Issue link: http://palletcentral.uberflip.com/i/1194984
Daniel Withrow PRESIDENT CSS Distribution Group Louisville, Kentucky n We see our customers becoming more astute to market movements in lumber and therefore are more demanding when movements show a downward trend. They are also more open to ideas that we bring for combo pallets and/or asset recovery programs to help insulate them from lumber shortages or upward market movements. Our fastest growing market segment is our asset recovery programs. We see a real opportunity for our partner mills who join us in our efforts to recover non-GMA pallets from our customers. We feel that the labor market will continue to be a pinch point due to the low national unemployment rate and hourly labor rates will continue to see upward pressure in order to maintain a good workforce. This influence will force overall pallet pricing upward over the next several years unless the economic outlook changes toward a recession. John Lieber PRESIDENT Profile Technology Fenton, Missouri n Looking back from 2025 to today, I would expect to see two major differences from today. First, continued development of USDA-Forest Service programs as regards to growth and harvesting of hardwood and softwood stands to help balance supply and demand. The Forest Service has taken a very aggressive approach in research and testing models to improve yield of both hard and softwood forests. Their forward- looking efforts will continue to enable both public and private harvesting of timber to continue to be both profitable and sustainable for the nations timber/lumber industries and for the forests habitat. Second, continued diversification of our exports from primarily China to other overseas markets will expand for both offensive and defensive reasons. It's no secret that the political and philosophical differences between the U.S. and China are 180 degrees apart. What started in the 60's under Nixon in opening U.S. markets for expansion into a huge new market for the U.S. economy has now become a tug of war as regards supply and demand and who controls the reigns of supply and demand regarding imports and exports (not only in the U.S. but around the world). Mike Hachtman PRESIDENT AND CEO Relogistics Services Houston, Texas Pallets and Politics in 2020 n Pallets: We will enter 2020 coming off a strong retail holiday season. Retail sales have been the primary force driving us to a time that I am calling "Peak Pallet" with robust demand for pallets and near record high prices for recycled pallets. Unfortunately, we will soon see an end to Peak Pallet as recycled pallet prices and demand begin to soften in the 2nd quarter due to slower economic growth – particularly in manufacturing – and weakened consumer sentiment as the elections and continued trade battles erode confidence. However, GDP will still grow by over 1% in 2020. n Politics: Without seeing a single vote yet cast, I predict Michael Bloomberg will be the Democrat nominee for President. Biden will fall due to a lack of an excited base and fundraising. Bernie Sanders and Elizabeth Warren will continue to split the far-left vote. And, while Pete Buttigieg continues to attract some moderates and young voters, he will fade as he is unable to gain any traction with minority voters. Ultimately, I have to believe there is a plurality of moderate, Democrat voters who will seek a candidate they think can win in November. Bloomberg will spend well over one hundred million dollars of his own money to convince them he is that candidate. Despite Bloomberg presenting himself as a moderate, get things done candidate in the Democrat primary, he will be forced to accept many left-leaning Democrat policies that will ultimately make him unpalatable to the middle of the country and, he will lose to Trump in November. palletcentral.com PalletCentral • November-December 2019 13 E iStockphoto/Markus Novak ach year, our industry thought leaders, our members from NWPCA, are asked to predict the future of the wood packaging sector. They brainstormed and predicted supply, markets, labor challenges, technologies, or other global forces that will define the next year, and far beyond to 2025, for the wood packaging industry. With labor and the workforce, and automation, on the top of our minds, PalletCentral specifically asked our members for comments in these two areas. In addition, each provided an interesting perspective on where they see the industry in 2025. We thank each of our members on the following pages for providing feedback for this article.