of firms, however, it is probably representative of firms with above-average
management quality, by virtue of their willingness to participate in such quality
improvement programs.

 Data were separately compiled and analyzed for firms classified in five different
sectors of the ornamental nursery industry: containerized woody ornamental plants,
field-grown woody ornamental plants, flowering plants, and tropical foliage plants in
sub-regions of Central and South Florida. Data included 252 records for container
firms, 60 for field firms, 163 for Central Florida foliage firms, 199 for South Florida
foliage firms, and 33 for flowering plant firms. Within each industry grouping, data
were also analyzed for highly profitable firms, which were defined as having returns
to net worth greater than 30%. Results were weighted by firm size in each group in
order to represent the greater impact of large firms. Dollar values for these time series
data were adjusted for inflation by deflating with the consumer price index (base year
1982-84).

Labor Productivity. Productivity was measured in terms of value produced per full-time
equivalent worker (FTE, 2080 hrs/year). Total annual production of firms was
measured as annual sales plus change in plant inventory value. Data collected on total
employee hours worked were expressed as full-time equivalents (2080 hours per
year).


Figure 1 shows that
labor productivity
generally declined over
the 1984-1991 period
for all firms and for
profitable firms. For all
firms, average labor
productivity declined
from $60K per FTE in
1984 to $46K per FTE
in 1989, then
rebounded to $48K per
FTE in 1991. Overall,
this represented a 20.1
percent decrease in
labor productivity.
Profitable firms had a
generally higher level of
labor productivity and
showed a similar steady
decline from $80K per
FTE in 1984 to $55K


Figure 1--Labor productivity. Value of production pei
full-time equivalent person (FTE, 2,080 man-hours pei
year), including production, sales, administrative, an
management personnel.


Hlghly profitable firms

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1S985 186 19M7 1988 19819 130
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