Finding balance

Making decisions is difficult in a dynamic environment. When the world is changing quickly, there’s a necessity to react rather than make long-term strategic plans. At the start of the ’20s, the industry was reacting to large shifts in the economy and consumer behavior. But our State of the Industry data is pointing to a new sense of balance for IGCs.

There are a few areas where finding balance is particularly important in 2023. In this year’s report, we find that IGCs are finding their way back to traditional spring sales growth. There’s more stability in the supply chain, making plant and hard-goods shortages less common. And while owners are keeping a close eye on cash flow in uncertain economic times, they’re still trying to find where to stand between finding labor and managing wages.

In fact, staffing remains one of the few places in the 2023 report where the industry remains unsettled. Finding workers continues to be a challenge, but there is some insight into what works best. This year, for the first time, we asked about the most successful way to find employees and saw two front-runners. You can read more about them on pg. 23.

As in years prior, our survey shows that a solid majority of our respondents grow at least some of their own plant material. The grower-retailer space remains strong, with the majority of IGCs focusing on outdoor plants. But the increase in volume and diversity that we’ve seen in previous years has leveled out, with 42% saying they have not increased how much plant material they grow and only 27% saying that they have increased both diversity and volume of plant material. You can explore more insights from the world of growers from greenhouse and nursery managers starting on pgs. 30 and 39, respectively.

In the final analysis, it could be that the ’20s have stopped swinging, with a sense of stability that could signal it’s time for IGC owners to dig deep, look at their business and make long-terms plans to not only find balance, but keep it.