Grower-to-Grower Advice on How and Why to Invest in Greenhouse Automation

By Brian D. Sparks|July 25, 2023

No matter the scale of your operation, automation can be a worthwhile investment for many reasons. But what type of automation is best for your company?

This question was among others addressed during a panel discussion at Cultivate’23, where growers from three diverse operations discussed the different variations of automation they have chosen to implement in order to drive growth and increase employee satisfaction. Moderated by Rob Lando of AdeptAg (and new Chair of AmericanHort’s Board of Directors), the panel included Brian Groves of Panoramic Farms in North Carolina, Mike Miller of Decker’s Nursery in Ohio, and Bud Summers of Everde Growers, which has multiple locations across the U.S.

“If you’re not a low-cost producer in today’s growing environment, you’re not going to be profitable,” said Lando in kicking off the discussion. “Labor costs in our industry have increased 25% since 2019, and while automation isn’t the answer, it should be part of the solution.”

From there, the discussion veered in several directions, from how each company decided when was the right time to automate, to how much automation is necessary. Here are a few insights from the growers on the panel, who represented a range of company size and crops grown.

“We use our northern California location to trial any new piece of equipment we’re looking at, then determine how it might fit at any of our locations,” Summers said. “Some of it may be plug-and-play, but because we’re growing on many different sites, we need lots of variety.”
“We started automating in 2009 and 2010 because we wanted to be a different company coming out of the recession, and automation was our path,” Miller said. “Our goal is to eventually have our employees never have to touch a pot.”
When asked when it is appropriate to look for automation solutions, each grower had a unique response. “If you want to be in business 10 years from now, you need to take that step,” Miller said. “You don’t need to do it all at once, but you need to start somewhere because I can guarantee your competitors are doing it.”
At Everde Growers, Summers said labor availability and cost were a deciding factor, as well as plant quality. “You need to know your product quality expectations,” he said. “What are you trying to gain with automation?”
Groves noted that the investment in automation certainly costs money, but it can pay off in many ways, including attracting the next generation of ownership.
Capturing and tracking your production costs is critical both before and after you invest in automation, according to Groves. “You need to know your current labor costs so you can set realistic expectations on how much you can save,” he said. In addition, Miller noted that tracking your costs can help you fully understand how your team is performing.
Summers noted a number of factors that need to be addressed when measuring your costs, from safety to preventative maintenance. “You need to define your processes from input to output, and take repeated measurements over weeks and months,” he said. “Also, do your raw materials or containers need to change if you’re adding new equipment?”
Return on investment was a big part of the discussion, with Lando suggesting the industry needs to consider the European mindset of allowing a greater ROI window, as much as eight years. “It’s a more realistic time frame, but you also have to be right,” he said. While most of the panelists used a shorter window, Miller noted the return you’re aiming for doesn’t always have to be financial. “You should also consider the environmental impact or the ease of implementation,” he said.
There may be low-hanging fruit you can identify to get the automation process started, Miller said. “Look at the area of your business with the biggest labor consumption and whether you can mechanize it,” he said. “We started with pot handling and plant trimming, and evolved from there.”
Summers noted that early wins, even if they’re small, can be the most rewarding. “Success begets success, and if you get an early win, share those savings with your employees to incentivize them,” he said. “
Making a sizable investment in a piece of equipment you’re only going to use for a short time each year can be daunting, which is why Groves says when Panoramic Farms uses its potting machine, for example, it goes all in. “We want to show our team we’re getting maximum use of our equipment at our busiest time.”
What advice did the panelists have, and what would they do different? Groves emphasized the importance of communicating your goals and expectations to your team as clearly as possible, while Miller said you need to look at the big picture and make sure whatever technology you’re adding fits with your goals as a company over the next few years.
Summers offered some great closing thoughts: “Not everyone likes change, so you may need to have some hard conversations with your team,” he said. “Sometimes it’s all about attitude, so be willing to move people around if it becomes a roadblock.”