Economic Impact of Alabama’s Green Industry:
Green Industry Growing

Special Report No. 7 November 2009 Alabama Agricultural Experiment Station Alabama Department of Agriculture and Industries Alabama Nursery and Landscape Association Alabama Turfgrass Association

aLaBama’S Green induStry provideS economic punch

Total Sales
The total economic impact of Alabama’s green industry for 2007 soared to $2.9 billion from $1.9 billion in 2003, an increase of 51.7 percent.

Sector

economic impact ($m)

increaSe from 2003 (%)

nurSery and GreenhouSe Lawn and LandScape
Alabama’s green industry, which includes nursery, greenhouse, turfgrass, sod, lawn, and landscaping operations as well as retail businesses that sell plant materials and related products, has grown significantly since the first economic study conducted in 2003. The 2007 study—a joint effort by the Alabama Agricultural Experiment Station, the Alabama Department of Agriculture and Industries, the Alabama Nursery and Landscape Association, and the Alabama Turfgrass Association—shows that Alabama’s green industry contributes almost $2.9 billion annually to Alabama’s economy—an increase of 51.7 percent since 2003—and provides jobs for more than 43,000 Alabamians—an increase of 41.5 percent. Without a doubt, Alabama’s green industry is growing. Established in 1951, the Alabama Nursery and Landscape Association (ALNLA) is a non-profit professional association for those involved in, and allied with, the ornamental horticulture industry. The Alabama Turfgrass Association (ATA), a non-profit organization established in 1961, unites supervising turfgrass management personnel in Alabama and Northwest Florida.

522.70 909.02 1,310.99 150.37

70.9 40.8 53.2 50.5 51.7

horticuLturaL retaiL turfGraSS and Sod totaL

$2,893.08

Quick Facts
From 2003 to 2007, nursery and greenhouse sales grew by 71 percent, lawn and landscape sales by 41 percent, horticultural retail sales by 53 percent, and turfgrass and sod sales by 51 percent.

totaL SaLeS for aLaBama’S Green induStry:
First Printing, 3K, November 2009 Auburn University is an equal opportunity educational institution/employer. http://www.auburn.edu http://www.aaes.auburn.edu

$2.89 billion!

Impact on Alabama’s Economy
Alabama’s green industry has stretched its lead as the state’s number one cash crop and now pumps $2.89 billion into the state’s economy annually. That represents a 51.7-percent increase from 2003, when the industry’s overall economic impact rang in at $1.9 billion.

Impact on Alabama’s Employment
The number of Alabamians working in businesses directly or indirectly related to the nursery and greenhouse, landscape services, horticultural retail, and turfgrass and sod sectors of the green industry soared 41.5 percent over the four-year period, from 30,860 in 2003 to 43,670 in 2007.

Economic Impact of Alabama’s Green Industry
Sector export SaLeS ($m) vaLue added ($m) indirect taxeS ($m)

Employment Impact of Alabama’s Green Industry
Sector totaL firmS totaL joBS increaSe in joBS from 2003 (%)

nurSery and GreenhouSe Lawn and LandScape horticuLturaL retaiL turfGraSS and Sod totaL

129.65 150.09 624.01 27.49 $931.24

283.16 558.36 1,600.94 80.56 $2,523.02

9.44 26.08 372.51 2.28 $410.31

nurSery and GreenhouSe Lawn and LandScape horticuLturaL retaiL turfGraSS and Sod totaL

758 1,686 912 97 3,453

9223 13,823 18,762 1,862 43,670

61.1 34.6 38.7 39.6 41.5

Exports are the difference between all products sold outside the state (both domestic and international) and products brought into the state and sold. Total industry exports in 2007 were more than $931.24 million.

Quick Facts
Value added is the difference between the industry’s sales revenues and the costs of items that have to be purchased. Total value added in 2007 was $2,523.01million.

Indirect business taxes include sales, excise, property and severance taxes, custom fees, and other miscellaneous taxes paid by a business. Total indirect business taxes were $410.31 million in 2007.

Quick Facts
From 2003 to 2007, total numbers of landscape service firms increased by 63.8 percent, horticultural retailers by 25.4 percent, and turfgrass firms by 40.6 percent.

Nursery and Greenhouse
Total economic impact of nursery and greenhouse producers was $522.7 million in 2007, an increase of 70.9 percent over 2003 production.

Lawn and Landscape
Total economic impact of lawn and landscape service providers was $909.02 million in 2007, an increase of 40.8 percent over 2003 figures.

Production Sales
$miLLion 0 50 100 150 200 250 300
SaLeS ($m) percent of totaL

Service Sales
$miLLion 0 50 100 150 200 250 300 350 400
SaLeS ($m) percent of totaL

container Grown treeS and ShruBS potted fLowerinG pLantS fieLd Grown treeS and ShruBS BeddinG pLantS herBaceouS pLantS veGetaBLe pLantS perenniaLS foLiaGe other economic impact

271.9 17.1 77.5 79.1 30.6 10.2 9.8 12.9 13.6 $522.7

52.0% 3.3% 14.8% 15.1% 5.8% 2.0% 1.9% 2.5% 2.6% 100%

inStaLLment ServiceS deSiGn ServiceS LandScape maintenance Lawn care and maintenance SuB-contractS* irriGation inStaLLation Live pLantS horticuLture SuppLieS other ServiceS economic impact
* incLudeS deSiGn, maintenance, and Service SuB-contractorS

376.0 22.0 209.4 96.9 32.8 66.0 93.1 5.4 7.4 $909.0

41.4% s 2.4% 23.0% 10.7% 3.6% 7.3% 10.2% 0.6% 0.8% 100%

Quick Facts
Alabama ranks 14th in the U.S. in nursery and greenhouse sales.

Quick Facts

A good landscape adds approximately 12 percent to the perceived value of a home.

Horticulture Retail
Total economic impact of horticultural retail sales was $1.3 billion in 2007 an increase of 53.2 percent over 2003 sales.

Turfgrass and Sod
Total economic impact of turfgrass and sod sales was $150.37 million in 2007 an increase of 50.5 percent over 2003 figures.

Retail Sales
$miLLion 0 50 100 150 200 250 300 350 400
SaLeS ($m) percent of totaL

Production Sales
$miLLion 0 10 20 30 40 50 60 70 80
SaLeS ($m) percent of totaL

potted fLowerinG pLantS container Grown treeS and ShruBS fieLd Grown treeS and ShruBS hardGoodS other foLiaGe BeddinG pLantS economic impact

177.0 389.4 200.1 83.9 84.4 76.0 300.2 $1,311.0

sales 13.5% s
29.7% 15.3% 6.4% 6.4% 5.8% 22.9% 100%

LandScape contractorS LandScape inStaLLation and maintenance directLy to the puBLic municipaLitieS retaiL nurSery/Garden centerS re-whoLeSaLerS economic impact

66.5 46.7 10.3 13.5 10.9 2.4 $150.3

44.2% s 31.1% 6.8% 9.0% 7.3% 1.6% 100%

Quick Facts

Retail garden centers account for $843 million in retail sales.

Quick Facts
Households in the southeastern U.S. spent an average of $428 on their lawns and gardens in 2007.

Economic and Employment Impacts by Congressional Districts in Alabama
Lauderdale Colbert Franklin Marion Lawrence Winston Limestone

Economic Impact by Congressional District ($M)
conGreSSionaL diStrictS nurSery and GreenhouSe Lawn and LandScape horticuLture retaiL turfGraSS and Sod totaL

1 2

235.21 104.53 67.96 20.90 26.15 41.81 26.14 $522.70

131.80 145.44 109.09 145.44 118.18 195.44 63.63 $909.02

190.09 209.76 157.32 209.76 170.43 281.86 91.77 $1310.99

66.17 31.58 27.06 3.01 8.27 10.52 3.76 $150.37

623.27 491.31 361.43 379.11 323.03 529.63 185.30 $2,893.08

5

Madison

Jackson DeKalb Cherokee

3 4 5 6 7 alabama

Morgan

Marshall

Lamar Fayette

Walker

4

Cullman Blount St. Clair Etowah

Jefferson

Calhoun Cleburne

Pickens

Tuscaloosa

Greene Hale

Bibb Perry

6

Shelby

Talladega Clay Randolph

Tallapoosa

Chilton Autauga

Coosa Elmore
Montgomery

3

Chambers

Sumter

Choctaw Marengo Clarke

7

Lee Russell

Employment Impact by Congressional District (jobs)
conGreSSionaL diStrictS nurSery and GreenhouSe Lawn and LandScape horticuLture retaiL turfGraSS and Sod totaL

Dallas Lowndes Wilcox Butler Monroe

Macon Bullock

Crenshaw

2

Pike

Barbour

1 2 3

4152 1845 1199 369 461 737 460 9,223

2005 2212 1659 2212 1796 2972 967 13,823

2720 3002 2251 3002 2440 4033 1314 18,762

820 391 335 38 102 130 46 1,862

9697 7450 5444 5621 4799 7872 2787 43,670

Washington

Conecuh

Coffee Covington

Dale

Henry

1
Mobile Baldwin

Escambia

Geneva

Houston

4 5 6 7 alabama

A statewide survey of the green industry—nursery and greenhouse production, lawn and landscape services, horticultural retail sales, and turfgrass and sod production—indicated that the industry grew 10 to 15 percent a year from 2003 through 2007.

Acknowledgements
The green industry would like to recognize Deacue Fields, associate professor and Extension specialist, for his diligent work on this second economic impact study of Alabama’s green industry. We would like to thank the multiple individuals, professional organizations, and businesses who contributed encouragement and grant awards to make the study possible. Finally many thanks to the hundreds of Alabama industry professionals who participated in this study. We also commend all of the individuals whose hard work in nurseries, in greenhouses, on sod farms, in landscaping services, and in retail centers makes these numbers a reality.
• • • • • • • • Alabama Agricultural Experiment Station Alabama Cooperative Extension System Alabama Department of Agriculture and Industries Ron Sparks, Commissioner Alabama Farmers Federation Alabama Nursery and Landscape Association Alabama Turfgrass Association Auburn University College of Agriculture Department of Agricultural Economics and Rural Sociology Irrigation Association of Alabama