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Pallet C e nt ral • S e ptem be r- O ctobe r 2 0 25 21 integrations to help customers to do more with less, in addition to investing in AI and automation, with a focus on reducing manual admin work and improving critical areas like forecasting, purchasing, and production planning." Presta's approach isn't unique to his business. Many other manufacturing leaders are charting a similar path. Disrup ng The Industry? More Like Stabilizing It In our everyday lives, we're constantly hearing about how AI is changing everything. It's shaking up business operations and changing how individuals manage their finances. But something interesting is happening in the wooden pallet industry. AI isn't disrupting anything, but rather, it's providing a shred of stability when businesses need it most. If AI can be integrated without requiring significant resources, it can improve business outcomes. Although it's not magic, this advanced technology can help in many different areas: • Forecasting And Demand Planning: AI can help manufacturers better predict shifts in lumber pricing and customer demands. • Procurement Optimization: Algorithms can highlight the most effective buying patterns for nails, lumber, and other components, while also considering tariff changes. • Productivit y And Efficiency: Curious about reducing material waste, designing longer-lasting pallets, or lowering labor costs? AI-driven tools—such as predictive analytics, design optimization software, and automated systems— are increasingly helping companies find smarter, more efficient solutions to these challenges. Labor Impact: What Does AI Mean For Our Workforce? AI is changing the day-to-day experience for many pallet manufacturing professionals, but overall, it's expected to augment the human experience, not replace it. While 26% of survey respondents do expect some disruption, many more see it as a supplemental tool. A lack of job disruption doesn't mean that changes aren't happening, though. Nearly a quarter of respondents (23%) are expecting to create new roles focused on AI systems and enhanced data availability. For workers, that's good news. It means that as a few opportunities end or change, new ones are opening up at a similar rate. Aiming For A Reliable ROI In a time of so much economic uncertainty, pallet companies aren't looking to take on much more risk, but they are open to the idea that AI will have a positive impact in the years ahead. "Businesses are . . . more open to investing in tech that directly improves efficiency and ROI," noted one member. "We're not out of the woods, but I'm seeing signs of stabilization." e cautious optimism doesn't get rid of the challenges that come with AI adoption; fragmented data, legacy business systems, and a lack of IT infrastructure still need to be addressed. Another respondent didn't muddle words, explaining, "We know we need to modernize, but we need it to be simple, affordable, and impactful from Day 1." AI Addresses Mul ple Pain Points Over the next few years, pallet businesses will have two options: evolve and adapt or get left behind by customers. Although there is more than one way to adapt to the current market conditions, AI seems to be an effective way to address multiple areas of concern, and that's not lost on industry leaders. "Technological industrialization is urgently needed to access quality resources, fair prices, and secure supplies," said one member. It's this very sentiment that will drive change at all levels of the pallet industry.

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