- Colorado’s allied Green industry generated between $6.54 billion and $11.29 billion in total economic activity in 2024, including $3.74 billion to $6.42 billion in direct industry output.
- The industry supported between 39,890 and 68,279 jobs statewide, generated $2.45–4.23 billion in labor income, and contributed $4.21–7.10 billion in value added to Colorado’s economy.
- Every $1.00 of direct green industry output generated approximately $1.75 in total economic activity across Colorado through affiliated supply chain purchases and the ripple effects of household spending by those who work in the industry.
Introduction
Colorado’s allied Green industry is an important component of the state’s economy, supporting businesses engaged in nursery and greenhouse production, landscaping services, retail garden centers, landscape architecture, irrigation systems, golf courses, florists, botanical gardens, and other related activities. Beyond supplying plants, landscape materials, and professional services, the industry generates employment, supports local businesses through supply chain purchases, and contributes to household income and economic activity throughout Colorado. The most recent statewide assessment of Colorado’s Green industry was based on 2015 data (Bauman & Thilmany, 2017). Since then, this industry sector has experienced substantial changes driven by population growth, evolving consumer preferences, increasing labor costs, supply chain disruptions, and growing concerns regarding water conservation and increasing emphasis on water-efficient landscapes. The current assessment provides an opportunity to evaluate how these changes have influenced the allied industry’s contribution to Colorado’s economy while providing an updated benchmark for industry stakeholders and policymakers.
This report updates the economic contribution of Colorado’s green industry using the 2024 employment data from the Quarterly Census of Employment and Wages (QCEW) and the 2024 IMPLAN input-output model. Consistent with previous Colorado studies, the analysis defines the green industry using thirteen six-digit North American Industry Classification System (NAICS) industries grouped into three major sectors: Input Suppliers, Wholesale/Retail, and End Users (Table 1). These industries represent the production, distribution, and service activities that collectively make up Colorado’s allied Green industry.
Data and Methodology
Economic contributions were estimated using the 2024 IMPLAN input-output model for Colorado. IMPLAN captures the direct economic activity of an industry, the indirect activity generated through purchases from suppliers, and the induced activity generated when employees of the sector spend their earnings within the state economy.
The thirteen green industry NAICS industries shown in Table 1 were first cross walked to their corresponding IMPLAN sectors.
- Because several IMPLAN sectors include both green industry and non-green industry activities, the total economic output reported by IMPLAN could not be directly attributed to the green industry.
- To isolate green industry activity, employment data from the QCEW were used to calculate the share of employment associated with green industry NAICS industries within each corresponding IMPLAN sector[1].
- These employment-based shares were then applied to IMPLAN sector output to estimate Colorado’s green industry output by sector.
[1] Previous Colorado green industry assessments used detailed Colorado Department of Revenue (DOR) sales data to estimate green industry shares. Comparable sales data at the six-digit NAICS level were not available for the current study; therefore, QCEW employment data were used to estimate Colorado-specific green industry shares.
Two allocation approaches were used to estimate the industry’s economic contribution. The first approach uses the employment-based green industry shares derived from QCEW data to allocate IMPLAN sector output. This provides a broader estimate by treating the activity associated with the selected green industry NAICS industries as green industry activity. The second approach further adjusts the employment-based estimates using sector-specific allocation factors reported in Bauman and Thilmany (2017). These factors account for activities within selected green industry NAICS industries that may not be directly attributable to green industry products and services. Applying these additional adjustments produces a more conservative estimate while maintaining consistency with the previous Colorado assessment. Together, the two approaches provide a range of estimates for the economic contribution of Colorado’s allied Green industry.
Economic Contribution of Colorado’s Green Industry
Colorado’s green industry continues to be a significant contributor to the state’s economy. Figure 1 summarizes the industry’s economic contribution under the two allocation approaches. Depending on the allocation approach used, the industry generated between $3.74 and $6.42 billion in direct industry output in 2024. After accounting for indirect business-to-business purchases and induced household spending, the industry’s total economic contribution ranged from $6.54 billion to $11.29 billion in economic output for Colorado. The industry supported between 39,890 and 68,279 jobs statewide, generated $2.45 to $4.23 billion in labor income, and contributed between $4.21 and $7.10 billion in value added activity to Colorado’s economy. Across both allocation approaches, every $1.00 of output generated $1.75 in total economic activity, reflecting the industry’s strong linkages with suppliers, service providers, and household spending throughout the state.
[1] Previous Colorado green industry assessments used detailed Colorado Department of Revenue (DOR) sales data to estimate green industry shares. Comparable sales data at the six-digit NAICS level were not available for the current study; therefore, QCEW employment data were used to estimate Colorado-specific green industry shares.
Compared with the previous statewide assessment using 2015 data, Colorado’s green industry has experienced substantial growth. Using the more conservative allocation approach for comparison, direct industry output increased from $1.49 billion in 2015 to $3.74 billion in 2024, while total economic output increased from $2.83 billion to $6.54 billion, representing an increase of approximately 131 percent. Labor income increased from $1.50 billion to $2.45 billion (approximately 64 percent), and value added increased from $2.50 billion to $4.21 billion (approximately 68 percent). Although estimated employment is slightly lower than reported in the 2015 assessment, employment estimates should be compared cautiously because of differences in data availability and methodology between the two studies.
The updated estimates are also broadly consistent with the national assessment by Hall et al. (2020), which estimated that Colorado’s green industry supported 48,571 jobs, generated $2.56 billion in labor income, contributed $3.98 billion in value added, and produced $7.22 billion in total economic output using standardized national allocation procedures and 2018 data. Differences between the studies primarily reflect differences in study year, IMPLAN database, allocation methods, and the expected change given Colorado’s continued industry growth since 2018.
Conclusions
Colorado’s green industry remains an important contributor to the state’s economy, generating between $6.54 billion and $11.29 billion in total economic output and supporting between 39,890 and 68,279 jobs in 2024. Beyond its direct impacts, the industry supports activity throughout Colorado’s broader economy based on purchases from local suppliers and household spending of its workforce. The updated estimates also indicate substantial growth since the previous statewide assessment, highlighting the continued importance of the green industry to Colorado’s economy. As Colorado continues to address challenges related to population growth, water conservation, and changing consumer preferences, the green industry will play an increasingly important role in supporting sustainable landscapes and resilient communities. It should be noted that recent state initiatives promoting water-efficient landscapes and drought-tolerant plant materials are likely to influence future demand for nursery products, irrigation systems, landscape design, and related services, but in the past, the industry was nimble and saw such changes as opportunities to adapt their products and services and continue to grow.
References
Bauman, A., & Thilmany, D. (2017). The economic contribution of Colorado’s green industry. Colorado State University. https://www.alcc.com/assets/docs/reports_and_studies/2016%20economic%20contribution%20of%20colorados%20green%20industry_updated.pdf
Hall, C. R., Hodges, A. W., Khachatryan, H., & Palma, M. A. (2020). Economic contributions of the green industry in the United States in 2018. Journal of Environmental Horticulture, 38(3), 73–79.
U.S. Bureau of Labor Statistics. (2026). Quarterly Census of Employment and Wages (QCEW), annual averages, 2015–2024 [Data set]. U.S. Department of Labor. https://www.bls.gov/cew/