Power over plants

The number of independent garden centers growing their own plant material increased significantly in the past year. After 2020's introduction of 18 million new gardeners — and enduring plant shortages — the trend isn't surprising. But pandemic pressures don't tell the whole story. The last two years have triggered new trends and accelerated trends already underway in the industry. We spoke with three grower-retailers about their expanding growing plans.

SCHULTZ GARDEN CENTER

Glenville, New York

Matthew Schultz says the increased profits from 2020 and 2021 could fund a new greenhouse expansion in the future at Schultz Garden Center.

For Schultz Garden Center, the tradition of growing plants dates back to 1892. Vegetables were the starting point, but ornamentals followed early on. "We gradually just kept transitioning — less and less farming and more and more greenhouses and ornamental production," says Matthew Schultz, manager.

Today the grower-retailer has 80,000 square feet of greenhouse space and grows 99% of the plants they sell. All plants go to retail customers. "We never have and don't currently have any desire to wholesale," Schultz says.

A few years before the pandemic, the IGC began increasing the diversity of its offerings along with volume. The focus expanded from industry standards to embrace more houseplants and other trending items. Then COVID hit.

"Everything under the sun has been selling. With that, we've been able to continue expanding and finding new areas," Schultz says. They now grow nearly 1,000 plant varieties. As a grower, his primary challenge has been finding wholesalers with availability when Schultz stock sells out.

The IGC's motivation for growing remains unchanged. "The big reason we've always grown our own stuff is just being able to control the quality. We're very big on providing the best quality plants for our customers," he says. "We feel that the best way to do that is to grow our own stuff right here on site."

Schultz believes starting plants from seed or plugs has cost advantages as well. "We have enough experience from the years of doing this that we've been able to really control our costs and keep it down," Schultz says. The family-owned and -operated IGC has a staff of five — all family members — and no seasonal help.

But growing your own has risks. "We are our own supplier. So, if anything were to happen to a greenhouse or whatever, we're in a bit of trouble," Schultz says. "We have not had that happen yet, thankfully, but there is always that risk."

The family doesn't have immediate expansion plans, but they're considering a new greenhouse. The IGC's increased sales for 2020 and 2021 — between 30% and 40% over previous years — would fund expansion and other potential projects. Schultz expects 2022 sales to stabilize but to hit a level higher than 2019 still.

As the youngest family member, fresh out of college with an MBA, Schultz has his eye on growing more than plants. "We're definitely trying to work toward getting the next generation [of consumers] enthusiastic about gardening and doing stuff outside to help keep building the industry and building our base," he says.

ARCH GREENHOUSES

Edmonton, Alberta

Canadian Nonprofit Organization Arch Enterprises launched Arch Greenhouses in 1979 as a therapy program for developmentally disabled adults. Over the years, the facility's staffing and production evolved, but the self-sufficient greenhouse and its customers still help support the nonprofit's community of clients.

Since the beginning, growing has been integral to Arch Greenhouses' mission and success. The landlocked facility's 35,000-square-foot greenhouse nearly fills its 1-acre city lot. With physical expansion constrained, growth focuses on improving efficiency and productivity within existing space, from shipping and receiving to storage and greenhouse production.

Greenhouse manager and head grower Aaron Webb estimates that 85% of Arch's plant material is grown on site. Spring production focuses on annuals, perennials, succulents, vegetables and herbs for the IGC's own retail sales. Fall mum and poinsettia crops are primarily wholesaled. That's remained constant through the pandemic.

Webb continues to look for ways to increase plant diversity and volume. Coleus and begonias are Arch specialties. He plans to increase in-house production of tropical plants, a trend strengthened by pandemic-driven interest. "Houseplants have been a really great season extender for us," he adds.

When the pandemic began, one of Arch's suppliers offered a discount if the IGC would maintain its order — while shutdown talks led others to cancel. Webb agreed, and the gamble paid off: Arch had plants when others did not. But Webb isn't relying on suppliers for inventory control.

"Sourcing isn't as stable as it has been in previous years. So, even though you might order plugs or seed, you have to accept that the new reality is that you may not get what you ordered," he says. "It's kind of forcing us to get creative and get open to doing new stuff."

While the greenhouse business is autonomous financially, large-ticket facility improvements rely on donations, government grants or outside funding. Webb's current wish list for the aging infrastructure is a new environmental system to replace their outdated one. But part of his planning for improved production and expansion rests on people, not equipment or plants.

He worries about many people in the horticulture industry approaching retirement age — and few younger people coming up to take their place. "We need to attract more younger people to the industry," he says. "How do you create that work stability? How do you provide guaranteed income with an attractive compensation package? It's a big challenge to retain people."

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Source: Greenhouse Management