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How Supply Chain Issues Are Impacting The Landscape Industry?

How Supply Chain Issues Are Impacting The Landscape Industry?

Supply chain challenges have affected many businesses in the market today, and the landscape industry has not been left behind. Some of the major aspects of the landscape industry that have been impacted due to supply chain issues include raw material supplies as a result of trucks delays which in return leads to increased cost of items.

What Are the Major Causes of Supply Chain Issues?

There are some major factors in the industry today that have caused collaborative challenges in the supply chain in the landscape sector. These primary issues include the emergence of the COVID pandemic, increased consumer demand for outdoor commodities, shortage of manpower, and transport and logistic issues.

When it comes to the plant materials, the great 2008 recession plays a very major role in its shortage. During that period, many nurseries reduced or stopped their production to a very big extent. This is because these nurseries did not have enough funds to risk the investment of planting more. Since many trees take between 10 to 12 years to mature, the impact of that great recession is what we are experiencing today.

The emergency of the COVID pandemic forced many people to stay in their homes. This increased the demand for fast-produced plant substances, which has also contributed to the shortages we are experiencing today.

Extreme weather disasters have also hampered plant supply in places such as Texas and Louisiana while raising demand as individuals try to replace plants destroyed in the catastrophes.

Another cause of shortages is that most manufacturers have embraced the Toyota ‘Just In Time’ manufacturing method; parts are shipped to plants as requested, eliminating the need to store them. What began as a strategy to keep flexibility while decreasing costs have become routine in production, resulting in devastating shortage in trucks. Landscapers have battled to secure the trucks they need for their operations due to a lack of computer chips required for vehicles.

What Are Responses to the Shortage?

Even if no one had predicted the emergence of the COVID pandemic, many landscapers and players in the industry have come up with appropriate ways to respond to the shortages.

Many companies learned that “Just in Time” production might not serve all the customers based on demand. The institutions started to create their inventory ahead of the demand to not run short of supply when the demand starts to rise.

The landscape industry has also come up with alternative and substitute plant materials for their customers. Appropriate customer education to customers will help them stop fixing their minds on just one particular plant hence reducing the shortage.

The industry players are forced to limit the clients’ purchases to a certain amount. This especially happens when the demand spikes too high compared to the supply of that particular commodity.

How to Adapt and Overcome?

Considering ever-changing shortages, delayed deliveries, labor issues, and a rising pile of work, landscape experts are still stepping on their feet to discover innovative ways to ensure the industry is still running.

Customers are being educated on the current shortages and encouraged to do temporary planting and replace the trees in later times when the supply comes back to normal.

The landscape companies have started to adjust the prices to counter the rising cost of commodities.

Many companies have adopted paying premiums to get vehicles from dealers within ten weeks to handle the truck shortage. 

Another option that has been adopted is renting trucks and equipment.

What will happen in the Future?

Shade trees and evergreens will remain scarce for the next year or two. On the other hand, Perennials and shrubs will most likely be more readily accessible from next spring or summer. 

Because larger plant material requires time to grow, they will continue to be scarce.

Unfortunately, present inflationary tendencies such as labor shortages, salary raises, and input materials inflation is likely to persist.