Issue link: http://palletcentral.uberflip.com/i/1390499
10 PalletCentral • July-August 2021 palletcentral.com POLICY PLAY AT Grace Johnson is manager, policy and public affairs at NWPCA. She also manages the NWPCA PAC for the Association. She may be reached at 703.519.6104 or gjohnson@palletcentral.com. P allets are essential and critical – not only to the solid wood producers in each state, but also for moving the necessary goods our nation needs today. There are over two billion wood pallets in circulation in the United States, with 94% of all goods traveling on a pallet. Our industry is so impactful that, amid the COVID-19 pandemic, the Department of Homeland Security and Cybersecurity and Infrastructure Security Agency officially designated manufacturers and distributors of packaging materials, including the pallet industry, as essential workforce critical infrastructure. The bottom line is, if producers and other industries do not receive pallets, they cannot ship essential goods. This has become abundantly clear in recent months as other industries begin to feel the effects of the pallet shortage and the profile of the pallet industry is at an all-time high. United Fresh, a produce industry association, sent an alert to their members in May titled "North American Produce Industry Sounds Warning Bell re pallet shortages Putting the Supply of Fresh Produce at Risk," underscoring the fact that the lack of pallets is adding stress to a supply chain that is already facing significant challenges. Brent McClendon, President & CEO of NWPCA, acknowledges this, saying: "Our industry is one of many working to adapt to unprecedented shifts brought on by the pandemic. Amid limited labor and lumber availability, and facing nationwide transportation challenges, we have worked diligently to supply the pallets needed to meet the food, health, and critical infrastructure needs of this nation. Since the beginning of the pandemic, the wood pallet industry has played an essential role in enabling our supply chain partners to meet the increased demand for products. Wood pallets will continue to move the world during this time. Supply chain issues include lumber and labor shortages, lack of available truck drivers, and fluctuating fuel costs. We understand U.S. sawmills are working hard to increase capacity and meet strong consumer demand. Wood pallets are the number #1 market leader in packaging, and NWPCA continues to participate in various coalitions to support policy issues that can alleviate these recent challenges." As mentioned, NWPCA is proactive in ensuring that the voice of the wood pallet industry is heard, especially during this time. Our most recent efforts included launching a grassroots campaign calling for leaders to recognize the workforce crisis by addressing labor shortages to increase wood pallet availability. The American Rescue Plan provided much-needed assistance to packaging industry businesses through the Paycheck Protection Program (PPP). Other aspects of the plan, such as the $300 unemployment insurance bonus, caused significant unintended issues for our industry and others, making it even more difficult to hire new employees. The call-to-action campaign asked state leaders to resolve the workforce crisis through innovative workforce solutions and/or by joining the other states in ending the federal government's $300 per week supplemental unemployment benefits. You can still complete the campaign to share your concerns with your elected leaders at nwpca.quorum.us. As of mid-June, over 160 campaign letters have been sent, and twenty-five states (AL, AK, AZ, AR, FL, GA, ID, IN, IA, MD, MS, MO, MT, NE, NH, ND, OH, OK, SC, SD, TN, TX, UT, WV, and WY ) have ended the $300 per week unemployment bonus or have taken action in some way. A handful of states including Arizona, Montana, New Hampshire, and Oklahoma are instead offering financial incentives of up to $2,000 for individuals to find work. In addition to grassroots campaigns, NWPCA continues to meet multiple times a month with Members of Congress, creating and building on strong, bipartisan relationships. Recently we have met with the offices of U.S. Representative Glenn "GT" Thompson (PA-15), Republican Leader of the House Agriculture Committee, Representative Alma Adams (NC-12), Vice Chairwoman of the House Agriculture Committee, and Representative David Scott (GA-13), Chairman of the House Agriculture Committee. We are constantly working to advance the priorities of the wood packaging industry, specifically the industry's core issues of invasive species and trade. Strains on the Supply Chain: Lumber and Labor By Grace Johnson The call-to-action campaign asked state leaders to resolve the workforce crisis through innovative workforce solutions and/or by joining the other states in ending the federal government's $300 per week supplemental unemployment benefits.