Articles
ECONOMIC IMPACT OF FLORIDA’S ENVIRONMENTAL HORTICULTURE INDUSTRY
Article number
536_29
Pages
251 – 260
Language
Abstract
Floriculture and environmental horticulture is the fastest growing segment of agriculture in the U.S., averaging seven percent annual growth since 1992. This industry is an important sector in the economy of Florida and other states.
The wholesale nursery sector is closely linked to the horticultural retailer and landscape services sectors, which provide associated products and services.
Florida’s subtropical climate and strategic geographic location with respect to Latin America provides a comparative advantage for production of high valued horticultural crops.
The state has traditionally been a supplier of plant products to the eastern US, Canada and Europe.
Florida dominates the US market for tropical foliage plants with over 90 percent market share.
The economic impact of Florida’s environmental horticultural industry in 1997 was estimated based on telephone interview surveys with wholesale plant nurseries, horticultural retailers, and landscape service firms.
Sales of ornamental plant products by nurseries were estimated at $1.46 billion (B), sales of plants and related horticultural goods by retailers totaled $1.75B, and sales of products and services by landscape service firms were $2.70B. Domestic and international exports of horticultural products and services from Florida amounted to $659 million (M). An input-output model was used to evaluate the multiplier effects of export sales associated with purchased inputs from other industries and personal consumption expenditures by industry employees.
The gross economic impacts of the horticulture industry included economic output of $6.36B, total economic value added of $5.42B, and employment of 187,000 persons.
These impacts are greater than for any other sector of agriculture and associated manufacturing in Florida, including the large fruit and vegetable industry.
Economic impacts for the wholesale nursery sector were also estimated for seven regions of the state.
Reliable information on economic impacts is essential for promotional and development activities by industry associations, and for formulation of sound policies by legislators, regulatory agencies, and local government officials.
The wholesale nursery sector is closely linked to the horticultural retailer and landscape services sectors, which provide associated products and services.
Florida’s subtropical climate and strategic geographic location with respect to Latin America provides a comparative advantage for production of high valued horticultural crops.
The state has traditionally been a supplier of plant products to the eastern US, Canada and Europe.
Florida dominates the US market for tropical foliage plants with over 90 percent market share.
The economic impact of Florida’s environmental horticultural industry in 1997 was estimated based on telephone interview surveys with wholesale plant nurseries, horticultural retailers, and landscape service firms.
Sales of ornamental plant products by nurseries were estimated at $1.46 billion (B), sales of plants and related horticultural goods by retailers totaled $1.75B, and sales of products and services by landscape service firms were $2.70B. Domestic and international exports of horticultural products and services from Florida amounted to $659 million (M). An input-output model was used to evaluate the multiplier effects of export sales associated with purchased inputs from other industries and personal consumption expenditures by industry employees.
The gross economic impacts of the horticulture industry included economic output of $6.36B, total economic value added of $5.42B, and employment of 187,000 persons.
These impacts are greater than for any other sector of agriculture and associated manufacturing in Florida, including the large fruit and vegetable industry.
Economic impacts for the wholesale nursery sector were also estimated for seven regions of the state.
Reliable information on economic impacts is essential for promotional and development activities by industry associations, and for formulation of sound policies by legislators, regulatory agencies, and local government officials.
Authors
Alan W. Hodges, John J. Haydu
Keywords
economic multipliers, input-output models, employment, value added
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