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22 Pallet C e nt ral • No vem be r-D e cem be r 2 0 24 None of us have a crystal ball to see what the future will bring. I am optimistic and looking forward to a stronger economy next year. is year, we have seen recycled standard 48x40 (GM A) pallets being sold as low as we sold the same pallet thirty years ago. We all know it is not sustainable given the fact that labor, materials, transportation, building rent, utilities, and other overhead costs are high. We have to do a better job of educating our customers about our compliance with Environmental Social Governance (ESG) programs and other programs of importance to our customer. - Atlanta Pallets and Services As long as pallets continue to move the world, we will be in good shape. Due to economic conditions, some will not survive. W hen things get better, others will pick up the slack and startups will come into being. e price of entry will be great, but there's lots of used equipment on the market. It's a cycle and you have to be old enough to live through them, knowing the cycle will change. I see the biggest threat to the hardwood pallet market being the KD pine market. Much more automation, milling higher volumes of lumber with less people. - Jim Kesting, Madison County Wood Products e broader economic environment in 2025 will be shaped by rising labor costs and new labor reforms in Mexico, such as reduced workweeks and increased vacation time. Companies will need to offset these higher costs by adopting automation and advanced technologies to maintain productivity. Additionally, as environmental regulations become stricter, companies will need to focus on sustainability efforts, optimizing resources, and reducing waste to meet evolving market demands and remain competitive. - Samuel Podlipsky, Tarimera El Rayo With rising material costs and increasing labor expenses, companies will be forced to reassess traditional practices, seeking more efficient, streamlined operations to stay competitive. As logistics costs continue to escalate, businesses will inevitably turn toward more innovative approaches, balancing productivit y with tighter margins. e industr y will need to prioritize solutions that not only address immediate cost pressures but also ensure long-term sustainabilit y and operational resilience in an increasingly demanding market. - Clay Wells, Universal Logic If the Fed continues to lower interest rates, it should boost the economy, but government restrictions on timber and steel could have a negative impact. - Mark Jones, PALtech Enterprises More mills will shut down, which will short the market and increase prices. Pallet companies are struggling to pass any price increases along to customers, so this will eat away at the bottom line for many shops. ose that do an increase will most likely get pushed back from their customers that will shop it and possibly source a new supplier that is more hungr y. Ever yone should really look at tightening their budgets to weather the storm to come out unscathed. - Curtis Berry, Berry Pallets As business picks up again, demand for pallets will increase and the core supply and lumber availabilit y will again be on the front line of the pallet industr y. With interest rates going down, the shortage of housing, and mills closing, we will be facing the perfect storm. - Rene Harpin, SPEC Wood and Marketing Solutions FORECAST CONT. 4. How Do You Foresee The Broader Economic Environment Affec ng The Wooden Pallet And Container Industry In 2025?

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