Three Horticulture Suppliers Sound Off on Supply Chain Concerns
October 30, 2021 
As part of Greenhouse Grower’s continuing coverages of horticulture supply chain challenges, we recently reported on advice from vendors that was compiled from Greenhouse Grower’s 2021 State of the Industry survey.
We also reached out directly to some of the industry’s leading product suppliers to learn more about they are being affected by supply chain issues, what they are doing in response, and what they are telling their grower clients. Here’s what some of them had to say.
Koolfog
Bryan Roe, President of Koolfog, says the company has had to work through supply chain issues all year in a wide range of categories.
“Koolfog has well over 3,000 SKUs that we work from: electronics, fittings, valves, fasteners, hoses, tubing, etc.,” Roe says. “Issues have ranged from longer than normal lead times to unexpected out-of-stock issues, as well as items stuck in transit with no visibility.”
According to Roe, Koolfog began taking defensive measures at the end of 2020 to prepare for possible disruptions and decided to focus in on the major critical components.
“We had no idea it was going to run the gamut,” Roe says. “There were items that we had never imagined would develop into issues and we had to scramble to identify and bring in equivalents. There are times when there is no equivalent possible as the component is so integral to a particular product line. In those cases, we had the uncomfortable position of informing our clients that our lead times were extended as a result.”
HOVE International
Edwin Hoenderdos, CEO and Principal Consultant at HOVE International, says the company currently has long wait times for its materials from manufacturers. Steel and aluminum is especially in short supply.
There have also been pricing issues.
“Since our contracts span many months, the prices of raw materials change over the contract running time,” Hoenderdos says. “The price at contract signing can no longer be the same when the materials arrive on site six to eight months later. Also, since our factories are in Europe, predicting the freight costs eight months from now is not doable any longer.”
The good news is the Hoendersos says he foresees some kind of normalcy in six to eight months.
“In the meantime, growers can lock in purchases now so they are in the production line and do not end up at the end of the line,” he says. “Some projects are not delivered until April/May next year, so foresight is very important, even if that means a much higher risk level for growers.”
Adapt8
At the beginning of 2021, Adapt8, manufacturer of the greenhouse covering product Solexx, announced that it was bringing the manufacturing of louvers used in Adapt8 greenhouse kits, sheds, and other outbuildings back to the U.S. By producing louvers in-house, the company said it would be able to offer custom sizes and colors as well as quick ship times.
Since that announcement came out, Greenhouse Grower Senior Editor Brian Sparks caught up with Adapt8 CEO Michelle Moore to learn more about how the company continues to be proactive in its response to supply chain issues.
Brian Sparks: Since that announcement came out, how have things gone? How has it made a difference for both you and for your customers?
Michelle Moore: It has been very helpful, although certainly not without its challenges. One of the surprising things is that there’s typically a certain number of components that we’re more concerned about from a raw material standpoint. With all of this craziness, some of the shortages were in parts that we never even considered, let alone worried about. So we’ve certainly had to think a lot deeper in terms of what our materials are to make sure that we can deliver our products. Our lead times have been affected, but it’s been a huge advantage not to be beholden to international freight and cargo.
Sparks: As you talk to your grower customers, what are you telling them about how they can plan ahead?
Moore: I think the messaging is that this is not normal times, and the longer that you can plan ahead and have a better understanding of your project, the less it’s going to cost overall because you’re not going to get into work stoppages or other issues. The other key is having a lot more communication and a longer time frame for planning. If you are planning a project but are not communicating with your vendors, you lose a lot of control.
Sparks: One of the things we’ve been hearing a lot about is growers who have had a couple of very strong years and are in a good position to put money into expansions or upgrades, but are unable to move forward because of these supply issues. Are you seeing this with the growers that you work with”
Moore: The larger growers likely already have processes in place because they have more structures to plan around. I think the people that could get into trouble are the ones that haven’t had those processes and discussions and think they can just go out and grab some film and throw it over a greenhouse and they’re good. When something that you’ve always counted on as being there all of a sudden is no longer available, that puts you in a risky position.
Sparks: You work with a range of growers in a diversified growing market; are you seeing different needs and different levels of concern among those different crop segments?
Moore: One of the things that we’re really seeing is much more awareness of energy savings. Earlier this year, two-thirds of the country was in a deep freeze, and one energy event like that can easily consume an entire year’s budget of fuel. I think there is definitely a greater awareness of energy use. The same thing is happening with water; people are thinking about water usage more than they used to. Supply chain shortages can impact your metrics for water use, and it’s going to have a magnifying effective if you’re not thinking about it.
Sparks: Are there any other issues you’re seeing?
Moore: Following what’s been happening with plastics has been interesting. The base resin supply was a big issue, because the deep freeze that happened basically froze up resin plants, which have to heat up to extremely high temperatures. When those are offline, it’s not like you just turn on a switch and it works again. It’s an incredibly detailed lengthy process and so that in itself is kind of a big deal. On top of that, you have labor shortages and wood shortages for pallets.
It will be interesting to see how this all ends because it’s so complex, and it’s not like you can just track one product coming back on line and everything falls in its place. This is a long-haul issue, and looking at ways to reduce heat or water use can really help offset some of the other things that we’re seeing.
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