Give Your Greenhouse Business a Health Check: Five Benchmarks for Growers

How healthy is your greenhouse business? That was the central question Scott Hackworth, CPA, President of research firm Industry Insights, posed during his “Data-Driven Insights” session at Cultivate’26. Backed by data the firm conducted for AmericanHort’s annual Financial Benchmarking Survey, Hackworth touted the importance of benchmarking to identify weaknesses and make better decisions before small issues become major problems.

Hackworth encouraged growers to focus on five core areas:

1. Sales growth
2. Profitability
3. Assets
4. Debt
5. People

Viewed together, he said, those measures function as a practical health check for a business, providing a quick picture of where an operation is performing well and where it may need attention.

Sales Growth: Is Your Business Becoming More Productive?

Among the 102 companies that participated in the survey (including greenhouse growers, nursery growers, and small percentages of landscape companies, garden retail centers, and others), median sales growth for 2024 was 2.3%, with early responses suggesting 2025 was tracking closer to 3%. Hackworth also highlighted sales per employee as one of the most useful productivity measures. The median company generated roughly $180,000 in sales per employee, while greenhouse operations averaged about $210,000. Tracking that figure over time can help determine whether growth is coming from greater productivity or simply from adding labor.

Profitability: How Much of Every Sales Dollar Do You Keep?

Revenue tells only part of the story. Survey participants reported a median gross profit margin of 36%, leaving about $36 from every $100 in sales to cover overhead and generate earnings. Median net profit was 6% — better than pre-pandemic levels, but still thin enough that operational mistakes can quickly erode profitability. The survey’s highest performing companies consistently exceeded those median results.

Assets and Debt: Is Your Balance Sheet Working for You?

Hackworth described return on assets as one of the most overlooked financial ratios because it measures how efficiently a business converts its investment in facilities, equipment, and other assets into profit. The median business generated about a 7% return on assets, while top-performing companies earned substantially more by generating greater revenue from the assets they already owned.

The survey also found that participating businesses generally maintained healthy balance sheets, with a median current ratio of 3.9 and relatively conservative debt levels. That financial cushion can help growers weather economic uncertainty while maintaining the flexibility to invest when opportunities arise.

People: Your Biggest Expense — and Biggest Opportunity

Labor remains the industry’s largest operating expense, accounting for roughly 34% of revenue for the typical business. The highest performing companies devoted a smaller share of revenue — about 29% — to payroll while also keeping a larger percentage of employees focused on production rather than administrative functions.

“Managing the people tends to be the differentiator,” Hackworth said, noting that many businesses hire too quickly during strong markets and are slow to adjust when conditions change.

Put the Numbers to Work

Hackworth’s message was that every greenhouse business should understand where their own numbers differ from industry averages, ask why, and use those insights to improve operations over time.

Growers who want to benchmark their own businesses can participate in AmericanHort’s annual Financial Benchmarking Survey. Participants receive a comprehensive industry benchmarking report, and eligible AmericanHort Premium members also receive a confidential Company Comparison Report that measures their performance against similar businesses. The benchmarking program tracks key financial metrics — including margins, labor, inventory, and profitability — to help businesses identify strengths, uncover opportunities, and make more informed strategic decisions. For more information, go to Financial Benchmark Survey: Key Insights and Data – AmericanHort.