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20 Pallet C e nt ral • No vem be r-D e cem be r 2 0 24 Companies will have to begin getting better at knowing their numbers. e data will be the only way to control and make decisions around these costs associated with the pallet business. Being resourceful and sourcing are the key. - Mohammed Alakoli, PALLETCO One of the most impactful factors for every company besides materials cost is cost of labor. As baby boomers are retiring in greater numbers, we are faced with a shrinking labor pool. Leaders of companies need to be very creative to attract new employees as well as retain existing ones. It is less expensive to retain existing employees, even with pay raises and greater benefits, than hire new ones. With automation and new technologies, it will be easier to bring on board new, younger employees. As always, companies are looking to control cost of materials, and looking for alternative materials wherever they can be used, and offering customers pallets made out of recycled versus new materials. - Atlanta Pallets and Services Stronger customer relationships. - Brock Lundeen, Mavin Faster automation, less people equating to lower cost. More technology regarding pertinent information will cut logistics cost. - Jim Kesting, Madison County Wood Products In Mexico, recent labor reforms have increased vacation time, and there is ongoing debate in the Chamber of Deputies about reducing the workweek from 48 hours to 40 hours, with a potential resolution in 2025. ese changes will likely raise labor costs, prompting companies to adopt automation and more efficient production processes. By utilizing data-driven technologies, businesses can better manage resources and logistics, ensuring they remain competitive despite rising operational costs. - Samuel Podlipsky, Tarimera El Rayo Automation in general. - Tree Brand Packaging Tighter just-in-time ordering; less automating growth in production due to loosening labor markets. - PALtech Enterprises In 2025, companies across the pallet industry must address rising costs by adopting strategies that improve efficiency and reduce reliance on manual processes. One of the most effective ways to manage these rising costs will be through automation, particularly in areas like pallet inspection and material handling. Automated systems for quality assurance can drastically reduce the need for human oversight, cutting labor costs while ensuring consistent product quality. In material handling, robotic solutions for tasks such as loading and unloading pallets can streamline operations and reduce the physical strain on workers, ultimately lowering the costs associated with labor shortages and high turnover. While material and logistics costs are expected to remain high, automation will help businesses maintain steady operations by optimizing resource use, minimizing downtime, and ensuring that workflows are as efficient as possible. - Clay Wells, Universal Logic To import more precuts. - George Dunn & Olympic Industries Upgrading trucks to more fuel-efficient models. Automating to eliminate or reduce labor costs. - Mark Jones, PALtech Enterprises Everyone will continue improving their processes, and automate where it makes sense to keep labor needs down. Many small improvement efforts like reducing scrap and waste, and be energy smart will also help keep costs in check. - Mia Allen, Rose Pallet People will try to do their best to squeeze as much production per employee, but I think 2025 will be a stagnant year for any real change. - Curtis Berry, Berry Pallets Lumber supply is the most important ingredient—with labor— for all new pallet manufacturers. Supply could become tighter in the next 12 months, and relationships will be really important again. Labor is more important than ever, but technology will allow us to produce more with less labor. - Rene Harpin, SPEC Wood and Marketing Solutions FORECAST CONT. 2. What Strategies Do You Foresee Companies Adop ng To Manage Rising Costs In Materials, Labor, And Logis cs In 2025?

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