Holiday Issue

Happy Holidays
The On-line
Magazine
for Interior
Plantscapers,
Green Walls,
Green Roofs and
Allied Associates
Holiday Issue
Understanding the Fiscal Cliff
December 2012
In this edition...
7
9
13
19
22
Christmas Songs for Interiorscapers by Kathy
Fediw
The Fiscal Cliff and Economic Outlook for 2013
by Dr. Charlie Hall, Texas A&M University
The Economy’s Effects on the Green Industry
Aralias by John Mendozza, Morning Dew
Tropicals
Donate to Green Plants for Green Buildings
About our Graphic Artist
Patricia Coogan, president of Words and Pictures, has been working
on the layout of this magazine for the past 2 years and has done an
outstanding job. She brings not only her technical skills but also her
innovative ideas to keep this magazine looking fresh and professional, year after year.
She has also helped a number of our advertisers with the design of
their ads.
If you are in need of assistance we can heartily recommend
Patricia Coogan. She can be reached at [email protected]
Thank you, Pat and Merry Christmas!
-Kathy Fediw and the team at Johnson Fediw Associates
Feel free to forward this to your staff, colleagues and clients or subscribe them at www.I-PlantsMagazine.com. If
you’d like to use one of our articles in your newsletter please contact the author. All materials in this magazine
including photos are copyrighted and may not be used without written permission by the author or editor.
Interiorscape Suppliers and Associations:
Interested in advertising with us? Contact [email protected] to find out how you can access interiorscape
buyers and save money over print publication advertising.
© 2012, Johnson Fediw Associates, The Woodlands TX. All rights reserved. If you wish to use any materials in this publication you must
contact Kathy Fediw at [email protected] first for written permission. Thank you for protecting our copyrights.
From the Editor
Ah, it is now time for us all to take a deep breath and just — breathe! Most of
you are probably done with your holiday installations and are now trying to
keep your 3-week-old poinsettias alive until January 1. Just keep in mind that after it’s all over you
can use those old poinsettias for bowling practice!
In this issue we bring you some interiorscape-based Christmas carols to lighten your day. Feel free
to pass these on to your staff or to use at your holiday party. And for a much-needed break John
Mendozza’s article on aralias will show you some varieties to try out in the new year.
On a more serious note, we’ve included two articles from Dr. Charlie Hall, the Ellison Chair in the
Horticulture Department at Texas A & M University. Dr. Hall gives us a very illuminating and unbiased report on the Fiscal Cliff and economic trends for the New Year; and how this will effect the
green industry and the folks who buy our plants, as well as all of us.
If you’re looking for a special gift for your hard-working staff, may we recommend the book “Green
Plant Care Tips for Techs”? You’ll find information about it on page 15. And don’t forget to support
Green Plants for Green Buildings in your year-end charitable contributions.
Save the date for TPIE in Fort Lauderdale, January 23-25, 2013. This annual event is a great way to
treat yourself after the holiday madness—be sure to bring along a deserving employee or two!
As always I hope you enjoy this issue of I-Plants, and remember to tell our advertisers how much
you appreciate their support of this magazine.
Merry Christmas and Happy Holidays to all!
Kathy Fediw, LEED AP ID+C, CLP-I, CLT-I
[email protected]
Please support our advertisers who make this publication possible and free to you! Click on their ads
for more info, and tell your suppliers you read this magazine!
Sturon Nursery
GTI Plantscaping Products
Tropical Computers
Soil Sleuth Soil Probes
Aquamate/American Granby
No Sweat! Liners
Professional Landcare Network (PLANET)
Green Plants for Green Buildings
TPIE
Jay Scotts Collection
Plant PAWS
Greenwalls
Southwest Products: Brand X and other supplies
Morning Dew Tropical Plants
Johnson Fediw Associates
Christmas Songs for
Interiorscapers
With apologies to music-lovers, here’s my rendition of some of the more popular Christmas carols!
Jingle Bells
By Kathy Fediw
Jingle bells, Merit smells, the gnats are on their way
Oh what fun it is to drive a broken-down Chevrolet-HEY!
Jingle bells, time will tell which poinsettias will die or stay,
Oh what fun it is to work around the clock all day!
Dashing through the streets,
Racing to beat the light,
Oh my aching feet!
Not a parking space in sight!
Through the halls I run,
Water tank in tow,
Spreading Christmas joy and fun
Wherever I may go! OH……..
Jingle bells, Merit smells, the gnats are on their way
Oh what fun it is to drive a broken-down Chevrolet-HEY!
Jingle bells, time will tell which poinsettias will die or stay,
Oh what fun it is to work around the clock all day!
Green Christmas
By Kathy Fediw
I’m dreaming of a green Christmas,
Just like the ones I used to know.
Where the lights all glisten
And customers listen
To hear my van stalling in the snow.
I’m dreaming of a green Christmas
With every invoice that we write
May our profits all soar out of sight!
And may all our trees remain a-light!
12 Days of Christmas
By Kathy Fediw
On the 12th day of Christmas my true love gave to me:
12 checks a-bouncing,
11 trees a-leaning,
10 wreaths a-falling,
9 burned-out light strings,
8 poinsettias drooping,
7 clients complaining,
6 pots a-leaking,
5 FEET OF SNOW!
4 computers crashing,
3 techs a-missing,
2 vans in a wreck
And a lizard in a Christmas tree!
Feel free to share these with your team or sing them at your
holiday party, just give credit where it is due.
©2012, Johnson Fediw Associates. Feel free to forward this publication to your friends and colleagues. Contents are copyrighted and may not be
sold or duplicated without written permission. Please contact Kathy Fediw at [email protected] for details.
The Fiscal Cliff and Economic
Outlook for 2013
By Dr. Charlie Hall, Texas A&M University
Ellison Chair in International Floriculture
November 15, 2012 webinar
Dr. Charlie Hall, who holds the Ellison Chair in International Floriculture at Texas A&M University, recently gave a webinar on “The
Economic Outlook for the Green Industry in 2013.” This is a summary of his comments and predictions for the coming year.
The Fiscal Cliff:
A wide gap exists between the future cost of services the public is
accustomed to from the federal
government and the tax revenues
the public has been sending to the
government to pay for those services. Part of this has been by design to help recover from the economy.
There’s a lot scheduled to happen
in January of 2013 that will effect
taxes and the economy, all happening at the same time. This is what
will result in the Fiscal Cliff unless
Congress does something quickly.
Here’s what is contributing to the
looming Fiscal Cliff:
The US economy heading into 2013 is
characterized by uncertainty. We will
either get inertia and be hesitant to
make decisions; or we can become
opportunistic in our mind set. Tremendous opportunities can exist in
the marketplace during these cyclical
times. Warren Buffet for example
has been buying up real estate in the
hopes that it will increase in value in
the future. So do not let the media
shape your strategic mindset!
1. Part of the reason for the Fiscal
Cliff is that right now 40% of the
potential tax payers pay no taxes.
This has raised the eyebrows of
some in the country, and it has created a $514 billion dollar tax deficit
on the “tax side” of the fiscal cliff.
2. Bush era tax cuts are scheduled
to cease in January 2013 so the tax
rates will change for most people.
Tax rates on long term capital gains
will increase. And Obama-era pro-
visions will also expire on some
things in January, all happening
at the same time.
3. In addition, the estate tax exemption will go from 35% on
anything above $5,120,000 to
55% for anything above $1 million.
4. Expiration of the alternative
minimum tax will reset to
$45,000 from the current
$74,450 (what it was before
2010.) This will affect tens of
millions of taxpayers. It does not
take into effect inflation.
5. The Temporary Payroll Tax
Cut decreased the employee’s
share of Social Security taxes
from 6.2% to 4.2% for 2011 and
2012. This will expire in January
2013 and will go back to 6.2%.
This will bring in $10 billion per
month.
6. The bonus depreciation and
50% expensing goes away in
January.
7. Extender provisions such as
energy efficiency expires at the
©2012, Johnson Fediw Associates. Feel free to forward this publication to your friends and colleagues. Contents are copyrighted and may not be
sold or duplicated without written permission. Please contact Kathy Fediw at [email protected] for details.
end of each year. This includes Research & Development credits. So
does the personal deduction for
state and local income taxes.
8. PPACA (Obama-care) taxes are
also scheduled for implementation
in January. In 2013 taxpayers earning more than $250,000 will pay an
additional 0.9% Medicare tax on
their wages and 3.8% of unearned
income such as interest, dividends
and capital gains.
All of this comes about due to the
Budget Control Act of 2011. It will
force automatic cuts and sequestration of $1.2 trillion over the next 10
years.
Spending side of the
cliff:
Right now we have a
federal deficit of
$109 billion. In January we are scheduled
for cuts in nondefense spending of
$54.7 billion. This
includes:
1. Cuts in Medicare,
which are limited to
2% or $11 billion.
2. Cuts of $5.2 billion
cuts in farm price
supports, etc.
3. Cuts of $38 billion
from other discretionary programs.
How does this affect the economy?
If congress does not act the US will
probably go back into a recession.
Economists predict:
• Negative growth of -.5%.
• Unemployment increasing to
9.1%.
• 58% current national debt will be
held by the public through 2022.
If some of the proposed cuts are
extended economists predict:
• Positive growth of +1.7%.
• Unemployment increasing to
8.0%.
• 90% of the current national debt
will be held by the public through
2022.
Where do we stand now?
The GDP is 2% higher than before
the recession, indicating that we are
producing more goods and services.
The GDP is made of personal consumption expenditures, government
spending, business investments and
net exports to other countries.
We still have 3.8 million fewer people employed than before the recession in 2008. Employment Trends
Index gives a snapshot of how employment has been going. When the
Weekly Unemployment Claims dips
below 400,000 it
means we’re creating
new jobs at the same
rate and jobs are being
lost. The number of
people quitting jobs
has been increasing
slowly, usually to get a
better job.
Imports have been
increasing until recently this year and
exports have also been
increasing.
So how will these changes effect the
deficit? The changes would reduce
the deficit by $487 billion.
What is the result of higher debt? It
reduces our capability for national
savings and we have to borrow
more from the world market. We
have less ability to step in to assist
our citizens during disasters such as
Hurricane Sandy. The national debt
also undermines investors, and confidence is lost in the marketplace as
the dollar is downgraded in the financial market.
If we extended some of these
changes the deficit would be reduced by $91 billion, assuming everything else remains the same.
We’ll probably have to extend some
of the tax cuts and reduce some of
the reductions and phase out a bit
more gradually but we won’t be
In addition there is scheduled sequestration of Defense spending of
$54.7 billion scheduled across the
board, which will happen automatically.
able to do as much as we would due
to the financial effects of Superstorm Sandy.
Inflation is very low
but interest rates can’t
be kept this low for much longer,
we’ll probably see a little increase in
inflation as they begin to increase.
The Leading Economic Index (LEI)
has been steadily increasing since
the recession. The LEI shows our
economic growth and where we’ll
be 6-8 months from now. The Coincident Economic Index measures
where we are right now.
The number of new homes being
built dropped dramatically in 2008
and has barely increased since then.
We have about 6 months of inven-
tory in the pipeline before things get
better. The value of homes has
been up and down since the recession.
Home ownership rates have been
going down since the recession and
has not come back and home prices
are starting to increase—this is a
good adjustment. We took good
renters and made them into bad
home owners so that has been
swinging back. Bankers had to lower
their standards.
The 2013 home improvement market is forecasted to increase almost
5.0% over the next 4 years if nothing
changes, which is good news for garden centers and the green industry.
Imports of oil are decreasing as oil
production has dramatically increased over the past few years.
The forecast is for an average cost of
$3.43 for gas in 2013, and $4.05 for
diesel.
Natural gas storage inventory increased 13% this year due to new
technologies. Natural gas generation is predicted to decline by 15% in
2013. So expect prices to increase
significantly in 2013.
The University of Michigan Consumer Sentiment Index (consumer
confidence) has increased with the
election period and is currently at
the 40 year average.
Real Personal Consumption Expenditures (PCEC96) has increased
slightly, currently higher than before
the recession at around $9,600 billion (compared to $9.25 billion before the recession.)
What all this means for the Green
Industry:
We need to remember that “People
afford what they want” (Lowell Catlett). People want things that will
enhance the quality of their lives
and they are willing to pay for it no
matter what the economy is doing.
Green Industry services and products will be seen as a luxury and we
should market our goods and services as something that will improve the quality of life.
Whether they are gardening
themselves or hire someone
else and are just enjoying the
results doesn’t matter.
This is known as Value Relevance
Authenticity. Another example of
this is that pet expenditures have
increased from $38.5 billion in 2006
to $50.84 billion in 2011 with no
decrease due to the recession.
Why? Because pets are perceived
as enhancing our quality of our life.
We also need to get the message out that we’re not just
pretty but we’re also an ecosystem service with health and
well-being benefits, etc.
We need to convey our value relevancy. We need to be relevant to
Gen Y as they approach middle age
and are ready to buy a home.
We need to make strong decisions now to improve our place
in the world market.
Spring will come. If we don’t
go off the cliff people will still
be buying flowers and shrubs
so the future looks good.
Dr. Hall may be contacted at
[email protected] or visit http://
EllisonChair.tamu.edu
The Economy’s Effect on the
Green Industry and Consumers
By Dr. Charlie Hall, Texas A&M University
Ellison Chair in International Floriculture
In recent months, improving employment, a surge in refinancing
and firming home prices have all
worked together to release some
of the pent-up demand created
by the “Great Recession.” Higher
confidence, predicated on
better labor market conditions and the hope that
housing has finally turned
the corner, allowed consumers flush with extra
cash from refinancing to
spend rather than save
those funds.
The consumer, however, is
not invincible, particularly
if our political leaders decide to take us over the
fiscal cliff on January 1,
2013. Statistical models
suggest that the drag created by the fiscal cliff
would shave somewhere
between 3.5% and 4% from
real GDP growth between fiscal
year 2012 and fiscal year 2013;
some of that has already occurred. The worst of the pain
would be felt in the first half of
the year because that is when the
largest fiscal drag would appear.
However, those statistics understate the actual costs associated
with the blow to growth if we go
over the fiscal cliff. The ramifications for confidence and the
functioning of global financial
markets would be huge if Washington were to actually engage in
such an irresponsible act.
have happened. Remember summer 2011’s showdown over the
debt ceiling, which brought the
U.S. to the brink of defaulting on
its debts.
To date, however, the fundamentals of our economy have been
improving – more like a plow
horse than a racehorse – but improving, nonetheless. Household
balance sheets have improved
fairly dramatically over the last
year and appear to have finally
reached a tipping point where
spending can be more selfsustaining. Consider these developments: Employment has picked
up after a summer lull. Wages are
stagnant, but appear to have bottomed after being cut during the
height of the recession.
This is to say nothing of the devastation and disruption to spending caused by Superstorm Sandy.
There would be no way to fully
repair and rebuild the worst affected areas if the emergency
funds needed from the federal
government were not released
on a timely basis. Stranger things
De-leveraging has accelerated, so
debt loads have dropped. We are
now back to 2003 levels of debt,
which we saw prior to the run-up
during the housing market bubble; that isn’t perfect, but may be
enough to ease credit for many
consumers. Net worth has recovered much of the ground lost to
the recession. Home prices, in
particular, have bottomed and
are moving up again. This, coupled with expectations that home
prices will continue to rise, is im-
©2012, Johnson Fediw Associates. Feel free to forward this publication to your friends and colleagues. Contents are copyrighted and may not be
sold or duplicated without written permission. Please contact Kathy Fediw at [email protected] for details.
portant because the wealth effects tied to housing
are much larger than those tied to equity holdings.
It’s easier to repair and upgrade a house that is appreciating than one that is depreciating in value; it is
a game changer when it comes to spending.
Refinancing has increased, reducing mortgage payments and leaving more for consumers to spend
each month. Consumer sentiment has picked up and
returned to levels not seen since before the recession. Assessments of current economic conditions,
the largest determinant of current spending, have
improved. This has made it easier for consumers to
convert refinancing savings into spending for big--ticket purchases. Hence, the precipitous drop we saw
in the saving rate over the summer.
The move to do something about reducing the longterm deficit is very important because that is what
will restore corporate confidence. That is what is
necessary to get manufacturers to hire and invest
more aggressively. Risks could move to the upside on
spending as we enter the second half of 2013 and
2014.
Rising home values are a game changer because they
make it easier for consumers to decide to spend and
invest in their homes and, ultimately, sell what they
bought at a profit. Housing got us into the mess we
are in and, in fits and starts, will be the accelerant
that eventually gets us out.
The most likely fiscal cliff scenario is that we manage
to avert a fiscal cliff with a milder tightening of fiscal
policy in 2013. There seems to be fairly widespread
agreement on allowing expiration of extended unemployment benefits and the payroll tax cut. We are
also likely to feel the increased taxes associated with
the Affordable Care Act and a $10 billion cut in Medicare reimbursements. This, coupled with some discretionary cuts to the budget, is likely to amount to
more than $200 billion in fiscal tightening in 2013.
That would curb, but not derail, consumer spending
at the start of the year.
Given all of these factors, I remain optimistic about
the future growth of the green industry in 2013. We
won’t set any land speed records, but we won’t be
flat again at least – assuming the proverbial wheels
don’t fall off in the interim.
Dr. Hall may be contacted at [email protected] or
visit http://EllisonChair.tamu.edu
The Perfect Holiday Gift for
your Dedicated Techs!
“As the owner of Greenworks.com I believe this is the
definitive plant care book.” Jennifer Farmer, CLP
•
•
•
•
Includes:
Quizzes for each chapter
Info on new products
Diagrams and photos
Easy to read and understand
Written by Kathy Fediw, LEED AP, CLP, CLT
Just $15 each
when you order a pack of 5 books, plus s&h
Paperback, 122 pages
CLICK HERE or visit the Shop at
www.JFAConsultingBiz.com or
call 281-687-6966 TODAY!
Promote your business with our premier international
2013 I-Plants Magazine
Design Contest
Winners will be featured in the July 2013 issue of I-Plants
and will receive a plaque and news release to send out.
Entries being accepted in the following categories:
• Free-standing container plantings, interior and exterior
• Atrium/garden plantings, interior and exterior
• Green walls and facades, interior and exterior
• Rooftop gardens (containerized) and Green Roofs
• Holiday décor, short term rentals and special events
• Artificial foliage, cut floral and artificial floral work
CLICK HERE
Or go to Jfaconsultingbiz.com/designcontestforms2013.docx
for rules and submittal form.
Deadline: May 4, 2013
Aralias
By John Mendozza, Morning Dew Tropical Plants, Inc.
green variety, and it is two toned green. Variegated Balfour has green leaves with white variegation.
Polyscias scutellaria 'Fabian' Fabian Aralias –
large green waxy leaves that have purple undersides. Upright growth habit.
Aralia Fabian
Aralia Chicken Gizzard
The aralia family (Araliaceae) is composed of
84 genera of herbs and woody plants ranging
from vines to trees, including the genus, Polyscias. Within Polyscias, there are approximately 80 species of trees and shrubs indigenous to Polynesia and tropical Asia, most of
which are commonly called aralias. Many aralias are useful interior plants and landscape
plants in tropical areas of the world.
The most popular for interior use are:
Polyscias fruticosa: Ming Aralias – uprightspreading growth habit and lacy, finetextured pinnately-divided leaves.
Polyscias guilfoylei `Blackie' or Black Aralia – is a
strongly upright, sparsely branched plant with
very dark green, pinnately-divided leaves. The
leaflets have a unique, wrinkled surface texture,
kind of like dried, cooked spinach.
Aralia Balfour Variegated
Another popular aralia, but not in the Polyscias
genus is Schefflera elegantissima (formerly Dizygotheca elegantissima) or False Aralia. The leaves
are dark green to purple with toothed edges.
Aralias prefer light levels of 125 foot candles or
higher and like warm conditions. If exposed to
cool temperatures (40-55 degrees F) for extended
periods, they will lose their leaves. Same if they
are allowed to dry out—excessive defoliation will
occur.
Aralia Elegantissima
Aralias are susceptible to bacterial (Xanthomonas)
and fungal (Alternaria) problems. Best prevention
is to avoid watering
Polyscias crispata 'Chicken Gizzard' – This upthe stems and keepright plant branches rather freely and bears
ing the foliage dry.
leaves which are pinnately divided with usuThe major pests of
ally more than 3 rounded leaflets that have 2
this plant species
or more lobes.
include fungus
gnats, mealy bugs, Balfour Lemon Lime
Polyscias pinnata Balfour & the variegated
mites, and scales.
variety, ‘Marginata’ Variegated Balfour ArJohn Mendozza is president of Morning Dew Tropialias – The dinner plate aralia is predomical Plants, Inc, and can be reached at
nantly upright and open. The [email protected]. Photographs are
divided leaves usually have 3 or more large,
copyrighted by John Mendozza, please contact him
rounded leaflets which accounts for the cultifor permission to use any of these photos.
Aralia Ming
var name. ‘Lemon Lime’ is the most popular
©2012, Johnson Fediw Associates. Feel free to forward this publication to your friends and colleagues. Contents are copyrighted and may not be
sold or duplicated without written permission. Please contact Kathy Fediw at [email protected] for details.
Save on Replacements
and Labor
Motivate Your Staff
Onsite Workshops
with Kathy Fediw
“Want to also give a GIANT recommendation and kudos for Kathy Fediw. We had the terrific opportunity to have her do a
seminar for our company yesterday. The session exceeded my expectations. Our crew was extremely complimentary and
expressed their gratitude to us, for the opportunity to provide for them such a high quality training seminar.” Sarasota, FL
Half-day workshops:
• Reducing Replacements
• Plant Care: Basic to Advanced
• Advanced Diagnostics: Pests and Diseases
• Dracaenas
• Palms
• Customer Service in a Competitive Market
“Kathy kept (our workshop)
interesting and fun with different activities, informative
topics and a non-classroom
atmosphere. She had some
very good tips and motivating comments."
2013 Special Offer:
One Half-day Workshop PLUS
Travel Expenses PLUS
10 Books worth $150 for one low price!
Call 281-687-6966 Today!
Or Email [email protected]
“Kathy was empowering. She made everyone at her workshop understand how important their job was, how much information, knowledge and understanding they actually had and needed to be a successful technician. I can fully recommend Kathy Fediw’s training.” Sydney, Australia
Make Your Marketing Count!
Advertise in I-Plants Magazine
•
•
•
•
Nearly 1,500 regular subscribers
Available for viewing in PageTurn or download PDF
Live links to your website, email, or YouTube
Also distributed through Facebook, Linkedin and Twitter
12 issues per year, published monthly
All ads full color at no additional charge
Forward to your own email distribution list
All ads include one free link
Classified Ads available for employment opportunities, business opportunities, equipment sales, etc.
Special Savings –
Commit to a full year of advertising and receive a 7% savings each month, invoiced monthly.
INCLUDE US IN YOUR 2013 MARKETING BUDGET!
TO BEGIN ADVERTISING CALL OR EMAIL
TODAY
Kathy Fediw 281-687-6966
[email protected]
Click here to download
Media Kit (PDF).