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Nurseries Industry Profile Excerpt
| SIC Codes: 0181, 0831, 5191, 5193, 5261 NAICS Codes: 11142, 42493, 44422, 113210 Page Length: 10-12 Last Quarterly Update: 8/11/2008 View Sample Industry Profile |
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In the US, about 25,000 farming operations produce nursery and greenhouse crops with a total annual wholesale value of $14 billion. Large companies include Hines Horticulture, Monrovia Nursery, and Color Spot Nurseries. In this highly fragmented industry, only 2,000 operations have annual revenue over $1 million. The largest 2,000 farms produce 65 percent of industry revenue. Most producers are small, with nurseries attached to a retail store.
COMPETITIVE LANDSCAPE
Demand is driven by consumer income and commercial real estate construction. The profitability of individual companies depends on anticipating demand for various types of plants, and an efficient distribution system. Large operators have economies of scale in distribution. Small operators can compete successfully by raising specialty plants or serving a local market.
PRODUCTS, OPERATIONS & TECHNOLOGY
Products include flowers and flowering plants, shrubs, food plants like tomatoes, Christmas trees, sod and seeds. Large commercial growers concentrate on producing container-grown ornamental plants for indoor and outdoor use, including bedding plants (usually grown in flats and transplanted into beds by the end-user); shrubs; and flowering potted plants. Products include annuals like marigolds and petunias; perennials like daylilies and clematis; evergreens like azalea, box wood, pines, spruce, and juniper; tropical flowering plants like Bougainvillea and hibiscus; "holiday" or "seasonal" plants like Easter lily and poinsettia; and specialty plants like bonsais, ferns, and trellises. Cut flowers are a smaller segment. Because of weather limitations, most single-location growers can produce only several hundred ...
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