Supply chain shortages
The pandemic has had a global impact on nearly every industry in some way over the past year. While its impact on some industries has been somewhat predictable, it has caused unexpected and, at times, surprising effects in many sectors of the economy. We became aware of future plant shortage issues last fall, and we tried to prepare by anticipating future production needs and getting our liner orders in early. But we weren’t as prepared for some of the supply chain shortages we are seeing so far this spring; we have encountered backlogs in everything from hand tools to plastic pots to rain gear for our crews, not to mention extremely volatile freight costs.
Rising resin costs and increased demand are having a major effect on costs and availability of plastic-based products like overwintering poly and plastic pots. In the past, we may have been able to place an order for black 5-gallon pots or a pallet of propagation trays two weeks before we needed them, but this year we are placing orders for these items months in advance, and we have already seen a 10% price increase on our cost for plastic pots. These trends obviously add to the challenges of this season, but will also have the positive effect of forcing us to better anticipate our future needs.
It has also been unexpectedly difficult to find enough basic tools and clothing to supply our crews for spring. We have found ourselves waiting weeks or months for hoes, weeding tools, pruners, and rain gear. If you work in the nursery or landscape industry, you know that when you find a specific brand or style of pruners or shears that you like, it can be difficult to settle for a substitute. But this year, we are finding out that we need to take whatever we can find. It seems that these supply issues are caused by a strain on the manufacturing industry, which is facing increased demand while still dealing with bottlenecks and labor shortages caused by the pandemic.
Labor shortages are a concern every year, but this year is turning out to be especially challenging. We are finding ourselves in an extremely competitive labor market at the busiest time of the season. This not only affects us, but also impacts our vendors, who are trying to get our liner orders pulled and shipped on time and find drivers to deliver soil and supplies.
We face unpredictable obstacles every season, and this year is no exception. What we do know is that these challenges will force us to find new ways to increase our efficiency and find long-term solutions to problems like labor shortages that will likely be with us to stay. We made it through all that 2020 had in store for us, and learned some valuable lessons along the way, so we are confident that we will use the challenges we face in 2021 to better prepare for the future.
