Economic Contributions of Arizona’s Green
Publication (pdf format)
What is Arizona’s
The Green Industry is defined as firms involved
in the production, design, installation, maintenance and sale of
plant products to enhance human environments. As such, the industry
consists of three major components: landscape services, nursery/greenhouse
production and distribution, and florists. This study covers only
the landscape and nursery sectors.
Within landscape services, there
are three basic activities: design, installation and maintenance.
Within the nursery sector, there are also three basic activities:
production of plant materials, wholesale distribution and retail
distribution of nursery products. Production of plant materials
includes field production, specialized rose and sod farms, and
container and greenhouse production of plants. Unless otherwise
noted, the retail nursery sector includes not only full service
retail nurseries, but also the nursery and garden sections of major
mass merchandisers, home improvement centers and chain stores.
In the industry, production and wholesaling often go hand in hand.
In this report, they will be considered together.
What was the
Green Industry’s Contribution to the Arizona Economy in 1994?
Green Industry is a growing part of agriculture, agricultural services,
and trade as is reflected in the following list of contributions
to the state economy:
–$177 million in payroll
–$662 million in total sales
–$305 million in net receipts or value added to the state economy
–$18.8 million in taxes paid in Arizona
–$11.1 million in foreign exports
–$54.9 million in shipments to other states
In addition, 83% of the $240.6 million that Green
Industry firms spent on materials and supplies, were spent in Arizona,
along with $133.7 million of other non-wage expenditures
the Green Industry grown over time?
The Green Industry’s growth
is closely tied to increases in population and subsequent increases
in construction. Consequently, the Industry grew at a phenomenal
rate during the 1970’s and 1980’s. Since 1987, growth in the industry
has slowed, reflecting a general economic slow-down throughout
the state in the early 1990’s, but both the general economy and
the Green Industry’s growth are starting to pick up again. Part
of the growth in the 1980’s was also fueled by corporate outsourcing
of landscape services. In other words, many commercial establishments
that previously would have retained landscape maintenance crews
in-house began hiring outside landscape service firms to provide
these services. Between 1974 and 1987, the industry increased fourfold
in employment and eightfold in nominal payroll. Between 1987 and
1994, employment in the industry increased by 30% and payroll increased
Nursery operations have apparently been successful at gaining
market share from California competitors over the past two decades.
However, retail nurseries appear to be losing market share to mass
merchandisers and discount chains. Employment in retail nurseries
declined between 1987 and 1992. However, total retail employment
is still estimated to be increasing when garden sections of mass
merchandisers and chain stores are included.
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