Planning for 2021 Plant and Supply Shortages

The pandemic had a big impact on the green industry in 2020 and its effects are continuing into 2021. Operations across North Carolina were deemed essential businesses that could remain open with safety protocols in place. Most businesses saw a spike in sales from homeowners wanting to improve their outdoor spaces and construction firms still needing commercial landscaping.

The uptick in demand for plants, and the supplies needed to produce them, has affected the 2021 supply chain. Green industry businesses have begun to see delays in the materials they need to sustain orders and production.

Delays in hard goods are already an issue according to Tony Evans of supply wholesaler Wyatt Quarles. The turnaround for supplies like nursery containers is usually 2-3 weeks but now orders are projected to arrive in three months because manufacturers are behind on production.

“In some cases, the products are just floating offshore on a container ship,” said Evans. “Someone on the ship has COVID-19 and needs to quarantine, so it’s delayed.”

Manufacturers who enacted safety protocols for their employees have had fewer people working which has reduced productivity and resulted in fewer goods.
The recent snowstorms in Texas and southeastern U.S. states put another variable into play. Availability of ornamental trees and nursery plants for landscape and retail markets will be in short supply because the state is a major producer supplying plants to areas outside of the region. Plants from Texas are also used as liners for potting up into larger containers, so not only is the current supply decreased, but the future availability of larger plant material will also be in question.

Evans has also seen delays because of freight carriers. Many truckers are taking more lucrative contracts to haul water and supplies to storm-ravaged areas rather than keeping their usual contracts to wholesalers.

Vendors used by Dana Massey of Plantworks Nursery have canceled or shorted supply orders. Some manufacturers offer substitutions, but not having the code for a new item in their system presents another problem.

“One of the hardest things for us is to know our customer's needs for large quantities of things, such as annual color, a season in advance to plan accordingly,” Massey said.

“The increased demand with lower supply will continue to cause these hardships until the supply can catch up,” she added.

Increasing Costs

With delays and decreasing supply come increased prices. Evans has seen plastics increase by 10% and greenhouse film up 28% from last year. He warns that buyers should factor in higher prices because costs could increase in the months between when an order is placed and when it is received. Most suppliers will not guarantee prices past 90 days, but the product won’t be available until after then, so the price could change by the time it is ready for delivery.

Jeff Allegood of Old Courthouse Nursery is seeing gaps in their plant production because of increased demand, even though they have kept production at the same level or higher than normal. 

“The ripple effects of getting behind on production will be felt throughout the rest of the year and beyond,” he said. “We are already taking orders from existing and new customers for as far out as Spring 2022.”

He added that factories can simply increase the number of workers or time worked to catch up after delays, but plants grow at their own speed and can only increase in size over time.

Leslie Herndon of Greenscape, Inc. says she doesn’t see this increased need stopping until at least 2022 based on her current projects. The available inventory of both current and newly constructed homes is about three months, so many people are buying whatever is available right now, so they need landscaping immediately.

“Commercial construction is not slowing down. We are booked out for months and months,” said Herndon. “We're worried about getting materials and what the price increase will be.”

Delays and shortages can be problematic for landscapers working on commercial projects developed by landscape architects. During the submittal process, landscapers can run into issues if a plant or material they submit to the architect is not available when it is approved several weeks later.

How to Prepare

Shortages, delays and higher prices are going to affect businesses across the industry and there is not one solution to the problem, but there are ways you can manage and plan ahead.

Order Early
With delays becoming increasingly longer, order what you need as early as you can. Although it is tough to predict what to grow next year and in what containers, you can secure better pricing and have a better chance of getting the materials you need.

Be Flexible
The plants or materials you want may not be readily available or may be delayed by months, so plan for substitutions and make your customers aware of the potential changes.

Anticipate Higher Costs
Increase demand for limited supplies means everyone will see an increase—from the supplier to the grower to the company that employs you or the consumer. Plan for cost increases that you may have to pass to your clients so that you are not underbidding yourself.

Increase Communication
Stay in touch with your plant and supply companies because their inventory may change week to week. Make your customers or clients aware of what is happening so they can also anticipate shortages, delays and higher prices.

Additional Resources

Five Ways to Avoid Plant Shortages
Tips from Proven Winners.

Sold Out: it's good news and bad news
Q&A from Hoffman Nursery on their availability.

A demand ‘renaissance’ for nurseries
Growers advise flexibility as they anticipate shortages, substitutions and sustained demand for 2021.

2021: The year of flexibility
Liner growers shed light on how the events of 2020 will affect this year’s sales and beyond.

Tactical economics
Green industry experts weigh in on the 2020 sales boom, predictions for the coming year and what it all means in terms of operational spending.

Agricultural Losses from Winter Storm Exceed $600 Million
Texas A&M AgriLife Extension Service experts say citrus, livestock and horticultural crops are among the hardest-hit sectors.

BrightView president sees opportunities ahead in 2021
Thomas Donnelly, president of BrightView Landscape Development shares lessons the company learned in 2020 and insights for 2021.