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Pallet C e nt ral • No vem be r-D e cem be r 2 0 25 33 A s the wooden packaging and pallet industry looks ahead to 2026, members are navigating a business environment defined by economic recalibration, technological acceleration, and continued trade and tariff uncertainty. To better understand what lies ahead, PalletCentral surveyed members across North America and abroad, gathering insights from pallet manufacturers, recyclers, machinery producers, and technology partners. eir responses, shared here, reflect a wide spectrum of experiences. From cautious optimism to strategic innovation, they offer a collective snapshot of where the industry stands and where it's headed next. While opinions vary, a few clear themes emerged: measured economic optimism, digital transformation, focus on sustainability, and ongoing challenges from tariffs, labor shortages, and political uncertainty. A Measured Economic Recovery Most respondents anticipate moderate to steady growth in 2026, buoyed by recovering manufacturing activity and easing interest rates. As one member observed, the coming year "seems like it will be another volatile year that will test the agility of our business and how to position ourselves in the market." Still, several members expect stability ahead. Pallet Alliance projects "steady results in the year ahead," supported by resilient demand for "cost-effective supply chain solutions." e company notes that "labor constraints and freight volatility underscore the importance of scalable, national programs that offer customers stability, consistency, and continuity of supply." From an equipment manufacturer's perspective, Go Fast Manufacturing's Kevin Kaufman says, "We are seeing an uptick in activity and feel it will continue into 2026. It has us looking for additional skilled labor employees." at confidence is echoed by Reardon Pallet Company's Daniel Reardon Jr., who expects "2026 will be strong overall economically," even as some segments soften. "Opportunities exist in all of our lines of business—new, recycled, custom, etc.—though we will need to get out of our comfort zone in order to expand." Meanwhile, Profile Technology, Inc. reports a cautious but improving sentiment among its customers. "Markets will strengthen into 2026 and beyond as interest rates are lowered and regulations governing new construction are reduced," says President John Lieber. "As new US manufacturing infrastructure comes online, we should see an expansion of our overall economy and multiple needs for wood products, including pallets." Taken together, the feedback paints a picture of a gradual rebound—not a surge—as the industry steadies itself after the uncertainty of 2025. The Digital Transforma on Accelerates Across nearly all survey responses, automation, AI, and data-driven decision- making emerged as defining forces for 2026. While technology adoption has been an ongoing discussion, this year appears to mark the point where digital transformation moves from optional to essential. According to Pallet Connect's Head of Strategic Growth, Nunzio Presta, "Companies are actively modernizing operations to stay competitive." e company, which builds a cloud-based ERP platform specifically for the pallet industry, anticipates "strong adoption of our platform as pallet companies increasingly embrace digital transformation." Presta adds that AI will be "the differentiator for pallet companies that want to move beyond basic operational tracking and toward truly optimized data- driven performance." At Valleywood Industries, President Tim ompson sees similar momentum. "AI is streamlining our own work internally, and I expect that to continue," he says, noting that efficiency gains will continue to shape operations well into 2026. For others, optimization remains the immediate goal. Kaufman of Go Fast Manufacturing captures the mindset of many operators: "Efficiency. How to get the most out of our current workforce." Meanwhile, BECK America's Brett McCutcheon points to automation and sustainability as increasingly interlinked priorities. His company's innovations (wooden nail system) exemplify how new technology can reduce reliance on metal fasteners while improving recyclability. "Our LIGNOLOC® wooden nail nailing heads are making production more sustainable, quicker, and tackling the problem of sourcing labor," McCutcheon explains. Sustainability Moves Center Stage Sustainability remains central to industry strategy in 2026, though the emphasis varies from reducing waste to circular design to measurable lifecycle impact. ImalPal Group Sales Manager Vincenzo Vitiello highlights the growing market for products made from wood residuals. "ere is an abundance of wood residuals such as wood chips and sawdust," he says. "We firmly believe there will be an opportunity to establish a pallet block plant in North America due to the abundance of residuals material available." at focus on resource efficiency is echoed by Pallet Alliance, which continues to integrate "data, technology, and our extensive supplier network to enhance procurement and logistics" as part of its sustainability strategy. Several anonymous respondents linked sustainability with competitive positioning. One noted that demand for block pallets is likely to increase. As customers across manufacturing and logistics sectors demand more traceable and environmentally responsible solutions, wooden packaging's renewability and recyclability remain major advantages.

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