SOD SOLUTIONS Provided by Tobey Wagner, President
Sod Solutions’ CitraBlue St. Augustine found a home on this lawn in Valencia Palms, Florida.
Rapid Change in the Economics of Turfgrass Production: Demand for turfgrass from the pandemic slowdown continues to surge. Te massive infusion of federal money, historically low interest rates, and a slowdown in the production of necessities have created a perfect storm of economic shock. A sudden shift is occurring with inflation surging and interest rates rapidly increasing. What's next for our industry? What’s in store for the remainder of 2022 and beyond?
We believe that the turfgrass industry will remain strong, recognizing there may be a slowing trend in the purchase of first-time homes due to rising interest rates and a less severe softening in the middle “move-up” housing market. People may be more likely to stay in their current homes and look to remodeling or adding-on to preserve their low interest rates. Our sources say the big difference in what is happening now and what happened in the last inflationary period is the major housing shortage—a result of pent- up demand after the pandemic slowdown. Commercial development and multifamily housing are expected to remain strong to address the shortage of housing across the country. What does all this have to do with a Turfgrass Seed and Vegetative Stock Report? Everything!
Sod Solutions encourages all turfgrass growers to strategically plan and reassess in this changing economic environment. Many businesses are “in the fog” of being overwhelmed with daily tasks just to keep up with demand. Meanwhile, there is a major shift in the broader economic climate, transportation, and supply chain that will require strategic maneuvering for businesses to remain profitable and successful.
First and foremost, know your numbers! Fertilizer, equipment, and chemicals are all currently in short supply resulting in a rapid upward trend in cost. Fuel costs
TPI Turf News July/August 2022
are unpredictable. Growers have reported that even an immediate ten cent increase in the price per square foot of turfgrass will be insufficient to cover rising costs in production and transportation. Understanding changing costs and educating your customers and competitors is critical at this time. An important step is regularly and frequently analyzing cost of production during this inflationary period. Many growers we talk to are overwhelmed with costs increasing so quickly that they are not successfully accounting for it in time to reflect appropriate increases in their pricing and bids. Software management platforms like Turf Logistics can also be an effective tool that will allow closer oversight of sales and costs in real time during an unstable economy. Visit
turflogistics.com for more information. As an industry, we must work cooperatively to upwardly adjust pricing to maintain profitability.
Don’t forget about your customers and the importance of relationships! No matter what market conditions are, it is best to operate as if you need your customers more than they need you. Tis mentality will prepare your business for times when rising prices soften demand. A communication plan that keeps your customers in the loop about supply and pricing changes will be another invaluable tool. Te old saying that “satisfaction is based on expectation” is especially true in a changing market. Te final ingredients to a successful navigation of business growth in a period of economic uncertainty are quality products and exceptional service. When demand softens, consumers are more selective. Product offerings that are either reliable, tried- and-true proven standards or on the cutting edge of new technology advancements can set your business apart from the competition.
Sod Solutions takes a two-pronged approach to providing turf varieties in each of these categories. First, we offer a portfolio of warm-season varieties that have stood the test of time and are considered standards in the industry because of their performance and proprietary protection. When coupled with quality control measures, the brands of these standard varieties are a valuable tool in combatting the swings in the commodity markets for turfgrass. Secondly, Sod Solutions and groups of regional growers have invested heavily in turf variety research with numerous major land grant universities in the United States to breed and develop the next generation of turf varieties. Tese new grasses will offer reduced water and pesticide requirements, elevated shade performance, improved color, and desirable texture. Many of these research programs are yielding new releases that will initially be available to regional growers that supported the research, and later to the industry at large. A summary of Sod Solutions’ major turfgrass variety offerings follows.
33
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100
