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2022 Tree Pricing
Prices subject to change. Contracts valid for 30 days.
By Chris Leinster - January 6, 2022
Happy New Year! The past two years have certainly provided extraordinary challenges that have permeated every facet of our society. I am eternally grateful to my employees and customers as we continue to navigate whatever trials 2022 has to offer.
Inflation appears to be our biggest threat this year. The green industry has been hit with unprecedented cost increases that are resulting in higher prices for every aspect of plant production. One of my vendors sent out the following communication warning of what's to come. I think it's important to share that with you here…
Dear Valued Customer:
As we wrap up 2021, we wanted to send you an important update on the market's ongoing product challenges. We continue to see industry-wide supply challenges that are driving product price inflation on many of the products you rely on for your business. We hope our summary of the current situation and expectations for the months ahead will help you navigate these challenges as you prepare for the new year. We will continue to monitor these conditions and update you as the situation changes.
Raw Material Shortages
Demand for many common Green Industry raw materials (plastic resin, wire, printed circuit boards, urea) remains at record highs, thereby driving up product costs. Most indications are that these costs will remain inflated through much of the first half of 2022.
Labor Shortages
Many manufacturers have faced both labor shortages and wage increases.
Freight
Freight shortages and pricing continue to increase lead times and cost for many products – especially freight intensive products such as hardscapes, fertilizer, and plant material.
Landscape Materials Outlook
Based on our assessment of the current situation and industry conditions, we expect continued shortages and/or price inflation on many of the most frequently purchased products within our industry.
We also believe that manufacturers will implement further price increases for 2022 for core irrigation products, PVC pipe, plant material, and hardscape products. We are working diligently with our manufacturing partners to mitigate the impact of these factors and provide you with as much advance notice as possible.
Sincerely,
Jeff Domenick Regional Vice President SiteOne Landscape Supply
The bottom line is that all this is resulting in dramatic price increases for trees for 2022. As of the date of this posting most of my vendors have not yet disclosed wholesale pricing. I will be updating my catalog in the upcoming months. Sadly, I may need to update pricing during the season if cost pressures continue to rise. I will be adding “contract pricing valid for 30 days' for all planting contracts this year. Thank you for your understanding.
Please know that Happy Trees will continue to provide the greatest value in the industry to our customers with our products and services. We constantly strive to find efficiencies with our processes and will price shop our vendors without sacrificing quality.
There's an old adage, "you may not be interested in politics, but politics is interested in you!". Inflation is the direct result of economic policy, and every bit of it was easily preventable. Please take some time to contemplate how the decisions of our overlords impacts us all, particularly small business owners and low wage earners. Perhaps it's time to reconsider your party allegiances.
Inflation appears to be our biggest threat this year. The green industry has been hit with unprecedented cost increases that are resulting in higher prices for every aspect of plant production. One of my vendors sent out the following communication warning of what's to come. I think it's important to share that with you here…
Dear Valued Customer:
As we wrap up 2021, we wanted to send you an important update on the market's ongoing product challenges. We continue to see industry-wide supply challenges that are driving product price inflation on many of the products you rely on for your business. We hope our summary of the current situation and expectations for the months ahead will help you navigate these challenges as you prepare for the new year. We will continue to monitor these conditions and update you as the situation changes.
Raw Material Shortages
Demand for many common Green Industry raw materials (plastic resin, wire, printed circuit boards, urea) remains at record highs, thereby driving up product costs. Most indications are that these costs will remain inflated through much of the first half of 2022.
| We are seeing the highest costs to date on fertility raw materials: Urea costs have increased 238% in the last 12 months and phosphate costs are up more than 100%. Sulfate of Potash (SOP) is up 39% and Muriate of Potash (MOP) is up 200%. | |
| Resin manufacturing capacity constraints, coupled with labor and raw material shortages, have driven plastic resin prices up 210% over the last 18 months, impacting PVC/poly pipe and fittings, storm water drainage pipe and fittings, irrigation rotors and sprays. | |
| Copper costs have increased 45%, impacting irrigation and lighting wire. | |
| COVID-related manufacturing shutdowns and increased consumer demand within the semiconductor industry have created an ongoing worldwide shortage, impacting irrigation controllers and lighting transformers. | |
| Seed crop losses of up to 50 percent due to summer heat and weather conditions are anticipated to continue to drive up costs through the end of the year. | |
Labor Shortages
Many manufacturers have faced both labor shortages and wage increases.
| More than 30 percent of manufacturers report that it’s more difficult to find talent now than before the COVID-19 pandemic, and nearly 80 percent expect to have trouble attracting talent going forward. | |
| Significant increases in service industry wages (including restaurants) are drawing hourly associates away from manufacturing jobs. | |
Freight
Freight shortages and pricing continue to increase lead times and cost for many products – especially freight intensive products such as hardscapes, fertilizer, and plant material.
| Record levels of congestion in major U.S. ports are contributing to shipping and freight delays. | |
| Container shipping costs from Asia are up as much as 10x since the beginning of 2021. | |
| U.S. freight shipments are up more than 10% and U.S. freight expenditures are up more than 40%. | |
| U.S. diesel retail fuel prices are up nearly 40%. | |
| Driver shortages and high demand now mean there are more than 150 loads waiting to be shipped for every available truck. | |
Landscape Materials Outlook
Based on our assessment of the current situation and industry conditions, we expect continued shortages and/or price inflation on many of the most frequently purchased products within our industry.
| Global resin shortages are expected to limit PVC pipe production and keep costs unusually high. | |
| Irrigation and lighting electronics will be in short supply for the foreseeable future due to ongoing semiconductor chip shortages. | |
| Fescue seed supply is expected to remain constrained through much of 2022. | |
| Plant material in larger than 7-gallon sizes is expected to remain in tight supply going into 2022 and beyond. Items such as large upright evergreen screening material, commodity items (hawthorns, loropetalums, hollies, ligustrums, etc), skip laurels, Japanese maples, and other specialty intrinsic items likely will remain in short supply for several years. Â |
|
Sincerely,
Jeff Domenick Regional Vice President SiteOne Landscape Supply
The bottom line is that all this is resulting in dramatic price increases for trees for 2022. As of the date of this posting most of my vendors have not yet disclosed wholesale pricing. I will be updating my catalog in the upcoming months. Sadly, I may need to update pricing during the season if cost pressures continue to rise. I will be adding “contract pricing valid for 30 days' for all planting contracts this year. Thank you for your understanding.
Please know that Happy Trees will continue to provide the greatest value in the industry to our customers with our products and services. We constantly strive to find efficiencies with our processes and will price shop our vendors without sacrificing quality.
There's an old adage, "you may not be interested in politics, but politics is interested in you!". Inflation is the direct result of economic policy, and every bit of it was easily preventable. Please take some time to contemplate how the decisions of our overlords impacts us all, particularly small business owners and low wage earners. Perhaps it's time to reconsider your party allegiances.