palletcentral

34 Pallet C e nt ral • No vem be r-D e cem be r 2 0 25 INDUSTRY INSIGHTS CONT. e challenge, members note, lies in communicating those benefits, and in quantifying them in ways that resonate with both corporate buyers and regulators. Tariffs And Trade Survey feedback underscores that tariffs and trade policy remain among the most disruptive forces in the market. From Mexico, Losifra Fernando Lopez San Martin describes how uncertainty surrounding the renegotiation of the United States-Mexico-Canada Agreement (USMCA) agreement continues to stall growth. "We don't see the market becoming more dynamic anytime soon," he says. "Uncertainty has halted new investments in Mexico and left markets skeptical about the region's future." However, Lopez San Martin also identifies a potential upside: "Tariffs imposed in the US on wood from Brazil and Canada will position Mexico as the main alternative market and force prices to drop considerably." Sabra International's Brett Ellis offers a US perspective: "We expect uncertainty until President Trump defines tariffs once and for all," he says. Equipment makers are seeing similar effects. Kaufman of Go-Fast Manufacturing explains, "Costs have gone up and international markets have shrunk. We see huge potential in Canada, yet the market is at a standstill due to increased equipment costs because of the tariff." Trade policy continues to ripple across the supply chain, influencing pricing, sourcing, and long-term investment decisions. The Challenge Of Labor And The Pressure To Adapt e 2026 outlook survey confirms that labor remains one of the industry's most persistent challenges. "Labor supply, particularly the current administration's attitude towards the workers we typically employ, is our biggest challenge," says Reardon of Reardon Pallet Company. While automation is helping address some of these pressures, many respondents emphasized the need for balance— retaining skilled workers while retooling operations for greater efficiency. As one anonymous respondent wrote, "e government and the lack of stability are trying the industry. We hope there is a change after the mid-terms and we see demand starting to pick up." Still, members are determined to adapt. "We are cautiously optimistic and are still planning to increase our workforce to shorten lead times," says Kaufman. And Riverview Industrial Wood Products' Michael Meenan captures the broader mindset: "Controlling what we can control . . . cutting capacity. [We must] become more diverse and flexible in the manufacturing process and [in our] customers." Such adaptability is a thread running through almost every response. Opportuni es In An Evolving Market Despite economic and policy headwinds, opportunity remains strong for those positioned to adapt. At Valleywood Industries, ompson reports that the company is "focused on two growth vectors: growing market share in our primary service area both organically and through mergers and acquisitions, and launching a brokerage division." ImalPal Group is betting on material innovation, BECK America on sustainable fastening solutions, and Pallet

• Cover