Issue link: http://palletcentral.uberflip.com/i/536121
palletcentral.com PalletCentral • July-August 2015 13 • Overseas destinations, China most importantly, have a great impact on the market. • Softwood lumber exports are down through 2015 Q1. • Domestic housing starts are expected to top 1 million units, a level that should be able to support more available material. • The slow start to housing in 2015 was largely weather driven; pent up demand should sustain the market well into the fall. 2) The Canadian/U.S. Exchange rate has encouraged U.S. buyers to import, but this could change. • Canadian softwood manufacturers have been getting a better return by shipping to the US because of the 120+% exchange rate. • The "Softwood Lumber Agreement" between the two countries is applying a tax on Canadian shipments, payable by the mills. • So far the advantageous exchange rate has outweighed any applied tax. • The tax is likely to increase. It is based on a rolling average of the Random Lengths Composite Price. In 2015, expect to see the tax be brought up to its maximum level. • Some Canadian producers may see a reduced return in shipping the US because of this. Jim H. Boyd, Sales & Marketing WC Litzinger, Managing Par tner & Owner Universal Fastener Outsourcing, LLC "The pallet crating market is changing toward fastening with screws," commented WC Litzinger, managing partner and owner of Universal Fastener Outsourcing. He further explains: The main reason is the increased demand for environmentally friendly products that are inherent with repaired and recycled pallets. For containers, screws offer more flexibility when you have to unscrew a lid to inspect the shipment, and then reclose it. We see more manufacturing end-user customers request more screws because it saves time with fewer damages to the wood packaging. It's a good idea to be proactive and address this issue with your customers as an option on all your orders. They'll appreciate that you offered them a choice before they have to ask. Jim Boyd, sales and marketing, continues with comments on market trends: We're seeing growing demand for high load, large coils (900 per coil of screws). More companies want these to use in "Mounted Tools" where high volume projects are made. For example, if you wanted to make 10,000 of something rather quickly and more efficiently using screws, this would save huge labor cost giving you a lower production cost, adding more profit to a company's bottom line. Another trend for pallet and crating market customers was noted by Boyd: There is the increase in requests for approval reports, similar to those we receive from Virginia Tech. We see this in subfloor and shear wall applications in the construction industry by the International Building Code and the International Residential Code as well. Our customers want "Pallet customers that buy tools to be used on their machiner y have found new markets in industries that may need 'non-pallet' wood par ts." —John Lieber, Profile Technology Inc.