Table 1. Changes in number of firms, production area, net value of sales, net sales
 per firm, and production area per firm, for Florida foliage growers. 1984-1991 .


 Year Number of Production Net Sales Prod Area Net Sales
 Firmsb Area Value Per Firm (Ft2) Per Firm
 (millions ft2) (millions)
 1991 736 174.8 $269 2,370 $3,600
 1990 816 169.0 $280 2,070 $3,400
 1988 920 179.9 $279 1,950 $3,000
 1986 967 193.3 $309 1,990 $3,100
 1984 985 192.3 $269 1,940 $2,700

" Source: Florida Department of Agriculture, Division of Marketing Florida Crop &
 Livestock Reporting Service, Orlando.
b Commercial-sized businesses with a net value of sales exceeding $10,000.


billion in sales for the same year. Florida's nursery industry grew rapidly throughout
the 1970's and early 1980's. However, maturation of the industry eventually
occurred with attendant problems of overproduction, depressed prices, low
profitability, and a growing rate of business failure (2,5,10). Table 1 illustrates this
maturation process for one industry sector3. Based on first-hand knowledge, the
authors believe similar changes have occurred in other nursery sectors as well.
Declining numbers of firms (down 25 percent), increased production area on a per firm
basis (up 19 percent), and higher unit sales (up 25 percent) represent responses to
increasingly competitive market forces. A general erosion in the financial health of
many nurseries also occurred, as is evident from results of the University of Florida's
NBA. Three performance measures-- productivity, efficiency, and profitability--
indicated that, in general, nurseries fared best during 1986 and 1987, with financial
performance declining thereafter. The last year examined, 1990, appeared to be the
most difficult for the sample of firms. The rate of return to capital for foliage
producers, for instance, fell from nearly 20 percent in 1984 to less than six percent
by 1989. Net nursery income dropped by nearly two-thirds for the same period, from
$110,800 to $41,700 (3).


 3 The Florida Agricultural Statistics Service collects limited information for foliage, cut greens,
 potted flowering plants, bedding plants, cut flowers, and flowering hanging baskets. Of these, the
 foliage sector comprises the most complete data set. Information for woody ornamentals is excluded.
 However, from a study conducted by the authors in 1989, sales from a sample of 104 wholesale
 woody ornamental nurseries had an estimated value of $125 million (6).