented with an additional $6,000 in intramural funds by UF/IFAS. The study,
implemented in January of 1998, represents the first such comprehensive assessment of the economic
impacts of Florida's floriculture and environmental horticultural industry.


The United States Horticulture Industry

Nursery and greenhouse crops represent the sixth largest agricultural commodity group in the United
States, with a farm gate value of $10.9 billion in 19962. Floriculture and environmental horticulture is the
fastest growing segment of U.S. agriculture, averaging 9 percent annual growth during 1982-91, and has
expanded its contribution from two percent of total farm cash receipts in 1976 to 11 percent today3. This
striking growth is due to the recent strong demand for landscape plants and the relatively high unit value of
nursery crops. Demand for landscape plants has been driven by a strong national economy and growth of
new housing developments, which are large consumers of landscape plants, bedding plants and sod. The
high unit value of ornamental crops is illustrated by the fact that nursery farms account for only one fiftieth
of all U.S. farms yet they generate nearly one-eighth of total farm receipts. The average floriculture and
environmental horticulture farm yields nearly four times the net income as does the average "traditional"
food and fiber farm, and horticulture crops out performed all other farm commodities in terms of net income
per farm.

The U.S. Department of Agriculture classifies nursery and greenhouse products as floriculture crops,
including bedding plants, cut flowers, cut cultivated greens, potted flowering plants and foliage plants, and
as environmental horticulture products, including landscape nursery plants, unfinished plant material, sod,
and flower and vegetable seeds. In terms of value, environmental horticulture products comprise roughly


2 Floriculture and Environmental Horticulture: Situation and Outlook Report, D.
Johnson, USDA/ERS, FLO-1997, 1997.
3 Financial Performance of US Floriculture and Environmental Horticulture Farm
Businesses, 1987-91, D. Johnson and T. Johnson, USDA/ERS, Statistical Bulletin 862; and
USDA/ERS, 1998 http://www.econ.ag.gov/briefing/floral/).









1: Introduction


Project Background and Purpose

For more than 10 years there has been a keen interest by certain people in Florida's nursery industry and
the University of Florida to capture the economic importance of ornamental crops. Although some data
has been collected by various State and Federal agencies, the information has tended to be either
incomplete or too general to accurately depict the full scope of the industry. For example, for many years
the Florida Agricultural Statistics Service has closely monitored the production and sale of foliage,
floriculture and cut greens but has not measured other sectors, such as field-grown and container-grown
landscape plants, a significant and vital component of the industry. Similarly the U.S. Department of
Agriculture's Economic Research Service has conducted national surveys and has provided the only
consistent economic measures available of nursery crops. However, because of the sheer size and
complexity of these industries in the larger producing states, gathering detailed economic data at the state-
level has not been feasible. In both cases the reason for this deficiency is largely due to the very high cost
of collecting, analyzing and publishing agricultural data on a regular basis. Prohibitive costs combined with
the desire to down-size government bureaucracy, has resulted in fewer and less comprehensive
information services available to the public.

In response to this change in government policy, many private sector organizations have begun
implementing their own studies particularly those industries representing some of the more non-
traditional commodities. In 1997 grant funding was provided to the University of Florida's Institute of Food
and Agricultural Sciences by the Florida Nurseryman & Growers Association ($43,000) and AgFirst-Farm
Credit Bank of Columbia, SC ($12,000), to undertake an economic impact assessment of the nursery
industry. This was supplemented with an additional $6,000 in intramural funds by UF/IFAS. The study,
implemented in January of 1998, represents the first such comprehensive assessment of the economic
impacts of Florida's floriculture and environmental horticultural industry.


The United States Horticulture Industry

Nursery and greenhouse crops represent the sixth largest agricultural commodity group in the United
States, with a farm gate value of $10.9 billion in 19962. Floriculture and environmental horticulture is the
fastest growing segment of U.S. agriculture, averaging 9 percent annual growth during 1982-91, and has
expanded its contribution from two percent of total farm cash receipts in 1976 to 11 percent today3. This
striking growth is due to the recent strong demand for landscape plants and the relatively high unit value of
nursery crops. Demand for landscape plants has been driven by a strong national economy and growth of
new housing developments, which are large consumers of landscape plants, bedding plants and sod. The
high unit value of ornamental crops is illustrated by the fact that nursery farms account for only one fiftieth
of all U.S. farms yet they generate nearly one-eighth of total farm receipts. The average floriculture and
environmental horticulture farm yields nearly four times the net income as does the average "traditional"
food and fiber farm, and horticulture crops out performed all other farm commodities in terms of net income
per farm.

The U.S. Department of Agriculture classifies nursery and greenhouse products as floriculture crops,
including bedding plants, cut flowers, cut cultivated greens, potted flowering plants and foliage plants, and
as environmental horticulture products, including landscape nursery plants, unfinished plant material, sod,
and flower and vegetable seeds. In terms of value, environmental horticulture products comprise roughly


2 Floriculture and Environmental Horticulture: Situation and Outlook Report, D.
Johnson, USDA/ERS, FLO-1997, 1997.
3 Financial Performance of US Floriculture and Environmental Horticulture Farm
Businesses, 1987-91, D. Johnson and T. Johnson, USDA/ERS, Statistical Bulletin 862; and
USDA/ERS, 1998 http://www.econ.ag.gov/briefing/floral/).










two-thirds ($7.5 billion) of the total industry, with the remaining one-third ($3.4 billion) constituting
floriculture (see footnote 1). Trends in US grower cash receipts for floriculture and environmental
horticulture crops, 1989-96, are given in Table 1.1.

Table 1.1. United States and Florida Grower Cash Receipts for Nursery and Greenhouse
Crops, 1989-96.
United States Florida
Total Other Total Total Other Total
Year Floriculture Environ- Nursery and Floriculture Environ- Nursery and
Crops mental Greenhouse Crops mental Greenhouse
Crops Crops
million dollars
1989 2,505 5,272 7,777 506 455 961
1990 2,652 6,025 8,677 531 460 992
1991 2,795 6,240 9,035 529 475 1,004
1992 3,022 6,263 9,285 553 475 1,028
1993 3,073 6,515 9,588 543 475 1,018
1994 3,247 6,760 10,000 601 480 1,080
1995 3,329 7,094 10,423 630 480 1,110
1996 3,421 7,491 10,912 660 480 1,140


At the retail level, growth in expenditures nationwide for floriculture and environmental horticulture
products has averaged 5 percent annually since 1989, reaching $37.2 billion in 1996, or $140 per capital.
Retail expenses of environmental horticulture products, sold primarily through chain stores (e.g. Home
Depot, WalMart, K-Mart), as well as numerous independent garden centers, accounted for 57 percent of
the $37.2 million. Floricultural products representing 43 percent of the total are sold for indoor use by retail
florists, garden stores both independent and chain) and increasingly supermarkets and street vendors.
Just over half of all retail floral sales are made by the 42,000 retail florists, with the remainder sold by all
other retail categories.


Florida's Horticultural Industry

The three leading states in nursery and greenhouse industry production are California, Florida and Texas,
with Florida ranked second with an industry value of $1.14 billion according to USDA estimates.
Ornamental crops are among the largest agricultural commodity group in Florida, together with citrus,
vegetables and livestock. Florida dominates the US market for tropical foliage crops, with over 90 percent
of sales. Overall sales for greenhouse and nursery crops by Florida growers have increased from $961
million to $1.14 billion over the period 1989 to 1996 (Table 1.1). Among specific types of ornamental
crops, sales have increased substantially for bedding plants, and increased more modestly for potted
flowering plants, foliage plants, and other environmental crops, while sales have remained level for cut
cultivated greens and decreased for cut flowers.

Like many agricultural sectors, Florida's nursery industry has been forced to adapt to an increasingly
competitive marketplace by developing new products and markets, achieving greater efficiencies through
the use of new technologies, and through consolidation to achieve economies of scale. During the 1989 to
1994 period, average sales per firm grew by 26 percent in constant-dollar terms, and average employment
increased by 15 percent, resulting in an 8 percent increase in sales per employee. The product mix of
Florida's nurseries became much more diverse, with sales of "other" plant products increasing from 5 to 39
percent of total sales. Markets for the state's ornamentals were substantially expanded into other regions,
with sales to destinations outside the state growing from 23 to 33 percent of total sales. Retailers such as
garden centers and mass merchandisers became the dominant market outlet for Florida ornamentals
rather than landscapers. The competitiveness of the nursery industry was reflected in growers' recognition








of cost as the most important limiting factor for expanding business operations4.


Trends in Florida Nursery Firm Performance

During the past three decades, several explicit developmental stages can be identified for Florida's
nursery industry. Sales of ornamental plant products rapidly increased during the 1970s and early 1980s,
then underwent slower but steady growth during the latter 1980s and 1990's. This period of industry
maturation is especially prominent today as markets become increasingly open and competitive with the
advent of international trading blocks. Although a significant player when volume sales are considered,
Florida nursery businesses must still operate under the same financial conditions as any other type of
business enterprise.

The University of Florida's Nursery Business Analysis Program has examined the financial performance of
numerous wholesale nurseries for nearly 25 years, and these results provide a useful financial profile of
the size, structure and profitability of the Florida producers. Results for the period 1985-95 show that the
average participating firm has increased dramatically in size, in terms of sales, production area, plant
inventory, employment, and net income (Table 1.2). Meanwhile, production efficiencies have remained
relatively constant, as indicated by the value produced per full time equivalent employee or per acre, or
decreased, as indicated by the inventory turnover. Costs of production have increased for labor, but
remained level for materials. Profitability has declined slightly, as indicated by the net margin and rate of
return on net worth. Financial risk has increased somewhat, indicated by the higher leverage value.

Different types of firms in the Nursery Business Analysis Program have fared more or less well over the
past 15 years. Net profit margin for all firms has declined from 15% in 1985 to 12% in 1990, then
recovered to 13% in 1995 (Table 1.3). Large firms, defined as having annual sales of at least $1 million,
exhibited the same trend, while small firms (less than $250K sales) have suffered greater declines.
Flowering plant producers have shown remarkable growth in their markets, which has translated to
dramatic improvement in profitability. Tropical foliage growers have also shown deteriorating profitability,
more so for growers in Central Florida than for growers in South Florida. Producers of container-grown
woody ornamentals likewise have suffered decreased net margins, but still enjoy a rather high level of
profitability. Field-grown woody ornamentals, on the other hand have enjoyed steadily improved
profitability.




















4 The Changing Structure of Florida's Ornamental Plant Nursery Industry, 1989-94, A.
Hodges and J. Haydu, UF/FRE Dept., Economics Report ER96-1, 1996.











Table 1.2. Financial Characteristics of Florida Nursery Firms, 1985-95. Values
represent averages per firm.
Measure* 1985 1990 1995
Sales (1000$) 712 871 1,535
Production Area (Acres) 13.08 19.75 34.12
Plant Inventory (1000$) 516 598 1,628
Employment, full time equivalents (FTE) 15.2 19.5 32.9
Net Income (1000$) 162 168 320
Net Worth (1000$) 674 769 1,576
Value Produced Per FTE (1000$) 51 48 53
Value Produced Per Acre (1000$) 59 48 51
Cost/Value Produced, Labor 28% 29% 34%
Cost/Value Produced, Materials 32% 35% 32%
Inventory Turnover 138% 146% 94%
Financial Leverage 132% 134% 165%
Quick Ratio 209% 243% 105%
Net Margin 15% 12% 13%
Rate of Return on Net Worth 17% 12% 10%
* Monetary measures deflated (adjusted for inflation).
Source: Nursery Business Analysis Program, UF Food & Resource Economics
Department.


Table 1.3. Net Profit Margin of Florida Nursery Firms, by Industry Group, 1985-
95.
Industry Group 1985 1990 1995
All Firms 15% 12% 13%
All Large Firms 15% 12% 13%
All Small Firms 14% 12% 10%
Flowering Plants 2% 17% 18%
Foliage, Central Florida 8% 2% 1%
Foliage, South Florida 11% 12% 7%
Woody Ornamentals, Field-grown 19% 22% 29%
Woody Ornamentals, Container-grown 25% 13% 19%
Source: Nursery Business Analysis Program, UF, Food & Resource Economics
Department.









2: Methods

Survey Populations and Sampling

Estimation of the economic value of Florida's horticultural industries was based upon information obtained
from telephone surveys conducted with 5 different groups: wholesale nurseries, horticultural retailers,
landscape service providers, single family detached residential households, and institutional/commercial
consumers (Table 2.1). The first three groups, wholesalers, retailers, and service providers, represent the
primary business sectors of interest, while the consumer sectors were surveyed to better understand the
changing marketplace for horticultural products and services. The survey focused on single family
detached residential households because it was expected that these households were most likely to
purchase horticultural goods and services for maintenance of a lawn and garden. The commercial-
institutional consumer group represented a sample of firms drawn from 11 different standard industrial
classifications (SICs), including primary schools, colleges/universities, cemeteries, public golf courses,
restaurants, hotels, museums/galleries/gardens, religious organizations, governments, and commercial
building maintenance services (Table 2.2).


Table 2.1. Number of Firms and Households Sampled for Survey.
Survey Group Number Sampled
Nurseries 579
Horticultural Retailers 224
Landscapers 200
Commercial/Institutional Consumers 626
Households (single family detached) 589
Total 2,217


Table 2.2. Number of Commercial and Institutional Consumer Businesses Sampled
for Survey.


Industry Group


Eating and drinking Places
Cemetery subdividers and developers
Hotels and motels
Building maintenance services
Public golf courses
Elementary and secondary schools
Colleges and Universities
Museums, galleries and botanical gardens
Religious organizations
General government
Total


Standard
Industrial
Classification
Code
581000
655302
701101
734911
799201
821103
822101
840000
866110
910000


Number Firms
Sampled


Listings of firms for the survey were obtained from a variety of sources. The Florida Department of
Agriculture, Division of Plant Industry provided a list of certified nurseries and stock dealers, which were
taken as the population of nurseries and retailers, respectively, because any firm which produces or sells
plant products in Florida is required to register with the Division of Plant Industry. The population of
nursery firms was considered to be those firms which were indicated as "wholesale" or "wholesale and
retail" operations. A listings of landscapers in Florida and commercial/institutional consumers in selected
SIC groups was provided by American Business Information (ABI). The University of Florida Bureau of









2: Methods

Survey Populations and Sampling

Estimation of the economic value of Florida's horticultural industries was based upon information obtained
from telephone surveys conducted with 5 different groups: wholesale nurseries, horticultural retailers,
landscape service providers, single family detached residential households, and institutional/commercial
consumers (Table 2.1). The first three groups, wholesalers, retailers, and service providers, represent the
primary business sectors of interest, while the consumer sectors were surveyed to better understand the
changing marketplace for horticultural products and services. The survey focused on single family
detached residential households because it was expected that these households were most likely to
purchase horticultural goods and services for maintenance of a lawn and garden. The commercial-
institutional consumer group represented a sample of firms drawn from 11 different standard industrial
classifications (SICs), including primary schools, colleges/universities, cemeteries, public golf courses,
restaurants, hotels, museums/galleries/gardens, religious organizations, governments, and commercial
building maintenance services (Table 2.2).


Table 2.1. Number of Firms and Households Sampled for Survey.
Survey Group Number Sampled
Nurseries 579
Horticultural Retailers 224
Landscapers 200
Commercial/Institutional Consumers 626
Households (single family detached) 589
Total 2,217


Table 2.2. Number of Commercial and Institutional Consumer Businesses Sampled
for Survey.


Industry Group


Eating and drinking Places
Cemetery subdividers and developers
Hotels and motels
Building maintenance services
Public golf courses
Elementary and secondary schools
Colleges and Universities
Museums, galleries and botanical gardens
Religious organizations
General government
Total


Standard
Industrial
Classification
Code
581000
655302
701101
734911
799201
821103
822101
840000
866110
910000


Number Firms
Sampled


Listings of firms for the survey were obtained from a variety of sources. The Florida Department of
Agriculture, Division of Plant Industry provided a list of certified nurseries and stock dealers, which were
taken as the population of nurseries and retailers, respectively, because any firm which produces or sells
plant products in Florida is required to register with the Division of Plant Industry. The population of
nursery firms was considered to be those firms which were indicated as "wholesale" or "wholesale and
retail" operations. A listings of landscapers in Florida and commercial/institutional consumers in selected
SIC groups was provided by American Business Information (ABI). The University of Florida Bureau of










Economic and Business Research provided the listing of randomly selected residential households, and
an estimate of the number of single family households in Florida in 1997 from US Census data for 1990
together with data on housing starts and occupancy rates. The population of firms in each sector was
checked with data from the Florida Department of Labor, Bureau of Labor Market Information (BLMI) on
number of units reporting for purposes of unemployment compensation, as required by law for any firm
employing five or more persons. The population of landscape firms was estimated from the BLMI reporting
units based on survey information about the number of locations (reporting units) for each firm.

The survey was designed as a stratified sampling plan for nurseries, landscapers, and institutions, with
probability of sampling proportional to firm size. For retailers and households, no size stratification
variable was available, so sampling was proportional to the population in each telephone area. Telephone
numbers called for the survey were selected at random from the population or group list. The distribution
of survey interviews across Florida telephone area codes is indicated in Table 2.3.


Table 2.3. Survey Respondents by Florida
Telephone Area Code.
Telephone Area Code Number Sampled
305 215
352 254
407 254
561 194
813 250
850 129
904 398
941' 392
954 131


For wholesale nurseries, additional sampling was done within 7 different regions of the state, as shown in
Figure 2.1. Counties included in each region are listed in Table 2.4. Approximately 90 firms were sampled
in each region.

Table 2.4. Florida Regions Analyzed for Wholesale Nurseries.


Florida Region
Northwest


Northeast

Central

Tampa Bay
Southwest
Lower East Coast


Counties


Escambia, Santa Rosa, Okaloosa, Walton, Holmes, Washington, Bay, Jackson,
Calhoun, Gulf, Liberty, Franklin, Gadsden, Wakulla, Leon, Jefferson, Madison,
Taylor, Lafayette, Dixie, Hamilton, Suwannee
Alachua, Marion, Putnam, Flagler, St. Johns, Clay, Duval, Nassau, Baker, Union,
Bradford, Gilchrist, Levy, Columbia
Orange, Lake, Seminole, Volusia, Pasco, Hemando, Citrus, Sumter, Osceola,
Brevard, Okeechobee, Indian River
Hillsborough, Pinellas, Polk, Manatee, Sarasota, Hardee, DeSoto, Highlands
Collier, Lee, Monroe, Hendry, Charlotte, Glades
Palm Beach, Broward, Martin, St. Lucie


Dade County Dade


Dade County


Dade











Northeast


Northwest


Tampa Bay


SC Lower East Coast


Southwest

S Dade County




Figure 2.1. Florida Regions Evaluated for the Nursery Sector of the Horticulture Industry.


Survey Interviews and Respondent Qualification
Telephone interviews were conducted under subcontract by the University of Florida's Bureau of
Economic and Business Research Telephone Survey Program Unit, during the period April-June, 1998.
Call-backs were made to verify information from selected respondents in July-August, 1998.Telephone
interviews were conducted with a computer-assisted system ("Cases") that automatically dialed telephone
numbers, generated questions to ask in the proper sequence, and recorded the respondent's answer
entered by the operator. The system also recorded information on interview time elapsed and the number
of interviews completed, incomplete, refused, ineligible, non-working number, and no answer. Firms or
households and persons interviewed for the survey were qualified by a series of questions. For nurseries,
retailers and landscapers, the person answering the phone call was asked whether the firm sells
horticultural products or services. Households and commercial/institutional consumers were asked
whether they maintained a landscape at the present location. Respondents were asked the question "are
you knowledgeable about the company's business?" (nurseries, retailers, landscapers) or "are you
knowledgeable about management of the landscape at this location?" (households, institutions). If this
person was not knowledgeable, the interviewer asked for the name of the appropriate person and to be
connected with that person or arranged for a time to call back if not available. A total of telephone 2,520
calls were made, of which 18 percent were completed, 10 percent were refused, 33 percent were
ineligible, 13 percent non-working, 17 percent no answer, and 9 percent incomplete interviews (Table 2.5).










Table 2.5. Number and Disposition of Telephone Calls for Survey, by Survey Group.
Survey Group Call Disposition (Percentage) Total
Number of
Completed Refused Ineligible Non- No answer Incomplete Calls
working
Nurseries 28.6 7.5 28.7 8.3 15.9 10.9 2,157
Retailers 24.4 12.2 30.5 11.7 11.2 10.1 1,030
Landscapers 28.6 7.5 16.1 7.4 21.6 18.9 704
Institutions 16.6 8.0 43.7 5.3 13.7 12.7 3,786
Households 12.2 13.0 30.0 21.2 19.6 4.0 4,843
All Sectors 18.3 10.2 33.2 12.6 16.6 9.1 12,520


Survey Information Collected

Survey data was collected for fiscal year 1997. Information collected from the primary business sectors
included annual sales, employment, production area (nurseries), retail sales area (retailers)
types of horticultural goods or services sold, types of plant products sold, sales to different customer
markets, regional sales, marketing practices, changes in business volume and pricing, the outlook for
business and financial borrowing practices and considerations (nurseries). Information collected from the
consumer sectors included landscape area maintained, value of purchases of plants, other horticultural
goods and horticultural services, types of plant products purchased, types of vendors purchased from, and
factors considered for purchasing plants and selecting vendors. Information on annual sales by
commercial firms and value of purchases by consumers was collected in terms of categories that
represented ranges of values. Survey questionnaires were developed separately for each survey group
and pretested in personal interviews with industry representatives. The questionnaires were translated into
a computer code for operation of the computer-assisted telephone interview system. The survey
questionnaire for wholesale nurseries is presented in the Appendix as an example.


Analysis of Survey Data

Analysis of the survey data was carried out with spreadsheet and statistical software packages (Lotus 1-2-
3, Lotus Development Corp.; Statistica, StatSoft, Inc.). The value of sales or purchases by each firm or
household were estimated at the midpoint of the range for the category indicated, or in the case of
landscaper firms as the lognormal geometric mean for each to account for the highly skewed distribution of
firm sizes (Tables 2.6-7).

Estimates of the total value of sales or purchases for the entire population of firms or households were
based on expansion factors that represent the ratio of the population to the number sampled, as shown in
Table 2.8. Expansion factors were calculated as E = P (1-1) / S, where E is the expansion factor, P is the
Florida population, I is the percentage of firms/households ineligible for the survey, and S is the number of
firms/households that reported sales or total value of purchases. The population of firms was adjusted
down to account for the percentage of firms that were ineligible for the survey according to the screening
questions discussed above. Expansion factors for nurseries, landscapers and commercial/institutional
consumers were compiled by firm size strata. Sales of specific products or services by industry firms, and
sales by market segment or region, were estimated as a percentage of total sales for each industry sector,
with the total controlled to the amount estimated from the expansion formula. Similarly, purchases of
specific products or services by consumers, and purchases by type of vendor, were estimated as a
percentage of total purchases, with the total amount controlled.










Table 2.5. Number and Disposition of Telephone Calls for Survey, by Survey Group.
Survey Group Call Disposition (Percentage) Total
Number of
Completed Refused Ineligible Non- No answer Incomplete Calls
working
Nurseries 28.6 7.5 28.7 8.3 15.9 10.9 2,157
Retailers 24.4 12.2 30.5 11.7 11.2 10.1 1,030
Landscapers 28.6 7.5 16.1 7.4 21.6 18.9 704
Institutions 16.6 8.0 43.7 5.3 13.7 12.7 3,786
Households 12.2 13.0 30.0 21.2 19.6 4.0 4,843
All Sectors 18.3 10.2 33.2 12.6 16.6 9.1 12,520


Survey Information Collected

Survey data was collected for fiscal year 1997. Information collected from the primary business sectors
included annual sales, employment, production area (nurseries), retail sales area (retailers)
types of horticultural goods or services sold, types of plant products sold, sales to different customer
markets, regional sales, marketing practices, changes in business volume and pricing, the outlook for
business and financial borrowing practices and considerations (nurseries). Information collected from the
consumer sectors included landscape area maintained, value of purchases of plants, other horticultural
goods and horticultural services, types of plant products purchased, types of vendors purchased from, and
factors considered for purchasing plants and selecting vendors. Information on annual sales by
commercial firms and value of purchases by consumers was collected in terms of categories that
represented ranges of values. Survey questionnaires were developed separately for each survey group
and pretested in personal interviews with industry representatives. The questionnaires were translated into
a computer code for operation of the computer-assisted telephone interview system. The survey
questionnaire for wholesale nurseries is presented in the Appendix as an example.


Analysis of Survey Data

Analysis of the survey data was carried out with spreadsheet and statistical software packages (Lotus 1-2-
3, Lotus Development Corp.; Statistica, StatSoft, Inc.). The value of sales or purchases by each firm or
household were estimated at the midpoint of the range for the category indicated, or in the case of
landscaper firms as the lognormal geometric mean for each to account for the highly skewed distribution of
firm sizes (Tables 2.6-7).

Estimates of the total value of sales or purchases for the entire population of firms or households were
based on expansion factors that represent the ratio of the population to the number sampled, as shown in
Table 2.8. Expansion factors were calculated as E = P (1-1) / S, where E is the expansion factor, P is the
Florida population, I is the percentage of firms/households ineligible for the survey, and S is the number of
firms/households that reported sales or total value of purchases. The population of firms was adjusted
down to account for the percentage of firms that were ineligible for the survey according to the screening
questions discussed above. Expansion factors for nurseries, landscapers and commercial/institutional
consumers were compiled by firm size strata. Sales of specific products or services by industry firms, and
sales by market segment or region, were estimated as a percentage of total sales for each industry sector,
with the total controlled to the amount estimated from the expansion formula. Similarly, purchases of
specific products or services by consumers, and purchases by type of vendor, were estimated as a
percentage of total purchases, with the total amount controlled.









Table 2.6. Estimated Values for Annual Sales Categories.
Annual Sales Category* Midpoint Value Lognormal Value
(thousand $) (thousand $)
Less than $250K $125 $125
$250 to $499K $375 $363
$500 to $999K $750 $714
$1.0 to $1.99M $1,500 $1,392
$2.0 to $3.99M $3,000 $2,813
$4.0 to $5.99M $5,000 $4,841
$6.0 to $7.99M $7,000 $6,832
$8.0 to $9.99M $9,000 $8,967
$10M or more $10,000 $16,167
$10 to 14.9M $12,500
$15 to 19.9M $17,500
$20 to 24.9M $22,500
$25M or Over $25,000
*"K" indicates thousands, "M" indicates millions dollars.


Table 2.7. Estimated Values for Annual Purchases
by Consumers.
Annual Purchases Estimated Value
Category (midpoint)
Less than $100 $50
$100 to $499 $300
$500 to $999 $750
$1000 to $1999 $1,500
$2000 to $4999 $3,500
$5000 to $9,999 $7,500
$10,000 to $14,999 $12,500
$15,000 to $19,999 $17,500
$20,000 or Over $20,000


Table 2.8. Survey Expansion Factors.
Firms
Survey Reporting Florida Percentage
Survey Group Survey Reporting Florida Contacted Expansion
Sample Sales or Population nel e Factor
Purchases Inelgible
Nurseries 581 511 4,042 28.7% 4.4
Horticultural Retailers 225 125 1,478 30.5% 8.2
Landscapers 202 182 4,655 16.1% 13.5
Commercial/Institutional Consumers 637 573 44,774 43.7% 42.0
Households (single family) 589 510 4,040,620 30.0% 5546










Estimation of Economic Impacts


Regional impacts and economic multipliers were developed with an input-out model and social accounting
matrix, IMPLAN Pro software licensed from MIG, Inc (Stillwater, MN), and the associated database for
Florida, 1995. The IMPLAN databases consist of a set of social/economic accounts which describe the
structure of the US economy in terms of transactions between households, governments, and 528
standardized industry sectors classified on the basis of the primary commodity or service produced
(SIC's). The databases also describe local or regional economies, at the county level, in terms of industry
output, value added, employment, imports and exports. A wide variety of statistical sources are used to
construct these databases, including the annual economic censuses conducted by the US Commerce
Department and US Bureau of Labor Statistics. IMPLAN uses a matrix inversion procedure to develop
economic multipliers which reflect the direct, indirect and induced impacts of specified changes in final
demand, output or employment for any given industrial sector5. Indirect impacts result from changes in
economic activity of other industrial sectors which supply goods or services to the sector being evaluated.
Induced impacts are the result of personal consumption expenditures by industry employees. The total
economic impact is the sum of direct, indirect and induced impacts. Multipliers are available from IMPLAN
for economic output, value added, employment, employee compensation, personal income, other
proprietary income, and indirect business taxes. The total impacts for nursery sector were adjusted to
account for nursery products exported by retailers and landscape services sectors.

Regional models of the Florida economy were constructed with IMPLAN for the state as a whole, and for 7
sub-regions (Table 2.4). Multipliers for the nursery, retail and landscape services industry sectors are
given in Table 2.9, and for each subregion of the nursery sector in Table 2.10. The total output multipliers
ranged from 1.65 for retailers to 1.78 for landscape services, reflecting the relatively labor intensive nature
of the horticulture industries. Economic impacts of each sector and subregion of the horticultural industry
were calculated for each type of impact using the direct multiplier multiplied against local/state sales, and
the total multiplier multiplied against the value of goods or services exported from the region. Export sales
were treated differently than local/state sales because exports bring "new" money into the local economy
and expand its economic activity through the multiplier effect.

Table 2.9. Statewide Economic Impact Multipliers for Florida's Horticultural
Industry. Values represent dollars per dollar of output, except employment which is
number of jobs per million dollars output.
Multiplier Type Nurseries Retailers Landscape
Services

Total Output 1.6980 1.6541 1.7782
Direct Value Added 0.7177 0.9317 0.9091
Total Value Added 1.1669 1.3462 1.4061
Direct Employment (jobs/M$) 17.6124 25.4716 40.7723
Total Employment (jobs/M$) 28.1265 34.8884 52.2124
Direct Personal Income 0.3787 0.5867 0.6858
Total Personal Income 0.6364 0.8296 0.9774
Direct Employee Compensation 0.2296 0.5639 0.5657
Total Employee Compensation 0.4531 0.7834 0.8246
Direct Indirect Business Taxes 0.0113 0.1924 0.0429
Total Indirect Business Taxes 0.0587 0.2396 0.0970




5 Implan Professional Social Accounting and Impact Analysis Software, User's Guide, Analysis
Guide and Data Guide, 2nd ed., 1997, MIG, Inc., Stillwater, MN, 378 p.









Table 2.10. Economic Impact Multipliers for Nurseries in Florida Regions. Units are dollars per dollar
output, except employment which is jobs per million dollars output.
Florida Region Output Employment Value Personal Employee Indirect
(jobs/M$) Added Income Compen- Business


Direct Multipliers
1 Northwest 1.0000 19.1974
2 Northeast 1.0000 15.3232
3 Central 1.0000 19.7130
4 Tampa Bay 1.0000 16.9451
5 Southwest 1.0000 23.7925
6 Lower East Coast 1.0000 9.4461
7 Dade County 1.0000 17.5406
Total Multipliers
1 Northwest 1.4603 27.1563
2 Northeast 1.5624 24.1422
3 Central 1.6695 30.1813
4 Tampa Bay 1.6497 26.9825
5 Southwest 1.4910 31.6777
6 Lower East Coast 1.6865 18.2307
7 Dade County 1.7401 27.3575


0.9125
0.7600
0.7260
0.7814
0.9019
0.4767
0.5809

1.2050
1.1177
1.1569
1.1990
1.2279
0.9071
1.0501


0.4562
0.3772
0.3898
0.4241
0.4813
0.2417
0.3102

0.6172
0.5805
0.6350
0.6658
0.6673
0.4833
0.5742


station Taxes


0.3111 0.0123
0.2613 0.0098
0.2267 0.0126
0.2428 0.0108
0.2840 0.0152
0.1604 0.0060
0.1818 0.0112

0.4525 0.0513
0.4408 0.0494
0.4367 0.0587
0.4532 0.0567
0.4468 0.0529
0.3727 0.0518
0.4094 0.0601










3: Overall Results


This section presents the study's cumulative findings for all five groups surveyed. Separate results for
each specific group surveyed are presented subsequently in sections four through nine of this report.


General Characteristics of Industry Firms and Households

Results on the age of companies surveyed indicated that most firms were generally mature businesses.
The average age of businesses ranged from 17 years for nurseries and landscapers to nearly 30 years for
horticultural retailers and commercial/institutional consumers (Table 3.1). Many firms had more than one
business location. The average number of locations for nurseries, retailers and landscapers ranged from
1.2 to 1.4 (Table 3.1). The average household size of surveyed households was 2.93 persons.

Table 3.1. Age and Number of Separate Locations of Florida Horticultural
Businesses Surveyed 1997.
Survey Group Years in Business Number of
(Avg) Locations (Avg)
Nurseries 16.7 1.2
Horticultural Retailers 29.7 1.4
Landscape Services 17.1 1.3
Commercial/Institutional Consumers 29.4


Sales by Industry Firms

Sales of horticultural products and services by nurseries, retailers and landscapers in 1997 were
estimated at $1.462 billion (B) for nurseries, $1.751 billion for retailers, and $2.704 billion for landscapers,
as summarized in Table 3.2. Sales per firm averaged $362 thousand for nurseries, $1.19 million for
retailers and $581 thousand for landscapers.

Table 3.2. Sales by Florida Nurseries, Retailers and Landscapers, 1997.
Group Number of Average Per Estimated Total
Firms Firm (billion $)
Reporting (thousand $)
Sales
Nurseries 511 (88%) 362 1.462
Retailers 125(56%) 1,185 1.751
Landscape Services 182 (92%) 581 2.704


Purchases by Consumers

The total value of purchases of horticultural goods and services by Florida's single family households and
commercial/institutional consumers in 1997 was estimated at $3.086 billion. The value of purchases by all
institutions was $195 million, averaging $4,363 per firm, while the total value of horticultural purchases by
all Florida households was estimated at $2.890 billion, averaging $715 per household annually (Table
3.3).










3: Overall Results


This section presents the study's cumulative findings for all five groups surveyed. Separate results for
each specific group surveyed are presented subsequently in sections four through nine of this report.


General Characteristics of Industry Firms and Households

Results on the age of companies surveyed indicated that most firms were generally mature businesses.
The average age of businesses ranged from 17 years for nurseries and landscapers to nearly 30 years for
horticultural retailers and commercial/institutional consumers (Table 3.1). Many firms had more than one
business location. The average number of locations for nurseries, retailers and landscapers ranged from
1.2 to 1.4 (Table 3.1). The average household size of surveyed households was 2.93 persons.

Table 3.1. Age and Number of Separate Locations of Florida Horticultural
Businesses Surveyed 1997.
Survey Group Years in Business Number of
(Avg) Locations (Avg)
Nurseries 16.7 1.2
Horticultural Retailers 29.7 1.4
Landscape Services 17.1 1.3
Commercial/Institutional Consumers 29.4


Sales by Industry Firms

Sales of horticultural products and services by nurseries, retailers and landscapers in 1997 were
estimated at $1.462 billion (B) for nurseries, $1.751 billion for retailers, and $2.704 billion for landscapers,
as summarized in Table 3.2. Sales per firm averaged $362 thousand for nurseries, $1.19 million for
retailers and $581 thousand for landscapers.

Table 3.2. Sales by Florida Nurseries, Retailers and Landscapers, 1997.
Group Number of Average Per Estimated Total
Firms Firm (billion $)
Reporting (thousand $)
Sales
Nurseries 511 (88%) 362 1.462
Retailers 125(56%) 1,185 1.751
Landscape Services 182 (92%) 581 2.704


Purchases by Consumers

The total value of purchases of horticultural goods and services by Florida's single family households and
commercial/institutional consumers in 1997 was estimated at $3.086 billion. The value of purchases by all
institutions was $195 million, averaging $4,363 per firm, while the total value of horticultural purchases by
all Florida households was estimated at $2.890 billion, averaging $715 per household annually (Table
3.3).










3: Overall Results


This section presents the study's cumulative findings for all five groups surveyed. Separate results for
each specific group surveyed are presented subsequently in sections four through nine of this report.


General Characteristics of Industry Firms and Households

Results on the age of companies surveyed indicated that most firms were generally mature businesses.
The average age of businesses ranged from 17 years for nurseries and landscapers to nearly 30 years for
horticultural retailers and commercial/institutional consumers (Table 3.1). Many firms had more than one
business location. The average number of locations for nurseries, retailers and landscapers ranged from
1.2 to 1.4 (Table 3.1). The average household size of surveyed households was 2.93 persons.

Table 3.1. Age and Number of Separate Locations of Florida Horticultural
Businesses Surveyed 1997.
Survey Group Years in Business Number of
(Avg) Locations (Avg)
Nurseries 16.7 1.2
Horticultural Retailers 29.7 1.4
Landscape Services 17.1 1.3
Commercial/Institutional Consumers 29.4


Sales by Industry Firms

Sales of horticultural products and services by nurseries, retailers and landscapers in 1997 were
estimated at $1.462 billion (B) for nurseries, $1.751 billion for retailers, and $2.704 billion for landscapers,
as summarized in Table 3.2. Sales per firm averaged $362 thousand for nurseries, $1.19 million for
retailers and $581 thousand for landscapers.

Table 3.2. Sales by Florida Nurseries, Retailers and Landscapers, 1997.
Group Number of Average Per Estimated Total
Firms Firm (billion $)
Reporting (thousand $)
Sales
Nurseries 511 (88%) 362 1.462
Retailers 125(56%) 1,185 1.751
Landscape Services 182 (92%) 581 2.704


Purchases by Consumers

The total value of purchases of horticultural goods and services by Florida's single family households and
commercial/institutional consumers in 1997 was estimated at $3.086 billion. The value of purchases by all
institutions was $195 million, averaging $4,363 per firm, while the total value of horticultural purchases by
all Florida households was estimated at $2.890 billion, averaging $715 per household annually (Table
3.3).










3: Overall Results


This section presents the study's cumulative findings for all five groups surveyed. Separate results for
each specific group surveyed are presented subsequently in sections four through nine of this report.


General Characteristics of Industry Firms and Households

Results on the age of companies surveyed indicated that most firms were generally mature businesses.
The average age of businesses ranged from 17 years for nurseries and landscapers to nearly 30 years for
horticultural retailers and commercial/institutional consumers (Table 3.1). Many firms had more than one
business location. The average number of locations for nurseries, retailers and landscapers ranged from
1.2 to 1.4 (Table 3.1). The average household size of surveyed households was 2.93 persons.

Table 3.1. Age and Number of Separate Locations of Florida Horticultural
Businesses Surveyed 1997.
Survey Group Years in Business Number of
(Avg) Locations (Avg)
Nurseries 16.7 1.2
Horticultural Retailers 29.7 1.4
Landscape Services 17.1 1.3
Commercial/Institutional Consumers 29.4


Sales by Industry Firms

Sales of horticultural products and services by nurseries, retailers and landscapers in 1997 were
estimated at $1.462 billion (B) for nurseries, $1.751 billion for retailers, and $2.704 billion for landscapers,
as summarized in Table 3.2. Sales per firm averaged $362 thousand for nurseries, $1.19 million for
retailers and $581 thousand for landscapers.

Table 3.2. Sales by Florida Nurseries, Retailers and Landscapers, 1997.
Group Number of Average Per Estimated Total
Firms Firm (billion $)
Reporting (thousand $)
Sales
Nurseries 511 (88%) 362 1.462
Retailers 125(56%) 1,185 1.751
Landscape Services 182 (92%) 581 2.704


Purchases by Consumers

The total value of purchases of horticultural goods and services by Florida's single family households and
commercial/institutional consumers in 1997 was estimated at $3.086 billion. The value of purchases by all
institutions was $195 million, averaging $4,363 per firm, while the total value of horticultural purchases by
all Florida households was estimated at $2.890 billion, averaging $715 per household annually (Table
3.3).









Table 3.3. Value of Purchases of Horticultural Goods and Services by Florida
Households and Commercial/Institutional Consumers, 1997.


Survey Group


Number and
Percent of
Respondents


Average Per
Respondent ($)


Estimated
Total*
(million $S


Institutions 573 (92%) 4,363 195
Households (single family) 510 (87%) 715 2,890
Total 1,083 3,086


Employment by Industry Firms

Employment by Florida's nurseries and landscape service firms in 1997 totaled an estimated 120
thousand persons, as summarized in Table 3.4. Surveyed nurseries employed an average of 11.5 full-time
and 6.4 part-time employees, representing an estimated 33 thousand persons industry wide. Landscape
service firms employed an average of 26.3 full-time and 13.3 part-time persons, representing an estimated
88 thousand employees in total. These employment figures are significantly higher than the number of
employees reported to the Florida Department of Labor for payroll taxes (nurseries, 23,556; retailers,
4,376; landscape services, 36,534) due to different classification of industry groups and the fact that only
firms with five or more employees are required to report their payroll to the State.

Table 3.4. Employment by Florida Nurseries and Landscapers, 1997.
Averages Per Firm Estimated Totals
Survey Group Full- Part- Total Full-time Part-time Total
time time
Nurseries 11.5 6.4 17.9 25,917 7,073 32,989
Landscape Services 26.3 13.3 39.6 67,299 20,229 87,528
Total All Groups 93,216 27,302 120,517


Geographic Distribution of Sales

Sales of products and services by industry firms were compiled according to the economic region in which
they were made, for purposes of evaluating the economic impacts of exports. Sales were classified as
international, national, state or local. The local area was defined as the city or county in which the
business was located, or within a 50 mile radius. For nurseries, $499M or 34 percent of total sales were to
national and international markets, while $964M (66%) of sales were to state or local markets (Table 3.5).
For retailers and landscapers, over 96 percent of sales were to local or state markets, and total sales
outside of Florida amounted to $57M and $103M, respectively.

Table 3.5. Geographic Distribution of Sales by Florida Nurseries, Horticultural Retailers and
Landscapers, 1997.


Geographic Area


Nurseries
Total Percent
(million $) of Total


Retailers
Total Percent
(million $) of Total


Landscape Services
Total Percent
(million $) of Total


Local (city, county) 572 39 1,569 90 2,141 79
State (within Florida) 392 27 125 7 459 17
National 427 29 57 3 103 4
International 71 5 na na na na
Total 1,462 100 1,751 100 2,704 100









Table 3.3. Value of Purchases of Horticultural Goods and Services by Florida
Households and Commercial/Institutional Consumers, 1997.


Survey Group


Number and
Percent of
Respondents


Average Per
Respondent ($)


Estimated
Total*
(million $S


Institutions 573 (92%) 4,363 195
Households (single family) 510 (87%) 715 2,890
Total 1,083 3,086


Employment by Industry Firms

Employment by Florida's nurseries and landscape service firms in 1997 totaled an estimated 120
thousand persons, as summarized in Table 3.4. Surveyed nurseries employed an average of 11.5 full-time
and 6.4 part-time employees, representing an estimated 33 thousand persons industry wide. Landscape
service firms employed an average of 26.3 full-time and 13.3 part-time persons, representing an estimated
88 thousand employees in total. These employment figures are significantly higher than the number of
employees reported to the Florida Department of Labor for payroll taxes (nurseries, 23,556; retailers,
4,376; landscape services, 36,534) due to different classification of industry groups and the fact that only
firms with five or more employees are required to report their payroll to the State.

Table 3.4. Employment by Florida Nurseries and Landscapers, 1997.
Averages Per Firm Estimated Totals
Survey Group Full- Part- Total Full-time Part-time Total
time time
Nurseries 11.5 6.4 17.9 25,917 7,073 32,989
Landscape Services 26.3 13.3 39.6 67,299 20,229 87,528
Total All Groups 93,216 27,302 120,517


Geographic Distribution of Sales

Sales of products and services by industry firms were compiled according to the economic region in which
they were made, for purposes of evaluating the economic impacts of exports. Sales were classified as
international, national, state or local. The local area was defined as the city or county in which the
business was located, or within a 50 mile radius. For nurseries, $499M or 34 percent of total sales were to
national and international markets, while $964M (66%) of sales were to state or local markets (Table 3.5).
For retailers and landscapers, over 96 percent of sales were to local or state markets, and total sales
outside of Florida amounted to $57M and $103M, respectively.

Table 3.5. Geographic Distribution of Sales by Florida Nurseries, Horticultural Retailers and
Landscapers, 1997.


Geographic Area


Nurseries
Total Percent
(million $) of Total


Retailers
Total Percent
(million $) of Total


Landscape Services
Total Percent
(million $) of Total


Local (city, county) 572 39 1,569 90 2,141 79
State (within Florida) 392 27 125 7 459 17
National 427 29 57 3 103 4
International 71 5 na na na na
Total 1,462 100 1,751 100 2,704 100










Economic Impacts


Economic impacts of the horticulture industry's exports were calculated using the IMPLAN input-output
model (see Methods). The economic output impact of the horticulture industry totaled $6.363 billion (B),
including a $1.125B output impact from the $675M in export sales to customers outside Florida (Table
3.6). The output impact of exports included indirect output impacts associated with activity in other
industries providing inputs to the horticulture industry, and induced impacts attributed to spending by
industry employees. The total impacts for nursery sector were adjusted to account for nursery products
exported by retailers and landscape services sectors.

Economic value added is perhaps the single most important measure of an industry's contribution to the
economy. It represents the difference between sales revenues and the cost of purchased inputs, and
includes the value of employee wages and benefits, owner's compensation, dividends, capital outlays and
business taxes paid. Economic value added by the three sectors of Florida's horticulture industry totaled
$5.424 billion, including $804 million in impacts of exports (Table 3.6). Value added by nurseries, retailers
and landscape services were $1.259B, $1.655B and $2.509B, respectively. The employee compensation
impact of the horticulture industry amounted to $2.999 billion, including $356 million from export activities.
Indirect business taxes paid to governments by the horticulture industry and allied firms were estimated at
$501 million.

Employment associated with the horticulture industry was over 187 thousand jobs, including 21,415
thousand jobs related to export activities, and 166 thousand jobs related to local/state sales, with 30,650
jobs for nurseries, 45,140 for retailers, and 111,413 for landscape services (Table 3.6).

Impacts of Florida's horticulture industry on other standardized industry sectors are presented in Table 3.7
for industries with output impacts of at least $1 million. The impacts represent induced effects of exports
sales plus indirect effects of local state sales. Some of the industry sectors most impacted, all of which had
over $10 million in total output impacts, included Wholesale Trade, Real Estate, Electric Services,
Maintenance and Repair Other Facilities, Agricultural, Forestry, Fishery Services, Owner-occupied
Dwellings, Banking, Motor Freight Transport and Warehousing, Doctors and Dentists,
Insurance Carriers, Eating and Drinking Establishments, Hospitals, Legal Services, Other Business
Services, Communications (except radio and TV), Air Transportation, Computer and Data Processing
Services, Automotive Dealers & Service Stations, and State and Local Electric Utilities.









Table 3.6. Economic Impacts of Florida's Horticultural Industries, 1997.
Horticulture Industry Sector
Type Impact* Nurseries Retailers Landscape All Sectors
Services
Sales (million $)
Export Sales 498.6 57.5 103.1 659.2
Local/State Sales 964.0 1,693.4 2,600.5 5,257.9
Total Sales 1,462.6 1,750.9 2,703.6 5,917.1
Output (M$)
Impact of Exports 846.7 95.1 183.4 1,125.1
Total Impact 1,790.6 1,788.5 2,783.9 6,363.0
Value Added (M$)
Impact of Exports 581.8 77.4 145.0 804.2
Total Impact 1,259.3 1,655.1 2,509.1 5,423.6
Employment (jobs)
Impact of Exports 14,025 2,005 5,385 21,415
Total Impact 30,650 45,140 111,413 187,203
Personal Income (M$)
Impact of Exports 317.3 47.7 100.8 465.8
Total Impact 674.8 1,041.2 1,884.1 3,600.1
Employee Compensation (M$)
Impact of Exports 225.9 45.0 85.0 356.0
Total Impact 442.7 999.9 1,556.2 2,998.7
Indirect Business Taxes (M$)
Impact of Exports 29.2 13.8 10.0 53.0
Total Impact 39.9 339.6 121.6 501.1
* Impact of exports represents direct, indirect, and induced impacts of export sales; total impact
represents impact of exports plus direct impacts of local/state sales.










Table 3.7. Statewide Economic Impacts of Florida's Horticulture Industry on Other Industries,
1997. Industries listed which have at least $1 million in output impact. Impacts represent
induced effects of exports sales plus indirect effect of local state sales.
Output Impact Value-Added Employment
(thousand $) Impact Impact (jobs)
(thousand $)
Wholesale Trade 78,769 51,803 731
Real Estate 66,625 44,913 296
Electric Services 50,811 39,545 119
Maintenance and Repair Other Facilities 35,661 19,556 527
Agricultural, Forestry, Fishery Services 32,519 25,737 1,747
Owner-occupied Dwellings 28,528 22,785 0
Banking 24,408 18,825 160
Motor Freight Transport and Warehousing 21,894 9,553 257
Doctors and Dentists 21,048 13,385 217
Insurance Carriers 20,227 11,785 147
Eating & Drinking 20,134 10,372 544
Hospitals 18,431 11,890 319
Legal Services 18,385 14,321 218
Other Business Services 15,451 7,991 214
Communications, Except Radio and TV 15,442 11,528 67
Air Transportation 10,984 4,993 79
Computer and Data Processing Services 10,733 6,294 111
Automotive Dealers & Service Stations 10,657 8,120 157
State and Local Electric Utilities 10,136 6,557 42
Miscellaneous Retail 9,867 7,234 327
Automobile Rental and Leasing 9,673 5,254 98
Hotels and Lodging Places 9,297 5,371 156
Nitrogenous and Phosphatic Fertilizers 9,174 2,024 17
Credit Agencies 8,622 4,142 202
Automobile Repair and Services 8,420 3,054 76
Food Stores 8,389 7,178 291
Management and Consulting Services 7,984 4,373 112
Other State and Local Govt Enterprises 7,388 2,927 40
Personnel Supply Services 7,343 6,615 353
Radio and TV Broadcasting 7,191 3,659 45
Accounting, Auditing and Bookkeeping 6,515 4,503 162
Newspapers 6,432 3,562 80
General Merchandise Stores 6,407 5,383 200
Other Medical and Health Services 5,776 3,077 98
U.S. Postal Service 5,635 3,850 79
Security and Commodity Brokers 4,899 4,045 49
Miscellaneous Repair Shops 4,883 2,238 66
Insurance Agents and Brokers 4,527 3,083 93
Nursing and Protective Care 4,208 2,855 123
Maintenance and Repair, Residential 4,141 1,597 49
Commercial Printing 4,054 1,510 40









Table 3.7. Statewide Economic Impacts of Florida's Horticulture
1997. Industries listed which have at least $1 million in output in
induced effects of exports sales plus indirect effect of local state
Output Impact
(thousand $)


Advertising
Motion Pictures
Furniture & Home Furnishings Stores
Apparel & Accessory Stores
Water Transportation
Equipment Rental and Leasing
Amusement and Recreation Services, nec
Farm Machinery and Equipment
Building Materials & Gardening
Sanitary Services and Steam Supply
Laundry, Cleaning and Shoe Repair
Services To Buildings
Periodicals
Railroads and Related Services
Engineering, Architectural Services
Colleges, Universities, Schools
Transportation Services
Gas Production and Distribution
Business Associations
Miscellaneous Publishing
Lubricating Oils and Greases
Storage Batteries
Photofinishing, Commercial Photography
Social Services, N.E.C.
Beauty and Barber Shops
Religious Organizations
Elementary and Secondary Schools
Detective and Protective Services
Theatrical Producers, Bands Etc.
Child Day Care Services
Miscellaneous Personal Services
Paperboard Containers and Boxes
Electrical Repair Service
Other Nonprofit Organizations
Residential Care
Local, Interurban Passenger Transit


3,750
3,687
3,377
3,294
3,189
3,176
2,741
2,704
2,671
2,607
2,606
2,483
2,271
2,228
2,010
1,870
1,853
1,826
1,764
1,752
1,697
1,677
1,677
1,631
1,604
1,598
1,530
1,432
1,428
1,428
1,414
1,332
1,309
1,210
1,198
1,130


Industry on Other Industries,
Impact. Impacts represent
sales.


Value-Added
Impact
(thousand $)
2,129
1,233
2,854
2,215
783
1,545
1,733
1,036
2,489
1,594
1,755
1,662
819
1,434
1,055
1,133
893
485
1,430
881
255
735
859
972
924
232
699
1,168
534
617
475
382
535
514
919
760


Employment
Impact (jobs)










Marketing Practices of Industry Firms


Marketing practices of horticulture industry firms are summarized in Table 3.8. Participation in civic events
and charitable contributions was the most commonly cited marketing practice, used by over 60 percent of
nurseries, retailers and landscapers. Personal selling was the next most common practice for nurseries
(48%) and landscapers (51%), while printed advertising was the second most common practice for
retailers (75%). Retailers generally used a greater number of different marketing practices than the other
industry groups, and over 45 percent of firms indicated that they used promotions, direct mail, and radio or
television advertising. A rapidly growing medium for marketing is the Internet, and a substantial number of
firms reported that they have a website.

Table 3.8. Marketing Practices of Florida Nurseries, Retailers and Landscapers, 1997.
Marketing Practice Nurseries Retailers Landscapers
Percentage of Firms Surveyed
Participation in civic events and charitable 63 85 67
contributions
Personal selling by telephone/personal visit 48 23 51
Trade magazine advertising 36 11 13
Promotions 33 64 22
Trade shows 33 18 17
Direct mail advertising 26 45 18
Printed advertising media 25 75 38
Internet website 16 41 13
Commissioned salespersons 10 8 20
Radio or television advertising 4 48 9


Business Outlook

Information on trends in business volume and the outlook for the next five years is presented in Table 3.9.
Over the past five years, most firms have experienced increased sales. Among these firms, the amount of
sales increased by an average of 77 percent for nurseries, 31 percent for retailers and 44 percent for
landscapers, which translates into annual growth rates of 15, 6 and 9 percent, respectively. Among the
minority of firms which experienced a decrease in overall sales, the average decrease was 15 to 50
percent. A smaller percentage of firms experienced increased prices over the past 5 years, and the
magnitude of price increases was less than the increase in sales volume. Over the next 5 years, over two-
thirds of firms in all groups expect sales to increase. Among this group, sales are expected to increase by
an average of 26 to 53 percent, or 5 to 10 percent annually. Among the minority of pessimistic firms who
expected sales to fall over the next 5 years, price declines of up to 36 percent were anticipated.










Marketing Practices of Industry Firms


Marketing practices of horticulture industry firms are summarized in Table 3.8. Participation in civic events
and charitable contributions was the most commonly cited marketing practice, used by over 60 percent of
nurseries, retailers and landscapers. Personal selling was the next most common practice for nurseries
(48%) and landscapers (51%), while printed advertising was the second most common practice for
retailers (75%). Retailers generally used a greater number of different marketing practices than the other
industry groups, and over 45 percent of firms indicated that they used promotions, direct mail, and radio or
television advertising. A rapidly growing medium for marketing is the Internet, and a substantial number of
firms reported that they have a website.

Table 3.8. Marketing Practices of Florida Nurseries, Retailers and Landscapers, 1997.
Marketing Practice Nurseries Retailers Landscapers
Percentage of Firms Surveyed
Participation in civic events and charitable 63 85 67
contributions
Personal selling by telephone/personal visit 48 23 51
Trade magazine advertising 36 11 13
Promotions 33 64 22
Trade shows 33 18 17
Direct mail advertising 26 45 18
Printed advertising media 25 75 38
Internet website 16 41 13
Commissioned salespersons 10 8 20
Radio or television advertising 4 48 9


Business Outlook

Information on trends in business volume and the outlook for the next five years is presented in Table 3.9.
Over the past five years, most firms have experienced increased sales. Among these firms, the amount of
sales increased by an average of 77 percent for nurseries, 31 percent for retailers and 44 percent for
landscapers, which translates into annual growth rates of 15, 6 and 9 percent, respectively. Among the
minority of firms which experienced a decrease in overall sales, the average decrease was 15 to 50
percent. A smaller percentage of firms experienced increased prices over the past 5 years, and the
magnitude of price increases was less than the increase in sales volume. Over the next 5 years, over two-
thirds of firms in all groups expect sales to increase. Among this group, sales are expected to increase by
an average of 26 to 53 percent, or 5 to 10 percent annually. Among the minority of pessimistic firms who
expected sales to fall over the next 5 years, price declines of up to 36 percent were anticipated.









Table 3.9. Historical and Expected Changes in Sales and Prices for Florida
Nurseries, Retailers and Landscapers, 1997.


Firms with sales increased
Amount sales increased (avg)
Firms with sales decreased
Amount sales decreased (avg)
Firms with prices increased
Amount price increased (avg)
Firms with prices decreased
Amount price decreased (avg)

Firms that expect sales to increase
Amount sales will increase
Firms that expect sales to decrease
Amount sales will decrease


Nurseries Retailers Landscapers
Last Five (5) Years
63% 77% 81%
77% 31% 44%
15% 8% 7%
50% 15% 26%
32% 51% 59%
14% 13% 14%
13% 8% 6%
23% 39% 11%
Expected Next Five years
71% 88% 84%
53% 26% 35%
17% 3% 3%
36% na 32%










4: Results for Wholesale Nurseries


Nurseries are the primary producers of products for the ornamental plant industry. According to the Florida
Department of Plant industry, there were 4042 commercial wholesale or wholesale and retail nursery firms
in Florida in 1997. Of the 2,157 firms contacted for the survey, 560 nursery firms were interviewed, and 29
percent were ineligible.


Sales Revenues

Florida's wholesale ornamental plant nurseries had an estimated total sales of $1.463 billion in 1997. This
figure closely matches the estimated $1.450 billion for Florida greenhouse and nursery crops in the 1997
Census of Agriculture (http://www.nass.usda.gov/census/census97/volumel/vollpubs.htm).

The distribution of sales by sales size class is presented in Table 4.1, and by firm inventory size class in
Table 4.2. Over half of nursery firms reported sales in the smallest class of less than $250 thousand, and
an additional 26 percent of firms reported sales of less than $1 million. About 10 percent of firms had sales
of $1 to 6 million, and several higher sales categories had a single firm reported sales. In terms of plant
inventory size classes, about 58 percent of total industry sales were accounted for by firms having less
than 100,000 plant units in inventory according to Florida Department of Plant Industry annual inspections
(Table 4.2).

Table 4.1. Distribution of Annual Sales for
Florida Nurseries Surveyed, 1997.
Annual Sales Category* Percent of
Firms
Less than $250K 52
$250 to $499K 14
$500 to $999K 12
$1.0 to $1.9M 6
$2.0 to $3.9M 3
$4.0 to $5.9M 1
$6.0 to $7.9M <1
$8.0 to $9.9M <1
$10 to $14.9M <1
$15to$19.9M <1
$20 to $25M 0
Over $25M <1
Don't Know or Not Available 11
* "K" indicates thousands, "M" indicates millions
dollars

Table 4.2. Florida Nursery Sales by Firm Inventory Size Class, 1997.
Plant Inventory Units* Firms Sampled Sample Sum Estimated Total
(million $) (million $)
500 to 10,000 271 46.1 222
10,001 to 100,000 175 87.3 421
Over 100,000 114 170.0 820
Total 560 303.4 1,463
* Florida Division of Plant Industry inventory classes.










4: Results for Wholesale Nurseries


Nurseries are the primary producers of products for the ornamental plant industry. According to the Florida
Department of Plant industry, there were 4042 commercial wholesale or wholesale and retail nursery firms
in Florida in 1997. Of the 2,157 firms contacted for the survey, 560 nursery firms were interviewed, and 29
percent were ineligible.


Sales Revenues

Florida's wholesale ornamental plant nurseries had an estimated total sales of $1.463 billion in 1997. This
figure closely matches the estimated $1.450 billion for Florida greenhouse and nursery crops in the 1997
Census of Agriculture (http://www.nass.usda.gov/census/census97/volumel/vollpubs.htm).

The distribution of sales by sales size class is presented in Table 4.1, and by firm inventory size class in
Table 4.2. Over half of nursery firms reported sales in the smallest class of less than $250 thousand, and
an additional 26 percent of firms reported sales of less than $1 million. About 10 percent of firms had sales
of $1 to 6 million, and several higher sales categories had a single firm reported sales. In terms of plant
inventory size classes, about 58 percent of total industry sales were accounted for by firms having less
than 100,000 plant units in inventory according to Florida Department of Plant Industry annual inspections
(Table 4.2).

Table 4.1. Distribution of Annual Sales for
Florida Nurseries Surveyed, 1997.
Annual Sales Category* Percent of
Firms
Less than $250K 52
$250 to $499K 14
$500 to $999K 12
$1.0 to $1.9M 6
$2.0 to $3.9M 3
$4.0 to $5.9M 1
$6.0 to $7.9M <1
$8.0 to $9.9M <1
$10 to $14.9M <1
$15to$19.9M <1
$20 to $25M 0
Over $25M <1
Don't Know or Not Available 11
* "K" indicates thousands, "M" indicates millions
dollars

Table 4.2. Florida Nursery Sales by Firm Inventory Size Class, 1997.
Plant Inventory Units* Firms Sampled Sample Sum Estimated Total
(million $) (million $)
500 to 10,000 271 46.1 222
10,001 to 100,000 175 87.3 421
Over 100,000 114 170.0 820
Total 560 303.4 1,463
* Florida Division of Plant Industry inventory classes.









Production Area


Production area managed by Florida's wholesale nurseries in 1997 is summarized in Table 4.3.
Production area reported by sampled firms was over 8 thousand acres and the estimated total area
statewide was over 38 thousand acres. The average production area per firm was 27 acres. Field
production systems, i.e. growing plants in native soils, amounted to over 19 thousand acres, and
represented 45 percent of the total growing area. Open containerized production systems amounted to 14
thousand acres, field production of woody ornamentals occupied over 17 thousand acres, and
greenhouse and shade house production systems occupied 6705 acres.

Table 4.3. Production Area Managed by Florida Nurseries, 1997.
Estimated Percent
Percent of
Type of Production Area irms reporting Total Area of Total
(acres) Area
Field 46 17,273 45
Open Container 65 14,048 37
Greenhouse or Shade house 67 6,705 18
Total 38,026 100


Sales of Plant Product Types

Types of plant products sold by Florida nurseries are presented in Table 4.4. Tropical foliage plants or
palms was the largest single category of plants sold at $503 million or 34 percent of total nursery sales.
Landscape woody ornamentals, including woody shrubs, deciduous shade, flowering, or fruit trees, and
evergreen trees, together accounted for $420 million in sales. Potted flowering plants or bedding plants
and cut foliage or flowers accounted for $265 million or 21 percent of industry sales. Propagating liners,
vines or ground covers, turfgrass and other types of ornamental plants together accounted for $255 million
in sales.

Ornamental plants that are native species to Florida are an increasingly important type of plant product,
with many local governments now requiring minimum percentages of native plants in new landscape
construction. Some 57 percent of growers surveyed reported that at least some of their product sold was
Florida native plants. Total sales of native plants in Florida were estimated at $101 million. The
distribution of native plant sales by growers as a percentage of total firm sales is indicated in Table 4.5.


Table 4.4. Sales of Plant Product Types by Florida Nurseries, 1997.
Percent of Estimated Percent of
Type of Plant ercet ofli Total Sales Total
Firms Selling (million $) Sales
Tropical foliage plants or palms 60 503 34
Woody shrubs 47 236 16
Deciduous shade, flowering or fruit trees 36 130 9
Evergreen trees 28 54 4
Potted flowering plants or bedding plants 34 251 17
Propagating liners, cuttings, or plugs 21 133 10
Vines or ground covers 31 60 4
Cut foliage or flowers 6 14 1
Turfgrass 3 7 <1
Other types of ornamental plants 15 55 4
Total 1.463 100









Production Area


Production area managed by Florida's wholesale nurseries in 1997 is summarized in Table 4.3.
Production area reported by sampled firms was over 8 thousand acres and the estimated total area
statewide was over 38 thousand acres. The average production area per firm was 27 acres. Field
production systems, i.e. growing plants in native soils, amounted to over 19 thousand acres, and
represented 45 percent of the total growing area. Open containerized production systems amounted to 14
thousand acres, field production of woody ornamentals occupied over 17 thousand acres, and
greenhouse and shade house production systems occupied 6705 acres.

Table 4.3. Production Area Managed by Florida Nurseries, 1997.
Estimated Percent
Percent of
Type of Production Area irms reporting Total Area of Total
(acres) Area
Field 46 17,273 45
Open Container 65 14,048 37
Greenhouse or Shade house 67 6,705 18
Total 38,026 100


Sales of Plant Product Types

Types of plant products sold by Florida nurseries are presented in Table 4.4. Tropical foliage plants or
palms was the largest single category of plants sold at $503 million or 34 percent of total nursery sales.
Landscape woody ornamentals, including woody shrubs, deciduous shade, flowering, or fruit trees, and
evergreen trees, together accounted for $420 million in sales. Potted flowering plants or bedding plants
and cut foliage or flowers accounted for $265 million or 21 percent of industry sales. Propagating liners,
vines or ground covers, turfgrass and other types of ornamental plants together accounted for $255 million
in sales.

Ornamental plants that are native species to Florida are an increasingly important type of plant product,
with many local governments now requiring minimum percentages of native plants in new landscape
construction. Some 57 percent of growers surveyed reported that at least some of their product sold was
Florida native plants. Total sales of native plants in Florida were estimated at $101 million. The
distribution of native plant sales by growers as a percentage of total firm sales is indicated in Table 4.5.


Table 4.4. Sales of Plant Product Types by Florida Nurseries, 1997.
Percent of Estimated Percent of
Type of Plant ercet ofli Total Sales Total
Firms Selling (million $) Sales
Tropical foliage plants or palms 60 503 34
Woody shrubs 47 236 16
Deciduous shade, flowering or fruit trees 36 130 9
Evergreen trees 28 54 4
Potted flowering plants or bedding plants 34 251 17
Propagating liners, cuttings, or plugs 21 133 10
Vines or ground covers 31 60 4
Cut foliage or flowers 6 14 1
Turfgrass 3 7 <1
Other types of ornamental plants 15 55 4
Total 1.463 100










Table 4.5. Sales of Native Plants by Florida
Nurseries, 1997.
Percentage Category of Total Percent
Firm Sales Firr


age of
ns


None 28
1% to 5% 15
6% to 10% 9
11% to 20% 5
More than 20% 27
Don't Know or Not Available 15


Regional Sales, Employment and Production Area

Information on wholesale nurseries was collected at the regional level to better understand the distribution
of economic impacts within the state. Sales and employment by nurseries within seven different regions
of the state are presented in Table 4.6. Estimated total sales were greatest for the lower east coast region
(Palm Beach, Broward, Martin, St. Lucie counties) at $433 million, followed by the Tampa Bay region at
$277 million and the central region at $251 million. Employment and production area were also highest in
these three regions, although not in the same order. The Tampa Bay region had the largest number of
employees (9,372) and the largest production area (12,286 acres). The lower east coast region was
second in employment (7,582) and production area (8,674 acres), and the central Florida region was third
(5,5291 employees, 4,868 acres).

Table 4.6. Regional Sales, Employment and Production Area for Florida Nurseries, 1997.
Region* Total Sales Employ- Production Area (acres)
(million $) ment
(persons) Field Open Greenhouse Total
Container Shade house
Northwest 40 1,730 776 1,074 268 2,117
Northeast 99 1,620 788 1,708 232 2,728
Central 251 5,529 2,186 1,607 1,075 4,868
Tampa Bay 277 9,372 7,204 3,487 1,594 12,286
Southwest 194 3,995 1,298 1,195 447 2,941
Lower East Coast 433 7,582 2,890 3,410 2,374 8,674
Dade County 170 3,161 2,131 1,566 714 4,411
All 1,463 32,989 17,273 14,048 6,705 38,026
* See Table 2.4 and Figure 2.1 for definition of regions.


Economic Impacts

The economic impacts of Florida's nurseries in 1997 are summarized in Table 4.7. These results are
repeated here from Table 3.6. Economic output amounted to $1.791 billion, including $847 million in
direct, indirect and induced impacts associated with export sales. Total value added was $1.259 billion,
which included personal income of $675 million, employee compensation of $442 million and indirect
business taxes paid of $40 million. The total employment impact was 30,650 jobs.










Table 4.5. Sales of Native Plants by Florida
Nurseries, 1997.
Percentage Category of Total Percent
Firm Sales Firr


age of
ns


None 28
1% to 5% 15
6% to 10% 9
11% to 20% 5
More than 20% 27
Don't Know or Not Available 15


Regional Sales, Employment and Production Area

Information on wholesale nurseries was collected at the regional level to better understand the distribution
of economic impacts within the state. Sales and employment by nurseries within seven different regions
of the state are presented in Table 4.6. Estimated total sales were greatest for the lower east coast region
(Palm Beach, Broward, Martin, St. Lucie counties) at $433 million, followed by the Tampa Bay region at
$277 million and the central region at $251 million. Employment and production area were also highest in
these three regions, although not in the same order. The Tampa Bay region had the largest number of
employees (9,372) and the largest production area (12,286 acres). The lower east coast region was
second in employment (7,582) and production area (8,674 acres), and the central Florida region was third
(5,5291 employees, 4,868 acres).

Table 4.6. Regional Sales, Employment and Production Area for Florida Nurseries, 1997.
Region* Total Sales Employ- Production Area (acres)
(million $) ment
(persons) Field Open Greenhouse Total
Container Shade house
Northwest 40 1,730 776 1,074 268 2,117
Northeast 99 1,620 788 1,708 232 2,728
Central 251 5,529 2,186 1,607 1,075 4,868
Tampa Bay 277 9,372 7,204 3,487 1,594 12,286
Southwest 194 3,995 1,298 1,195 447 2,941
Lower East Coast 433 7,582 2,890 3,410 2,374 8,674
Dade County 170 3,161 2,131 1,566 714 4,411
All 1,463 32,989 17,273 14,048 6,705 38,026
* See Table 2.4 and Figure 2.1 for definition of regions.


Economic Impacts

The economic impacts of Florida's nurseries in 1997 are summarized in Table 4.7. These results are
repeated here from Table 3.6. Economic output amounted to $1.791 billion, including $847 million in
direct, indirect and induced impacts associated with export sales. Total value added was $1.259 billion,
which included personal income of $675 million, employee compensation of $442 million and indirect
business taxes paid of $40 million. The total employment impact was 30,650 jobs.









Table 4.7. Economic Impacts of Florida's Nurseries, 1997.
Type Impact* Impact of Total Imn


pact


Exports
Output (M$) 846.7 1,790.6
Value Added (M$) 581.8 1,259.3
Employment (obs) 14,025 30,650
Personal Income (M$) 317.3 674.8
Employee Compensation (M$) 225.9 442.7
Indirect Business Taxes (M$) 29.2 39.9
* Impact of exports represents direct, indirect, and induced
impacts of export sales; total impact represents impact of
exports plus direct impacts of local/state sales.


Economic impacts of nurseries were estimated separately by sub-region within Florida, as summarized in
Table 4.8. For this analysis, the total multiplier effect was applied to non-local sales within Florida as well
as exports to national and international markets, and the direct multiplier was applied to local sales. The
sum of impacts for these subregions were somewhat greater than for the state as a whole because a
larger share of nursery sales were non-local, i.e. exported from the region to other markets within Florida.
In a few cases the computed impact for a region were anomalously lower than that estimated directly from
survey data, and these are indicated in the table. Output impacts were highest in the lower east coast
region ($435M), closely followed by Tampa Bay ($425M), then Southwest Florida ($364M) and Central
Florida ($329M). Value added, personal income and employee compensation impacts were highest in the
Tampa Bay area and Southwest Florida.


Table 4.8. Regional Economic Impacts of the Florida Nursery Industry, 1997.
Region Non-Local Total Employment Value Person;


Sales
(million $)


Output
Impact
(M$)


Impact (jobs)


Added
Impact
(M$)


Income
Impact
(M$S


Employee
Compen-
sation
Imnact (M$)


Indirect
Business
Tax Impact
IMS-


1 Northwest 12 36(40)* 686(1730)* 32 16 11 1
2 Northeast 53 127 1,952 93 47 35 3
3 Central 122 329 6,162 232 126 82 9
4 Tampa Bay 208 425 7,002 313 173 114 13
5 Southwest 216 364 7,852 303 165 109 12
6 Lower East Coast 130 435 4,408(7582)* 221 115 83 8
7 Dade County 150 304 4,859 183 100 69 10
All 891 2,021 32,922 1,377 742 503 55
Impact estimated directly from survey data where higher than computed from multiplier.


Marketing of Nursery Products

Sales of nursery products to different types of customers were assessed in the survey and results are
summarized in Table 4.9. The largest customer group was, surprisingly, other growers, with over two-
thirds of respondents indicating some sales to other growers, which totaled $411 million and represented
28 percent of total sales. Landscapers, interiorscapers or lawn maintenance firms were the next largest
customer type, with total sales of $341 million (23%). Retail mass merchandisers, which have come to
dominate the horticultural goods retailing, accounted for $215 million, and independent retail garden
centers accounted for an additional $143 million. Re-wholesalers or brokers accounted for $170 million of
nursery product sales. About $131 million in sales were made by nurseries directly to the public, and $51
million were to developers or property managers.


al










Table 4.9. Sales to Different Types of Customer by Florida Nurseries, 1997.
Type of Customer Percent of Estimated Percent
Firms Selling Total Sales of Total
(million $) Sales
Landscape service firms 68 341 23
Other growers 66 411 28
Retail mass merchandisers 22 215 15
Re-wholesalers or brokers 47 170 12
Garden centers and other retailers 38 143 10
Directly to the public (homeowners) 41 131 9
Developers or property managers 24 51 3
Total 1,463 100


Nursery firms offer many other services to their customers together with their plant products as
summarized in Table 4.10. The most commonly cited service was product delivery, which was offered by
63 percent of growers. Labeling of the product with identification/care tags was offered by 45 percent of
firms. Horticultural consulting is an important service for many firms selling premium products to
commercial customers, and was offered by 33 percent of firms. Packaging is a common practice for
floricultural crops, and was offered by 28 percent of respondents overall. Landscape design and
installation was offered by about one fourth of firms, but landscape maintenance was offered by only 10
percent of grower firms.


Table 4.10. Services Offered by Florida Nurseries, 1997.


Service


Percent of Firms
Offering


Delivery 63
Plant identification, care tagging 45
Contract growing 33
Horticultural consulting 33
Packaging 28
Landscape design 25
Landscape installation 23
Decorative containers 20
Mail order 11
Landscape maintenance services 10


Financial Borrowing Characteristics and Needs

The financial needs of wholesale nurseries was assessed at the request of the funding partners. The
importance of several factors possibly considered by managers for choosing a financial lender were
scored on a scale of 1 to 10, as summarized in Table 4.11. The most important single factor indicated by
respondents was the convenience or flexibility of repayment terms. The next most important factors were
having competitive interest rates and a long term or personal relationship with the lender. Somewhat less
important were the knowledge of the lender about the client's business and the analytical services offered
by the lender. Other factors mentioned by respondents include convenience, particularly in relation to the
lender's location, hours of operation and speed of service, personal and friendly service, accessibility to
decision makers, business ethnics, and banking fees, and knowledge about agriculture.









Table 4.11. Factors Considered for Choosing Financial
Lenders by Florida Nurseries, 1997.
Factor Average
Score*
Other factor 9.0
Convenient or flexible repayment terms 8.1
Competitive interest rates 7.9
Long term or personal relationship 7.6
Knowledge about your business 6.6
Analytical services provided by lender 5.6
* Importance scored on scale of 1 to 10.


Grower respondents were asked about their anticipated credit needs over the next year. A majority of
firms (52%) expected their credit needs to remain the same as the previous year (Table 4.12). Some 13
percent of firms expected an increased need for credit by an average amount of 2.8 percent, while similar
number of firms expected a decreased need for credit, averaging a 3.2 percent decrease.

Table 4.12. Expectations for Credit Needs Next Year by Florida
Nurseries, 1997.
Firms expecting credit needs to increase 77 (13%)
Percentage credit needs to increase (avg) 2.8%
Firms expecting credit needs to decrease 52 (9%)
Percentage credit needs to decrease (avg) 3.2%
Firms expecting credit needs to remain the same 300 (52%)










5: Results for Horticultural Retailers


This section summarizes results for horticultural retailers in Florida. The population of 1,478 retailer firms
was taken from the Florida Division of Plant Industry, which licenses all plant product dealers in the state.
A total of 225 retail firms were interviewed for the survey, of which 125 provided complete information on
sales. Of the 1030 firms contacted, 31 percent were ineligible for the survey.


Product Sales

Total retail sales of plant products and related horticultural goods in Florida in 1997 were estimated at
$1.751 billion, including $417 million for plants (24%), $212 million for lawn and garden supplies (12%),
$125 million for lawn and garden hard goods (7%), and $996 million for other goods (57%) (Table 5.1).
Evidently, horticultural retailers are becoming more diversified in their product offerings, reflected by the
large percentage of "other" unclassified goods, such as crafts and home decorating items. However, live
plants were the most commonly sold type of item, reported by 72 percent of retailers surveyed, followed by
other goods (42%), lawn and garden supplies (35%) and lawn and garden hard goods (29%).

Table 5.1. Sales by Horticultural Retailers in Florida, 1997.
Type of Good Percent of Estimated Total Percent
Firms Selling Sales of Total
(million $) Sales
Plants 72 417 24
Lawn and garden supplies 35 212 12
Lawn and garden hard goods 29 125 7
Other goods 42 996 57
Total 1,751 100

Sales of different types of plant products by retailers are presented in Table 5.2. Woody ornamentals,
including shrubs, deciduous and evergreen trees were the largest category of plants, representing 46
percent of sales. Tropical foliage and potted flowering plants together amounted to 37 percent of sales.
Potted flowering plants or bedding plants were the most commonly sold type of item, reported by 85
percent of firms surveyed, followed by tropical foliage (73%), cut foliage or flowers (66%) and woody
shrubs (50%). Native Florida plants were sold by 48 percent of retailers, and total retail sales were
estimated at $104 million. The distribution of native plant sales by retailers is given in table 5.3.

Table 5.2. Sales of Types of Plants by Florida Horticultural Retailers, 1997.
Type of Plant Percent of Estimated Total Percent of
Firms Selling (million $) Total
Shrubs 50 129 31
Potted flowering plants or bedding plants 85 86 21
Tropical foliage plants or palms 73 68 16
Cut foliage or flowers 66 51 12
Deciduous shade, flowering or fruit trees 43 49 12
Evergreen trees 43 13 3
Vines or ground covers 47 9 2
Propagating liners, cuttings, or plugs 18 6 1
Other types of ornamental plants 16 4 1
Turfgrass 23 3 1
Total 417 100










5: Results for Horticultural Retailers


This section summarizes results for horticultural retailers in Florida. The population of 1,478 retailer firms
was taken from the Florida Division of Plant Industry, which licenses all plant product dealers in the state.
A total of 225 retail firms were interviewed for the survey, of which 125 provided complete information on
sales. Of the 1030 firms contacted, 31 percent were ineligible for the survey.


Product Sales

Total retail sales of plant products and related horticultural goods in Florida in 1997 were estimated at
$1.751 billion, including $417 million for plants (24%), $212 million for lawn and garden supplies (12%),
$125 million for lawn and garden hard goods (7%), and $996 million for other goods (57%) (Table 5.1).
Evidently, horticultural retailers are becoming more diversified in their product offerings, reflected by the
large percentage of "other" unclassified goods, such as crafts and home decorating items. However, live
plants were the most commonly sold type of item, reported by 72 percent of retailers surveyed, followed by
other goods (42%), lawn and garden supplies (35%) and lawn and garden hard goods (29%).

Table 5.1. Sales by Horticultural Retailers in Florida, 1997.
Type of Good Percent of Estimated Total Percent
Firms Selling Sales of Total
(million $) Sales
Plants 72 417 24
Lawn and garden supplies 35 212 12
Lawn and garden hard goods 29 125 7
Other goods 42 996 57
Total 1,751 100

Sales of different types of plant products by retailers are presented in Table 5.2. Woody ornamentals,
including shrubs, deciduous and evergreen trees were the largest category of plants, representing 46
percent of sales. Tropical foliage and potted flowering plants together amounted to 37 percent of sales.
Potted flowering plants or bedding plants were the most commonly sold type of item, reported by 85
percent of firms surveyed, followed by tropical foliage (73%), cut foliage or flowers (66%) and woody
shrubs (50%). Native Florida plants were sold by 48 percent of retailers, and total retail sales were
estimated at $104 million. The distribution of native plant sales by retailers is given in table 5.3.

Table 5.2. Sales of Types of Plants by Florida Horticultural Retailers, 1997.
Type of Plant Percent of Estimated Total Percent of
Firms Selling (million $) Total
Shrubs 50 129 31
Potted flowering plants or bedding plants 85 86 21
Tropical foliage plants or palms 73 68 16
Cut foliage or flowers 66 51 12
Deciduous shade, flowering or fruit trees 43 49 12
Evergreen trees 43 13 3
Vines or ground covers 47 9 2
Propagating liners, cuttings, or plugs 18 6 1
Other types of ornamental plants 16 4 1
Turfgrass 23 3 1
Total 417 100









Table 5.3. Sales of Native Plants by Florida
Horticultural Retailers, 1997.
Percentage Category of Total Percentage of
Firm Sales Firms
None 10
1%to5% 10
6% to 10% 8
11% to 20% 3
More than 20% 18
Don't know or Not available 32


Retail Sales Area

Sales area managed by horticultural retailers in Florida totaled 25.4 million square feet, including 4 million
for live plants (16%), 5.6 million for lawn and garden supplies (22%), 1.2 million for lawn and garden hard
goods (5%), and 14.7 million for other goods (58%) (Table 5.4).


Table 5.4. Sales Area Managed by Florida Horticultural Retailers, 1997.
Type of Retail Area Percent of Average Per Estimated
Firms Having Firm Total Area
(thousand (million sq.ft.)
sa.ft.)


Percent of
Total Area


Live Plants 75 2.70 3.99 16
Lawn and garden supplies 47 3.79 5.60 22
Lawn and garden hard goods 39 0.79 1.17 5
Other goods 39 9.93 14.68 58
Total Retail Area 17.21 25.44 100


Retail Markets

Sales by horticultural retailers to different types of customers are indicated in Table 5.5. As would be
expected for retailers, sales directly to the public dominated their business, representing 86 percent of total
sales. However, over half of retailers also sold to commercial establishments (e.g restaurants, hotels, and
offices) and to apartments and condominiums, and sales were significant to landscape services firms
(landscapers, interiorscapers, lawn maintenance firms).

Services and product features offered by retailers to their customers are summarized in Table 5.6. A
majority of retailers offered decorative containers (80%), plant identification or care tags (72%), and
horticultural consulting (54%). Packaging, delivery or mail order was also offered by nearly half (47%) of
firms. A small percentage of firms offered landscape design, installation or maintenance services.









Table 5.3. Sales of Native Plants by Florida
Horticultural Retailers, 1997.
Percentage Category of Total Percentage of
Firm Sales Firms
None 10
1%to5% 10
6% to 10% 8
11% to 20% 3
More than 20% 18
Don't know or Not available 32


Retail Sales Area

Sales area managed by horticultural retailers in Florida totaled 25.4 million square feet, including 4 million
for live plants (16%), 5.6 million for lawn and garden supplies (22%), 1.2 million for lawn and garden hard
goods (5%), and 14.7 million for other goods (58%) (Table 5.4).


Table 5.4. Sales Area Managed by Florida Horticultural Retailers, 1997.
Type of Retail Area Percent of Average Per Estimated
Firms Having Firm Total Area
(thousand (million sq.ft.)
sa.ft.)


Percent of
Total Area


Live Plants 75 2.70 3.99 16
Lawn and garden supplies 47 3.79 5.60 22
Lawn and garden hard goods 39 0.79 1.17 5
Other goods 39 9.93 14.68 58
Total Retail Area 17.21 25.44 100


Retail Markets

Sales by horticultural retailers to different types of customers are indicated in Table 5.5. As would be
expected for retailers, sales directly to the public dominated their business, representing 86 percent of total
sales. However, over half of retailers also sold to commercial establishments (e.g restaurants, hotels, and
offices) and to apartments and condominiums, and sales were significant to landscape services firms
(landscapers, interiorscapers, lawn maintenance firms).

Services and product features offered by retailers to their customers are summarized in Table 5.6. A
majority of retailers offered decorative containers (80%), plant identification or care tags (72%), and
horticultural consulting (54%). Packaging, delivery or mail order was also offered by nearly half (47%) of
firms. A small percentage of firms offered landscape design, installation or maintenance services.










Table 5.5. Sales for Florida Horticultural Retailers by Type of Customer, 1997.


Type of Customer


Percent of
Firms Selling


Directly to the public (homeowners) 95 1,509 86
Commercial establishments 56 76 4
Garden centers and other retailers 19 24 1
Landscape service firms 30 61 3
Apartments and condominiums 51 71 4
Government organizations 36 10 1
Total 1,751 100


Table 5.6. Services and Product Features Offered by Florida
Horticultural Retailers, 1997.


Service


Percent of Firms
Offerina


Decorative containers 80
Plant identification or care tags 72
Horticultural consulting 54
Packaging, Delivery or Mail order 47
Landscape design 14
Landscape installation 9
Landscape maintenance services 4


Geographic Sales

Regional sales by Florida retailers are indicated in Table 5.7. Nearly 90 percent of sales were within the
local area, and another 7 percent were within Florida, so only 3 percent of sales were national ($57
million).


Table 5.7. Geographic Sales for Florida Horticultural Retailers, 1997.
Region Percent of Firms Estimated Percent of
Selling in Region Total Sales Total Sales
(million $)
Local area 73 1,569 90
Florida 27 125 7
National 15 57 3
Total 1,751 100


Economic Impacts

Economic impacts of Florida's horticultural retailers in 1997 are summarized in Table 5.8. The total output
impact was $1.789 billion, including $95 million associated with export activities. The total value added
impact of $1.655B included $1.041B in personal income, $1.00B in employee compensation and $340M in
indirect business taxes paid. The employment impact was 45 thousand jobs, including 2000 jobs
associated with exports (Table 5.8).


Estimated
Total Sales
(million $)


Percent of
Total
Sales










Table 5.5. Sales for Florida Horticultural Retailers by Type of Customer, 1997.


Type of Customer


Percent of
Firms Selling


Directly to the public (homeowners) 95 1,509 86
Commercial establishments 56 76 4
Garden centers and other retailers 19 24 1
Landscape service firms 30 61 3
Apartments and condominiums 51 71 4
Government organizations 36 10 1
Total 1,751 100


Table 5.6. Services and Product Features Offered by Florida
Horticultural Retailers, 1997.


Service


Percent of Firms
Offerina


Decorative containers 80
Plant identification or care tags 72
Horticultural consulting 54
Packaging, Delivery or Mail order 47
Landscape design 14
Landscape installation 9
Landscape maintenance services 4


Geographic Sales

Regional sales by Florida retailers are indicated in Table 5.7. Nearly 90 percent of sales were within the
local area, and another 7 percent were within Florida, so only 3 percent of sales were national ($57
million).


Table 5.7. Geographic Sales for Florida Horticultural Retailers, 1997.
Region Percent of Firms Estimated Percent of
Selling in Region Total Sales Total Sales
(million $)
Local area 73 1,569 90
Florida 27 125 7
National 15 57 3
Total 1,751 100


Economic Impacts

Economic impacts of Florida's horticultural retailers in 1997 are summarized in Table 5.8. The total output
impact was $1.789 billion, including $95 million associated with export activities. The total value added
impact of $1.655B included $1.041B in personal income, $1.00B in employee compensation and $340M in
indirect business taxes paid. The employment impact was 45 thousand jobs, including 2000 jobs
associated with exports (Table 5.8).


Estimated
Total Sales
(million $)


Percent of
Total
Sales









Table 5.8. Economic Impacts of Florida Horticultural Retailers,
1997.
Type Impact* Export Impact Total Impact
Output (M$) 95.1 1,788.5
Value Added (M$) 77.4 1,655.1
Employment (jobs) 2,005 45,140
Personal Income (M$) 47.7 1,041.2
Employee Compensation (M$) 45.0 999.9
Indirect Business Taxes (M$) 13.8 339.6
Impact of exports represents direct, indirect, and induced
impacts of export sales; total impact represents impact of
exports plus direct impacts of local/state sales.










6: Results for Landscape Service Firms


Florida's population of landscape service firms was estimated at 4665, based on the 5970 location units
reporting to the Florida Department of Labor, divided by an average of 1.3 locations per firm. A total of
202 landscape service firms were interviewed for the survey, of which 182 provided complete information
on sales. Of the 704 firms contacted for the survey, 16 percent were classified as ineligible.


Sales by Landscape Service Firms

Total sales by Florida landscape services firms in 1997 was estimated at $2.70 billion. This estimate is
2.2 times higher than the $1.23 billion value given for 1995 by the US Commerce Dept. (MIG Inc, 1998),
possibly due to the large number of small firms which are overlooked by standard industry surveys. The
distribution of sales by firm size class is presented in Table 6.1. Over half of total sales were accounted
for by firms with under $500 thousand in annual sales.


Table 6.1. Florida Landscape Service Firm Sales and Employment by Firm
Size, 1997.
Annual Sales Size Class* Number Firms Total Sales Percent


Surveyed


(million $)


of


Total Sales


Under $500 thousand 127 1,419 52
$500 to $999 thousand 40 418 15
$1 to $2.4 million 22 592 22
$2.5 to $4.9 million 9 201 7
$5 to $9.9 million 4 73 3
Total 202 2,703 100**
* Classifications from ABI, Inc.; **Does not sum to 100% due to rounding.


Product and Service Sales

Sales of goods and services by landscape service firms are detailed in Table 6.2. Landscape installation
services were the largest sales item at $1.129 billion or 42 percent of total sales, followed by landscape
maintenance services at $632 million (23%) and landscape design services at $384 million (14%). Sales
of live plants and other lawn and garden supplies together amounted to $558 million or 21 percent of total
sales.


Table 6.2. Sales of Goods and Services by Florida Landscape Service Firms, 1997.
Estimated
Percent of Firms Percent
Type of Good/Service een Total Sales Tot
__Selling (million $) Total
Live Plants 56 475 18
Lawn and garden supplies 25 83 3
Landscape maintenance services 61 632 23
Landscape design services 57 384 14
Landscape installation services 82 1,129 42
Total 2,704 100


:of
lies


Types of plants sold by landscape service firms are summarized in Table 6.3. Woody ornamental shrubs,
deciduous and evergreen trees were the most commonly sold types of plants, together representing 64
percent of total sales. Tropical foliage or palms, vines or ground covers, turfgrass, and potted flowering or
bedding plants were also sold in lesser amounts. All of these items except turfgrass were sold by a










6: Results for Landscape Service Firms


Florida's population of landscape service firms was estimated at 4665, based on the 5970 location units
reporting to the Florida Department of Labor, divided by an average of 1.3 locations per firm. A total of
202 landscape service firms were interviewed for the survey, of which 182 provided complete information
on sales. Of the 704 firms contacted for the survey, 16 percent were classified as ineligible.


Sales by Landscape Service Firms

Total sales by Florida landscape services firms in 1997 was estimated at $2.70 billion. This estimate is
2.2 times higher than the $1.23 billion value given for 1995 by the US Commerce Dept. (MIG Inc, 1998),
possibly due to the large number of small firms which are overlooked by standard industry surveys. The
distribution of sales by firm size class is presented in Table 6.1. Over half of total sales were accounted
for by firms with under $500 thousand in annual sales.


Table 6.1. Florida Landscape Service Firm Sales and Employment by Firm
Size, 1997.
Annual Sales Size Class* Number Firms Total Sales Percent


Surveyed


(million $)


of


Total Sales


Under $500 thousand 127 1,419 52
$500 to $999 thousand 40 418 15
$1 to $2.4 million 22 592 22
$2.5 to $4.9 million 9 201 7
$5 to $9.9 million 4 73 3
Total 202 2,703 100**
* Classifications from ABI, Inc.; **Does not sum to 100% due to rounding.


Product and Service Sales

Sales of goods and services by landscape service firms are detailed in Table 6.2. Landscape installation
services were the largest sales item at $1.129 billion or 42 percent of total sales, followed by landscape
maintenance services at $632 million (23%) and landscape design services at $384 million (14%). Sales
of live plants and other lawn and garden supplies together amounted to $558 million or 21 percent of total
sales.


Table 6.2. Sales of Goods and Services by Florida Landscape Service Firms, 1997.
Estimated
Percent of Firms Percent
Type of Good/Service een Total Sales Tot
__Selling (million $) Total
Live Plants 56 475 18
Lawn and garden supplies 25 83 3
Landscape maintenance services 61 632 23
Landscape design services 57 384 14
Landscape installation services 82 1,129 42
Total 2,704 100


:of
lies


Types of plants sold by landscape service firms are summarized in Table 6.3. Woody ornamental shrubs,
deciduous and evergreen trees were the most commonly sold types of plants, together representing 64
percent of total sales. Tropical foliage or palms, vines or ground covers, turfgrass, and potted flowering or
bedding plants were also sold in lesser amounts. All of these items except turfgrass were sold by a










6: Results for Landscape Service Firms


Florida's population of landscape service firms was estimated at 4665, based on the 5970 location units
reporting to the Florida Department of Labor, divided by an average of 1.3 locations per firm. A total of
202 landscape service firms were interviewed for the survey, of which 182 provided complete information
on sales. Of the 704 firms contacted for the survey, 16 percent were classified as ineligible.


Sales by Landscape Service Firms

Total sales by Florida landscape services firms in 1997 was estimated at $2.70 billion. This estimate is
2.2 times higher than the $1.23 billion value given for 1995 by the US Commerce Dept. (MIG Inc, 1998),
possibly due to the large number of small firms which are overlooked by standard industry surveys. The
distribution of sales by firm size class is presented in Table 6.1. Over half of total sales were accounted
for by firms with under $500 thousand in annual sales.


Table 6.1. Florida Landscape Service Firm Sales and Employment by Firm
Size, 1997.
Annual Sales Size Class* Number Firms Total Sales Percent


Surveyed


(million $)


of


Total Sales


Under $500 thousand 127 1,419 52
$500 to $999 thousand 40 418 15
$1 to $2.4 million 22 592 22
$2.5 to $4.9 million 9 201 7
$5 to $9.9 million 4 73 3
Total 202 2,703 100**
* Classifications from ABI, Inc.; **Does not sum to 100% due to rounding.


Product and Service Sales

Sales of goods and services by landscape service firms are detailed in Table 6.2. Landscape installation
services were the largest sales item at $1.129 billion or 42 percent of total sales, followed by landscape
maintenance services at $632 million (23%) and landscape design services at $384 million (14%). Sales
of live plants and other lawn and garden supplies together amounted to $558 million or 21 percent of total
sales.


Table 6.2. Sales of Goods and Services by Florida Landscape Service Firms, 1997.
Estimated
Percent of Firms Percent
Type of Good/Service een Total Sales Tot
__Selling (million $) Total
Live Plants 56 475 18
Lawn and garden supplies 25 83 3
Landscape maintenance services 61 632 23
Landscape design services 57 384 14
Landscape installation services 82 1,129 42
Total 2,704 100


:of
lies


Types of plants sold by landscape service firms are summarized in Table 6.3. Woody ornamental shrubs,
deciduous and evergreen trees were the most commonly sold types of plants, together representing 64
percent of total sales. Tropical foliage or palms, vines or ground covers, turfgrass, and potted flowering or
bedding plants were also sold in lesser amounts. All of these items except turfgrass were sold by a









majority of firms. Native plants were sold by 78 percent of landscape services firms, and sales of native
plants represented over 20 percent of total sales for 38 percent of firms surveyed (Table 6.4). Total sales
of native plants by landscapers amounted to $84 million.

Table 6.3. Sales of Types of Plants by Florida Landscape Service Firms, 1997.
Type of Plant Percent of Estimated Percent
Firms Selling Total Sales of Total
(million $) Sales
Shrubs 77 125 26
Deciduous shade, flowering or fruit trees 65 101 21
Evergreen trees 56 79 17
Tropical foliage plants or palms 66 64 13
Vines or ground covers 60 34 7
Turfgrass 42 31 7
Potted flowering plants or bedding plants 59 24 5
Cut foliage or flowers 7 9 2
Propagating liners, cuttings, or plugs 9 4 1
Other types of ornamental plants 7 3 1
Total 475 100


Table 6.4. Sales of Native Plants by Florida
Landscapers, 1997.
Percentage Category of Total Firm Per
Sales F


*cent of
rirms


None 13
1% to 5% 19
6% to 10% 10
11% to 20% 11
More than 20% 38
Don't know or Not available 11


Markets for Landscape Services

Sales by landscape service firms to different types of customers are presented in Table 6.5. Commercial
establishments, homeowners, and developers/property managers were the largest customer groups, each
representing over $600 million or 23 to 25 percent of total sales. Apartments and condominiums were also
important customers, representing 17 percent of sales. Governments and other landscape service firms
were smaller customers, with 6 percent and 4 percent of total sales, respectively.










Table 6.5. Sales for Florida Landscape Service Firms by Type of Customer, 1997.
Type of Customer Percent of Estimated Sales Percent of
Firms Selling (million $) Total Sales
Commercial establishments 73 683 25
Directly to the public (homeowners) 91 666 25
Developers or property managers 55 617 23
Apartments and condominiums 63 463 17
Government organizations 37 175 6
Other landscapers service firms 32 100 4
Total 2,704 100


Geographic Sales

Regional sales by landscape service firms are summarized in Table 6.6. Most sales (79%) were within
the local area, while a lesser share (17%) were at the state level, and only 4 percent or $103 million in
sales were national (outside of Florida).


Table 6.6. Geographic Sales by Florida Landscape Service
Firms, 1997.
Region Percent of Estimated Percenl


Firms
Selling


Sales
(million $)


t of


Total Sales


Local Area 98 2,141 79
Florida 43 459 17
National 7 103 4
Total 2,704 100


Economic Impacts

Economic impacts of Florida's landscape service industry in 1997 are summarized in Table 6.7. The
output impact was estimated at $2.784 billion, including $183 million associated with export activities. The
total value added impact was $2.509B, including $1.884B in personal income, $1.556B in employee
compensation, and $122 million in indirect business taxes. The employment impact was 111 thousand
jobs, including 5 thousand for export sales.


Table 6.7. Economic Impacts of Florida Landscape Service Firms, 1997.
Type Impact* Impact of Exports Total Impact
Output (M$) 183.4 2,783.9
Value Added (M$) 145.0 2,509.1
Employment (jobs) 5,385 111,413
Personal Income (M$) 100.8 1,884.1
Employee Compensation (M$) 85.0 1,556.2
Indirect Business Taxes (M$) 10.0 121.6
* Impact of exports represents direct, indirect, and induced impacts of
export sales; total impact represents impact of exports plus direct impacts
of local/state sales.










Table 6.5. Sales for Florida Landscape Service Firms by Type of Customer, 1997.
Type of Customer Percent of Estimated Sales Percent of
Firms Selling (million $) Total Sales
Commercial establishments 73 683 25
Directly to the public (homeowners) 91 666 25
Developers or property managers 55 617 23
Apartments and condominiums 63 463 17
Government organizations 37 175 6
Other landscapers service firms 32 100 4
Total 2,704 100


Geographic Sales

Regional sales by landscape service firms are summarized in Table 6.6. Most sales (79%) were within
the local area, while a lesser share (17%) were at the state level, and only 4 percent or $103 million in
sales were national (outside of Florida).


Table 6.6. Geographic Sales by Florida Landscape Service
Firms, 1997.
Region Percent of Estimated Percenl


Firms
Selling


Sales
(million $)


t of


Total Sales


Local Area 98 2,141 79
Florida 43 459 17
National 7 103 4
Total 2,704 100


Economic Impacts

Economic impacts of Florida's landscape service industry in 1997 are summarized in Table 6.7. The
output impact was estimated at $2.784 billion, including $183 million associated with export activities. The
total value added impact was $2.509B, including $1.884B in personal income, $1.556B in employee
compensation, and $122 million in indirect business taxes. The employment impact was 111 thousand
jobs, including 5 thousand for export sales.


Table 6.7. Economic Impacts of Florida Landscape Service Firms, 1997.
Type Impact* Impact of Exports Total Impact
Output (M$) 183.4 2,783.9
Value Added (M$) 145.0 2,509.1
Employment (jobs) 5,385 111,413
Personal Income (M$) 100.8 1,884.1
Employee Compensation (M$) 85.0 1,556.2
Indirect Business Taxes (M$) 10.0 121.6
* Impact of exports represents direct, indirect, and induced impacts of
export sales; total impact represents impact of exports plus direct impacts
of local/state sales.









7: Results for Households Consumers


According to US Census figures for 1990, and projections by the University of Florida Bureau of Economic
and Business Research, there were an estimated 4.04 million detached single family households in
Florida in 1997. A total of 589 households were interviewed for the survey. The number of survey
respondents is given by income level in Table 7.1. A total of 4,843 households were contacted for the
survey, of which 30 percent were ineligible.


Table 7.1. Number of survey respondent households by
income level.


Annual Household Income


Number
Respondents


Percent
Resnnondents


Less than $10,000 18 3
$10,000 to $19,999 35 6
$20,000 to $39,999 104 18
$40,000 to $59,999 110 19
$60,000 to $79,999 53 9
$80,000 or more 77 19
Don't know 37 6
Not Available 155 26
Total 589 100


Purchases of Horticultural Goods and Services

Households are by far the largest consumers of horticultural products and services. In 1997, Florida
households were estimated to have purchased a total of $2.890 billion in horticultural goods and services,
including $1.098 billion (38%) for live plants, $995 million (34%) for lawn and garden hard goods and
equipment, and $797 million (28%) for landscape services (Table 7.2). Households spent an average of
$646 per household annually on horticultural goods and services. These results were calculated to
represent all households in Florida, not only survey respondent households. About three quarters of
households purchased live plants and lawn and garden hard goods, while 39 percent purchased
landscape services (Table 7.1). Complete lawn and garden maintenance services were purchased by 27
percent of households, and limited lawn and maintenance (mowing and trimming only) were purchased by
24 percent of households (Table 7.3). Landscape design, installation, and other services were purchased
by 12 percent, 8 percent and 7 percent of households, respectively. The distribution of purchases of
plants, equipment and horticultural services by households in presented in Table 7.4. Half of households
purchased no or less than $100 in live plants or equipment, while approximately on third purchased $100
to $499 each of plants and equipment. Over half of households purchased no landscape services. About
6 or 7 percent of households purchased $1000 or more each of plants, equipment and services.

Table 7.2. Purchases of Horticultural Goods and Services by Florida Households, 1997.
Estimated
Percent of Average Per Total Percent of
Type of Good/Service Households Household Total
Purchasing ($) (min ase Purchases
(million $)
Live Plants 77 233 1,098 38
Lawn and garden supplies, equipment 71 211 995 34
Landscape services 39 169 797 28
Total 646 2,890 100









7: Results for Households Consumers


According to US Census figures for 1990, and projections by the University of Florida Bureau of Economic
and Business Research, there were an estimated 4.04 million detached single family households in
Florida in 1997. A total of 589 households were interviewed for the survey. The number of survey
respondents is given by income level in Table 7.1. A total of 4,843 households were contacted for the
survey, of which 30 percent were ineligible.


Table 7.1. Number of survey respondent households by
income level.


Annual Household Income


Number
Respondents


Percent
Resnnondents


Less than $10,000 18 3
$10,000 to $19,999 35 6
$20,000 to $39,999 104 18
$40,000 to $59,999 110 19
$60,000 to $79,999 53 9
$80,000 or more 77 19
Don't know 37 6
Not Available 155 26
Total 589 100


Purchases of Horticultural Goods and Services

Households are by far the largest consumers of horticultural products and services. In 1997, Florida
households were estimated to have purchased a total of $2.890 billion in horticultural goods and services,
including $1.098 billion (38%) for live plants, $995 million (34%) for lawn and garden hard goods and
equipment, and $797 million (28%) for landscape services (Table 7.2). Households spent an average of
$646 per household annually on horticultural goods and services. These results were calculated to
represent all households in Florida, not only survey respondent households. About three quarters of
households purchased live plants and lawn and garden hard goods, while 39 percent purchased
landscape services (Table 7.1). Complete lawn and garden maintenance services were purchased by 27
percent of households, and limited lawn and maintenance (mowing and trimming only) were purchased by
24 percent of households (Table 7.3). Landscape design, installation, and other services were purchased
by 12 percent, 8 percent and 7 percent of households, respectively. The distribution of purchases of
plants, equipment and horticultural services by households in presented in Table 7.4. Half of households
purchased no or less than $100 in live plants or equipment, while approximately on third purchased $100
to $499 each of plants and equipment. Over half of households purchased no landscape services. About
6 or 7 percent of households purchased $1000 or more each of plants, equipment and services.

Table 7.2. Purchases of Horticultural Goods and Services by Florida Households, 1997.
Estimated
Percent of Average Per Total Percent of
Type of Good/Service Households Household Total
Purchasing ($) (min ase Purchases
(million $)
Live Plants 77 233 1,098 38
Lawn and garden supplies, equipment 71 211 995 34
Landscape services 39 169 797 28
Total 646 2,890 100










Table 7.3. Horticultural Services Purchased by Florida
Households, 1997.
Type of Service Percentage
Households
Purchasing
Landscape design services 8
Landscape installation services 12
Complete lawn and garden maintenance 27
Limited lawn and garden maintenance 24
Other type of landscape service 7


Table 7.4. Distribution of Florida Households by Value of Annual Purchases of
Plants, Equipment and Horticultural Services, 1997.
Annual Purchases Category Plants Equipment Services
Percent of Households
None 18 23 53
Less than $100 32 28 14
$100 to $499 31 29 11
$500 to $999 8 7 8
$1000 to $1999 3 4 4
$2000 to $4999 1 2 2
$5000 or Over 2 0 1
Don't Know or Not Available 5 7 8


Types of Plant Products Purchased

Purchases of different types of plants by households are summarized in Table 7.5. Potted flowering plants
or cut flowers were the most commonly purchased item, bought by 62 percent of households, and
represented 25 percent of the total value of purchases ($270 million). However, woody ornamental shrubs
had the highest value of plant products purchased, at $315 million or 29 percent of the total. Ground
covers, landscape trees, tropical foliage or palms each were purchased by 20 to 26 percent of households
and represented 11 to 17 percent of total value. Native plants were purchased by 56 percent of
households, and the total value of these purchases was estimated at $256 million. Native plants made up
more than 20 percent of the annual plant purchases for 35 percent of households, however, 44 percent of
households purchased none or weren't aware of native plants, as indicated in Table 7.6.


Table 7.5. Purchases of Types of Plants by Florida Households, 1997.
Type of Plant Percent of Average Per
Households Household
Purchasing ($)


Estimated
Total
Purchases
(million $)


Percent of
Total
Purchases


Shrubs 38 70 315 29
Potted flowering plants or cut flowers 62 60 270 25
Ground covers or turfgrass 20 43 191 17
Landscape trees 25 37 170 15
Tropical foliage plants or palms 26 28 124 11
Other types of ornamental plants 10 6 28 3
Total 245 1,098 100









Table 7.6. Distribution of Purchases of Native
Plants by Florida Households, 1997.
Percentage Category of Percent of
Annual Plant Purchases Households
None 13
1% to 5% 5
6% to 10% 3
11% to 20% 2
More than 20% 35
Don't know or Not available 31


Vendors for Horticultural Goods and Services

Types of vendors from whom households purchased horticultural goods and services are summarized in
Table 7.7. Chain stores were the most common type of vendors, patronized by 73 percent of households,
and representing $1.428 billion or 49 percent of total purchases. Independent retailers were patronized by
45 percent of respondents, and represented $957 million or 33 percent of total purchases. Landscape
service firms and other outlets had smaller market shares.

Table 7.7. Purchases of Horticultural Goods and Services by Florida Households from
Different Types of Vendors, 1997.


Type of Vendor


Percent of
Households
Purchasing


Estimated Total
Purchases
(million $)


Percent of
Total
Purchases


Garden department of chain stores 73 1,428 49
Independent retail lawn and garden centers 45 957 33
Landscapers or lawn maintenance firms 11 351 12
Other type of outlet 9 155 5
Total 2,890 100


Factors for Purchasing

Survey respondents were asked to rate the importance of various factors that might be considered for
purchasing of plants on a scale of 1 to 10, with 10 being "extremely important" and 1 being "not at all
important". These results are presented in Table 7.8. Durability was the most important factor, receiving
an average score of 8.5, followed by maintenance requirements (7.7), product size or shape (7.3), color
(7.8) and price (7.2). Whether a plant is native to Florida was rated significantly lower in importance (5.8).
These results suggests that consumers are less sensitive to price than quality factors. Numerous other
factors were also mentioned by household respondents, including fertilization and water requirements,
overall health of the plant, tolerance to insects, disease, freezes, salt water and shade, perennial nature,
toxicity and allergens, fruiting for wildlife food, invasiveness and smell.

Respondents were also asked about factors considered for selecting a vendor for purchase of horticultural
goods or services, using a similar rating scheme, and these results are presented in Table 7.9. The top-
rated factor was whether the vendor offered a quality assurance or satisfaction guarantee.









Table 7.6. Distribution of Purchases of Native
Plants by Florida Households, 1997.
Percentage Category of Percent of
Annual Plant Purchases Households
None 13
1% to 5% 5
6% to 10% 3
11% to 20% 2
More than 20% 35
Don't know or Not available 31


Vendors for Horticultural Goods and Services

Types of vendors from whom households purchased horticultural goods and services are summarized in
Table 7.7. Chain stores were the most common type of vendors, patronized by 73 percent of households,
and representing $1.428 billion or 49 percent of total purchases. Independent retailers were patronized by
45 percent of respondents, and represented $957 million or 33 percent of total purchases. Landscape
service firms and other outlets had smaller market shares.

Table 7.7. Purchases of Horticultural Goods and Services by Florida Households from
Different Types of Vendors, 1997.


Type of Vendor


Percent of
Households
Purchasing


Estimated Total
Purchases
(million $)


Percent of
Total
Purchases


Garden department of chain stores 73 1,428 49
Independent retail lawn and garden centers 45 957 33
Landscapers or lawn maintenance firms 11 351 12
Other type of outlet 9 155 5
Total 2,890 100


Factors for Purchasing

Survey respondents were asked to rate the importance of various factors that might be considered for
purchasing of plants on a scale of 1 to 10, with 10 being "extremely important" and 1 being "not at all
important". These results are presented in Table 7.8. Durability was the most important factor, receiving
an average score of 8.5, followed by maintenance requirements (7.7), product size or shape (7.3), color
(7.8) and price (7.2). Whether a plant is native to Florida was rated significantly lower in importance (5.8).
These results suggests that consumers are less sensitive to price than quality factors. Numerous other
factors were also mentioned by household respondents, including fertilization and water requirements,
overall health of the plant, tolerance to insects, disease, freezes, salt water and shade, perennial nature,
toxicity and allergens, fruiting for wildlife food, invasiveness and smell.

Respondents were also asked about factors considered for selecting a vendor for purchase of horticultural
goods or services, using a similar rating scheme, and these results are presented in Table 7.9. The top-
rated factor was whether the vendor offered a quality assurance or satisfaction guarantee.











Table 7.8. Factors Considered for Purchasing Plants
by Florida Institutions and Households, 1997.
Factor Average Score*
Durability 8.49
Maintenance requirements 7.74
Product size or shape 7.31
Color 7.82
Price 7.20
Native plant 5.79
* Scaled 1 to 10.


Table 7.9. Factors Considered for Selecting a Vendor for
Purchase of Horticultural Goods or Services by Florida
Households, 1997.


Factor
Quality assurance or satisfaction guarantee
Service quality
Convenience
Product selection and variety
Consistent availability
* Scaled 1 to 10.


Average Score*
8.51
8.31
8.09
8.04
7.98









8: Results for Commercial and Institutional Consumers


This section presents survey results and analysis of the commercial and institutional consumers of
horticultural products and services in Florida. This diverse group includes the businesses and
organizations listed in Table 8.1. There was a total of nearly 45 thousand firms in these standard industrial
categories in Florida. A total of 622 firms were sampled for the survey, of which 573 provided complete
information on value of purchases. Of 3786 firms contacted for the survey, 30 percent were ineligible.

Table 8.1. Commercial/Institutional Consumer Firms Sampled.
Industry Group Standard Number
Industrial Firms
Code Sampled
Eating and drinking Places 581000 44
Cemetery subdividers and developers 655302 40
Hotels and motels 701101 100
Building maintenance services 734911 3
Public golf courses 799201 116
Elementary and secondary schools 821103 97
Colleges and Universities 822101 55
Museums, galleries and botanical gardens 840000 55
Religious organizations 866110 19
General government 910000 93
Total 622


Table 8.2. Employment by Florida Institutions Surveyed, 1997.
Number Employees Number of Percent of
Firms Firms
1to 4 100 16
5 to 9 88 14
10-19 137 22
20-49 127 20
50-99 76 12
100 or more 85 14
Not available or Don't know 13 2


Value of Purchases

Commercial and institutional consumers in Florida purchased an estimated $195 million in horticultural
goods and services in 1997, including $66 million for live plants (34%), $72 million for lawn and garden
hard goods (37%), and $57 million for landscape services (29%) (Table 8.3). Firms purchased an average
of $4,355 annually in horticultural goods and services. Eighty two percent of firms purchased live plants,
72 percent purchased lawn and garden hard goods, and 54 percent purchased landscape services.
Among landscape services, nearly half of firms (48%) purchased complete lawn and garden maintenance
services, while a somewhat lesser proportion (41%) purchased landscape installation services, and about
one-quarter of firms purchased landscape design services (23%), limited lawn and garden maintenance
(24%) and other types of landscape services (19%) (Table 8.4).









8: Results for Commercial and Institutional Consumers


This section presents survey results and analysis of the commercial and institutional consumers of
horticultural products and services in Florida. This diverse group includes the businesses and
organizations listed in Table 8.1. There was a total of nearly 45 thousand firms in these standard industrial
categories in Florida. A total of 622 firms were sampled for the survey, of which 573 provided complete
information on value of purchases. Of 3786 firms contacted for the survey, 30 percent were ineligible.

Table 8.1. Commercial/Institutional Consumer Firms Sampled.
Industry Group Standard Number
Industrial Firms
Code Sampled
Eating and drinking Places 581000 44
Cemetery subdividers and developers 655302 40
Hotels and motels 701101 100
Building maintenance services 734911 3
Public golf courses 799201 116
Elementary and secondary schools 821103 97
Colleges and Universities 822101 55
Museums, galleries and botanical gardens 840000 55
Religious organizations 866110 19
General government 910000 93
Total 622


Table 8.2. Employment by Florida Institutions Surveyed, 1997.
Number Employees Number of Percent of
Firms Firms
1to 4 100 16
5 to 9 88 14
10-19 137 22
20-49 127 20
50-99 76 12
100 or more 85 14
Not available or Don't know 13 2


Value of Purchases

Commercial and institutional consumers in Florida purchased an estimated $195 million in horticultural
goods and services in 1997, including $66 million for live plants (34%), $72 million for lawn and garden
hard goods (37%), and $57 million for landscape services (29%) (Table 8.3). Firms purchased an average
of $4,355 annually in horticultural goods and services. Eighty two percent of firms purchased live plants,
72 percent purchased lawn and garden hard goods, and 54 percent purchased landscape services.
Among landscape services, nearly half of firms (48%) purchased complete lawn and garden maintenance
services, while a somewhat lesser proportion (41%) purchased landscape installation services, and about
one-quarter of firms purchased landscape design services (23%), limited lawn and garden maintenance
(24%) and other types of landscape services (19%) (Table 8.4).











Table 8.3. Purchases of Horticultural Goods and Services by Florida Institutions, 1997.
Percent of Average Estimated Percent of
Type of Good/Service Firms Purchases Total Total
Per Firm Purchases
Purchasing Per Fim P ses Purchases
($) (million $)
Live Plants 82 1,474 66 34
Lawn and garden hard goods 72 1,608 72 37
Landscape services 54 1,273 57 29
Total 4,355 195 100


Table 8.4. Services Purchased by Florida Commercial/Institutional Consumers, 1997.
Type of Service Number Firms Percentage Firms
Landscape design services 146 23
Landscape installation services 256 41
Complete lawn and garden maintenance 301 48
Limited lawn and garden maintenance 149 24
Other type of landscape service 119 19


The distribution of annual purchases of plants, equipment and horticultural services by institutions is
indicated in Table 8.5. Half of firms purchased between $100 and $4999 in live plants, while 38 percent of
firms purchased this volume of equipment, and 31 percent purchased this much in services. The
percentage of firms which did not make any purchases was 8 percent for plants, 15 percent for equipment
and 33 percent for services, while the percentage of firms which purchased over $20,000 was 1 percent
for plants, 3 percent for equipment and services.

Table 8.5. Distribution of Annual Purchases of Plants, Equipment and
Horticultural Services by Florida Institutions, 1997.
Annual Purchases Cateaorv Plants Equipment Services


None
Less than $100
$100 to $499
$500 to $999
$1000 to $1999
$2000 to $4999
$5000 or over
$5000 to $9,999
$10,000 to $14,999
$15,000 to $19,999
Over $20,000
Don't Know or Not Available


Percent of Firms
15
7
11
7
5
8
29
1
0
0
3
13


Purchases of horticultural goods and services by institutions and landscape area managed are detailed by
firm size according to number of employees in Table 8.6. The bulk of purchases and landscape area was
accounted for by firms having less than 20 employees.


I _









Table 8.6. Purchases of Horticultural Goods/Services and
Landscape Area of Florida Institutions, by Firm Size, 1997.


Number of
Employees*


1 to 4
5 to 9
10 to 19
20 to 49
50 to 99
100 to 249
250 to 499
500 to 999
1,000 to 4,999
5,000 to 9,999
10,000 or more
Total


Percent of Value of
Firms Purchases
(million $)


Landscape
Area (thousand
acres)


31.7
28.8
36.8
52.6
17.0
18.9
3.3


* Firm size classification from ABI, Inc.


9
24
0
5
1.455


Types of Plants Purchased

Institutions purchased a total of $66 million in plants in 1997. Of this total, 50 percent were for woody
ornamental shrubs and deciduous and evergreen trees, 30 percent was for potted flowering plants,
bedding plants, tropical foliage or palms, and cut foliage or flowers, and 19 percent was for turfgrass, vines
or ground covers (Table 8.4). Shrubs and potted flowering plants or bedding plants were the most
commonly purchased items, by over 60 percent of respondents, while all other items were purchased by
less than half of respondents. Native plants were purchased by 65 percent of firms, at a total value of $12
million.


Table 8.5. Types of Plants Purchased by Florida Institutions, 1997.
Type of Plant Percent of Estimated
Firms Total
Purchasina (million $)


Percent of
Total
Purchases


Shrubs 62 16 24
Potted flowering plants or bedding plants 61 10 15
Deciduous shade, flowering or fruit trees 40 11 17
Turfgrass 43 8 13
Tropical foliage plants or palms 43 9 13
Evergreen trees 27 6 9
Vines or ground covers 34 4 6
Cut foliage or flowers 18 2 2
Other types of ornamental plants 8 1 1
Total 66 100










Vendors Purchased From


Purchases by institutions from different vendors are summarized in Table 8.6. Independent retail lawn
and garden centers were the most common type of vendor purchased from, reported by 50 percent of
firms, while all other types of vendors were used by less than 40 percent of firms. However, growers were
the most important source in terms of value, accounting for 37 percent of total purchases, followed by
independent retailers (25%), and landscapers (18%).


Table 8.6. Purchases for Florida Institutions, by Type of Vendor, 1997.
Type of Vendor Percent of Estimat


Firms
Purchasing


edT


otal
Purchases
(million $)


Percent of
Total
Purchases


Growers 38 73 37
Independent retail lawn and garden centers 50 48 25
Landscapers or lawn maintenance firms 27 34 18
Brokers or distributors 16 19 10
Garden department of chain stores 34 14 7
Other type of outlet 6 7 4
Total 195 100


Regional Purchases

Institutions purchased most (83%) of horticultural goods and services from local sources, and a much
smaller portion from state-level (15%) or national (2%) sources (Table 8.7).


Table 8.7. Regional Purchases by Florida Institutions, 1997.
Region Percent of Estimated Percent of
Firms Total Total
Purchasing (million $) Purchases
Local area 91 161 83
Florida 29 30 15
National 8 4 2
Total 195 100


Factors for Purchasing

Institutional consumers were asked to rate various factors that might be considered when purchasing
plants, using a scale of 1 to 10, with 10 being "very important" and 1 being "not at all Important". The most
important factor was durability of the plant, receiving an average score of 8.7 (Table 8.8). The next most
important factors were maintenance requirements (8.4), product size or shape (7.8), price (7.8), color (7.5),
and whether the plant is native (6.3). These results are very consistent with those for household
consumers (Table 7.7). Numerous other miscellaneous considerations were mentioned by respondents,
including availability, drought resistance, heat tolerance, disease and pest resistance, health, water
requirements, safety, salt tolerance, wildlife value, cultural significance, fragrance, plant grade standards,
and general hardiness.










Vendors Purchased From


Purchases by institutions from different vendors are summarized in Table 8.6. Independent retail lawn
and garden centers were the most common type of vendor purchased from, reported by 50 percent of
firms, while all other types of vendors were used by less than 40 percent of firms. However, growers were
the most important source in terms of value, accounting for 37 percent of total purchases, followed by
independent retailers (25%), and landscapers (18%).


Table 8.6. Purchases for Florida Institutions, by Type of Vendor, 1997.
Type of Vendor Percent of Estimat


Firms
Purchasing


edT


otal
Purchases
(million $)


Percent of
Total
Purchases


Growers 38 73 37
Independent retail lawn and garden centers 50 48 25
Landscapers or lawn maintenance firms 27 34 18
Brokers or distributors 16 19 10
Garden department of chain stores 34 14 7
Other type of outlet 6 7 4
Total 195 100


Regional Purchases

Institutions purchased most (83%) of horticultural goods and services from local sources, and a much
smaller portion from state-level (15%) or national (2%) sources (Table 8.7).


Table 8.7. Regional Purchases by Florida Institutions, 1997.
Region Percent of Estimated Percent of
Firms Total Total
Purchasing (million $) Purchases
Local area 91 161 83
Florida 29 30 15
National 8 4 2
Total 195 100


Factors for Purchasing

Institutional consumers were asked to rate various factors that might be considered when purchasing
plants, using a scale of 1 to 10, with 10 being "very important" and 1 being "not at all Important". The most
important factor was durability of the plant, receiving an average score of 8.7 (Table 8.8). The next most
important factors were maintenance requirements (8.4), product size or shape (7.8), price (7.8), color (7.5),
and whether the plant is native (6.3). These results are very consistent with those for household
consumers (Table 7.7). Numerous other miscellaneous considerations were mentioned by respondents,
including availability, drought resistance, heat tolerance, disease and pest resistance, health, water
requirements, safety, salt tolerance, wildlife value, cultural significance, fragrance, plant grade standards,
and general hardiness.










Vendors Purchased From


Purchases by institutions from different vendors are summarized in Table 8.6. Independent retail lawn
and garden centers were the most common type of vendor purchased from, reported by 50 percent of
firms, while all other types of vendors were used by less than 40 percent of firms. However, growers were
the most important source in terms of value, accounting for 37 percent of total purchases, followed by
independent retailers (25%), and landscapers (18%).


Table 8.6. Purchases for Florida Institutions, by Type of Vendor, 1997.
Type of Vendor Percent of Estimat


Firms
Purchasing


edT


otal
Purchases
(million $)


Percent of
Total
Purchases


Growers 38 73 37
Independent retail lawn and garden centers 50 48 25
Landscapers or lawn maintenance firms 27 34 18
Brokers or distributors 16 19 10
Garden department of chain stores 34 14 7
Other type of outlet 6 7 4
Total 195 100


Regional Purchases

Institutions purchased most (83%) of horticultural goods and services from local sources, and a much
smaller portion from state-level (15%) or national (2%) sources (Table 8.7).


Table 8.7. Regional Purchases by Florida Institutions, 1997.
Region Percent of Estimated Percent of
Firms Total Total
Purchasing (million $) Purchases
Local area 91 161 83
Florida 29 30 15
National 8 4 2
Total 195 100


Factors for Purchasing

Institutional consumers were asked to rate various factors that might be considered when purchasing
plants, using a scale of 1 to 10, with 10 being "very important" and 1 being "not at all Important". The most
important factor was durability of the plant, receiving an average score of 8.7 (Table 8.8). The next most
important factors were maintenance requirements (8.4), product size or shape (7.8), price (7.8), color (7.5),
and whether the plant is native (6.3). These results are very consistent with those for household
consumers (Table 7.7). Numerous other miscellaneous considerations were mentioned by respondents,
including availability, drought resistance, heat tolerance, disease and pest resistance, health, water
requirements, safety, salt tolerance, wildlife value, cultural significance, fragrance, plant grade standards,
and general hardiness.









Table 8.8. Factors Considered for Purchasing Plants by
Florida Institutions, 1997
Factor Average Score*
Durability 8.70
Maintenance requirements 8.44
Product size or shape 7.81
Price 7.76
Color 7.47
Native plant 6.28
Importance scored on scale of 1 to 10


Business Outlook

It is expected that purchases of horticultural goods and services by the commercial consumer sector will
be determined by general business conditions. Respondents were asked about their intentions for
purchasing of horticultural goods and services over the next five years. A majority of firms (62%) indicated
that they expected to increase their purchases, and that the amount of purchases would increase by 5
percent, or approximately 1 percent annually (Table 8.9). On the other hand, a significant minority of
respondents (31%) said that they would purchase less, and that the amount of purchases would decrease
by 10 percent.

Table 8.9. Expected Changes in Purchases of Horticultural
Goods/Services Over Next Five Years by Florida Institutions, 1997.
Percentage of firms expecting purchases to increase 62
Percentage purchases will increase 5
Percentage of firms expecting purchases to decrease 10
Percentaae Durchases will decrease 31












Appendix-Questionnaire for Wholesale Nurseries


The text for the questionnaire used for wholesale nurseries and the coding for the computer-assisted
telephone interview software is presented as follows. This is given as an example of the questionnaire
format used for interviews with all other survey groups (horticultural retailers, landscape service providers,
residential households, institutional/commercial consumers).


>q2< What is your position in this organization? [return]
[loc 17/1]
[allow 20]
===>

>q3< How many years has this company been in
business? (1-99)
<1-99>
<-8> Don't know
<-9> Not available


>q4a< How many separate locations does this company
have for its production facilities? INTERVIEWER: IF
ONLY ONE LOCATION, ASK THEM, "What is the
nearest city to your one location?" IF MORE THAN 5
LOCATIONS,
TYPE '9999'.
<1> [specify]
<2-5> [goto q4b]
<9999> More than 5 [goto q6a]
<-8> Don't know
<-9> Not available
===> [goto q6a]

>q4b< Please tell me the nearest cities to all of your
locations.
<1> LOCATION ONE: [specify]
<-8> Don't know
<-9> Not available


>q4c< (Please tell me the nearest cities to all of your
locations.)
<1> LOCATION TWO: [specify]
<-8> Don't know
<-9> Not available
===>

>jl< [if q4a eq <2>][goto q6a][endif]

>q4d< (Please tell me the nearest cities to all of your
locations.)
<1> LOCATION THREE: [specify]
<-8> Don't know
<-9> Not available


>j2< [if q4a eq <3>][goto q6a][endif]

>q4e< (Please tell me the nearest cities to all of your
locations.)
<1> LOCATION FOUR: [specify]
<-8> Don't know
<-9> Not available
===>


>j3< [if q4a eq <4>][goto q6a][endif]

>q4f< (Please tell me the nearest cities to all of your
locations.)
<1> LOCATION FIVE: [specify]
<-8> Don't know
<-9> Not available
===>

>q6a< Now I need you to tell me about the area
occupied for theproduction of ornamental crops by your
business last year (calendar year 1997) for three kinds
of production facilities...How many acres were occupied
for Field (in ground) Production?
INTERVIEWER: IF LESS THAN ONE, PUT ONE.
<0-99999>
<-8> Don't know
<-9> Not available


>q6b< How many acres were occupied for Open
container Production? INTERVIEWER: IF LESS THAN
ONE, PUT ONE.
<0-99999>
<-8> Don't know
<-9> Not available
===>

>q6c< How many acres were occupied for Greenhouse
or shade house Production? INTERVIEWER: IF LESS
THAN ONE, PUT ONE.
<0-99999>
<-8> Don't know
<-9> Not available
===>

>q7a< How many permanent full-time employees were
employed by your business last year, including
management and family members working in the
business?
<0-99999>
<-8> Don't know
<-9> Not available
===>

>q7b< How many additional temporary or part-time
employees were employed by your business last year?
<0-99999>
<-8> Don't know
<-9> Not available


>q8al< Please tell me which of the following types of
ornamental plant products were grown or marketed by
your company last year. Did you grow or market
Deciduous shade, flowering or fruit trees?










<1> Yes [goto q8a2]
<2> No
<-8> Don't know
<-9> Not available
===> [goto q8bl]

>q8a2< And what was the percentage of your total sales
for Deciduous shade, flowering and fruit trees?
<0-100>
<-8> Don't know
<-9> Not available


>q8bl< Did you grow or market Evergreen trees?
<1> Yes [goto q8b2]
<2> No
<-8> Don't know
<-9> Not available
===> [goto q8cl]

>q8b2< And what was the percentage of your total sales
for Evergreen trees?
<0-100>
<-8> Don't know
<-9> Not available
===>

>q8cl< Did you grow or market Shrubs?
<1> Yes [goto q8c2]
<2> No
<-8> Don't know
<-9> Not available
===> [goto q8dl]

>q8c2< And what was the percentage of your total sales
for Shrubs?
<0-100>
<-8> Don't know
<-9> Not available
===>-

>q8dl< Did you grow or market Tropical foliage plants
or palms?
<1> Yes [goto q8d2]
<2> No
<-8> Don't know
<-9> Not available
===> [goto q8el]

>q8d2< And what was the percentage of your total sales
for Tropical foliage plants or palms?
<0-100>
<-8> Don't know
<-9> Not available
===>

>q8el< Did you grow or market Vines or ground
covers?
<1> Yes [goto q8e2]
<2> No
<-8> Don't know
<-9> Not available
===> [goto q8fl]

>q8e2< And what was the percentage of your total sales
for Vines or ground covers?


<0-100>
<-8> Don't know
<-9> Not available
===>

>q8fl< Did you grow or market Potted flowering plants
or bedding plants?
<1> Yes [goto q8f2]
<2> No
<-8> Don't know
<-9> Not available
===> [goto q8gl]

>q8f2< And what was the percentage of your total sales
for Potted flowering plants or bedding plants?
<0-100>
<-8> Don't know
<-9> Not available
===>

>q8gl< Did you grow or market Cut foliage or flowers?
<1> Yes [goto q8g2]
<2> No
<-8> Don't know
<-9> Not available
===> [goto q8hl]

>q8g2< And what was the percentage of your total sales
for Cut foliage or flowers?
<0-100>
<-8> Don't know
<-9> Not available
===>

>q8hl< Did you grow or market Propagating liners,
cuttings, or plugs?
<1> Yes [goto q8h2]
<2> No
<-8> Don't know
<-9> Not available
===> [goto q8il]

>q8h2< And what was the percentage of your total sales
for Propagating liners, cuttings, or plugs?
<0-100>
<-8> Don't know
<-9> Not available
===>

>q8il< Did you grow or market Turfgrass?
<1> Yes [goto q8i2]
<2> No
<-8> Don't know
<-9> Not available
===> [goto q8jl]

>q8i2< And what was the percentage of your total sales
for Turfgrass?
<0-100>
<-8> Don't know
<-9> Not available
===>

>q8j1< Did you grow or market Any other type of
ornamental plant product?
<1> Yes [specify][goto q8j2]












<2> No
<-8> Don't know
<-9> Not available
===> [goto q9]

>q8j2< And what was its percentage of your total sales
in 1997?
<0-100>
<-8> Don't know
<-9> Not available
===>

>q9< What percentage of your total sales are
considered native plants or plants which were present in
Florida prior to European settlement? INTERVIEWER:
READ LIST
<1> None
<2> 1% to 5%
<3> 6% to 10%
<4> 11% to 20%
<5> more than 20%
<-8> Don't know
<-9> Not available


>ql0a< Please tell me which of the following services or
product features are offered by your company? Do you
offer ...Packaging?
<1> Yes
<2> No
<-8> Don't know
<-9> Not available
===>

>ql0b< Do you offer ...Delivery?
<1> Yes
<2> No
<-8> Don't know
<-9> Not available
===>-

>ql0c< Do you offer ...Mail order?
<1> Yes
<2> No
<-8> Don't know
<-9> Not available


>q10d< Do you offer ...Plant identification/care tagging?
<1> Yes
<2> No
<-8> Don't know
<-9> Not available
===>

>ql0e< Do you offer ... Decorative containers?
<1> Yes
<2> No
<-8> Don't know
<-9> Not available


>ql0f< Do you offer ... Contract growing?
<1> Yes
<2> No
<-8> Don't know


<-9> Not available
===>

>ql0g< Do you offer ...Horticultural consulting?
<1> Yes
<2> No
<-8> Don't know
<-9> Not available
===>

>ql0h< Do you offer ...Landscape design?
<1> Yes
<2> No
<-8> Don't know
<-9> Not available
===>

>ql0i< Do you offer ...Landscape installation?
<1> Yes
<2> No
<-8> Don't know
<-9> Not available
===>

>ql0j< Do you offer ...Landscape maintenance
services?
<1> Yes
<2> No
<-8> Don't know
<-9> Not available
===>

>qlla< Now, please tell me which of the following types
of customers your products are sold to. Do you sell
to...Other growers?
<1> Yes [goto q11b]
<2> No
<-8> Don't know
<-9> Not available
===> [goto q11c]

>q 11b< What is the percentage of your sales that are to
other growers?
<1-100>
<-8> Don't know
<-9> Not available


>q11c< Do you sell to Landscapers, interiorscapers or
lawn maintenance firms?
<1> Yes [goto qild]
<2> No
<-8> Don't know
<-9> Not available
===> [goto qlle]

>ql d< What is the percentage of your sales that are to
Landscapers, interiorscapers or lawn maintenance firms?
<1-100>
<-8> Don't know
<-9> Not available


>qlle< Do you sell to Retail mass merchandisers?
<1> Yes [goto q11f]
<2> No










<-8> Don't know
<-9> Not available
=> [goto q11g]


>qllf< What is the percentage of your sales that are to
Retail mass merchandisers?
<1-100>
<-8> Don't know
<-9> Not available


>q11g< Do you sell to Retail garden centers and other
retailers?
<1> Yes [goto qllh]
<2> No
<-8> Don't know
<-9> Not available
===> [goto q11i]

>qll h< What is the percentage of your sales that are to
Retail garden centers and other retailers?
<1-100>
<-8> Don't know
<-9> Not available
===>

>qlli< Do you Retail directly to the public?
<1> Yes [goto q11j]
<2> No
<-8> Don't know
<-9> Not available
===> [goto qllk]

>ql j< What is the percentage of your sales that are
retailed directly to the public?
<1-100>
<-8> Don't know
<-9> Not available
===>

>qllk< Do you sell to Re-wholesalers or brokers?
<1> Yes [goto q111]
<2> No
<-8> Don't know
<-9> Not available
===> [goto q11 m]

>ql 11< What is the percentage of your sales that are to
Re-wholesalers
or brokers?
<1-100>
<-8> Don't know
<-9> Not available
===>

>qllm< Do you sell to Developers or property
managers?
<1> Yes [goto q11n]
<2> No
<-8> Don't know
<-9> Not available
===> [goto q12a]


>q11n< What is the percentage of your sales that are to


Developers or property managers?
<1-100>
<-8> Don't know
<-9> Not available


>q12a< Which of the following marketing practices does
your company use to generate new business? Do you
do... Personal selling by telephone or personal visits?
<1> Yes
<2> No
<-8> Don't know
<-9> Not available
===>

>q12b< Do you have... Commissioned salespersons?
<1> Yes
<2> No
<-8> Don't know
<-9> Not available
===>

>q12c< Do you use... Promotions such as price
discounts or offer special services?
<1> Yes
<2> No
<-8> Don't know
<-9> Not available


>q12d< Do you use...... Trade shows?
<1> Yes
<2> No
<-8> Don't know
<-9> Not available
===>

>q12e< Do you use...... Direct mail advertising?
<1> Yes
<2> No
<-8> Don't know
<-9> Not available


>q12f< Do you use...... Trade magazine advertising?
<1> Yes
<2> No
<-8> Don't know
<-9> Not available


>q12g< Do you use...... Printed advertising media for the
public such as magazines, newspapers, brochures?
<1> Yes
<2> No
<-8> Don't know
<-9> Not available
===>

>q12h< Do you use...... Radio or television advertising?
<1> Yes
<2> No
<-8> Don't know
<-9> Not available
m.==>Z











>q12i< Do you have a... Computer website?
<1> Yes
<2> No
<-8> Don't know
<-9> Not available
===>

>q12j< Do you use...... Participation in civic events and
making charitable contributions?
<1> Yes
<2> No
<-8> Don't know
<-9> Not available
===>

>ql3a< Next, I would like you to tell me the percentage
of your total sales are to the following geographic
regions? What is the percentage of sales within the Local
area which includes the city or county, or within a radius
of 50 miles
<0-100>
<-8> Don't know
<-9> Not available


>q13b< What is the percentage of sales within Florida
but outside local area?
<0-100>
<-8> Don't know
<-9> Not available
===>

>qi3c< What is the percentage of sales that are
National meaning other US states besides Florida?
<0-100>
<-8> Don't know
<-9> Not available
===>

>q13d< What is the percentage of sales that are
International or to foreign countries.
<0-100>
<-8> Don't know
<-9> Not available


>q14a< Over the last 5 years, how have your business's
sales changed? Have they increased or decreased?
INTERVIEWER: DO *NOT* READ LIST. DON'T LET
THEM KNOW THAT "STAY EXACTLY THE SAME IS AN
OPTION", BUT IF THEY INSIST THAT THE
PERCENTAGE STAYED EXACTLY THE SAME, TYPE
3.
<1> Increased [goto q14b]
<2> Decreased [goto q14c]
<3> Stayed exactly the same
<-8> Don't know
<-9> Not available
===> [goto q15a]

>q14b< What percentage have your business's sales
increased?
<0> Less than 1 percent
<1-999>
<-8> Don't know
<-9> Not available


===> [goto q15a]

>q14c< What percentage have your business's sales
decreased?
<0> Less than 1 percent
<1-999>
<-8> Don't know
<-9> Not available


>q15a< Over the last 5 years, how have prices for your
products changed? Have they increased or decreased?
INTERVIEWER: DO *NOT* READ LIST. DON'T LET
THEM KNOW THAT "STAY EXACTLY THE SAME IS AN
OPTION", BUT IF THEY INSIST THAT THE
PERCENTAGE STAYED EXACTLY THE SAME, TYPE
3.
<1> Increased [goto q15b]
<2> Decreased [goto q15c]
<3> Stayed exactly the same
<-8> Don't know
<-9> Not available
===> [goto q16a]

>q15b< What percentage have your products' prices
increased?
<0> Less than 1 percent
<1-999>
<-8> Don't know
<-9> Not available
===> [goto q16a]

>q15c< What percentage have your products' prices
decreased?
<0> Less than 1 percent
<1-999>
<-8> Don't know
<-9> Not available


>q16a< Over the next 5 years, what is your expectation
for sales for your business? Will they increase or
decrease? INTERVIEWER: DO *NOT* READ LIST.
DON'T LET THEM KNOW THAT "STAY EXACTLY THE
SAME IS AN OPTION", BUT IF THEY INSIST THAT THE
PERCENTAGE STAYED EXACTLY THE SAME, TYPE
3.
<1> Increased [goto q16b]
<2> Decreased [goto q16c]
<3> Stayed exactly the same
<-8> Don't know
<-9> Not available
===> [goto q17a]

>q16b< What percentage will your business's sales will
increase?
<0> Less than 1 percent
<1-999>
<-8> Don't know
<-9> Not available
===> [goto q17a]

>q16c< What percentage will your business's sales will
decrease?
<0> Less than 1 percent
<1-999>










<-8> Don't know
<-9> Not available


>q17a< What is the name of the financial institution you
currently use that is most important for borrowing money
for your business?
<1> FIRST FINANCIAL INSTITUTION [specify]
<-8> Don't know
<-9> Not available


>q17b< What is the second most important financial
institution for your
business?
<1> SECOND FINANCIAL INSTITUTION [specify]
<2> No others [goto q18a]
<-8> Don't know
<-9> Not available
===>

>q17c< What is the third most important financial
institution for your
business?
<1> THIRD FINANCIAL INSTITUTION [specify]
<2> No others [goto q18a]
<-8> Don't know
<-9> Not available


>q17d< What is the fourth most important financial
institution for your
business?
<1> FOURTH FINANCIAL INSTITUTION [specify]
<2> No others
<-8> Don't know
<-9> Not available
===>

>q18a< Please rate the following reasons for choosing a
financial institution on a scale of 1 to 10 with 10 being
"extremely important" and 1 being "not at all important".
How do you rate competitive interest rates?
<1-10>
<-8> Don't know
<-9> Not available
===>

>ql8b< How would you rate knowldege that the lender
has about your type of business? (10 is extremely
important, 1 is not at all important)
<1-10>
<-8> Don't know
<-9> Not available


>ql8c< How would you rate a long term or personal
relationship with lender representative? (10 is extremely
important, 1 is not at all important)
<1-10>
<-8> Don't know
<-9> Not available
===>

>q18d< How would you rate Convenient or flexible
repayment terms (10 is extremely important, 1 is not at


all important)
<1-10>
<-8> Don't know
<-9> Not available


>q18e< How would you rate Analytical services provided
by lender (10 is extremely important, 1 is not at all
important)
<1-10>
<-8> Don't know
<-9> Not available
===>

>qi8f< Do you have anything else you consider
important in choosing a financial institution?
<1> Yes [specify]
<2> No [goto q19]
<-8> Don't know
<-9> Not available


>q18g< And how important do you consider that? (10 is
extremely important, 1 is not at all important)
<1-10>
<-8> Don't know
<-9> Not available


>q19< How satisfied are you with your primary financial
lender? Please rate if on a scale of 1 to 10, with 10
being "very satisfied" and 1 being "very dissatisfied".
<1-10>
<-8> Don't know
<-9> Not available


>q20< In the next year, do you expect your credit needs
to increase, decrease or remain the same as the past
year?
<1> Increase [goto q21a]
<2> Decrease [goto q21b]
<3> Remain the same
<4> Don't know
<-8> Don't know
<-9> Not available
===> [goto q22]

>q21a< By how much do you expect your credit needs
to INCREASE? INTERVIEWER: READ LIST:
<1> 1% to 5%
<2> 6% to 10%
<3> 11% to 20%
<4> more than 20%
<-8> Don't know
<-9> Not available
===> [goto q22]

>q21b< By how much do you expect your credit needs
to DECREASE? INTERVIEWER: READ LIST:
<1> 1% to 5%
<2> 6% to 10%
<3> 11% to 20%
<4> more than 20%
<-8> Don't know
<-9> Not available














>q22< Which of the following categories represents
your company's gross sales in 1997? INTERVIEWER:
READ LIST:
<1> less than $250 thousand
<2> $250 to $499 thousand
<3> $500 to $999 thousand
<4> $1 to $1.99 million
<5> $2 to $3.99 million
<6> $4 to $5.99 million
<7> $6 to $7.99 million
<8> $8 to $9.99 million
<10> $10 to 14.9 million
<11> $15 to $19.9 million
<12> $20 to $25 million
<13> $25 million or over
<-8> Don't know
<-9> Not available
==.=_>




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