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3 2 Pallet C e nt ral • Ma rch -Ap r il 2 0 26 ECONOMY Cautious Optimism In A Holding Pattern What Members Are Saying About The Economy, Costs, And The Road Ahead T he economic mood across the wood packaging industry can best be described as measured, guarded, and quietly resilient. Based on responses from 44 member companies collected January 13–19, 2026, the NWPCA's latest Economic Pulse Survey reveals an industry marked by cautious optimism amid ongoing uncertainty. While outright pessimism exists, the dominant tone is one of guarded confidence shaped by uneven demand, persistent cost pressures, and continued geopolitical and policy unknowns. Inflation appears to be easing, but margins remain tight. While growth feels possible, it is also slow, fragile, and highly dependent on external factors. "e outlook is cautiously optimistic," said Ronnie Barrett of Pallet Systems and Recycling in McDade, Texas. "e Texas economy seems to be improving at a very slow pace. Although there is continued building and construction activity, broader economic conditions are still moving slowly." An Economy That's Flat, Not Falling Most respondents described the economy as stable but stagnant. Many expect conditions to remain largely unchanged over the next six months, with the potential for incremental improvement later in the year or into 2026, and assuming no major economic shock. Some members noted that tariff-related uncertainty feels less acute than it did a BY ANNETTE FERRI, VICE PRESIDENT OF COMMUNICATIONS

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