Industry News BY AMANDA JEDLINSKY
2023 GAVE THE INDUSTRY REASON TO CELEBRATE > As the industry takes action to over- come its biggest challenges, there is reason to celebrate, said the Society of American Florists’ CEO Kate Penn, during the State of the Industry address in September at SAF Phoenix 2023, the organization’s 138th annual convention. Labor shortages and the need for
“Labor is hard to find, hard to keep
when you do get it — and very expen- sive,” Penn said. SAF is tackling the issue from dif-
succession planning continue to “pose our industry’s biggest existential challenge,” Penn said. But there is also plenty to celebrate as other challenges such as a bottlenecked supply chain, lack of product availability, competi- tion for cargo space, and other factors have normalized following two years of uncertainty.
Addressing Labor Shortages One of the biggest challenges facing the industry is the shortage of labor in all sectors, due to a number of factors, including the aging workforce, the rising cost of living, and a lack of awareness about the careers available in the flori- culture industry.
ferent angles. First, with its advocacy work on Capitol Hill, where floral pros have asked Congress for meaningful immigration reform and for research funding that can bring efficiencies to the growing process. In addition, SAF’s partner, Seed
Your Future, is leading the effort to bring new talent to the horticulture and floriculture industries through initiatives such as Green Career Week. It’s also important to retain that
young talent, something that SAF has made a strategic priority with its Next Gen group and the in-person and virtual events SAF hosts specifically for them, Penn said. Next Gen LIVE! is slated for Feb. 25-27 in San Diego. “The learning and sharing at this
event is an extraordinary thing to witness,” Penn said. “And the event left attendees with a newfound enthu- siasm for our industry.”
Planning for the Future Wholesalers and retailers are expe- riencing consolidations and closings, Penn said, though they appear to have slowed. There were 11,509 retailers in 2022, according to the U.S. Census Bureau, a slight decrease from 2021 with slight decreases predicted for the next few years. “It’s nothing like the contraction
we experienced in the early 2000s,” Penn said. There is no quantitative data on
why shops are closing, but Penn hears anecdotally that many didn’t have an exit strategy. “In many cases, there’s no obvious
successor, and they just didn’t plan far enough ahead to prepare the business for a successful sale,” she said. “And every time that happens, that’s a loss to the community and our industry.” Penn pointed out that SAF has
STATE OF THE INDUSTRY Kate Penn, SAF CEO, delivered the State of the Industry address at SAF's annual convention.
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created resources to help floral pros plan for the future of their businesses. The topic was the focus of a cover
FLORAL MANAGEMENT | November/December 2023 |
WWW.SAFNOW.ORG
story in Floral Management, a virtual roundtable, and at two convention sessions that featured former and current business owners who had or will soon sell their businesses. SAF’s Floral Education Hub also created a three-part course, “Forecasting Your Future” with former retailers Manny and Clara Gonzales, who shared the strategies they used to ensure they had a business worth selling.
Reasons to Celebrate Despite those challenges, there are a number of things to celebrate, Penn said. The logistical issues — including air cargo capacity and a lack of trucks and drivers — that plagued the industry in 2020, 2021 and 2022 “have all but disappeared,” she said. “One wholesaler told us that this Valentine’s Day was the smoothest the industry has experi- enced in 10 years.” Another reason that holiday and
others went so well? There were more than enough fresh flowers, foliage and hardgoods this year, Penn said, noting that retailers had been hoarding supplies that were scarce. “This year, we know where our
hardgoods are coming from, so we don’t need to tie up all of that cash and space in inventory,” she said. And though sales are down for many
compared to 2022, according to SAF’s biannual economic outlook survey, they are up from 2019, and 42 percent feel optimistic about future sales. Floral product purchases, which
include seeds and potted plants, were also up in 2022, with a 13 percent increase, according to the U.S. Bureau of Economic Analysis. Sales of U.S. floriculture crops also
grew, by 4.6 percent from 2021 to 2022, according to the U.S. Department of Agriculture’s National Agricultural Statistics Service. Sales at retail florists also increased
from 2021, according to the U.S. Department of Commerce. Sales were up in 2022 by 3%, and are projected to grow at sub 2% increases in the coming years.
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