Small victories

Kelli Rodda

As you make tweaks to your business plan and prepare for changes in 2015, be sure to celebrate the small victories of this year. What were the wins? How did you get them? How can you repeat them? How can you improve upon them?

Don’t lock yourself in your office pondering these questions only to yourself. Ask all of your employees what they see as a win. Remember, not every move will land you on Boardwalk or Park Place. But don’t let the fear of losing keep you from being an active participant in the game of business or life.

This month’s issue focuses on our annual State of the Industry Report. For the last four years, we’ve surveyed the industry to see how sales and profits fared for the year, as well as what the market anticipates for the following year. It’s provided an interesting, 35,000-foot view of the market.

Our first report in 2011 was a bit dismal. Only 35 percent said profits had increased from the previous year, and 44 percent said they weren’t confident “at all” that the market for nursery products would grow in 2012.

By the following year, sales were ticking up but profits were basically flat. However, confidence in the market rose a bit that year.

In 2013, confidence soared, which was reflected in sales and profit gains that year. During the last three years of surveys, growers said they planned to produce more perennials and flowering shrubs, while natives and edibles fought for third place with natives winning out in 2011 and 2013.

This year, as the industry continues to contract, growers have been making production and management changes to become more efficient. As a result, sales and profits are up for the majority of respondents, and confidence in the market is at an all-time high since 2011. The results that pleased me the most from this year’s survey: almost 70 percent of respondents raised prices this year. That is a bold but necessary move.

It took a recession and a severe kick in the pants for the strong players in the market to make those necessary changes. It hurt, but the market is healing. However, the nursery market is not finished contracting. More growers will shutter doors throughout 2015. But the strong will grow stronger. I’m excited to take this journey with you, and find out how profitable you become in 2015. I suspect next year’s report will be incrementally better. Be thankful for your small victories.

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Bringing market leaders together
In October, we hosted the inaugural Nursery Grower Business Coalition in Fort Worth, Texas. It consisted of 28 leaders of the nursery industry from across North America. All types of business size and specialties were represented, but they all had one thing in common – they’re innovators. We broke out into small groups for roundtable discussions, where attendees had candid discussions about topics that are critical to the industry, such as labor, marketing, automation and water. We’ll present some of the insights from attendees, as well as action points and solutions in a spring issue of Nursery Management. It was an informative and enlightening event. I appreciate everyone’s willingness to participate, and I look forward to the next one!