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PalletCentral • January-February 2023 41 I n our recent research at Forisk Consulting, here are some trends to watch that may impact the pallet industry in 2023. Researchers and forest industry analysts at Forisk talk to hundreds of forest industry investors, executives and wood procurement professionals each quarter. Towards the close of 2022 and entering 2023, in addition to concerns related to outlooks for the economy, forest industry executives and investors emphasized traditional, "meat and potato" issues of logistics, procurement, efficiency and productivity. Mill managers shared that many sawmill projects started after the Coronavirus pandemic added time to account for supply chain issues and delays. Most projects are not experiencing issues getting general construction products, such as structural steel or concrete, but are reporting issues with increased lead time in procuring specialized equipment such as motors for slab chippers or other electrical equipment. For example, one manager noted, "e lead time for a 300 hp motor used to be a month, now it's nine months." Based on data from Forisk's North American Forest Industry Capacity Database, 1.3 BBF of sawmill capacity came online in 2022 via greenfield and capacity expansion projects in the U.S. South, FOREST LUMBER Brooks Mendell of Forisk Consulting, an award-winning research firm that studies forest operations and timber markets, is a keynote speaker at the upcoming ALC in March. Here he reveals interesting highlights of the sector that he will explore at the event. By Brooks Mendell with an additional 395 MMBF of capacity planned to begin commissioning by the end of the year. In contrast, across the continent in Western Canada, there has been at least 1.7 BBF of announced capacity curtailments in 2022, mostly motivated by increased log prices and falling lumber prices, which reduces or eliminates margins, and persistent infrastructure challenges stemming from the late 2021 floods. In 2023, Forisk anticipates an additional 1.8 BBF of Southern sawmilling capacity to come online, with another 1.2 BBF of capacity to be completed by the end of 2024. Trucking reflects supply chain uncertainties. One private timberland owner said that, in the logging sector, "parts and equipment are okay, but truck drivers are still a problem." On the other hand, some mill managers have taken calls from trucking outfits looking for hauls. is relatively recent phenomenon speaks to changes in housing markets and mill production schedules, which declined during Q4 2022, putting many manufacturers in a "wait and see" position with respect to capital investments for 2023. For more data and trends on the timber and forest industry, visit https://forisk.com/resources and read the Forisk Market Bulletin and the Forisk Research Quarterly, as well as white papers provided by the company. In 2004, Brooks Mendell founded Forisk Consulting, an award-winning research firm that studies forest operations and timber markets. Forisk subscribers own and manage over 100 million timberland acres, and account for nearly 50% of the annual wood use in North America. As CEO at Forisk, he's published hundreds of blogs and analyses related to forestry. Forisk's "Applied Forest Finance" course will be held virtually on May 16th, 2023. 2023 Update & iStock/Anjali Sisodia

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