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September-October 2025

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Pallet C e nt ral • S e ptem be r- O ctobe r 2 0 25 37 Strategic Growth at Pallet Connect, put it, "It's certainly a recalibration period. Businesses are being more deliberate with spending, but they're also more open to investing in tech that directly improves efficiency and ROI." On the flip side, an equal number of members described themselves as pessimistic, citing slow customer demand, soft pricing, and lingering uncertainty surrounding tariffs and inflation. "We're as slow as we've been in a few years," wrote one member. "ere is no clear path forward for the economy." Another echoed: "We've been in a holding pattern for 12 months, and I wouldn't be surprised if it lasts another 6 to 12 months." One respondent pointed out a looming labor issue due to a local employer shutting down, attributing it in part to the tariff situation between the United States and Canada. Others pointed to rising overhead, freight costs, and soft consumer sentiment, particularly in the housing market, as indicators that challenges could persist well into 2026. International respondents mirrored many of the same concerns, but with added urgency. In Brazil, Jonatan Carlos de Souza of Elopack cited spiraling inflation and an unstable tax environment: "ere is no control over spending, which is more than double that of the last administration. is keeps driving prices up. We're navigating a very difficult recession." Tariffs: The Dominant Concern No issue came up more frequently, or more urgently, than tariffs. From Canadian softwood duties to broader geopolitical tensions affecting global trade, members overwhelmingly cited tariffs as the biggest threat to stability in the coming months. "Customers are quite worried and are holding back. Tariffs are the biggest concern," said Jeff Lewis of Atlanta Pallets & Services. Others expressed concern that tariffs were not only increasing costs but also distorting pricing and delaying investment decisions. A product development manager from a leading equipment supplier remarked, "e mood is economic whiplash, with the news cycle and tariff news changing daily. Hard to feel confident with constant change." De Souza added, "At a time when the market is picking up again, especially

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