Issue link: http://palletcentral.uberflip.com/i/1071930
palletcentral.com PalletCentral • November-December 2018 19 Gary Sharon EXECUTIVE VICE PRESIDENT Litco International This is an exciting time in our industry and we have a very bright future. We have the tools to brand our companies as experts in our fields. We are able to demonstrate the value that our companies and products bring to the supply chain. Moving beyond 2018, there are two challenges that I view as significant: 1.) The shrinking pool of able, young workers due to a gradual shift in population demographics. 2.) The ability to secure transportation for our raw materials and finished goods in a timely manner at a reasonable cost. The transportation challenge is attributed to the availability of drivers, plus the burden of new DOT government regulations that reduce the amount of time in which a driver can travel. The dwindling pool of available workers is affecting the U.S. and other industrialized countries. So, what are a few of the possible solutions to increase the flow of good employees? For Japan, their solution is to increase the use of temporary migrant workers in 14 target industries. They will receive visas for a maximum of 5 years, not be permitted to bring families and must be able to communicate in Japanese. A few ideas for solutions that we can do as business owners include; train employees to higher efficiency, increase automation, reduce waste, outsource pallet components and to recruit students from local high schools and community colleges for hire after graduation. Brian Schaefer CEO Troymill Wood Products, LLC We believe that 2019 will be a year of transition. For the first time in many years, the headwinds facing us are likely to be stronger than the tailwinds pushing us. We believe inflation will rise modestly, which along with higher interest rates and a slowing economy will push our customers to reduce their spending. It is likely that both pallet prices and capex budgets will be looked at more closely than they have been in some time. As a result, our top line will face pressure, and we'll have to tighten our belts to keep the bottom line healthy. In somewhat of a contradiction, we expect lumber supply to remain tight (labor and trucking as well), even as business conditions don't exactly set the world on fire. This will be especially true if no trade deal is made with China. Their departure from the grade hardwood market has left our