Issue link: http://palletcentral.uberflip.com/i/1390499
6 PalletCentral • July-August 2021 palletcentral.com FROM THE CHAIRMAN 2021 SEASON SPONSORS Kiln-Direct.com 910-259-9794 | kiln-direct.com Mid Continent Steel and Wire 800-867-6245 | magnumfasteners.com Pallet Machinery Group 540-644-9220 | palletmachinery.com Pendu Manufacturing 717-354-4348 | pendu.com Profile Technology 800-369-4242 | profiletech.com PRS Group 217-291-0009 | prsgroupinc.com Rotochopper 320-548-3586 | rotochopper.com Smart Products 800-401-0099 | smartproductsinc.com Smith Sawmill Service 800-598-6344 | smithsawmillservice.com Vecoplan 812-923-4992 | vecoplan.com Viking Engineering & Development 800-328-2403 | vikingeng.com T hese are unprecedented times in the pallet business. Declared as part of the critical infrastructure in the supply chain, the pallet industry weathered the storm of the COVID-19 pandemic, and the demand for wooden pallets has surged, with many pallet companies on track to have a year of outstanding revenue growth. e soaring demand for pallets has caused the price for pallets to climb to never-before-seen levels, and there are a number of key factors driving the recent spikes in price. While the most well-known factors are the price and availability of lumber and the availability of recycled pallets, labor remains the constant challenge for our members – and the larger economy. Labor has always been a tough issue for the pallet industry, but current labor shortages across the country have reached crisis levels. Our industry has responded like others, by increasing hourly wage rates to retain and attract new workers and, in some cases, providing signing bonuses and other incentives. Despite these efforts, many jobs remain unfilled. ese increases translate to raising pallet prices and the unfilled positions impact pallet availability. Earlier this spring, the NWPCA members and other groups successfully communicated with governors and state legislatures requesting they discontinue the $300 per week federal supplemental unemployment compensation. As of this writing, 26 states plan to end the supplemental benefit by July. In addition, there are no longer any discussions to extend the federal benefit beyond the planned September expiration. is creates hope that there will soon be men and women returning to the workplace to fill a record number of job openings across the country. rough all these challenges, the wood pallet industry continues to meet the call of manufacturers, distributors, and retailers. While the pallets cost more due to the challenges we face, our members and our industry have gone above and beyond the normal course of business to make sure our customers have the pallets they need to ship essential products and keep store shelves stocked. I am extremely proud of the efforts we have all made to meet pallet demand. As we face these ongoing challenges in our industry, we must provide our customers with the facts and knowledge to help them understand the forces affecting the cost and availability of pallets. As always, we will be there to do our part in moving their products through the supply chain and keep the world moving. Sincerely, Mike Hachtman, 48forty Solutions NWPCA Chairman Meeting Supply Chain Demands Despite All Obstacles Board Officers Chairman Mike Hachtman, 48forty Solutions Chairman-Elect Carolyn Beach, Westside Pallet Past Chair Frank Shean, PLA Holdings-Valley Pallet Secretary/Treasurer Nick Wenner, Pallet Service Corp. Director at Large Kathleen Dietrich, Commercial Lumber & Pallet President/CEO Brent J. McClendon, CAE Board of Directors Michelle Blizzard, Pallet Central Enterprises Henry Bowman, C&L Wood Products LeRoi Cochran, 48forty Solutions Dominick Davi, Greenway Products & Services David Grimes, Pallet Resources of NC Hinton Howell, Cottondale Wood Products Bernie Kamps, Kamps, Inc. Bryan Kesting, Madison County Wood Products Steve Mazza, S&B Pallet Joe O'Brien, Industrial Pallet Shane Thompson, WestWind Logistics Beatrice Vasquez, Oxnard Pallet Howe Wallace, PalletOne, Bartow, FL International Director Mike Vrugteveen, Niagara Pallet & Recyclers Associate's Representative Randy Panko, Wood-Mizer International Director Emeritus Jan Fredell, Fredells Travaru AB