Building and Construction, Feature, Operations, V5I3

The Backyard Greenhouse

Worries about climate change and a growing trend for year-round food production mean greenhouse sales has a favorable future. (Photo courtesy of John Hiss, HHH Outdoor Living)

Raymond Anderson retired from the military with disabilities and in October 2018 started Big Red Shed in Hayesville, North Carolina. Anderson doesn’t manufacture sheds; he’s a retailer for others like Old Hickory, Eagle Carports, and Clarks Woodwork. 

As we’ve seen in the business of superstores (think WalMart, Target, and even Amazon), the more you have to offer, the greater your opportunity for sales. In addition to sheds, Anderson offers carports, chicken coops, and dog houses. 

But to better serve his customers, he’s looking for a greenhouse manufacturer.

“Most of my clients are retirees,” he said, “and most have a pretty green thumb. So, I think greenhouses would move pretty good.”

But would they? 

THE FUTURE OF THE BACKYARD GREENHOUSE

George Weigel, Pennsylvania garden writer and horticulturist reported in his “Gardening Trends of 2019” that more American households are gardening than ever before—up to 77 percent from 2016’s 74 percent. Younger gardeners account for this rise.

According to the 2018 National Gardening Survey, the number of older gardeners is holding steady at 35 percent. But the number of younger, particularly millennial-aged gardeners has reached an all-time high. 

As part of the survey, industry analyst Ian Baldwin says, “18 to 34-year-olds now occupy 29 percent of all gardening households” and “are now truly engaged in the full range of gardening activities.” 

The survey also points out that the average American gardener spent $100 more on gardening supplies than the previous year.

In his trend report, Weigel also reports that gardeners are trying to extend the growing season like never before, too. 

Fact.MR’s “Greenhouse Kit Market Forecast, Trend Analysis & Competition Tracking – Global Review 2018-2028,” supports that claim. It reports, “Unfavorable climatic conditions continue to add to the growth of the greenhouse kit market.” 

Everyone, from backyard gardeners to market farmers, worries about climate change and its impact on the future of food production. Couple that with a growing trend for year-round food production and greenhouse sales have a favorable future.

John Hiss, owner of HHH Outdoor Living in Princeton, Texas, agrees. Although most of his customers fall into the over-40 crowd, he is seeing this trend among millennials. 

“The younger generation is more conscious of the food and health of their family,” he says. “There is a trend toward growing your own foods for better nutrition, and greenhouses make that possible.”

Hiss manufactures only greenhouses because his parents own LoneStar Sheds, also in Princeton. He feels the two businesses complement each other and sells the greenhouses on the LoneStar lots.

“With the addition of our beautiful and versatile greenhouses on all the LoneStar Sheds lots, it draws business in,” he says. “People stop by and realize we don’t just sell back yard sheds. We can fulfill all of your needs (i.e., carports, concrete, greenhouses, decks, storage sheds, large shops, pergolas, cottages). We really are a ‘one-stop shop’ for all of your needs.”

Hiss started the greenhouse business four years ago part-time while working as an area manager for the restaurant industry. Today, he’s building greenhouses full-time selling between 80-100 pieces a year.

In the beginning, Hiss built on-site to attract customers with property that was hard to access. Wanting to streamline his productivity, however, led to his current method.

“We build the panels at the facility and then put them together on the site,” he says. “This way we can be more efficient and also capture those customers who might have narrow gates or small backyards.”

Some DIY-ers purchase HHH greenhouses as kits and assemble the structure themselves. 

While Hiss sells his greenhouses directly to the consumer, General Shelters of Texas (GST) does no direct selling. According to Derek Pierce, vice president of operations, GST has 40 distributors in Texas and Louisiana and sells about 50 greenhouses each season.

Derek Pierce, vice president of operations of General Shelters of Texas, says greenhouse construction has continued to evolve. (Photo courtesy of Derek Pierce, General Shelters of Texas)

In business since 1973, General Shelters started offering greenhouses about 20 years ago.

“The product has evolved,” Pierce says. “We originally built them with no floor. About 10 years ago we added the floor. Then came the bench and the rod for hanging baskets.” 

GST also offers plumbing and electrical packages.

“It’s worth the investment to offer the extras,” he adds.

A frontrunner in diversification, GST offers 15 different models of greenhouses alone with about 60 different options and accessories. 

“Give the people what they want,” Pierce says. “If they can get what they want, they’ll pay for it. We also do a lot of customization.”

“Everybody builds sheds,” shares Carl Morris, vice president of Onduline, Tuftex Division. “A lot [of shed builders] are starting to offer greenhouses to separate themselves from the competition.”

Carl Morris, vice president of Onduline, Tuftex Division, says many shed builders are starting to offer greenhouses to separate themselves from the competition. (Photo courtesy of Carl Morris, Onduline, Tuftex Division)

Morris has a special interest in greenhouse sales because Onduline manufactures the Tuftex polycarbonate panels used on the buildings. He’s also seen an increase in shed builders adding greenhouses to their product line in the last several years. His clients include manufacturers from Georgia, Texas, Tennessee, and Montana.

WHAT YOU NEED TO DO TO GET STARTED

Here are a few steps to help you capitalize on this trend and add greenhouses to your shed business.

As with any new venture, test your market before adding a new product. Poll your client base to gauge immediate interest, if any. Determine where you will find new customers and how you will reach them. Understand the problem you are solving in your customers’ lives and the needs you will meet.

Know who your competition is and design your product to stand out. Rather than blindly hop aboard the greenhouse train to take advantage of a trend, define what you will do differently. 

GTS offers options. They build greenhouses in several different sizes and offer accessories like potting benches, fans, and rods for hanging baskets, as well as electrical and plumbing packages.

HHH Outdoor Living offers automatic venting systems and shade cloth in addition to the other options mentioned. But what really makes their product stand out from the others are the quality materials. In addition to the polycarbonate panels, they only use architectural-grade red cedar, barn-style doors, and black hardware.

Next, make plans. No general ever goes to war without having a strategic plan of attack. You need a plan that covers production, including training your crew to work with new and different materials, and a marketing plan.

Then, build a few. The first thing that Pierce recommends to move greenhouses is to build a few and get them on the lots. 

“Folks have to see them,” he says. 

Hiss agrees, “They draw in clients when they see them on the lots.”

Working with the polycarbonate panels isn’t rocket science but there are a few tricks that builders learn.

“There’s a little bit of a learning curve, but it’s fairly straightforward,” shares Hiss.

He mentioned special cutting techniques and Morris mentioned pre-drilling, but everyone agreed that any carpenter could handle the materials.

“You need to think,” says Morris. “Read the literature and use common sense.”

Polycarbonate panels are preferred over polyethylene plastic film because it lasts longer. 

“Clear plastic lasts three to four years,” says Morris. “Polycarbonate lasts 20 years.” 

It also comes in several different tints which filter varying degrees of light.

Once you’ve designed and built a few greenhouses, you know how to put together your bill of materials for determining the cost. After nailing down the costs, prepare your marketing materials. They would include website pages, spec sheets, and printed case studies to share with potential customers.

THE FUTURE LOOKS BRIGHT

So, the future looks bright for greenhouse manufacturing. So much so that Hiss is in the process of building a new 3,000-square-foot warehouse. 

He wants to start offering different types of greenhouses and provide wholesale opportunities to lot owners like Anderson. 

And if he could ship his kits to North Carolina, Anderson’s problem would be solved.

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