The report defines the green industry as the variety of businesses involved in the production, distribution, and services associated with ornamental plants, landscape and garden supplies, and equipment.
New report highlights big economic impact of California Green Industry
$25 billion and nearly 258,000 jobs: these were the output and employment impact contributions of the California green industry to the state’s economy in 2007, according to a recently released report by the California Landscape Contractors Association.
The report, entitled Economic Contributions of the Green Industry to the California Economy, 2007, summarizes a 2011 study conducted by three economists: Dr. Marco A. Palma of Texas A&M University, Dr. Alan W. Hodges of the University of Florida, and Dr. Charles R. Hall of Texas A&M University.
The report defines the green industry as the variety of businesses involved in the production, distribution, and services associated with ornamental plants, landscape and garden supplies, and equipment. Segments of this industry—also known as the environmental horticulture industry—include landscape architects, contractors, and maintenance firms; wholesale nursery, greenhouse, and sod growers; marketing intermediaries such as brokers, horticultural distribution centers, and re-wholesalers; retail garden centers, home centers, and mass merchandisers with lawn and garden departments; and a variety of other retail establishments selling plants and horticultural goods.
According to the report, 157,395 green industry establishments had $17.2 billion in direct output (sales) and $25.0 billion in total output impact. They employed 169,942 individuals and had a total employment impact of 257,650 jobs.
The green industry is substantially bigger in California than it is in any other state. Compared to the green industry in the country as a whole, the California industry was 14.2 percent of the nation’s green industry output, 13.2 percent of its employment contribution, and 14.7 percent of its value added impact in 2007.
California’s green industry was 0.83 percent of the state’s gross domestic product (GDP), or total overall economic activity, that same year.
The report also concluded that the California green industry experienced moderate growth during the 2002-2007 period. Total output impacts increased 22.8 percent from $20.36 billion in 2002 to $25.00 billion in 2007. Total employment impacts remained relatively flat, with a slight increase of 1.4 percent from 253,977 jobs in 2002 to 257,650 in 2007. Total value added impacts increased from $13.66 billion in 2002 to $15.82 billion in 2007, for a 15.8 percent increase.