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 American greenhouse growers are not afraid to invest in capital expenditures in 2011. An exclusive Greenhouse Management market survey shows that growers plan to spend more than $500 million for new structures, environmental controls and labor-saving equipment this year.
This is an average of almost $88,000 per greenhouse company across the nation. Almost half the greenhouse growers surveyed (45.5 percent) plan to purchase greenhouse structures at some point in 2011. The most active time for greenhouse construction should be late summer, after this year’s peak growing season.
The survey showed that more than 35 percent of all structure purchasing will take place during the third quarter (July, August and September).
Metrolina Greenhouses is a 150-acre facility in Huntersville, N.C., that produces annuals, pot plants and hanging baskets. This year, an expansion project will add 5½ acres of new retractable-roof MX greenhouses.
Cor Zethof, Metrolina greenhouse engineer, said he hopes the project will be completed by spring of next year. The greenhouse space will be used to grow a large variety of crops including spring annuals, mums, poinsettias and hanging baskets.
The structure will include concrete floors and in-floor hot-water heating. Boilers will also heat square-tube heating lines installed along with Echo hanging basket systems.
Above these systems will be Ludvig Svensson retractable energy curtains. The curtains are designed to help cool crops in summer, as well as increase heating efficiency in winter.
“The curtains save 60 percent energy loss when they’re pulled, and they provide 60 percent shade,” Zethof said.
Metrolina is installing an additional 8 acres of retractable shade curtains in existing greenhouses.
Environmental control
Reducing fuel and energy costs and improving crop quality are evidently on the minds of most greenhouse growers. Across the country, they plan to spend $160 million this year on environmental controls, irrigation and lighting, ventilation and shade curtains. This is an average of about $17,000 per greenhouse operation.
For shade curtains alone, the average grower plans to spend just over $7,000. For irrigation equipment, growers plan to spend more than $75 million (an average of nearly $6,000 per company). This reflects data Greenhouse Management collected in its Are Greenhouses Green survey (see Page 16) that showed that 58.6 percent of growers plan to upgrade their irrigation systems at some point in the next 12 months.
Labor savings
During the down economy, many greenhouse growers reduced their staffs. As the market comes back, it’s evident many plan on keeping labor expenses down by investing in automated equipment.
This year growers plan to spend $82 million in equipment including conveyors, potting machines, transplanters and tray-filling machinery. One in every 10 growers plans to buy a tranplanter, and average annual expenditure on these products will be $20,000.
And don’t forget how tractors and attachments tie into labor savings, for moving carts and supplies around the facilities.
In 2011, growers will spend more than $117 million on tractors and attachments. More than one in three greenhouse growers plans on purchasing a tractor or attachment.
Flat economy, still expanding
Bob’s Greenhouses in Mason, W.V., recently completed two expansion projects. The company added a 48,000-square-foot Nexus greenhouse with corrugated acrylic glazing.
The new range includes 43-foot-wide bays and double-peaked roofs with gutter heights of 16 feet. The facilities include in-floor hot water heat, grow lights, boom irrigation and an Argus environmental control system.
The facility will be used to produce plugs and liners. Bob’s Greenhouses is a licensed propagator for Ball Seed Co. and Dummen USA Inc.
While the new plug/liner range greatly increases Bob’s Greenhouses production capabilities, owner Bobby Barnitz doesn’t necessarily see the market for plugs and liners growing.
“We’ve been a Ball plug producer for 15 years now, and it grew steadily for the first 13 years, and now it’s flat or slightly down,” Barnitz said. “But what we saw was that, during the busiest parts of the year we were running out of space. The new range is designed to increase our capacities during the peak season.”
The new ranges also have better environmental control, which will make producing pansy plugs easier, he said.
“I’d say the market is pretty flat across the country. There’s a lot of consolidation. We’re contract growing for some people and we finish product for our own retail and for wholesale customers,” Barnitz said. “But we also have two local growers that contract grow for us. Even in a flat market, if you have the right connections, it’s amazing how you can still grow your business.”
Bob’s Greenhouses also added a new DeCloet gutter-connect greenhouse range, replacing several free-standing Quonset houses. The new range is designed for production of more cold-tolerant crops.
For more: Metrolina Greenhouses, www.metrolinagreenhouses.com. Bob’s Greenhouses, www.bobsmarket.com.
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