Resiliency in the Green Industry: How to be Adaptable in 2025

Factors impacting the Green Industry such as the housing market, tariffs and supply chain disruptions are constantly changing. The key to staying resilient is to be adaptable.

Farm Credit East recently hosted a webinar with Texas A&M’s Charlie Hall, providing a review on the fiscal and monetary policies on this horizon that will impact the green industry and how to be resilient in 2025. Following are the key takeaways from this webinar.

2024 Industry Recap

Green industry performance was mixed in 2024. While some regions and businesses saw growth, others faced challenges resulting from weather conditions and economic factors.

Sales continue to be up from pre-pandemic levels, but consumers are seeing price increases. Supply chain disruptions and the rising cost of inputs have led to growers, retailers and landscapers raising prices. This will likely be ongoing for 2025 sales.

In many areas across the country, particularly in the Northeast, perspective home buyer traffic is down coupled with fewer houses on the market. With less people buying homes, there are less sales opportunities for the green industry. 2024 showed a slight improvement in housing supply but numbers are still far from 2018 values, which may impact sales moving forward.

Three Tips to Prepare for 2025

1. Have a Contingency Plan

   A contingency plan is crucial for the resilience of a business and its ability to make quick adjustments on the fly. In 2025, tariffs and legislation could have significant impacts to the green industry. To prepare for swift changes, businesses need to be agile. Understanding the logistics of the business and the areas that bring value and those that do not, can help a business make informed decisions. 

2. Manage Working Capital

   With a constantly changing environment, one of the most important aspects of a successful business is effectively managing working capital. Businesses should have enough working capital to ride out potential short-term impacts, providing time to adjust and respond accordingly. Maintaining strong relationships with lenders and having a plan will ensure business success.

3. Focus on Value Propositions

   Over the past few years, consumers have continued to spend money, but what they choose to buy varies, impacting the green industry. Prices are increasing and businesses are facing more cost-conscious residential and commercial customers. In 2025, businesses will have to refine their sales skills. Focusing on value propositions and customer segmentation will be important to drive sales in the green industry in the year ahead.

To dive deeper into the above topics, review the webinar recording along with the presenter’s PowerPoint slides, or to read the 2025 Green Industry Outlook, click one of the links below.