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16 Pallet C e nt ral • Ma rch -Ap r il 2 0 24 BUSINESS The Year Ahead: What The T he backbone of supply chains and the unsung hero of the global economy as a whole, wooden pallets, despite being simple in form, have continued to prove their importance across industries since World War II. In 2024, the industry of wooden pallet and container manufacturing is expected to reach revenue targets of $10.9 billion in the United States alone. For the manufacturing experts that ensure a continuous stream of wooden pallets and containers are entering the market, anticipating what the new year will bring isn't just mission-critical for their own businesses; it's mission-critical for every business that uses wooden pallets. Ninety-four percent of US products come into contact with a wooden pallet at some point in the supply chain, so if the US economy wants to achieve the "soft landing" experts keep hoping for and avoid an all-out recession in 2024, we need to understand what's going to happen with wooden pallets. To accurately conclude what wooden pallet manufacturers can expect to see in the year ahead, we have to look at upstream and downstream implications for these wooden powerhouses. By diving into the supply of raw materials and labor, we can anticipate hiccups and work to overcome them before they start. Next, through an assessment of demand, manufacturers will start to understand just how much wooden pallets are needed from industry to industry. And finally, examining the innovation in the wooden pallet manufacturing space can help industry leaders align on best practices that result in top-tier outcomes for all the business sectors they serve. Upstream Factors: Lumber Prices, Labor Shortages, And Interest Rates After the COVID-19 pandemic, unprecedented housing market activity was a driving force in the skyrocketing cost of lumber, labor shortages of qualified workers put pressure on companies throughout the logistics and manufacturing landscapes, and the Federal Reserve's constant raising of interest rates made it harder for businesses to do business. What's changing in 2024? Should we expect to see more of the same, or will wooden pallet manufacturers finally get some much-needed relief ? Will Lumber Prices Go "Timber" In 2024? As 2023 closed out, according to the NASDAQ , lumber prices were sitting Tells Us ABOUT ECONOMY WOODEN PALLET MANUFACTURING BY JERICA KINGSBURY, BUSINESS WRITER

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