Business Daily Meets: Balsam Hill’s Mac Harman
BBC World Service | December 19, 2025 | Host: Ed Butler
Overview
In this festive episode of Business Daily Meets, host Ed Butler sits down with Mac Harman, founder and CEO of Balsam Hill—one of the world’s leading artificial Christmas tree companies. As millions decorate their homes for Christmas, Harman shares the journey of Balsam Hill, the evolution of the artificial tree industry, sustainability debates, and how global trade tariffs are dramatically shaping the business. The conversation weaves in personal insights, supply chain realities, environmental questions, and the future of "the business of joy."
Key Discussion Points & Insights
1. Personal Roots and Entrepreneurial Beginnings
- Growing up around Christmas trees:
- Mac reminisces about his Ohio childhood, cutting down real Christmas trees with his dad—a memorable, if messy, tradition.
"It was kind of a fun experience. But I’m like, I don't think we need to do that twice." (04:44)
- Mac reminisces about his Ohio childhood, cutting down real Christmas trees with his dad—a memorable, if messy, tradition.
- Family influence:
- He credits his entrepreneurial father for teaching him how to treat people and spot talent.
"Looking back, it really helped me in what's now been a 25-year career as a CEO." (03:17)
- He credits his entrepreneurial father for teaching him how to treat people and spot talent.
- Early ambitions:
- As a child, Mac wanted to be an architect, drawn to designing homes and buildings, but later realized his future lay in business.
"I always thought I would do something in business. I just didn't discover that till later on." (03:54)
- As a child, Mac wanted to be an architect, drawn to designing homes and buildings, but later realized his future lay in business.
2. The Genesis of Balsam Hill
- Side project turns main act:
- Founded in 2006 as a seasonal side business while planning to start something else, Balsam Hill quickly grew into a multi-million-dollar brand.
"I went ahead and started Balsam Hill just as a side business...And then the business has just continued to grow and grow and that's become the main show for me." (04:05)
- Founded in 2006 as a seasonal side business while planning to start something else, Balsam Hill quickly grew into a multi-million-dollar brand.
- The problem with old faux trees:
- The inspiration came from Mac’s in-laws, whose aging artificial tree was lifeless—and necessary due to allergies in the family.
"It was pretty terrible. It was not realistic looking. And I always looked at it and said, boy, I gotta think we can have artificial trees, faux trees that look better than this." (04:47)
- The inspiration came from Mac’s in-laws, whose aging artificial tree was lifeless—and necessary due to allergies in the family.
3. Reinventing Artificial Trees
- First to market more realistic trees:
- Mac explains that in 2006, premium, realistic artificial trees simply didn’t exist—retailers didn’t want to risk higher costs.
"No one was really thinking holistically about how do you make the whole tree look just like it did if you picked it up at that cute tree lot..." (05:28)
- Mac explains that in 2006, premium, realistic artificial trees simply didn’t exist—retailers didn’t want to risk higher costs.
- Applying his scientific background:
- Leveraging his environmental studies and field experience, he personally designed authentic-looking trees.
"I actually sometimes go skiing with pruning shears in my jacket and come down the slope and have a bunch of tree branches tucked into a plastic bag inside my coat. And so we really go out of our way to make them realistic." (05:55)
- Leveraging his environmental studies and field experience, he personally designed authentic-looking trees.
4. Environmental & Sustainability Considerations
- Natural vs. artificial—what’s greener?
- Mac is pragmatic about the “sustainability contest,” noting both real and artificial trees have environmental pros and cons.
"The environmental impact of each one is not significant compared to other activities like driving a car as an example." (07:11)
- The main issue lies with how real trees are disposed of—incineration vs. composting.
- Balsam Hill’s longevity focus: Their artificial trees now use plant-based plastic, aiming for a ten-year lifespan per tree.
"All of the trees that we're selling now are made from plant-based plastic...So it has all the advantages...but it's made from plants and not oil." (07:41)
- Mac is pragmatic about the “sustainability contest,” noting both real and artificial trees have environmental pros and cons.
5. Business Model & Economic Volatility
- The one-month-a-year marketplace:
- Balsam Hill earns 85% of its annual revenue in just six weeks, likened to hosting a major annual sporting event.
"We spend the whole year getting ready for it and then it all happens very quickly." (08:28)
- Balsam Hill earns 85% of its annual revenue in just six weeks, likened to hosting a major annual sporting event.
- Tariff turbulence:
- U.S. trade policy changes, particularly tariffs (ranging from 19% to 63% on some items), have severely impacted costs and product availability.
"In our largest market, we've had these very significant trade handwoods to battle against." (08:59, 09:38)
- The company has had to drop certain products (e.g., snow globes, advanced Christmas lights) due to exorbitant tariffs.
"Snow globes...we ordered those and then we canceled the orders because the tariffs were so high on those..." (15:19)
- U.S. trade policy changes, particularly tariffs (ranging from 19% to 63% on some items), have severely impacted costs and product availability.
- Passing costs to consumers:
- Despite absorbed expenses and operational cuts—including using AI for efficiency, supplier negotiations, and even eliminating office lunches—U.S. consumers have seen prices rise 10-20%.
"Across all U.S. retailers, Christmas tree prices are up 10 to 20%. We track this very closely, and that's just a real significant cost." (13:22)
- Despite absorbed expenses and operational cuts—including using AI for efficiency, supplier negotiations, and even eliminating office lunches—U.S. consumers have seen prices rise 10-20%.
6. Global Supply Chain Realities
- Why are trees made in Asia?
- Pre-lit trees have never been made in the U.S., largely because stringing lights is labor-intensive—American workers simply won’t do it for 40 hours a week.
"The American workers who were making unlit Christmas trees said, you know what, thank you, I'm going to go get a job somewhere else." (14:06)
- Virtually all pre-lit artificial trees come from Southeast Asia, due to cost and labor dynamics.
- Pre-lit trees have never been made in the U.S., largely because stringing lights is labor-intensive—American workers simply won’t do it for 40 hours a week.
7. Trade Politics and Christmas Spirit
- Meeting at the White House:
- Mac attended the White House tree lighting, where Balsam Hill’s decorations were featured, and briefly met the president.
- Impact of U.S. trade policy:
- Mac is actively engaging with policymakers, hoping for relief, and distinguishes between strategic goods and products like Christmas trees.
"We just don't think that non strategic goods like Christmas trees make sense to bring to the US..." (17:35)
- He remains optimistic, expressing faith that presidential attention will help "save Christmas" for the American consumer in the future.
"I am optimistic that he will do something to really save Christmas for next Christmas..." (17:58)
- Mac is actively engaging with policymakers, hoping for relief, and distinguishes between strategic goods and products like Christmas trees.
8. Looking Ahead: Expansion & Resilience
- Future growth:
- The company aims to extend into Latin America, Asia, and the Middle East.
"We’re very excited about getting to Asia and the Middle East..." (18:40)
- The company aims to extend into Latin America, Asia, and the Middle East.
- Irrepressible holiday joy:
- Despite geopolitics and logistical snags, Mac believes Christmas will always find a way.
"Christmas is such a universally appreciated holiday...I just don't think that a trade war or trade realignments or a decrease in globalization...can slow down Christmas. It didn't slow it down in Bethlehem 2,000 years ago. I don't think it's going to stop it now." (18:49)
- Despite geopolitics and logistical snags, Mac believes Christmas will always find a way.
Notable Quotes & Memorable Moments
- On the industry’s beginnings:
"I was really the first person that put that together...how do you make the whole tree look just like it did if you picked it up at that cute tree lot..."
— Mac Harman, (05:28) - On balancing environmental concerns:
"Celebrate Christmas with whichever tree brings you the most joy."
— Mac Harman, (07:12) - On the impact of tariffs:
"The biggest amount of my time this year has been working with the administration in Washington, D.C. and sharing our story and asking President Trump to save Christmas."
— Mac Harman, (11:58) - On what trade wars can’t stop:
"It didn’t slow it down in Bethlehem 2,000 years ago. I don’t think it’s going to stop it now."
— Mac Harman, (18:53)
Key Timestamps
- 01:32: Introduction to Mac Harman and Balsam Hill
- 03:22: Early childhood, family, and the spark of entrepreneurship
- 04:05: Founding of Balsam Hill
- 04:32: The inspiration from Mac’s wife’s family and faux tree challenge
- 05:28: Designing realistic faux trees and Balsam Hill’s innovation
- 07:03: Environmental debates: natural vs. artificial trees
- 08:24: Managing the “six-week business” and annual business cycle
- 08:50: Impact of U.S. tariffs and trade policy
- 13:47: Why artificial trees (especially pre-lit) are produced in Asia
- 15:19: Canceled products due to tariffs
- 17:35: Trade policies: strategic goods vs. Christmas trees
- 18:40: Future plans for global expansion
- 18:49: The enduring spirit of Christmas
Tone
The episode balances warm nostalgia, business pragmatism, and optimism. Mac Harman is honest about the challenges but invokes the universal, unbreakable joy of Christmas. The conversation remains accessible, blending technical specifics with lighthearted anecdotes, making for an engaging holiday episode.
For more deep dives on work and money, catch new episodes of Business Daily on the BBC World Service.