Issue link: http://palletcentral.uberflip.com/i/1280561
14 PalletCentral • July-August 2020 palletcentral.com John Lieber, President, Profile Technology As the county went into lockdown, and only essential businesses were operating, the lockdown triggered panic buying of many consumer needs. The supply chain of goods was strained but not broken. This stress has since reduced to more normal levels and adjusted to changes in requirements for various products and services. Our new pallet and pallet recycle tooling business has made some adjustments but is holding steady through June. Our custom tooling applications are up significantly for the same period. It's hard to say if this uptick is virus-related or not, but overall year-to-date, our business is ahead of last year. The gorilla in the closet is vaccine-related. If a vaccine is available this year, then capital equipment expenditures should continue as planned, "old normal." Without a vaccine, capital expenditures will delay until a "new normal" is established. In either case, our industry is flexible and resilient enough to adjust to market trends. As history has proven, the wood pallet industry and its supply chain of wood, nails, operating machinery, tooling, etc. have always risen to meet its customers' changing needs. Products continue to be delivered through warehouses, distribution centers, and retail stores to consumers. Most of these deliveries to retail outlets are packaged and transported on new or recycled wood pallets. There may be a "new norm," or we may return to the "old norm." In either case, you can be sure wood pallets continue to play an essential role in keeping the American supply chain moving "just in time" deliveries smoothly and efficiently. Wood pallets continue to move the world. Rene Harpin, President, SPEC Wood Solutions We realize that the pallet industry is an essential part of the crisis marketplace demands, and yes, "Pallets Move the World." We learn every day that the North American economy must get stronger, more integrated, and self-sufficient. The new free trade agreement signed by the USA, Mexico, and Canada could be even more open, which would allow us to depend less on China and other Asian countries. "Business as usual" will and should never be what we had in the past. We have the capacity and the labor to bring manufacturing back to North America and the means to ship goods by truck and train promptly. It will take massive investments to build very productive and automatic manu- facturing lines: more robots, more sophisticated equipment, more specialized and trained workers. The pallet industry is part of the solution. These shipping platforms have a 95 percent recovery rate because they get reused, repaired, and recycled; they are an essential part of our distribution chain. Wood is renewable and recyclable, so naturally, lumber and precut lumber are a great solution to meet the increased needs of our essential sectors. Our company has been able to meet our customer's requirements and even help new ones. Yet, we also acknowledge that the situation in the USA, Canada, and the world has changed markets, but mostly our lives. Put into perspective, the uncertainty of this market is nothing compared to what essential workers in our healthcare systems are doing. Please stay healthy, everyone. There may be a "new norm," or we may return to the "old norm." In either case, you can be sure wood pallets continue to play an essential role in keeping the American supply chain moving "just in time" deliveries smoothly and efficiently. –John Lieber, President, Profile Technology We believe that those who can adapt quickly to successful and creative strategies, along with strengthening customer relationships, will survive today but thrive in the future. –Kurt Larsen, President & CEO, Viking Engineering & Development