Issue link: http://palletcentral.uberflip.com/i/1071930
14 PalletCentral • November-December 2018 palletcentral.com AJ Cheponis SALES MANAGER Pallet Consultants With softwood markets finally reaching an equilibrium, local lumber has once again become more advantageous in both cost and availability than importing from Canada or South America. We expect this to continue and are prepared to outsource as necessary to satisfy our commitments. We are also looking at all leases vs. purchases right now due to available purchase incentives. We are planning to take advantage of the new tax laws although all capital investments will continue to be approached from a need basis and not initiated by tax savings. Jorgelina González VICE PRESIDENT Paleteras Unidas & Caribe Recycling South American lumber markets continue to extend into the U.S. Many South American lumber mills have sustainability and ecological accreditations that some U.S. lumber mills lack. Due to recent storms the shipment of pallet lumber was understandably low on the priorities of the shipping ports; this caused a shortage of materials and later an excess. Severe weather events not only increase the rates of reassurance on a yearly basis, but also affects the inventory insurance during these fluctuations. Both the weather and the extended storage conditions can affect the quality of the lumber and cause claims from customers. It has become increasingly difficult to find good laborers in PR, as it has in the 50 contiguous states. Pallet companies from the U.S. Mainland came to the island offering jobs and relocation. As interest rates climb and loan conditions become stricter, businesses are taking alternative approaches to acquire new properties and equipment. The island is considered as part of the U.S. for the "Buy-American" tariff. Increased new wood pallet prices thus lowering units per sale. In 3-5 years, we see more pallet brokers increasing the separation between the pallet seller and the manufacturer. Smaller pallet companies are on the rise. THOUGHT LEADERS As interest rates climb and loan conditions become stricter, businesses are taking alternative approaches to acquire new properties and equipment. — JORGELINA GONZÁLEZ