Greenhouse sector a bright spot in otherwise weak economic picture

By JOHN SCHMITZ
For the Capital Press

America's foundering economy, especially the housing and landscaping sectors, is doing no favors for nurseries that specialize in container and field stock.

The greenhouse sector, on the other hand, is doing well.

"Obviously, the economy is the major issue for our industry," said John Aguirre, executive director of the Oregon Association of Nurseries.

Aguirre, who's been with OAN for 10 years, said this is by far the worst shape he's seen the industry in.

"It's quite common for people to report that they're anywhere from 15 to 30 percent down (compared to a year ago)," Aguirre said. He's talked to a few others who are worse off than that. "Without question, people are retrenching to save costs, deferring expenses and making sure their balance sheets are as healthy as they possibly can to continue lines of credit or secure financing from banks."

The goal for many of those in the industry these days, Aguirre said, is to hang on and be in a good position with product and strong finances when the economy does rebound.

While growers supplying the landscape sector with containerized and field-grown stock are suffering the most, the greenhouse sector is sailing right along, Aguirre said.

"Those who are growing bedding plants for garden centers have had pretty strong sales," Aguirre said. "(People) are now looking to add color to their yards with bedding plants. There's also been demand for perennials and certainly food-bearing (stock)."

So far, in the wake of the housing downturn and feeble markets, a number of nurseries have folded their tents or reorganized, Aguirre said. "The industry would not be surprised if other nurseries decide to exit the industry or are forced to because of financial circumstances."

Container and field stock nurseryman Dave Van Essen, owner of Van Essen Nursery in Lebanon, Ore., said his business to independent garden centers, landscape supply yards and re-wholesalers throughout the country is down around 15 percent.

"It's been a challenge," Van Essen said. "People who are purchasing material are very cautious, managing inventories very closely, looking at on-time shipments, bringing in only what they need for particular jobs.

"Garden centers we sell to, anything with color or that's unusual, those kinds of things are selling, edibles (fruit and vegetable plants) are doing real good," Van Essen said. "Landscape items are not going out as fast."

Van Essen, who founded the nursery 33 years ago, said he's never seen things this bad. The downturn for him started in 2008, and he doesn't see things beginning to pick up until 2010.

Greenhouse grower Cherie Siegmund, co-owner of Cedarglen Floral Co. in Damascus, Ore., said that her sales are up around 22 percent.

"Our business has been very good," said Siegmund, who sells annuals, perennials and vegetable starts mainly to garden centers in Oregon and Seattle.

"I think a lot of it has to do with vegetable gardening and first-time gardeners. People want to stay home and fix up their place."

To help nurserymen through these tough times, OAN is beefing up its seminar program to include an increased emphasis on marketing, Aguirre said.

The phenomenal growth of Oregon's nursery and greenhouse sector over the past several years came to a screeching halt in 2008, just when the nursery and greenhouse industry was flirting with the $1 billion sales milestone.

Sales figures for 2008, which will be released soon, are expected to be significantly lower than the $988 million record set in 2007.

Freelance writer John Schmitz is based in Salem, Ore. E-mail: johns6869@msn.com.