by Jim Rice, on August 13, 2021
How was your spring?
According to most industry sources this spring marketing season was as chaotic and strong as 2020 but with a different trajectory. At Reusability, our EZRack unit saw rental and sale nursery rack demand start off early and stay strong through May. Many retailers reported a record-breaking Mother’s Day with significant plant shortages. Compared to last year, however, we have seen a more dramatic decline after Father’s Day. We anticipate normal demand through the summer and fall.
Of course, the Valentine’s Week deep freeze that hit a wide swath through the Central US produced turmoil and heartache that changed everything. Unseasonably cold weather lasted for over a week and was accompanied by widespread power outages that added insult to injury. At least 25 cities in states from Colorado to Wisconsin to Texas broke low temperature records on February 15.
What this meant to Reusability and our EZRack rental customers is that plant material from all over the country quickly flowed into Texas and the Southern Plains states to replace damaged plants. We quickly brought on new recovery teams to pick up our racks at retail. But the damage to our well-thought-out rack management plan was done. We’re finally catching up.
The weather was not the only challenge confronting our industry. Transportation cost and availability made every shipment an adventure in uncertainty. Labor was difficult to find and more expensive. Growing supplies presented their own price and availability pressures. Dimension lumber prices skyrocketed 400% from one year earlier before starting their correction in early May. Current prices are still in flux, though at the time of this writing are still nearly double July 2021 prices.
The new customers that found us last year seem to have come back this year. However, one of the reasons we’ve seen demand flatten this summer is widely attributed to lockdowns being removed. Does this mean the boom is over? Only time will tell.
In an effort to broaden our reach from the extreme seasonality of green goods we are aggressively courting fall and winter producers. One of the initiatives we have launched this summer is to supply rental and sale racks to producers of holiday wreaths, tabletop pines, and rosemary and other seasonal items. Interest has been high in using alternatives to disposable wooden shipping crates and racks. Cost, availability, and disposal costs of wood have encouraged a whole new segment to look at the EZRack rental program.
Nursery or grower interested in a better way to transport your goods? Contact us to learn more about our EZRack solution!
