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The State of the Industry

I’ve been asked twice recently of my views on the state of the industry.  I’m not too sure how to classify this hospital pass, but here are some personal, generalised and unsubstantiated thoughts: 

  • Plants are still being ‘consumed’ in numbers similar to the past.  Perhaps greater numbers in light of growth revegetation markets.
  • We’re passionate about what we do, but sometimes passion is not enough!
  • Varieties, grades and fashionable plant categories change rapidly.
  • The distribution channels have changed markedly with the influence of box stores, landscapers and revegetation projects.
  • Big, smart and professional players will get bigger, smarter and more professional.
  • That’ll leave gaps in the market for niche growers and retailers.
  • We’re still likely over-supplied at both grower and retail level.
  • Low and eroding margins threaten viability; restrict returns and limit capital investment.
  • We’re an aging industry, and desperately need young people coming in.
  • Sustainability, green and healthy lifestyle issues present major opportunities.
  • Bio-security and mitigating adverse environmental effects of doing business will grow as issues.
  • We lack sophistication – automation, technology, industry statistics, management skills … remember I’m generalising!
  • Things are different now compared to 10 years ago, and in 10 years time they will be different again!

So where does this leave us?  Plenty of room for development and refinement, but with some very obvious challenges and hard yards ahead.

Your thoughts? Contact John Liddle, NGIA, ph 04 918 3513, john@ngia.co.nz