Part 03:
Why AmHydro has Succeeded Where Others Fail
Over the past two weeks, we’ve taken a deep dive look at our top CEA advice for 2023. You can catch up here if you missed the earlier posts:
In this third and final part, we’re going to share a bit of insight into our own business practices and reveal why we believe AmHydro has succeeded where others have failed. (As a bonus though, next week we’ll actually take a look at one of the things we can’t do for you!)
AmHydro was founded in 1984 by Michael Christian, a true industry legend. In addition to his passion for all things CEA, Michael instilled a culture of sound business sense that has allowed for the continued growth that the company has seen to this day.
In the 80’s CEA was not viewed with the alluring agritech buzz that the industry enjoys today.
Pioneers like Michael were forced to innovate with limited resources and overcome big obstacles with extreme economic scrutiny. The entire industry owes a debt to these early architects who proved the economic viability of modern hydroponic farming.
When current CEO Jenny Harris took the reins in 2015, she built on these decades of success and met the moment of growing interest and investment in sustainable agriculture, helping to triple the company’s revenues in the years since and expanding the company’s reach by shipping to more than 110 countries.
So, in an industry moment where headlines are filled with stories of pricy VC-backed failures, why has AmHydro been able to continue growing?
1. Steady Growth Over Speculative Scaling
While there are certainly examples of big CEA operations who successfully leveraged large cash infusions, AmHydro has grown organically. While this means that the company has, perhaps, not scaled to the fullest extent possible, there are benefits that we’re able to pass along to our customers.
First, organic growth requires fiscal responsibility at every step. Many other companies have embraced a mentality of growing quickly regardless of the costs; planning to fine-tune the details later. This has often proven to be detrimental. It turns out that all the details really matter!
Second, steady growth has allowed the company to maintain our extremely high level of quality without cutting costs or corners. By retaining full control of products and processes, AmHydro is able to offer the incredible products backed by the customer service that we’re known for.
Third, we always ask if this project will make economic sense for the customer. Developing a hydroponic farm of any scale is an expensive proposition. Just like the fiscal management of AmHydro, we ask our potential customers the hard economic questions for their business. Sometimes it just doesn’t make sense to spend the time, effort and dollars if there isn’t the potential for economic success. We don’t make a sale just to make a sale. We make a sale to a customer to expand the industry through successful farm operators.
2. Scientific Expertise
At AmHydro, there is a question underlying every decision: “How does this serve the needs of the plant?”
As CEA has grown and been somewhat absorbed under the label of Agritech, there is often far too much emphasis placed on “tech” and not enough on agriculture. This is backwards. A hydroponic farm is not a factory or a piece of software. Plants are living things, and their growth is inextricably tied to a mastery of horticulture and a deep care for their needs.
When growers work with AmHydro, they’re tapping into the knowledge of a team that has over a century of collective growing experience and accumulated subject matter expertise.
3. Lasting Value
AmHydro’s products are built to last decades without cracking or deforming. The high-quality, food-grade HDPE used in our NFT channels is a more significant investment than other options, like PVC, but the results speak for themselves.
Not only do the products last, but our commitment to sustainable growth as a company means that we intend to be around as long as the products themselves. We’re still available to support customers who purchased from us in the 1980’s – four decades ago; and we intend to be here four decades from now too.
4. Lifetime Support
When we send out a new shipment of equipment, that’s not the end of our relationship with a client, it’s really the beginning. We’re proud of our reputation for best-in-class customer support; we’ve worked hard to earn that. Everyone who purchases from us knows they can call us up to help solve any issues they run into during initial setup, or far beyond.
We hope you’ve enjoyed this series and learning today about some of our company’s core principles. In an age of unicorns and booms and busts, we’ve stayed committed to sustainability.
It’s our hope to impart these values to every one of our customers, as we all work together to build an industry that can help solve the world’s growing food problems.
If you have any feedback on this series or the advice we’ve shared, we’d love to hear it!
If you’re interested in working with us or learning more about our products, check out our website, and don’t hesitate to reach out to our famous sales team. We’re eager to help set you up for success as you grow clean and healthy food for your community.
-The AmHydro team
