Wholesale Nurseries Struggling

A recent Associated Press story highlighted the struggles of wholesale nurseries across the country with the economic downturn. Case in point: Oregon’s nursery industry has “plummeted” into a historic slump after reaching a record high of almost $1 billion in sales three years ago.

The nurseries in Oregon are laying off employees, cutting costs and foregoing new buildings and equipment, according to the story, which quotes David Niklas of Clackamas Greenhouses. He had to file bankruptcy after losing almost half his sales when his primary retailer was bought out.

“The family has poured money into it as we tried to restructure it and make new markets,” he says. “Commercial lenders aren’t talking to me because I’m coming out of bankruptcy.

“They aren’t even talking to GM, so why would they talk to a little nursery?”

The story cites factors across the country like a halt to housing construction, high transportation costs and lending woes as reasons for the difficulties many nurseries are facing in this economy.

Click here to read the full story.

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6 comments on “Wholesale Nurseries Struggling

  1. Every day we call on farmers, nurseries, golf courses and lawn service companies showing them university studies and actual field results where our technology allows them to reduce their cost of inputs, increase yields, reduce time to harvest, reduce fertilizer, chemical and irrigation usage. Yet the majority will not change their operating proceedures. The smart ones will survive.

  2. The most efficient operation in existence will not survive in any economy if there are not adequate sales and income to justify its existence. Too many of us are concerned with increasing production and expecting sales to “just happen”. I look forward to a general populace who hopefully will soon again appreciate the inner joy and personal satisfaction that our industry, and those that have invested their livelihoods, provides to them.

  3. Social Networking is a new avenue that growers should embrace to allow their consumers direct feedback to what they like, dislike and what they would like to buy in the future instead of just letting the retailers dictate what should be sold or only buy what they think will sell. Retailers as well as Manufactures are starting to see the value of social networking to communicate directly with their consumers offering coupons and other incentives to drive traffic stores to finalize sales. It’s an inexpensive method of direct marketing. You no longer bulk Mail marketing or an expensive TV commercial for branding to reach thousands of people. Creating consumer demand for sales is where the grower industry needs to make it’s focus whether or not they are branded. How do you suggest this be done?

  4. Every day we call on farmers, nurseries, golf courses and lawn service companies showing them university studies and actual field results where our technology allows them to reduce their cost of inputs, increase yields, reduce time to harvest, reduce fertilizer, chemical and irrigation usage. Yet the majority will not change their operating proceedures. The smart ones will survive.

  5. The most efficient operation in existence will not survive in any economy if there are not adequate sales and income to justify its existence. Too many of us are concerned with increasing production and expecting sales to “just happen”. I look forward to a general populace who hopefully will soon again appreciate the inner joy and personal satisfaction that our industry, and those that have invested their livelihoods, provides to them.

  6. Social Networking is a new avenue that growers should embrace to allow their consumers direct feedback to what they like, dislike and what they would like to buy in the future instead of just letting the retailers dictate what should be sold or only buy what they think will sell. Retailers as well as Manufactures are starting to see the value of social networking to communicate directly with their consumers offering coupons and other incentives to drive traffic stores to finalize sales. It’s an inexpensive method of direct marketing. You no longer bulk Mail marketing or an expensive TV commercial for branding to reach thousands of people. Creating consumer demand for sales is where the grower industry needs to make it’s focus whether or not they are branded. How do you suggest this be done?

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