Jim Stuppy, president of the National Greenhouse Manufacturers Association, discusses what issues growers and manufacturers are dealing with related to greenhouse construction.

Q. A few years ago there was much discussion among NGMA members about an International Building Code. Has this code been implemented and has it had much impact on NGMA member companies and the greenhouse industry?

A. NGMA's handling of the International Building Code (IBC) issue has been one of the major success stories for the association. The IBC is a collaboration of the three major code bodies, BOCA, UBC and Southern Building Code, to create a single uniform code model. The "International" in the IBC is a bit of hyperbole like "World" in World Series.

NGMA members realized early on that they needed to become involved in the process in order to allow codes to continue to recognize the special and unique applications in the greenhouse industry. When code officials, academics and nationally recognized engineers sit at a table talking about bridges, high-rise office buildings and hospitals, greenhouses don't show up on the radar screen.

NGMA members realizing this fact financed an effort to hire several engineering consultants to make certain that the greenhouse industry did not fall through the cracks. Most notably we were able to preserve definitions of production greenhouses. No doubt this effort has and will continue to save growers and the industry as a whole a tremendous amount of money and preserved the very unique requirements of structures designed to produce plants. This effort also gave us a heads up on the implementation of new fire code regulations.

NGMA continues to monitor these groups and is ready to intervene as appropriate. Our experience is that the implementation of the IBC has progressed faster than we had anticipated. However, those that dream of a code that will apply from sea to shiny sea will be disappointed. Local jurisdictions can adopt, modify or change the code at will. And officials are free to interpret. There will continue to be anomalies where a grower on one side of a street can't build what his neighbor on the other side can build.

Q. Nationally, what do you think is the biggest issue facing wholesale growers when it comes to building a new greenhouse? Is this the same issue for retail growers and garden center operators looking to build a retail greenhouse?

A. The commercial wholesale grower has been extraordinarily concerned with planning for efficiency, productivity and costs. The buying power of the big-box stores is undeniable. Consolidation of growers is an effort to balance that power. Other growers are finding regional and local niches to explore.

In the economy as a whole and certainly in the green industry, driving out costs has almost become a religion. The business becomes a complex chess game where the grower's plan anticipates several moves ahead what his customers and competition will do.

Retail growers and garden center operators may have more control over their situations. As they deal directly with the consumer they can leverage service, selection and ambience to target specific markets.

The retail growers and garden centers' problem goes back to the old retail mantra, location, location, location. And location brings into play building codes, zoning and the one thing where costs have not been driven out, the price of land.

Q. What are the most common reasons that commercial growers are giving for not adding new greenhouse production space?

A. Uncertainty about ___________. Fill in the blank. Economy, war, world markets, competition, customer plans, I could go on and on. There is pent-up demand for more space but until some of the clouds are lifted unleashing that demand, new production will be slow. I am optimistic that many of these clouds will be lifted over the next year.

Q. Do you think war with Iraq will have much impact on the greenhouse construction industry and on the floriculture industry overall?

A. There are three components to the war issue: oil, the cost of the war and international trade. The issue of oil will most directly affect our industry. Not only will that impact heating costs but also the price of so many petroleum-based resin products used in our industry. We know today that most of the Iraqi oil infrastructure is in tact. This is very positive. Barring major sabotage or terrorist attacks on the oil infrastructure I would anticipate that Iraqi oil will flow freely to help finance reconstruction. Should the situation in Venezuela stabilize, one could anticipate a very positive impact on next winter's fuel bills.

The "cost" of the war must be considered not only in dollars but also in "political capital." This directly relates to your earlier question regarding uncertainty. The shorter and easier the war, the more confident the U.S. economy will be. A longer and more difficult war will produce anxiety and uncertainty.

International trade will not directly impact our industry in a major way, but as an old economist I am convinced it is an important economic engine. Obviously, the United States has some strained relationships with significant trading partners. Again, if this spins out of control, there could be a negative impact on the U.S. economy and more uncertainty.

Q. The rising cost and availability of fuel was a concern again this winter. Is energy conservation/savings a major issue for the growers who are contacting your company about building new structures?

A. Energy conservation is an issue but unlike the early 1970s it is not a totally dominant issue. Fuel costs are one of many issues a grower must be aware of and control. I believe labor productivity is a bigger issue and one which growers are most concerned about.

Q. Zoning regulations seem to be a major issue/obstacle for growers. Has the downturn in the economy and the loss of jobs resulted in municipalities trying to speed the permit process along so that new jobs/sales taxes can be generated from new production?

A. Unfortunately, we have not seen a major change in this area. NIMBY (Not In My Back Yard) continues to be a major obstacle in many localities. Perhaps our jobs do not have enough publicity value for politicians to champion our projects.

Economic development authorities tend to focus on TIF and other public/private-financing vehicles to attract businesses to blighted or disadvantaged areas. TIF is Tax Increment Financing. If you want to develop an area or a location you can apply to make it a TIF district. You can then use all or part of the incremental tax revenues to provide infrastructure for your project. For instance, if you were developing an office/retail complex the state would measure the current tax revenue for the area (property, sales, income, etc.). When you built your project a portion of the increase in those taxes could pay for off ramps from an interstate or a parking garage, etc. TIF is just one of many different methods that governments have to encourage economic development.

Most of our industry projects do not meet the scale or location criteria or are not able to take advantage of the benefits. I know there are exceptions out there where growers have been able to leverage job creation to their benefit but that is not universal or certain.

Q. Are fire hazards in greenhouses, especially related to glazing materials, still a major issue when obtaining building permits? Is this a bigger issue on the retail side?

A. Yes, this is a much bigger issue for the retail side of the industry, as it should be. We and the other members of the NGMA are very concerned about public safety. In institutional and retail greenhouses designed to be occupied by non-employees, great care is taken in the design and building process. Covering manufacturers are making progress in developing materials that are safer and better suited to these applications.

NGMA is involved in the national fire code effort. This is primarily to ensure that the industry's specific and unique applications are not ignored or are combined with inappropriate products and discarded as unacceptable.

Q. Recently, the open-roof and retractable-roof structures seem to be the design of choice among commercial growers. Is this trend continuing or are more growers choosing a more traditional structure?

A. I believe that in the interests of efficiency and productivity growers are looking for the right product for the task. Growers are combining different styles of structures to meet specific growing requirements. Obviously, the open roof is a relatively new concept at least in terms of widespread practical application. Therefore, we have seen a somewhat disproportional installation of these structures as growers catch up with the needs that these structures satisfy.

Q. What factors do you foresee having the biggest impact on greenhouse manufacturers in the next five years?

A. All of the factors you mentioned will be important as will others. All of these factors will be governed by one thing that is absolutely inevitable -- change. For instance we are coping quite well with current government regulation, OSHA, EPA, ADA, etc. But, what about the next set of initials. What will it be and how will it impact us? Change in our industry has been rapid, but I think it will accelerate in the future.

I have a good friend who used to be in the commercial photo-processing business. He now understands that he is in the visual image business. With the expansion of the digital world, desktop publishing, $100 photo printers attached to your PC, on-demand publication and the proliferation of Web sites, he has to be nimble and accept change. He now has to replace 25-30 percent of his customers each year as they move to other avenues to convey their message. He constantly must create new products to meet the needs of new customers. That's change.

Q. NGMA was working on a design manual. What type of information will be in it?

A. At its last meeting in April, NGMA approved for publication its new Structural Design Guide. This publication is the result of many hours of voluntary work by members serving on the NGMA's structural engineering committee and by the financial support of the entire membership. The Guide is intended to help growers, engineers, architects and greenhouse designers apply the well-respected NGMA Structural Design Standard and building codes to the greenhouse design process. The existence of this Guide will help growers and others determine what structure is best suited to their specific need and to instill confidence that NGMA members are dedicated to producing the best products possible to meet grower requirements.

Q. NGMA has released several Helpful Hints brochures directed at issues relevant to greenhouse growers. What has been the grower response to these publications?

A. NGMA's Helpful Hints program has been enormously successful. This program will continue. The Helpful Hints are written to give the grower a quick overview and outline of a relevant topic. They are just as their name suggests: very helpful hints.

NGMA also publishes Greenhouse Guides, which go into much more detail on specific topics such as fire safety, curtain systems and many more grower-relevant issues. All of these publications are available free to download from the NGMA Web site, www.ngma.com. As far as additional topics, there are several in the works. I would also invite GMPRO readers to contact myself, NGMA or any NGMA member with their suggestions and ideas about topics. We want to focus on what is relevant to growers.

Send this article to a friend

Enter your e-mail address:


Enter your friend's e-mail address:


Click the image below to send:

© 2003 Branch-Smith Publishing