March 31, 2015

Significant green impact

Statistics finally here on Canada's horticulture industry

How green is Canada's green industry, in terms of dollars? Until recently, the answer would include quite a bit of guesstimation; the sources and resources needed to formulate this important number had never come together. An economic impact study changes the picture.

Canada's green industry members can finally be proud of a figure representing ornamental horticulture's economic impact: $14,480,000,000 - nearly $14.5 BILLION.

This number highlights a 138-page report from the Canadian Ornamental Horticulture Alliance (COHA), comprised of the Canadian Nursery Landscape Association (CNLA), the Federation Interdisciplinaire de l'Horticulture Ornementale du Quebec (FIHOQ) and Flowers Canada Growers. The Alliance secured funding to undertake the ambitious and much-needed study, which was published in January 2009. It was performed by Deloitte & Touche, an international provider of financial and consulting services.

Some of the study's highlights follow below.

A major Canadian industry

Total economic impact: $14.48B, comprised of
$6.98B in direct output
$7.5B in value-added impacts

The value-added impacts are based on multipliers generated by Statistics Canada. On average, every dollar produced by the industry generates a $0.19 increase in economic activity, income and employment in other industries.

Creating jobs

Canada's green industry generates:
110,750 full time equivalent jobs directly in the sector
22,026 jobs in industries that supply and support the sector

In addition, the sector induces a significant number of additional jobs through household spending by employees in the sector. It is estimated that for every two jobs in the sector, another job is generated in the economy.

Substantial employment income and tax contributions

$3.8B in employment income
$820M in end-user taxes generated (PST and GST)

Ornamentals are the only sector of agriculture that attracts GST at the first point of transfer in the value chain, from the producer to the wholesaler, retailer or final consumer; GST alone for the sector is $315M.

Another great study that shows the green industry impact on the economy is by the George Morris Centre
Literature Review of Documented Health and Environmental Benefits Derived from Ornamental Horticulture Products

Impact is growing

The sector's impact has been growing in real (inflation adjusted) terms by 2.1 per cent per year. Direct and indirect employment generated by the sector has increased from 99,154 in 2002, to 132,766 in 2007 (or 6.0 per cent). Horticultural services and retail/wholesale trade are the fastest growing segments with a compound annual growth rate of 11.8 per cent and 5.1 per cent respectively (2002/2007). Horticultural services have generated the highest job growth, increasing from 27,722 to 48,332 people employed (directly and indirectly) for 2002/2007.

2013 Economic impact study

Access the full report in pdf format here.