The irrigation industry has a significant impact on the economy in the United States with its indirect and induced impacts, totaling nearly $23.3 billion per year, according to a 2020 study. Smart irrigation will continue to drive growth in the sector, including creating more jobs as the need for thoughtful management of water resources becomes more imperative due to climate change, experts say.
What smart irrigation brings to the economic landscape
According to Nathan Bowen, Irrigation Association advocacy and public affairs vice president, the impact the industry has on the economy goes beyond what is seen on paper.
“When we examine the macroeconomic impact, it’s crucial to remember that these figures represent not just dollars and cents, but also livelihoods and the well-being of individuals, families and communities,” says Bowen. “The irrigation industry presents a host of dynamic careers that continue to evolve as irrigation companies innovate to meet the needs of end users.”
In 2021, the Irrigation Association, in partnership with the Irrigation Innovation Consortium, commissioned a survey that estimates the current size of the irrigation industry in terms of annual sales of equipment and related services.
That estimate — $23.3 billion per year in irrigation’s economic impact — is a sizeable financial driver, says Bowen.
“The irrigation industry’s significant annual impact of $23.3 billion on the economy reflects its pivotal role in driving growth, fostering job creation and supporting the economic impact of related sectors,” he says. “From agriculture to landscaping or water management to technology innovation, irrigation serves as a vital catalyst for economic prosperity and sustainable development.”
The report notes that the industry had an estimated 70,000 industry-wide jobs resulting in a total impact of over 167,000 jobs at the time the report was published.
According to the 2023 Green Industry Outlook, hiring continues to be a challenge for contractors in the green industry, with over 69% of respondents acknowledging their challenges with labor.
Despite challenges with labor throughout the sector, 2022 Watch Us Grow winner, Jason Walker CIC and owner of Pate Landscape Company in Montgomery, Alabama, told I&L in March that business remained strong.
“2023 has been great for us,” said Walker. “We had a strong 2022, and that momentum has carried forward to this year. The commercial market is still very strong in our area.”
The economic impact survey reports several notable findings in terms of the size of the industry in addition to the impact irrigation has on the economy indirectly. It points out three areas that the “irrigation industry serves functions critically important to the U.S. economy – irrigated crops, landscaping and horticulture.”
One of those sectors that has some direct and indirect irrigation ties is manufacturing, which has had some positive economic indicators this season.
“We have as a sector just shy of 13 million workers in the economy,” says Chad Moutray, chief economist for the National Association of Manufacturers, Washington, D.C. “The last time we were able to say 13 million was 2008. We’ve seen a lot of growth, and in fact, we had more job growth in the last two years than we’ve seen since in the two years between 1983-1984. So that’s a nice positive that’s out there.”
When it comes to the impact of smart irrigation and how it plays directly into irrigation’s economic impact, though, Bowen says climate change has a lot to do with it.
“As a changing climate and more severe and unpredictable droughts become more frequent, the importance of smart irrigation technologies and practices which can lead to water conservation will only increase.”
Bowen says with increased adoption comes increased demand, necessitating increased supply.
“This will continue to drive innovation and underscores the tremendous workforce and career opportunities as the industry responds to these challenges and strives to meet the needs of everyone from crop producers to housing developers and consumers.”
