Reasons for deteriorating financial performance are not limited to falling demand
or the recent economic downturn. Industry-wide over-production has also played a
crucial role. Lack of economies of scale in production and relatively low capital
requirements due to Florida's warm winter climate pose very low barriers to entry of
new firms. In fact, for the industry overall, the population of registered nursery firms
has grown more rapidly than aggregate sales, resulting in widespread sales of
products below costs (2,12). This oversupply problem has been exacerbated with the
advent of tissue culture. This propagative technology allows many marginal
businesses to produce large numbers of uniform plants quickly. Prior to tissue culture,
propagation was a natural filtering device eliminating many less capable firms.
 Recently three separate disasters have impacted Florida's nursery industry
considerably, disrupting product supply and perhaps labor availability. First, in 1990
Du Pont's popular fungicide Benlate, was alleged to have caused widespread damage
to the state's vegetable, strawberry, and foliage plants. Although Du Pont is
presently denying direct responsibility (i.e., the company asserts that possibly improper
application procedures by the growers themselves caused the plant damage), never-
theless, major economic losses were incurred. Moreover, as of May 1992, Du Pont
has voluntarily paid out $330 million in damages, most of it to Florida growers (7).
Second, in March 1992 a severe hailstorm struck central Florida causing $30 million
of property and plant damage to foliage growers (8). Finally, in August of 1992
Hurricane Andrew caused an estimated $329 million in damage to south Florida
nurseries (4). Because the scope and severity of destruction was so pronounced,
rebuilding efforts may continue for several years. Currently this "economic vacuum"
is drawing large numbers of both skilled and unskilled labor into the area. This
locational shift in labor is expected to affect the nursery industry as well as many
other labor markets.


 Labor in Florida's Nursery Industry

 Summary of 1987 Wage and Benefits Study

 A wage and benefits survey of Florida Foliage Association (FFA) members was
 completed in July 1987 (1). The purpose of the survey was to inform members of
 current wage and benefits practices within the industry. Approximately 450
 questionnaires were mailed to FFA members. The survey included a description of 18
 common jobs typically found in nurseries, as well as information regarding wage rates
 paid and data on current fringe benefits provided to employees.
 The survey revealed a wide range of wage and benefits practices among
 nursery operators. Some nurseries appeared progressive and innovative; others were
 new and just beginning to formulate their compensation policies. The study indicated
 owner/managers were strongly concerned with the impact of wages on profitability.
 Still, many employers claimed to use compensation as a tool to provide quality
 products and to retain an effective work force. The survey disclosed that the average