Increased Business, Inflation, Logistics, Technology, and Labor Issues, Ohh my......
It has been quite the year and July continued with the same zest. Business has been better than a normal pre-pandemic July. There advanced bookings are up for future weeks and months to help ensure delivery- this seems to be a new trend and believe us it is very much welcomed.
Even this summer with all the heat waves and people starting to go on vacation and travelling we are seeing a strong summer which for sure will include August. Almost Everyone in all sectors of the industry is indicating they are outperforming 2019 numbers.The long-range forecast for business is optimistic through at least all of 2022. Some people depending on who you speak with predict even longer.The need for floral industry digital marketing and ecommerce services are increasing day by day as growers, wholesalers and florist are looking for more efficient ways to scale their business and at the same time innovative ways to further meet their customers expectation and business needs.
Labor shortages are a major issue. Companies are looking for managers, salespeople, drivers, designers, warehouse workers, and everything inbetween.With the cost of labor, freight, and product increasing, price of product is also increasing. Companies are becoming creative and more efficient in dealing with these issues. (Sometimes not always to their customers understanding)A 40-foot dry container from China in 2019 was between $4000-$6500. Today that same container is $20,000.This influences everything from vases to sleeves and more.If you can find good deals today invest in hard good inventory as costs will for sure go up. Air freight from producing countries is also setting record levels for non-holiday periods. Trucking companies are challenged as well with increasing shortages and higher wages for drivers. Fuel costs have also increased. Trucking companies are forced with hard decisions and in some cases have had to fire customers that economically do not make sense. Rates and minimums are expected to rise in the near future.
Summary:With all these crazy factors in place the flower business continues to bloom at a great positive pace. BLOOM ON!
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