Why Growers Are Currently Cautious When it Comes to Capital Investments
Greenhouse manufacturers and component suppliers are navigating many of the same pressures as growers. From tighter margins and energy costs to shifting expectations around automation and integration, the forces shaping plant production are shipping the structures and systems behind it.
To better understand where the market is headed, Greenhouse Grower surveyed members of the National Greenhouse Manufacturers Association (NGMA), whose products range from greenhouse structures and coverings to controls and lighting systems. Here’s Part 3, which digs deeper into whether growers are being hesitant or aggressive in capital investments. You can find Part 2, covering grower pain points, here, and Part 1, covering key challenges and opportunities, here.
Are growers hesitant or aggressive in capital investments right now?
“They are mostly hesitant. Sales cycles now require more in-depth analysis because growers need to justify every cent. They are moving away from quick upgrades toward a model that requires a rock-solid ROI. We are responding with detailed energy simulations and data to prove exactly how the technology pays for itself.” — Kassim Tremblay, Sollum Technologies
“Hesitant – there is a lack of funding available.” — Justin Jacobs, Argus Controls Ltd.
“Not on the educational side.” – Joshua Sucher, Crystal Structures
“For commercial greenhouse projects, growers are generally hesitant with capital investments right now due to high input costs such as labor, fuel, and fertilizer, as well as concerns about the economy and consumer spending on discretionary items like flowers and gardening. Institutional projects are somewhat different because funding is typically secured in advance, so those projects are less influenced by short-term economic conditions and have remained relatively steady.” — Patricia Dean, Wadsworth Control Systems
“50/50. I seem to get numerous sizes of quotes; some materialize, and some do not. I rarely get the real reason why not when following up on quotes.” — John Juhler, Vostermans Ventilation Inc.
“Hesitant is putting it mildly!” – Earl Craker, Green-Tek, Inc.
“We’re seeing a mixed approach right now. Some growers are being more cautious due to ongoing cost pressures and market uncertainty, especially around energy, labor, and input costs. However, at the same time, many are still making strategic, long-term investments — particularly in areas that improve efficiency, yield, and sustainability. So while there may be some hesitation in the short term, there’s still a clear willingness to invest when the return is justified and the solution adds measurable value.” — Peter Luca Ardizzone, Macrolux USA
“They are still hesitant, with some light at the end of the tunnel.” — Ian Morrell, Climate Control Systems