Illinois Green Industry Largest In State With $3 Billion Sales

To assess the economic importance of the green industry in Illinois, researchers at UIUC conducted a statewide survey of state businesses, agencies, institutions and others who produce, maintain, use or sell plant materials to enhance human environments.

"Preliminary estimates show that, in 1999, the product and service sectors of Illinois' green industry generated nearly $2.9 billion in sales. These sales figures place the green industry ahead of the more traditional agricultural commodities in economic importance to the state's economy," said Gary Rolfe, professor and head of the UIUC Department of Natural Resources and Environmental Sciences.

The green industry encompasses growers, wholesalers and retailers of such things as flowers, trees and sod, as well as the service sector involved in such things as landscape design, lawn care, tree care and golf course management.

With green industry sales at $2.9 billion, total cash receipts from corn come in at $2.56 billion, soybeans at $2.1 billion, hogs and pigs at $646 million and cattle at $490 million.

"I was surprised by the numbers," said Greg Oltman, GRO Horticultural Enterprises Inc., Union, Ill. "In many ways we are an agricultural industry, and the numbers show that we stack up very well with more traditional agriculture sectors."

As a by-product of developing the survey, Oltman said, "We have begun, as an industry, to work more closely together. We're an industry of many small associations each pursuing their own agenda, but I think we have a lot in common. I hope and expect that we will work together more in the future."

Rolfe sees the survey as a rallying point, too. "I don't think anyone had a clue that the green industry was as large as it turned out to be. It's a very important piece of information that could help influence legislative initiatives and bring more research dollars to this important sector," he said.The survey identified more than 9,000 green industry businesses in Illinois and more than 2.3 million end-users of green industry products and services. It estimates that the green industry product and service sectors employ nearly 74,000 workers with an annual payroll of more than $1 billion. Overall, the green industry employs a workforce of nearly 160,000 people with a payroll more than $1.74 billion.

The fair market value of all assets directly associated with producing, selling or maintaining green areas and plants in Illinois is more than $8 billion.

"The employment and income multipliers associated with the green industry are 1.52 and 2.70, respectively," Rolfe said. "This means that for every job created within the green industry, an additional 0.52 jobs are created within the overall state economy; and for every dollar paid in green industry wages and salaries, an additional $1.70 in wages and salaries are paid within the overall state economy."

According to Rolfe, the product sector of the green industry generated more than $1.636 billion in total receipts. More than 57 percent of these sales are attributed to growers selling to wholesale or retail vendors, or both. Nearly 42 percent of these product sales came from retailers only, with the remainder of about one percent being sold by wholesalers only.

The green industry service sector of the green industry generated more than $1.643 billion in total receipts. More than 88 percent of these receipts are attributed to landscape contractors and lawn care firms. About 6 percent of total receipts is attributed to tree care, while the remainder, 4 and 2 percent respectively, comes from landscape design-only firms and interior landscaping companies.

In 1999, Illinois consumers spent $2.89 billion to purchase and maintain indoor and outdoor plant materials, including turfgrass. In addition to this amount, this same group paid more than $1.397 billion to contractors working the green industry area.

The overall combined value of green industry product sales, service receipts and end-user payrolls amounts to more than $3.9 billion.

More than 12,000 survey questionnaires were mailed, producing an overall response rate of 31 percent. The study was funded in part by a statewide coalition of green-industry professional associations, including the Illinois Chapter of the American Society of Landscape Architects, the Association of Professional Landscape Designers, the Illinois Arborists Association, the Illinois Christmas Tree Growers, the Illinois Landscape Contractors Association, the Illinois Nurserymen's Association, the Illinois Parks and Recreation Association, the Illinois State Florists' Association, the Illinois Turfgrass Foundation, the Illinois Turf Irrigation Association, the Midwest Association of Golf Course Superintendents, the Ornamental Growers Association of Northern Illinois, the Sod Growers Association of Mid-America and the Sports Turf Managers.

Information provided by the American Society of Landscape Architects (www.asla.org) and the Illinois Landscape Contractors Association (www.ilca.net).