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16 PalletCentral • November-December 2022 palletcentral.com and normalized supply, except for the typical seasonal inconvenience. Exports are one of the unpredictable caveats for lumber. We anticipate major exports of raw materials in concrete, steel, and lumber if the conflict between Ukraine and Russia settles. We have no solid indicators or timetable for when this might occur. As long as there are no health disruptions, labor should ease slightly, especially since there will be layoffs in some mid-tier wage jobs. Overall, pallet demand will decrease in some markets by as much as twenty percent, and there may be more recycled and recovered pallets available and a smaller reduction in new custom sizes. Conversely, larger companies are focusing on tightening loopholes in closed-cycle manufacturing, and the number of usage turns will increase, which could drop the numbers mentioned above even more. Overall strict tactical and strategic planning will be necessary for larger pallet companies to continue past successes. Arturo Guerrero PRESIDENT FREEDOM SOURCING At Freedom Sourcing, we are expecting a challenging 2023, with many economists predicting a certain recession that could last not only the whole year but quite possibly into 2024. One of America's top economists that predicted the last two recessions, most notably the Great Recession of 2008, believes that the upcoming recession in 2023 will be considerable. We must all take this into account and be prepared for rough waters ahead. Freedom Sourcing concentrates heavily in the export market with 90% of our customers being in the pallet and crating industry in Mexico. We have been in constant contact with many of our core customers and they are already seeing their businesses slowing. e advantage Mexico currently has is that much foreign industry is setting up manufacturing facilities to avoid the geopolitical issues in Asia, and Freedom Sourcing is in a good position to take advantage of that. It is important that we reign in our accounts receivables and recommend that everyone do the same. Liquidity will be especially important during this period. ough we still see growth ahead, we expect it will not be as robust as the last three years. Randy Panko BLADE SALES MANAGER WOOD-MIZER As we migrate into 2023, Wood-Mizer continues to face the now common challenges of most companies with staying profitable and efficient while remaining productive in an environment where continued supply chain issues exist. In order to address these challenges, Wood-Mizer has invested in back-up suppliers, additional stocking strategies, and the latest technology available. Not only has it been difficult to get supplies and products but also prices are continuing to rise, delivery times are unpredictable, and shipments are incomplete. I expect this issue will remain at the forefront until the third quarter of next year. For the future, our goal is to continue to manufacture our world-leading sawmill and wood- processing products as safely and efficiently as possible while also providing the support necessary so that your businesses can be productive and profitable for years to come. Mia Allen CEO ROSE PALLET Rose Pallet predicts that volumes will slow moderately, and we do not view this as a recession but rather a slowdown after a long spurt of peak growth. Backlogs for trucks, autos, and electronics will ease by the second quarter of 2023 or before. We are already seeing supply increasing, and it will not surprise us if supply outpaces demand in many industries in the next six months. Overstocks will bring costs down as the higher interest expense for inventory will cut profits. erefore, inflation will ease, mainly attributed to increased inventory and margin alignment more than manufacturing cost reductions. Related specifically to pallets and lumber, we anticipate more stable ranges for most wood species We are already seeing supply increasing, and it will not surprise us if supply outpaces demand in many industries in the next six months. – Mia Allen, CEO, Rose Pallet

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