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November-December 2018

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20 PalletCentral • November-December 2018 palletcentral.com suppliers with a much smaller market for their grade logs and boards, and we are seeing less industrial lumber as a result. Even if China does come back, we believe it will not be at the same levels as early 2018. Overall, we predict a year that will be "good," just less so than previous years. We also see an industry path towards consolidation, and in 3-5 years, there will less of us, not more. Richard Berry PRESIDENT Berry Pallets, Inc. The hardwood supply in the upper Midwest has been ok, lately though it has tightened some and prices have gone up. I see this trend continuing if we don't get to much snow early. The softwood side has good supply, but 6" is a little tight. I see railcars being short supply again this winter, which could raise the cost of lumber. Pallet manufacturers should be using both hardwood and softwood to maintain a good flow of wood coming in to their plant. The softwood lumber tariffs affected our industry a lot. For those in the upper Midwest we rely on Canadian lumber more than the west coast. Other tariffs out there are affecting our Ag industries which rely on China exports. Our industry is getting to be very solid. I see some consolidation happening in the future. Block pallets will grow and the GMA market should grow. I am seeing some pull back from rentals. THOUGHT LEADERS Labor remains an issue. A key focus is automation. Many are exploring this now. Longer hours might be a short- term fix. In some regions shorter hours for the same pay will become a labor demand. — KEITH REINSTETLE

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