Money Doesn’t Grow on Trees

Or does it?

TWIST: It does.

At least according to a report measuring the outdoor industry’s impact on the U.S. economy, released by the Outdoor Industry Association (OIA).

And the numbers are more than promising. They’re downright eye-opening.

Turns out, outdoor recreation—which includes everyone and everything from your local bike shop owner, to a ranger at Yosemite, to a family vacationing at the Grand Canyon—has an economic reach that is “as vast and powerful as the Great Outdoors.”

Here’s why:

$646 billion annual consumer spending

Money is green, after all.

Out of roughly $10 trillion spent annually by American consumers, almost a tenth is fueled by outdoor activies like hiking,camping, biking, canoeing, kayaking, rock climbing, fishing, hunting, skiing, caving…

The list goes on. And that’s the point.

That’s dollars spent on gear, equipment, and travel expenses, and this number explodes when multipliers are considered below. But for now, the bottom line is that outdoor activities draw our wallets out of our pockets in more and more ways each year.

New kinds of outdoor consumers

Over the last decade especially, both the types of people who pursue outdoor recreation and the types of gear they have to do it have diversified. More people are getting outside, and they’re getting more creative and more daring with how they adventure.

Moreover, big box outdoor and sport retailers like Dick’s and REI are multiplying, as they continue to open new locations all across the country (for instance,one of each just popped up here in Cincinnati, within the last year). New online alternatives like The Clymb are also taking root, offering competitive prices and increasing accessibility to new enthusiasts as a result.

In short, this is a market that is evolving with new developments in technology and expanding as more consumers return to more leisure-oriented spending.

Jobs grow best outdoors

This is a ranger station. There are thousands of them all over the country, and people work in all of them. Photo: Scott Ash

The backbone of any healthy economy is a working consumer class, and if we want to have a serious discussion about job creation, we need to look out the window.

Outdoor recreation provides the soil for 6.1 million jobs in the U.S., according to the Bureau of Labor Statistics. This does not count jobs created in other industries fueled by outdoor pursuits, such as tourism, travel, manufacturing, etc.

Getting Outside Fuels Local Economies

Economies flourish around green spaces. New York City reported $395 million in economic activity as a result of park activity. Oh, and 4,000 jobs, too. Photo: Matthew Knott

Local economies earn dividends on investment in green spaces. The Central Park Conservancy, for example, reported in a 2009 study that nearly $395 million in economic activity (and almost 4,000 jobs) arose through enterprises, events, and activities connected to the park.

And on the housing front, more and more Americans are deciding where to live—and therefore invest their money—based on the availability of nearby outdoor resources. One University of Cincinnati study found that area homeowners were willing to pay up to $9000 more for a home within 1,000 feet of a bike path. And that’s in the Ohio River valley, where the climate, terrain, and topography makes a passion for cycling truly a labor of love.

Have I mentioned the tax revenue?

All $80 billion of it...

Annually.

Ripples aren’t just on ponds.

via Outdoor Industry Association

This expanding reach of the outdoor industry results in a widening ripple effect. Because of the increasing frequency and variety of outdoor pursuits, the $646 billion spent every year fuel other sectors of the American economy. Yes, in a direct sense, gear must be developed and manufactured, and travelers need transportation and accommodations. But also consider how outdoor activity cultivates demand for real estate, insurance, financing, and information/data services — not to mention the outdoor retail sector’s recent growth, as well.

When considering this ripple effect, the numbers become staggering: