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PalletCentral • November-December 2022 15 Chris Lasseter GENERAL MANAGER SUMMERFORD PALLET COMPANY Will the economic environment improve or deteriorate in 2023? Even if the midterm elections bring about major shifts in the House and Senate, I see things moving very slowly. e economy has been in a weird place for quite some time. Demand is high, production is low, inflation is rising, and I am confident that Washington, no matter who has a majority, will make any considerable change to that pattern in a timely manner. Will wages spike? How about inflation? I don't see how wages can spike much more than they have. You will see more automation, cross-training, and a big push to do more with less. e reality is that there are a ton of great paying jobs that no one seems to want. Inflation will continue to rise to some degree, and Washington has to be able to pay its debt. Will businesses see any relief from supply chain disruptions? It has gotten better already. I'm seeing more than anything that this kind of market has fueled mergers and acquisitions, and the big has just gotten bigger, and pooled resources. I'm not too fond of that for us small business people, but it is capitalism at its finest. Will employers be able to find the workers they need? I don't see labor all of a sudden just breaking open. Since the pandemic, it hasn't gotten any better. It has so much to do with the benefits cliff. e government has made it more lucrative to stay at home than we, business owners, can afford to pay. e American dream of working hard and having a better life has been replaced by what is the least I can do and get by. In the early months of 2023, what data do you watch to get a hint on how the year will shape up? We monitor freight and our customers' demand. If goods are still being shipped and our customers still need pallets at a steady rate, we know that consumers still have the income to keep buying. Remember, there is one person who can fire us all… the customer. Ing. Fernando López Bello LOSIFRA S.A. C.V., QUERÉTARO, MÉXICO Experience tells us that the economy will keep deteriorating even more in the first semester, although there is hope for the second. In Mexico, we will see fewer pallets sold to industries using them for transporting capital goods and more pallets sold to industries using them for transporting consumption or essential goods. A rise in minimum wages is imminent in Mexico; this will directly affect the wages we can offer in the industry and, of course, trigger inflation that this year is expected to close at 8.7% and next year at 5.5%. What is most worrying is wage competitiveness in our industry compared to other sectors that offer equal wages, such as construction, which further complicates the availability of labor. We have seen and will continue to see our supply chains reconfigure to work better, be sure to take part in those changes, or you will be left behind. What is important to keep in mind is that transportation costs will never return to pre-pandemic levels. We are still waiting to see if the labor situation will improve soon. Instead of labor, we recommend looking for greater integration in productive processes, automation, and efficiency. As we say in Mexico, "take good care of cents today, so you don't lose pesos tomorrow." Lastly, check out closely and often: interest rates, inflation, and general consumption indicators, and communicate with your customers about the near future because, as pallet consumers, they are the greatest indicator of consumption trends. I'm seeing more than anything that this kind of market has fueled mergers and acquisitions, and the big has just gotten bigger, and pooled resources. – Chris Lasseter, General Manager, Summerford Pallet Company

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