Issue link: http://palletcentral.uberflip.com/i/1071930
palletcentral.com PalletCentral • November-December 2018 21 Caroline Urtiaga CONTROLLER Pallet Consultants Under the new tax laws, Pallet Consultants planned to increase efficiency by purchasing capital equipment. The maximum de- duction for S. 179 property increased from $500,000 to $1 million. The tax laws also increased the phase out from $2 million to $2.5 million. In addition, the new law increased bonus depreciation from 50% to 100% for qualified property. Not only did the deduction increase but the rule was changed to include used property if certain conditions are met. The increased capital investment has contributed to increased efficiency and revenue growth. Keith Reinstetle VICE PRESIDENT – SALES PalletOne, Inc. Over the course of 2018 the continuing theme has been lumber, labor, and transportation. We don't see this changing anytime soon especially as we move into 2019. For many of us, we have never seen such a demand for lumber and lack thereof in our years of service. For the short term we don't foresee this changing. A multitude of Southern yellow pine mills are coming on-line in the Southeast which will increase supply. Basically the demand for lumber will remain very strong for the balance of 2018 and again in 2019. The economy is rolling at one of the strongest rates we have experienced. We don't believe lumber will be as volatile as it was in late 2017 and most of 2018. 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. Gaining ground on production data will be key. Tracking performance must be managed to support or not support higher pay demands. Transportation is also an issue. Drivers and driver availability remains tight. With the pace of play in the manufacturing world, trucks are moving. Electronic log books etc. have also impacted the flow. While the economy continues rolling we expect transportation to remain an issue in 2019. We are very optimistic about our industry moving forward. PC The increased capital investment has contributed to increased efficiency and revenue growth. — CAROLINE URTIAGA