SIC 5193
FLOWERS, NURSERY STOCK, AND FLORISTS' SUPPLIES



This category includes establishments primarily engaged in the wholesale distribution of flowers, nursery stock, and florists' supplies.

NAICS Code(s)

422930 (Flower, Nursery Stock and Florists' Supplies Wholesalers)

444220 (Nursery and Garden Centers)

422940 (Tobacco and Tobacco Product Wholesalers)

According to the U.S. Census Bureau 4,598 establishments composed this industry in 2001, with an annual payroll of $1.6 million. In 2002, total annual sales were $14.3 billion. The majority were small-scale, single-unit operations, which operated year-round. The industry employed some 60,890 people and had an annual payroll of $1.6 million. In 2003, the number of establishments climbed to 9,123, with annual sales of $8.9 billion. The total number of employees increased also to 86,292. The average sales per establishment totaled about $1 million.

Bedding and garden plants and flowers make up approximately 66 percent of annual floriculture sales in the Midwest. The Northeast accounts for 55 percent, the South was responsible for 43 percent, while the West represents 36 percent. In a report released by the Flori-culture and Nursery Crop Outlook, the total sales for floriculture crops in 2003 was valued at $5 billion; nursery crops generated $9.4 billion; and floriculture and nursery were valued at $14.4 billion.

The industry is divided into two general categories: Wholesalers primarily engaged in the distribution of flowers and florists' supplies, and wholesalers engaged in the distribution of nursery stock. Flowers and florist supplies contributed about 28 percent of its sales, and nursery stock generated about 26 percent of its sales. Combined they generated approximately $3.8 billion.

The majority of companies in this classification were small—employing fewer than five persons. In 2001, 1,617 companies had fewer than 5 employees; 797 had between five and nine employees; 652 had between 10 and 19; 676 had between 20 and 99; 324 had between 100 and 499; and 64 had 500 or more employees.

Like other industries of its kind, the wholesale flowers, nursery stock, and florists' supplies industry experienced a decline in the number of establishments and with only modest increases in sales, rising an average of five percent a year throughout the early 1990s to an estimated $2.3 billion by 1996. The 1994 U.S. Industrial Outlook attributed the decline to mergers, acquisitions, and business failures. In addition, the increase of direct manufacturer to retail agreements and the use of mail order and catalog sales negatively impacted the wholesale industry.

The largest group, comprised of 4,300 units, reported sales between $100,000 and $249,000 in 1997, according to Dun's Census of American Business. The next biggest category included slightly larger operations with gross revenues between $250,000 and $499,000 that year: 1,754 wholesalers fell into this group. More than 1,500 units had sales between $500,000 and $1 million, and about 1,700 units had sales between $1 million and $5 million. 1,202 wholesale flower and nursery stock distributors had annual sales volumes between $50,000 and $99,000; and only 366 sold between $1,000 and $50,000 worth of stock in 1997. The smallest grouping, comprised of units reporting more than $5 million in annual sales, remained relatively steady, increasing from 347 to 349 operators.

The leading states with the highest value of wholesale floriculture sales were California with 19.7 percent, Florida with 18 percent, Michigan with 6.4 percent, Texas with 5.6 percent, and Ohio with 3.9 percent. Combined, these states accounted for $4.6 billion in sales.

In a report released from The United States Department of Agriculture, floriculture was expected to climb up 2 percent in 2003. This was in anticipation of the improvement of the overall economy that had been flat, and rising retail sales. The report further concluded that some 4,600 growers had sales of $100,000 or more. These individual growers represented 94 percent of the total wholesale value of production. California accounted for about 20 percent of the total crop. Michigan, Texas, and New York shared 17 percent of the value.

Leading companies in this industry include Florimex Worldwide, Inc.; Celebrity, Inc. of Tyler, Texas; Ball Horticultural Co. of West Chicago, Illinois; Hines Horticulture, Inc. of Irvine, California; and Shermin Nurseries of Danbury, Connecticut.

Further Reading

Darnay, Arsen J., and Gary Alampi, eds. Wholesale and Retail Trade USA. Farmington Hills, MI: Gale Group, 1995.

D&B Sales & Marketing Solutions, 2003. Available from http://www.zapdata.com .

Dun's Census of American Business 1996, Parsippany, NJ: Dun and Bradstreet, 1996.

Jerado, Alberto. "Floriculture and Nursery Crops Outlook." United States Department of Agriculture. Economic Research Services. 17 September 2003. Available from http://www.ers.usda.gov/publications/flo/sep03/flo)2.html .

U.S. Census Bureau. Statistics of U.S. Businesses 2001. Available from http://www.census.gov/epcd/susb/2001/US421420.HTM .

U.S. Department of Agriculture. "Operations with Hired Workers by Percent of Total Operations with Hired Workers 2002." Available from http://www.usda.gov/nass/eggraphs/flabor.htm .

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