Issue link: http://palletcentral.uberflip.com/i/1266845
20 PalletCentral • May-June 2020 palletcentral.com supply availability and pricing." Another echoed, "lumber mills getting back online [slowly] is currently creating some difficulty in sourcing lumber." Furthermore, one member says "if the board manufacturers don't start up as well, there will be issues regarding storage capacities of chips and sawdust." Employee Welfare "Keeping momentum and enough good work for my best employees," is one member's top concern. "Seeing how deep of economic impact all the stay-at-home decisions will have on the overall economy and adjusting to a down turn in business," is something to watch. Others note: Employee attendance regardless of infection or not; health and well-being of our employees; keeping their outlook positive; and avoiding future infections as top of mind concerns. "The Big Picture: Unemployment," as one named it, is a concern for many. "The higher the unemployment, the less spending there will be and more dependency on government stimulus. Add to this, "finding new employees in a social distancing format" and "keeping all of my employees with the down market." With "people making $1,000 per week, unemploy- ment is making it very hard to fill vacancies," says another. Keeping labor comes with a cost, notes one executive. "We are not laying off employees because it would be very difficult to get them back once economy recovers. The question is how long we can hang in there?" Lastly, another common concern is the future health of the workforce. "The overall longevity of this virus and the development and distribution of vaccines to immunize" is problematic, says one respondent. "Without an immune population, the constant uncertainty that this virus poses to our economy today and in the future is what is most concerning to us (as well as our suppliers and customers) right now." "I feel we can keep our employees safe at work," says another, "but we have no control over their actions at home. We are probably going to be dealing with this through at least the end of the year – and there is complacency among people already setting in. Now that we have a little better sense of how to protect ourselves, it is critical that everyone follows proper protocol." Supply Chain Repercussions The financial health of the wooden pallet and container industry businesses is similar to other businesses across the country. Concerns range from the added expenses of operating within the new health, safety guidelines to making payroll, and supply and demand. "In the smaller picture [of our business], making loan payments," is a concern for one member. Our business was purchased based on the economy at peak levels. If we do not return to pre-COVID-19 revenues, our ability to make loan payments and stave off bankruptcy will be compromised." Thoughts on the ability of manufacturing reaching full capacity with distancing restrictions and concerns of a second wave of virus spread out with more restrictions, impact the industry. Supply chain disruption was a top concern of many, along with the depth of the economic recession and time of recovery both in Mexico and United States." Real concerns reflected by many respondents were uncertainties about the rest of the year, maintaining the normal summer levels or increase/decrease in demand. Employees coming down with COVID-19; heavy discounting by larger manufacturers with deep lines of credit; increased levels of theft; and clients declaring bankruptcy." "My customers are worried, as well, about labor and if financial institutions will tighten up, and how is the government going to pay all this money back," notes a respondent. Political & Economic Damage NWPCA members are closely watching the political arena. Many respondents believe that reparations against China for their handling of COVID-19 will have far reaching trade and currency headwinds for our economy. "China is one of our largest trading partners. The decline in demand caused by a lockdown of consumers will harm many small businesses, as well as commercial real estate." Common themes listed throughout the responses were: • Some customers may not reopen and feel there is a prolonged recession. • Will workforce return or rely on government stimulus checks? • How much the shutdowns have affected the Drawing from experience, one-third of respondents said there is no quick fix to the post-pandemic economy, with expectation of a 6-12 month period before returning to pre-COVID-19 levels.