Job losses as the downturn takes a hold

The golden years for garden centres and nurseries seems to be well behind us now and cracks are appearing in the industry.

Suttons Horticulture of Terrington St Clement together with it's subsidiary PA Moerman has gone to the wall with the loss of 98 jobs.

Suttons was named In 2006 as best manufacturing business in the West Norfolk Mayor's Awards for business achievement and in 2004 it it gained the accolade as one of the UK's fastest growing companies in the Sunday Times.

The company, which supplies plants and flowers to supermarkets such as Sainsbury's, Morrisons and the Co-op called in the receivers last week, after directors failed to keep the business going.

Suttons recently failed in it's attempt to sell of their nursery land for building after planning was refused for new housing.

The future

Horticulture based business' need to think out of the box now and truly innovate to survive what I feel will be a fairly prolonged low spot for business generally.

Spiralling interest rates have reduced available spend on luxury items as households tighten their belts just to pay the monthly mortgage.

Landscapers will pick up business after the initial downturn as home owners tend to spend money on existing properties and gardens rather than move house but it is worth running a magnifying glass over your process now to determine where savings can be made.

How hard the downturn will be is yet to be seen and heavens forbid another recession but economically things are beginning to look grim.

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Comments

[Richard Boyd]

Do you think the sector is being financially squeezed or mismanaged Phil?

[Philip Voice]

Hi Richard

I think, just like any bull market there is never a clear vision where there is any excess.

Retailers and artisans are a wash with money and in my opinion do not have to work as hard than during lean times.

Managers definitely have to innovate and think out of the box when times are hard and, as the saying goes, it sets the men out from the boys.

I may be wrong with my assumptions but it is my view there will be other businesses going to the wall.