VOL. 46/NO. 1
Spring 2016
The Official Publication of The Kentucky Nursery and Landscape Association
Kentucky’s Nursery and Greenhouse Industries:
Employment and Product Forms Economic Impacts of the Kentucky Green industry
The Katsura Tree Is Truly a Delight for Fall Color
VOL. 46/NO. 1
Spring 2016
Top Features
10
7 Upcoming Event
eptember 8, 2016, S KNLA’s Summer Retreat – Leadership Forum & Marketplace
10 Cover Story
entucky’s Nursery and K Greenhouse Industries: Employment and Product Forms
Nurs ery Views • Spri ng 2016
Departments
conomic Impacts of the E Kentucky Green industry
18 Plant Profile
he Katsura Tree Is Truly T a Delight for Fall Color
20 Recent Event
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Snapshots from KNLA’s 2016 Spring Training & Showplace, January 27–28
6 From the President, Kim Fritz 6 Welcome, New KNLA Members 8 News From KNLA 9 Industry News 19 News From KDA 22 Index of Advertisers
The Kentucky Nursery and Landscape Association serves its members in the industry through education, promotion and representation. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of the association, its staff, or its board of directors, Nursery Views, or its editors. Likewise, the appearance of advertisers, or their identification as Kentucky Nursery and Landscape Association members, does not constitute an endorsement of the products or services featured in this, past or subsequent issues of this bi-annual publication. Copyright © 2016 by the Kentucky Nursery and Landscape Association. Nursery Views is published bi-annually. Subscriptions are complimentary to members of the Kentucky Nursery and Landscape Association. We are not responsible for unsolicited freelance manuscripts and photographs. Contact the managing editor for contribution information. Advertising: For display and classified advertising rates and insertions, please contact Leading Edge Communications, LLC, 206 Bridge Street, Franklin, TN 37064, (615) 790-3718, Fax (615) 794-4524. 4
14 Feature Story
The official publication of the Kentucky Nursery and Landscape Association
P.O. Box 6827 l Frankfort, KY 40602-6827 502-320-1488 Email: mail.knla@gmail.com www.knla.org • www.thelandlovers.org KNLA Executive Director and Nursery Views Editor Betsie Aldridge Taylor P.O. Box 6827 • Frankfort, KY 40602-6827 Tel: 502-320-3733 mail.knla@gmail.com www.knla.org KNLA Officers President Kim Fritz Village Green Wholesale Nursery 4251 Bloomfield Road Springfield, KY 40069 • Tel: 502-460-0764 villagegreenwholesalenursery@yahoo.com Vice President Michael Mueller Inside Out Design, LLC 100 Old Georgetown Road • Frankfort, KY 40601 Tel: 502-695-7020 • mike@insideout-design.org Past President Martin Korfhage Clinton Korfhage Nursery, Inc. 1823 Heaton Rd. • Louisville, KY 40216 Tel: 502-448-1544 • martinlndscp1@aol.com martin.korfhage@korfhage.com
18 Published by Leading Edge Communications, LLC
206 Bridge Street l Franklin, TN 37064 615-790-3718 l Fax: 615-794-4525 Email: info@leadingedgecommunications.com www.leadingedgecommunications.com
Directors Pat Carey (2017) Riverfarm Nursery 2901 N. Buckeye Lane • Goshen, KY 40006 Tel: 502-228-5408 • patc@riverfarm.com Eric Garris (2017) Bernheim Arboretum & Research Forest P.O. Box 130, Hwy. 245 • Clermont, KY 40110 Tel: 502-955-8512 • egarris@bernheim.org Brent Grunfeld (2018) Monrovia 7504 Knight Lane • Fairview, TN 37062 Tel: 615-584-0116 • BGrunfeld@monrovia.com Wes King (2016) King’s Gardens 4560 Nicholasville Road • Lexington, KY 40515 Tel: 859-272-7077 • wes@kingsgardens.com Cora Martin (2017) Ammon Nursery, Inc. 6089 Camp Ernst Road • Burlington, KY 41005 Tel: 859-586-6146 • cmartin@ammonplants.com Jeff Moore (2016) Signature Landscapes, LLC 1084 Baker Lane • Nicholasville, KY 40356 Tel: 859-887-2735 • jmsignaturela@icloud.com
Beau Spicer (2018) Louis’ Flower Power Shop 3391 Tates Creek Road • Lexington, KY 40502 Tel: 859-266-6889 • beausflowerqa@yahoo.com Jeff Wallitsch (2018) Wallitsch Nursery & Garden Center 206 Hikes Lane • Louisville, KY 40218 Tel: 502-454-3553 • jeff_wallitsch@live.com Educational Advisors Dr. Winston Dunwell UK Research & Education Center P.O. Box 469 • Princeton, KY 42445 Tel: 270-365-7541, ext. 209 wdunwell@uky.edu Dr. Dewayne Ingram University of Kentucky, Horticulture Dept. N-308F Agri. Sci. Center • Lexington, KY 40546 Tel: 859-257-8903 • dingram@uky.edu Dr. Robert (Bob) E. McNiel (Emeritus) Highland Moor 226 Shady Lane • Midway, KY 40347 Tel: 859-509-2719 • rmcniel@highlandmoor.com
Nur sery Views • S pr ing 2016
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FROM THE PRESIDENT l Kim Fritz
A Super Start to Another Growing Season
Wow!
2016 already promises to be a fabulous year. Thank you to everyone who attended, assisted and/or exhibited in the 2016 Spring Training and Showplace in January! We had a great time and super attendance in both the classes and exhibitors. A special thank you to the KNLA board of directors for coordinating and working the show. Since we received 98% positive feedback on evaluation forms, we plan to have this show at the Ramada Inn and Conference center again in 2017. Our only negative reviews were regarding cleanliness of hallways and parking lots — we will ensure all areas are spotless for next year! Please reach out with congratulations to our newest board members (see page 8 for more information):
Pat Carey
Riverfarm Nursery • Goshen, KY Phone: 502-228-5408 • Email: pat_carey@bramco.com
Cora Martin
Ammon Nursery, Inc. • Burlington, KY Phone: 859-586-6146 • Email: cmartin@ammonplants.com
Beau Spicer
Louis’ Flower Power Shop • Lexington, KY Phone: 859-266-6889 • Email: beausflowerqa@yahoo.com
Jeff Wallitsch
Wallitsch Garden Center • Louisville, KY Phone: 502-454-3553 • Email: jeff_wallitsch@live.com
Nurs ery Views • Spri ng 2016
Our 2016 Summer Retreat and Marketplace will be at Buffalo Trace in Frankfort again this year! Please mark your calendar to attend on Thursday, September 8! There will be bourbon tours, exhibitors, lunch and, as always, plenty of CEUs for you and your staff. KNLA’s primary initiative for the year is to increase membership. We welcome your thoughts, ideas, suggestions and assistance in making KNLA an organization that continues to provide members with advice, networking and education for all Kentucky nurseries, garden centers, landscapers and rewholesalers. Please contact any of KNLA’s board member or me with suggestions and comments on making KNLA the organization to be with! Wishing you a blessed and successful season!
Kim Fritz
2016–2018 KNLA President Phone: 502-460-0764 • Email: villagegreenwholesalenursery@yahoo.com Snail Mail: 4251 Bloomfield Rd., Springfield, KY 40069
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Welcome, New KNLA Members! M&J Landscape Design Group Contact: Jenny Smith, Office Manager
325 Jeffiers Lane Taylorsville, KY 40071 Office: (502) 902-4793 Email: landscape@mandjlandscape.com Website: www.mandjlandscape.com Pro Turf, Inc. Contact: Rick Sansbury, Owner
2007 Browns Village Road Louisville, KY 40299 Office: (502) 267-0377 Fax: (502) 267-0326 Email: proturfinc@aol.com Website: www.proturfinc.com Tower View Farm & Nursery Contact: Dale Crawford, Owner
12523 Taylorsville Road Louisville, KY 40299 Office: (502) 267-2066 Fax: (502) 267-2094 Email: towerviewfarm@gmail.com Tru Element Contact: Thomas Herald, Vice President
7908 Tanners Gate Lane Florence, KY 41042 Office: (859) 795-0403 Fax: (859) 384-6463 Email: thomas.hearald@tru-element.com Website: www.Tru-Element.com
Upcoming Event
Buffalo Trace Distillery • 1001 Wilkinson Boulevard • Frankfort, KY 40601
September 8, 2016 300+ Expected Attendees • Vendor Spotlights during Educational Program Attendants will receive 5 ISA Certified Arborist CEUs, 3 general hours and 2 specific hours (Cat 3, 10, & 12) for KDA Pesticide CEUs, and 3 general hours for Landscape Architect CEUs!
Schedule of Events
7:30 a.m. – 8:30 a.m. Attendee registration
8:30 a.m. – 9:30 a.m. Systems Approach to Nursery Certification — Is it Right for You? And an Update on the Ugly World of Invasive Insects, Joe Collins
9:30 a.m. – 10:30 a.m. Elements for Rain Gardens, Russ Turpin 10:30 a.m. – 11:30 a.m. Vendor Introductions 11:30 a.m. – 12:15 p.m. Tour 1 of Buffalo Trace (2 tours running at this time) (Note: All 3 tours are the same) First Lunch Seating (vendors included) 12:30 a.m. – 1:15 p.m. Tour 2 of Buffalo Trace (2 tours running at this time) Second Lunch Seating Vendor Time 1:30 p.m. – 2:30 p.m. Tour 3 of Buffalo Trace (Vendor Tour) Managing Exotic Ambrosia Beetles in Ornamental Plant Nurseries, Chris Ranger 2:30 p.m. – 3:30 p.m. Chicagoland Grows Program: 30 Years of Plant Development and Introduction for Midwestern Landscapes, James Ault 3:30 p.m. – 4:30 p.m. Pollinator-Friendly Plants: Good for Bees, Butterflies and Business, Bernadette Mach, Adam Baker and Daniel Potter
Attendee Registration: www.2016SummerRetreat.eventbrite.com Exhibitor Booth Rental Registration: www.2016SummerRetreatExhibitor.eventbrite.com 7
News from KNLA
Meet Your New Directors Pat Carey Pat Carey has been in the wholesale nursery business for more than 25 years, and he has remained at Riverfarm Nursery for his entire career. After attending Western Kentucky University and while attending University of Louisville, Pat started at Riverfarm as a general laborer, then quickly moved up to production manager and finally took over as general manager 15 years ago.
Cora Martin Cora Martin lives in northern Kentucky on the working farm where she was born. At age 18 she was hired at Ammon Nursery in Burlington, KY, where she started out doing general labor and quickly moved up. In 1999, Cora became general manager for the entire operation, which included the nursery and two other locations. Today, 31 years later, she still remains dedicated to Ammon’s and the green industry.
Beau Spicer Born and raised in Jessamine County, Beau was born with plants and gardening in his blood. Both sets of grandparents were in the plant business. After years of working at a local garden center, Beau transferred to the University of Kentucky Extension Service, where he worked throughout college. He studied at the University or Kentucky with a focus in business and horticulture. Since graduation, Beau has served as general manager with Louis’ Flower Power Shops in Lexington, Kentucky, until recently when he purchased the company from Louis Hillenmeyer and now serves as owner.
Nurs ery Views • Spri ng 2016
Jeff Wallitsch Wallitsch Garden Center is a family owned and operated business dating back to 1946. Jeff, a third-generation Wallitsch, has worked at the garden center since he was a “seedling” and has gained his knowledge of plants and business through his grandparents and father. Jeff is the container garden expert and enjoys creating stunning displays at the garden. 2
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Three KNLA Members Earn KY Nurseryman Certification
T
hree new candidates have received Kentucky Nurseryman certification for 2016: • David Abernathy, Springhouse Gardens, Nicholasville • James Wright Alexander, Alexander’s Lawn & Tree Experts, Lexington • Ryan Barker, Inside Out Design, LLC, Frankfort The Kentucky Certified Nurseryman designation helps consumers locate trained professionals who are knowledgeable on a wide variety of topics, such as plant identification, proper plant usage, keeping plants healthy and pest-free, soils, turfgrass management, landscape design and proper planting and maintenance of nursery stock. The Kentucky Certified Nurseryman examination is administered once a year at the Kentucky Landscape Industries Winter Educational Conference in January. Anyone may obtain the KCN training manual and take the exam. To be granted Kentucky Certified Nurseryman status, an individual must have worked 6 months full-time or 500 hours part-time in a nursery, garden center or other landscape industry firm. Candidates who successfully complete the test must file for certification and provide signed work-experience statements from their employers. They are required to sign an agreement to abide by the rules and regulations governing a Kentucky Certified Nurseryman, as established by the certification committee. For more information, visit KNLA’s website at www.knla.org/kcn. For questions about the KCN exam, contact KCN Exam Chair, Dr. Winston Dunwell, Extension Nursery Crops Specialist, at the University of Kentucky College of Agriculture, at wdunwell@uky.edu. 2
Industry News
Kudos to Inside Out Design! At the Frankfort Area Chamber of Commerce Annual Dinner and Auction held this past February, Inside Out Design was presented with the Business of the Year Award. Congratulations to KNLA members Andrea and Michael Mueller! 2
Nur sery Views • S pr ing 2016
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Cover Story
Kentucky’s Nursery and Greenhouse Industries:
Employment and Product Forms
By Dewayne L. Ingram, Ph.D., and Winston Dunwell, Ph.D., Horticulture Department, University of Kentucky
Nurs ery Views • Spri ng 2016
This
is the second in a series of articles reporting results from the Green Industry Research Consortium’s survey of the U.S. nursery and greenhouse industries. The most recent survey was conducted in 2014 in all 50 states, reflecting 2013 data. Drs. Alan Hodges, Charles Hall and Marco Palma took the lead on this survey and published the results in the Southern Cooperative Series Bulletin #420, Trade Flows and
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Marketing Practices with the U.S. Nursery Industry, 2013 (available at http://www. greenindustryresearch.org). The Kentucky data have been extracted from SCS Bulletin #420, and additional computations have been made from the original data. This article summarizes employment data and the type of products sold.
Employees The average number of employees
of responding Kentucky firms was 4.5 permanent/fulltime employees and 4.1 temporary/part-time/seasonal employees. Although the percentage of responding firms in various annual sales categories was similar to the national average, Kentucky’s average employment per firm was lower than the regional and national average (Table 1). Approximately 54% of the 1,100 employees engaged in Kentucky nursery
Kentucky Appalachian Region Table
1
United States
Permanent Employees
Temporary Employees
4.5
4.1
10.1
7.5
9.6
8.9
Average number of permanent and temporary employees per firm in 2013.
Figure
1
Average percentage of total annual sales by plant type for Kentucky respondents in 2003, 2008 and 2013.
ents reported reducing their permanent employees by 9% and decreased temporary employees by 17% over the five years from 2004 to 2008. By comparison, respondents had increased their permanent employees by 11% and temporary employees by 14% over the previous fiveyear period, 1999–2003. Nationally, there was little change in number of employees per firm between 2003, 2008 and 2013 surveys. Data from
an economic-impact assessment of the green industry as a whole revealed total, direct employment was 1.86 million jobs for the U.S. and 22,147 jobs for Kentucky.
Plant types sold Approximately 16% of total sales by Kentucky grower respondents were from deciduous shade or flowering trees in 2013, compared to 12% in 2008 and 42% in 2003 (Figure 1). The vast majority of
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Nur sery Views • S pr ing 2016
and greenhouse crop production in 2013 were permanent employees, compared to approximately one-third in 2008. H2A employees were not significant for survey respondents in 2013. The absence of a few of the larger firms from the survey data could have skewed these numbers. Kentucky respondents to the 2003 survey averaged 7.2 permanent employees and 6.2 temporary employees at that time. On the average, Kentucky respond-
Cover Story l Continued
deciduous shade trees are produced by six field nurseries in Kentucky. It could be possible that a significant portion of the deciduous tree production was missed in 2008 and 2013 due to sampling error or lack of response. The percent of total sales for deciduous shrubs, evergreen trees, broadleaf evergreens and bedding plants increased in this recent five-year period. The percentage of total sales reported for roses, herbaceous perennials and vines/ground covers decreased since the last survey; however, the random sample for the survey in 2013 may have missed the larger producers of herbaceous perennials, as the authors’ observations in the field did not note decreased production. Bedding plants, flowering annuals and vegetable, fruit and herb transplants, represented 8.6% of sales in 2003, 17.5% in 2008 and 22% in 2013.
Given the fact that overall sales increased between each of the five-year survey periods, the increased percentage of sales from bedding plants is even more impressive. This growth is likely from the expansion of larger greenhouse operations as well as an increased number of smaller growers adding “color” to their product mix. Roses were 1.2% of sales in 2003, 12.7% in 2008, but only 6% in 2013. New continuous-bloom, low-maintenance landscape roses such as the Knock Out® rose and the presence of the rose rosette disease contributed to the up-and-down nature of the production of this crop in the past 15 years. Herbaceous perennials increased from 6.6% of sales in 2003 to 12.2% in 2008 and were back down to 6% in 2013. Kentucky industry respondents reported that 33% of plant sales were from native plants of all types in 2013,
which was much more than reported for 2008 (3.9%) and 2003 (11.6%). This is somewhat in line with the Appalachian region (26%) and higher than the national average (17%). On average, respondents in the Appalachian region and nationally also reported an increase from 2008 to 2013 in the percentage of native plants sold. Some of this is possibly due to acknowledgement of the number of traditionally grown plants that are actually native as well as an increased demand for native plants to meet the demand for restoration and conservation projects and, possibly, garden-center customer demand. It is important to note that total sales increased during this period, so a decrease in the percentage of sales from a given plant type may not reflect a decrease in production of that plant type but perhaps increased sales of other plant types.
Figure
Nurs ery Views • Spri ng 2016
2
12
Average percentage of total annual sales by product form for Kentucky respondents in 2003, 2008 and 2013.
Product forms Containerized plants comprised 79% of total sales in 2013, compared to 57% in 2008 and 39% in 2003 (Figure 2). This percentage is similar to the region average. Tennessee nurseries marketed a much higher percentage as bare-root plants than Kentucky or other states in the region. This is consistent with the reported increases in that 10-year period for bedding plants, roses, herbaceous perennials and others that are primarily grown in containers. This also includes an observed increase in pot-in-pot (inground containers) production of trees and shrubs in the industry during that period. Balled-and-burlapped plants averaged 15% of survey respondents’ sales in 2013, down from 49% in 2003. These findings are consistent from our observations in terms of the range of individual producers; however, they differ somewhat from our assessment of a relatively small number of large nursery operations that account for a significant portion of the production and may not have responded to the survey. For these nurseries, a significant portion of their sales comes from field-produced trees. Personal observations also showed a decrease in field-grown tree sales and reduced re-planting following the recession of 2008–2009. The share of total plant sales as bare-root plants was 25% in 2008, 1% in 2013 and less than 1% in 2003. Advancement of several hybridizers of herbaceous perennials (daylily and hosta, in particular) in Kentucky could account for the increase in bare-root plants sold as well as the increased mail-order sales and sales of herbaceous plants from 2003 to 2008. Increased container sales between 2008 and 2013, coupled with personal observations of Kentucky operations of a trend toward more production and marketing a higher percentage of herbaceous perennials in containers, could explain the decrease in bare-root plant sales from 2008 to 2013. 2 Nur sery Views • S pr ing 2016
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Feature Story
Economic Impacts
of the Kentucky Green Industry By Dewayne L. Ingram, Ph.D., Horticulture, University of Kentucky; and Alan Hodges, Ph.D., Food and Resource Economics, University of Florida
Nurs ery Views • Spri ng 2016
The
green industry — comprised of firms engaged in the production and use of landscape, floral crops, related supplies and equipment and the design, construction and maintenance of landscapes — has a significant impact on Kentucky’s economy. Green-industry enterprise owners, managers and employees should be aware of their economic impacts, and policy makers and other state leaders need to know the importance of this industry when potential laws, regulations and resource allocations are considered. The Green Industry Research Consortium is a group of horticulturists and economists conducting a multistate research project through the Agriculture Experiment Stations at land-grant universities throughout the U.S. Drs. Alan Hodges, Charlie Hall, Marco Palma and Hayk Khachatryan, project team members, published a paper in 2015 entitled, “Economic Contributions of the Green Industry in the United States, 2013.” The data for this report were compiled principally from the Impact Analysis for Planning (IMPLAN) and several other current, national economic databases and
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reports. The study results for Kentucky are summarized here. At the national level, the U.S. green industry in 2013 was estimated to generate $136.44 billion in output (revenue) and to employ 1.60 million people in full-time and part-time jobs. The total economic contribution of the industry, including regional multiplier effects in other sectors of the economy, was $196.07 billion in output impact, 2.04 million jobs, $82.47 billion in labor earnings and $120.71 billion in value-added contribution to gross domestic product (GDP). Since 2007–08, green-industry contributions in 2013 increased by 4.4% for employment and 2.7% for GDP in inflation-adjusted terms. Growth in the industry was highest for wholesale and retail trade, while production and manufacturing declined. Some terms used in the report — particularly output, output impact and value added — require some explanation. Total output or revenue is basically total sales throughout the revenue stream; except for retailers, it represents the gross margin (sales less cost of goods sold) to avoid double counting with wholesale
sales to retailers. Value-added impact by the industry is a measure of the net contribution to the U.S. gross domestic product, calculated as total sales (output) minus the intermediate sales in the supply chain (cost of inputs to the sector). The industry groups related to the green industry that were evaluated in this study included production and manufacturing, horticultural services and the wholesale and retail trades. The production and manufacturing group included nursery and greenhouse production and lawn and garden equipment manufacturing. The horticultural-services group encompassed the landscape-services and landscape architectural-services sectors. The wholesale and retail-trade groups accounted for green industry-related sales and economic impacts from 12 sectors, including: • wholesale establishments that distribute horticultural products (durable and nondurable) to retailers and end users • lawn and garden supply stores, building material and supply stores and homeimprovement centers (e.g., Lowe’s and Home Depot) • florists
impact of $559.3 million to Kentucky’s economy in 2013. The nursery and greenhouse crop-production sector was comprised of 67 employer firms, with revenues (sales) of $92.3 million, directly supported 1,100 jobs and had an overall employment impact of 1,136 jobs and a
value-added impact of $6.3 million to the state’s economy in 2013. The landscapeservice sector, excluding landscape architectural services, was comprised of 1,111 firms, had revenues of $545.5 million, supported 9,191 jobs directly, had an overall employment impact of 11,026 jobs
Figure 1
Green-industry sales, output impact and value-added impact in Kentucky, 2013. Figure 2
Kentucky green-industry direct employment and total job impact in 2013.
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Nur sery Views • S pr ing 2016
• general merchandise stores with garden departments (e.g., Walmart and Target) • non-store retailers such as mail-order or internet retail sales • other retail establishments that offer horticultural goods as a minor sideline, such as food and beverage stores The activity of independent garden centers and garden chain stores are captured in the data for lawn and garden supply stores. Kentucky’s green industry in 2013 directly supported 18,821 jobs and generated $1.12 billion in value-added impacts and $1.98 billion output impacts to the state’s economy, based on direct output (sales) of $1.52 billion. The total output impact was $96.6 million for nursery and greenhouse crop production, $797.6 million for landscape and horticultural services (including landscape architecture), $255.0 million for lawn and garden equipment manufacturing, $211.0 million for the wholesale trade sector and $622.9 million for retail trade sector. Valueadded impacts to the economy by industry segment were $66.3 million for crop production, $493.0 million for horticultural services, $57.7 million for equipment manufacturing, $135.1 million for wholesale trade and $368.3 million for retail trade. The sales, output impacts and value-added impact are presented for all Kentucky industry sectors in Figure 1. Of the total employment impact of 25,753 full-time and part-time jobs in the Kentucky green industry in 2013, the largest impacts were for horticultural services (11,208), wholesale trade (1,076) and retail trade (8,212), followed by crop production (1,136) and manufacturing (793). Direct jobs in the green industry and total employment impacts, including indirect and induced jobs generated in other economic sectors through the multiplier effect, are presented by the various industry groups in Figure 2. The two industry sectors most recognized as part of the green industry — nursery and greenhouse crop production, and landscape services — together had 10,290 direct jobs and an overall employment impact of 12,162 jobs, with $656.8 million in total sales and value-added
Nurs ery Views • Spri ng 2016
Feature Story l Continued
and generated a value-added impact of $482.8 million for the economy. Lawn and garden equipment manufacturers in Kentucky generated $197.0 million in total sales, the 13th-highest state in the U.S., with 417 employees and an output impact of $255.0 million. Although sales from Kentucky’s nursery and greenhouse crop production were less than for the lawn and garden equipment manufacturers ($92 million vs. $197 million), crop production accounted for more than twice the number of jobs (1,100 vs. 417), while landscape services accounted for 22 times the number of jobs (9,360 vs. 417) and more than ten times the earnings impact ($356 million vs. $30 million) of equipment manufacturing, due to the labor-intensive nature of crop production and landscape services. The wholesale and retail trade industry group is comprised of eight individual sectors as described above. Of the total Kentucky green industry, the wholesale and retail trade industry group represented 41% of direct jobs, 45% of the value-added impact and 42% of the output impact. Wholesale establishments are those that distribute horticultural products to retailers, including plants, chemicals, fertilizers and other supplies and various types of lawn and garden equipment. The wholesale trade represented 4% of Kentucky green industry jobs, 12% of value-added impact and 11% of output impact. Similarly, for the U.S. as a whole, wholesale trade represented 4% of greenindustry jobs, 12% of value-added impact and 12% of the output impact. In Kentucky, output of durable and nondurable horticultural goods by the wholesale and retail trade industry group totaled $669.2 million in 2013, which supported 7,944 jobs directly in the industry and a total employment impact of 9,288 jobs, generated value-added impacts of $502.5 million to the economy and resulted in an overall output impact of $834.3 million. The retail-sector firms are those that sell directly to consumers. The retailer sectors accounted for $496.0 million in output and supported directly 7,182 jobs. In fact, retail trade represented 38% of all Kentucky’s green-industry jobs and
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31% of the output impact to the economy in 2013, compared to 26% and 18%, respectively, for the U.S. In the Appalachian region, the retail trade represented 27% of the green-industry jobs and 18% of the output impact. The importance of the retail sector to jobs and output impact in 2013 was greater than in 2008 for both the U.S. and Kentucky industries. The retail trade group had 3 times the output impact in 2013 as the wholesale trade in Kentucky, while the retail trade had only 1.5 times more output impact than the wholesale trade in the U.S. It appears that in Kentucky, as well as the region and nationally, growth in the retail sector outpaced growth in the cropproduction sector. The total value-added contribution of the U.S. green industry to GDP was $120.71 billion, including labor-income impacts of $82.47 billion, other propertyincome impacts of $28.91 billion (in the form of interest payments, rents, royalties and corporate profits) and impacts on business taxes paid to local, state and federal governments of $9.30 billion. The total value-added contribution of
the Kentucky green industry to the commonwealth’s economy was $1.12 billion, including labor-income impacts of $740.3 million, other property-income impacts of $284.8 million and business-tax impacts of $94.4 million (Figure 3). Landscape services and lawn and garden equipment stores had the greatest contributions on Kentucky labor income and property income impact. Florists had the thirdhighest impact on labor income but had little impact on property income. The Kentucky green-industry retail sectors — lawn and garden supply stores, including home-improvement and independent garden centers — represented 73% of the output impact (Figure 4) and 55% of the jobs in these sectors. This type of firm represented 59% of the U.S. green-industry retail-sector output impact. Unfortunately, the available data would not allow the separation of independent garden centers within this sector. General merchandise stores, including bigbox stores such as Walmart and Target, represented 8% of the Kentucky greenindustry retail-sector output impact, while florists represented 15%. Non-store
Figure 3
Green-industry impacts on labor income, property income and business taxes in Kentucky, 2013.
Bibliography Hall, Charles R., Alan W. Hodges and John J. Haydu. 2007. The Economic Impacts of the Green industry in the United States. Southern Cooperative Series Bulletin #406. 90 p. Available at www.greenindustryresearch.org. Hodges, Alan, Charlie Hall and Marco Palma. 2011. Economic Contributions of the Green industry in the United
States, 2007. Southern Cooperative Series Bulletin #413. 61p. Available at www.greenindustryresearch.org. Hodges, A.W., C.R. Hall, M.A. Palma and H. Khachatryan. 2015. Economic Contributions of the Green industry in the United States in 2013. Accepted for publication in HortTechology, December 2015.
Figure 4
Green-industry output impacts in million dollars and percent by retail sectors in Kentucky, 2013.
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Nur sery Views • S pr ing 2016
retailers, such as mail-order and online vendors, represented 3% of the output impact of Kentucky’s green-industry retail sector in 2013 but only 1% in 2007. This would imply that sales of plants and garden supplies by mail order or internet sales have become more important to Kentucky in recent years. Nonstore retailers represented 9% of the U.S. green-industry retail-sector output impact in 2013 and 3% of retail sectors in the Appalachian region. The U.S. average output impact per crop-production firm was $2.07 million, while the Kentucky average was $1.8 million. The U.S. and Kentucky average output impact per firm for the other sectors are similar, indicating that Kentucky’s nursery and greenhouse firms are smaller than the national average but that landscape services firms and retailers are of similar size, which is generally expected because most of these firms serve a local area. Overall, the value-added impact of the green industry in Kentucky of $1.12 billion represented 0.60% of GDP in the state in 2013, as compared to 0.72% for the U.S., ranking Kentucky 41st among states. By way of comparison, the value added to the state’s economy by the green industry in Kentucky was greater than in West Virginia but less than in Tennessee, North Carolina, Ohio and Virginia. Previous studies in 2002 and 2007 reported total value-added impacts of the green industry in Kentucky at $651.1 million and $1.07 billion, respectively. The change, adjusted for inflation, for the period 2002 to 2013 was 44% or a 4% annual average. It should be noted that this period includes the great recession of 2008–2010. The Kentucky green industry is obviously an important element of Kentucky’s economy and is present throughout the state. The diverse nature of the industry limits its visibility compared to some industries; therefore, it is important to recognize and communicate these contributions. Data presented here can be used to engage governmental, business and agricultural industry leaders in conversations about the needs and opportunities for the industry. 2
Plant Profile
The
Katsura Tree Is Truly a Delight for Fall Color By Eric Garris, Bernheim Arboretum and Research Forest
Nurs ery Views • Spri ng 2016
In
our search for trees that bring fall color into the landscape, we often choose favorites such as maples and oaks. Often overlooked is a diminutive tree that provides good shade as well as spectacular autumnal foliage. The Katsura tree (Cerciophyllum japonicum) is a native of Japan and China, but it grows well throughout the central and midwestern U.S. in hardiness zones 4–8. The Katsura’s heart-shaped leaves emerge in the spring with a rosy tint. Flowers are produced on both male and female plants but are rather insignificant, resulting in small, 3/4" seedpods on female trees. In summer, the mature leaves give this tree a bluish hue, which contrasts nicely against surrounding landscapes. Reaching 30' to 40' in height with equal spread at maturity, it is an inter-
mediate-sized tree that should be planted in full sun to partial shade, and it is well suited in the landscape where space may be limited. Pruning is not necessary other than for form, if needed, when young. It does well in the urban environment and is tolerant to moderate levels of salts and other pollutants near roadways and island beds. Its roots are not prone to surfacing, making it ideal for planting closer in proximity to buildings and parking areas than larger canopy trees that may cause problems over time. There are no known pests or diseases, and once established, the Katsura requires no special care other than supplemental watering during periods of prolonged drought. Perhaps the most sensory aspect of the Katsura, apart from its eye-catching color, is its aroma. Cooler fall weather brings out the colorful yellow, burgundy
and orange tints in the leaves, while providing the scents of cotton candy and brown sugar to the air nearby. Bernheim Arboretum has a 50-year-old specimen that draws comments from visitors each year due to its spicy fragrance. There are several forms of Katsura that are of great interest in the industry, including weeping forms, ‘Pendula’ and ‘Amazing Grace’. Both are terrific cultivars and remain smaller than the species, reaching 15' to 25' with a graceful, mounding habit, making them ideal specimen trees for the collector’s landscape. Katsura ‘Red Fox’ is also noteworthy with beautiful deep burgundy spring growth. Available as both single and multistemmed tree, the Katsura is a superb addition to the woodland garden or urban landscape. 2
Above: The Katsura tree in summer. Inset: The Katsura tree in its fall glory. 18
News from the KDA
Kentucky Commissioner of Agriculture
From the
Dear friends, As your new Kentucky Commissioner of Agriculture, I understand the importance of the nursery and landscape industry to our Commonwealth’s economy. I also understand the struggles the industry has been through over the past several years with the downturn in the economy. With that said, Kentucky’s green industry in 2013 still generated $1.52 billion in sales, supporting 18,821 jobs! The Kentucky Department of Agriculture is committed to our continued support of the industry. If you are a Kentucky Proud member, you may be eligible for a Kentucky Proud Promotional Grant. It would reimburse up to half of eligible expenses for advertising, marketing and reaching consumers at the point of purchase to promote Kentucky Proud products with direct Kentucky farm impact. The maximum reimbursement is $12,000 in 12 months, based on 10% of direct Kentucky farm impact. For more information on this grant, visit: www.kyagr.com/marketing/documents/ KYP_GrantApplication.pdf. Please know that my door is always open. If my staff or I can help you in any way, don’t hesitate to contact us. Best wishes on another successful year! Sincerely,
Commissioner of Agriculture Commonwealth of Kentucky
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Nur sery Views • S pr ing 2016
Ryan F. Quarles
Recent Event
Snapshots from
Thank You to our
Sponsors Reception Sponsors Inside Out Design The Lawn Pro Nature by Design Valley Hill Nurseries Lunch Sponsor Monrovia
January 27–28, 2016 • Ramada Plaza Louisville Hotel and Conference Center • Louisville, KY
Coffee Sponsor McHutchison LLC Entrance Sponsors Monrovia Clinton Korfhage Landscaping Gold Sponsor Anderson Mulch & Soil Silver Sponsor Red Barn Nursery
KNLA Board of Directors.
Nurs ery Views • Spri ng 2016
Directors who had reached the end of their term were thanked: Martin Korfhage, Kim Fritz and Tom Weeks.
KNLA’s President Martin Korfhage honors Bob Westerman of Premium Horticultural Supply Co. with the KNLA’s Hall of Fame award. 20
KNLA president honors outgoing board members Michael Mueller, Inside Out Design; Suzette White, Nature by Design; and Brent Grunfeld, Monrovia. Michael was elected as KNLA’s Vice President at the Business Meeting!
Sam Yeager of Greenleaf Nursery was honored posthumously for KNLA’S Hall of Fame award. Pictured from left to right are Casey Schmidt and Sandra Epperely with Greenleaf Nursery; President Martin Korfhage; and Sam’s wife, Cheryl Yeager; and Sam’s daughter, Nicole Yeager.
Thank You to our
Exhibitors Airtech Tools Abrams Nursery Ammon Nursery Anderson Mulch & Soil, LLC Barky Beaver Mulch & Soil, Inc. Buckeye Resources Caudill Seed Co. Dayton Bag & Burlap Finn All Seasons Greenleaf Nursery Company, LLC Highland Moor HortAlliance Group Kentucky Dept. of Agriculture Klyn Nurseries, Inc. Laurel Nursery, LLC Millcreek Gardens, LLC Premium Horticultural Supply Raco Industries Riverfarm Nursery Rubley’s Nursery SiteOne Landscape Supply Snow Hill Nursery, Inc. Strain and Son’s Nursery Stockdale Tree Farm Tom Green Nursery Sales, LCC (Hans Nelson & Sons Nursery) United Label & Sales Corp UK State Entomologist UK Nursery Crops Program Valley Hill Nurseries Village Green Wholesale Nursery Woody Warehouse Nursery, LLC
Nur sery Views • S pr ing 2016
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Index of Advertisers
www.ammonplants.com
Boshancee Nursery, Inc........................... 9
www.boshanceensy.com
Center Hill Nursery................................ 22
www.centerhillnurseries.com
Fairview Evergreen Nurseries.............. 5
www.fairviewevergreen.com
Hortica........................................................... 3
www.hortica-insurance.com
Jelitto Perennial Seeds........................... 9
www.jelitto.com
John Holmlund Nursery........................ 22
www.jhnsy.com
Landscapers Corner, Inc...................... 17
www.landscaperscorner.com
Low Falls Wholesale Nursery............ 13
Scan the QR code: Download your favorite QR reader to your phone and scan the code to learn more about these companies.
Ammon Wholesale Nursery, Inc.......... 13
McHutchison Horticultural................ 19
www.mchutchison.com
Millcreek Gardens, LLC............................ 5
www.millcreekplants.com
Motz & Son Nursery................................. 19 OHP.................................................................. 22
www.ohp.com
Oldham Chemicals Co.... Inside Front Cover
www.oldhamchem.com
Richey Nursery Company, LLC.............. 19
www.richeynursery.com
Riverside Plastics...................................... 5
www.riverside-plastics.com
Samara Farms..............................Back Cover Smith Seed Services................................. 22
www.smithseed.com
Nurs ery Views • Spri ng 2016
Thomas Nursery........................................ 22
www.thomasnurserytrees.com
Wellmaster Carts......... Inside Back Cover
www.wellmaster.ca
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Digital Marketplace
www.lowfallsnursery.com