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Overview of the Green Industry. Special thanks for some of these slides to Dr. Charles R. Hall Professor & Extension Economist Texas A&M University. Outline. The economic importance of the GREEN industry.
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Overview of the Green Industry Special thanks for some of these slides to Dr. Charles R. Hall Professor & Extension Economist Texas A&M University
Outline • The economic importance of the GREEN industry. • Interesting technological advancements that have caused structural changes in the green industry. • Marketing systems in the GREEN industry.
Aalsmeer Flower Auction Largest flower auction in the world Dutch-based – Amsterdam See highlights Source: Images from Aalsmeer Dutch auction
Green Industry • Also referred to as “environmental horticulture” • Nursery & floriculture • Sod • Greenhouse for ornamental and annual vegetable/tobacco plant stock • Landscaping services • Markets include • Home construction/home improvement • Golf courses, parks, outdoor sport facilities, public spaces • Retail garden centers, florists
Kentucky’s “green” industry includes … Nursery and greenhouse growers, firms providing landscape services such as contracting and maintenance, and retail operations including independent garden centers, home improvement centers, and mass merchandisers/chain stores.
The nursery and greenhouse industry comprises the fastest growing segment of U.S. Agriculture Number of nursery and greenhouse farms continue to increase Grower cash receipts increasing at ~ $500 M per year Third most important sector in U.S. crop agriculture Seven states account for 2/3 of all U.S. nursery crop production --- CA, TX, FL, NC, OR, OH, MD
U.S. value of agriculture production U.S. value of all crops U.S. value of nursery, greenhouse, sod $202 Billion $ 143 Billion $ 17 Billion Perspective on Nursery, Greenhouse and Sod Industry Note: Source: 2007 Census of Ag; 2009 Census of Horticulture Specialties.
Wholesale receipts for nursery & greenhouse for U.S.: $11.6 billion in 2009 ($10.6 billion in 1998) • $5 billion in floriculture crops consumed in U.S. • $3.8 billion nursery stock • 68% of cut flowers are imported, primarily from Columbia and Ecuador • California, Florida & Hawaii major U.S. producers
U.S. New Housing Starts - Past Trend 2007-2009Thousand Homes. Annual Rate Seasonally Adjusted. Economic environment will mean a slow 2010-12 recovery for the nursery & greenhouse sector Source: Financial Forecast Center http://www.forecasts.org/house.htm Updated Wed, Dec 2, 2009
U.S. New Housing Starts – Low and Flat Present Value & Future ProjectionThousand Homes. Annual Rate Seasonally Adjusted. Source: Financial Forecast Center http://www.forecasts.org/house.htm Updated Monday, Dec 2, 2012
Home Depot Home improvement sector showing recovery signs Daily Stock Prices 2008-2012 Lowes
2. Technological advancements in the GREEN industry that have revolutionized plant production and marketing systems.
All of these technologies have been important, but… the technological driving force that is shaking things up the most today in the Green Industry is… INFORMATION technology!
Flowchart of the Green Industry Marketing System Final Consumers Retail Home Centers 38% Garden Centers 32% Mass Merchants 30% Landscape Contractors & Maintenance E-commerce Direct to Consumer Re-Wholesale Distribution Centers Infomediaries Shipping Point Firms - nursery growers - greenhouse growers - combination growers - B2B alliances Allied Input Suppliers
The NEW Green Industry Structure Final Consumers Retail Home Centers 38% Garden Centers 32% Mass Merchants 30% Landscape Contractors & Maintenance E-commerce Direct to Consumer Re-Wholesale Distribution Centers Infomediaries Shipping Point Firms - nursery growers - greenhouse growers - combination growers - B2B alliances Allied Input Suppliers