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What’s on the Mind of Today’s Western Pallet Supplier?

What’s on the Mind of Today’s Western Pallet Supplier?. What is Important to Me?. Changing Export Laws Who’s the Competition? Future of the Alder GMA Pallet is Just a Pallet …..Right? What’s in store for the Western Pallet Guy Lumber Price & Availability.

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What’s on the Mind of Today’s Western Pallet Supplier?

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  1. What’s on the Mind of Today’s Western Pallet Supplier?

  2. What is Important to Me? • Changing Export Laws • Who’s the Competition? • Future of the Alder GMA • Pallet is Just a Pallet …..Right? • What’s in store for the Western Pallet Guy • Lumber Price & Availability

  3. Exporting Goods with Wood Packaging • Who’s in Charge? • International Plant Protection Convention • Overseen by World Trade Organization

  4. What is the Goal? • To stop foreign insects from migrating from one continent to another via wood packaging materials – Pallets, Crates & Dunnage • A paperless regulatory program that meets the rules set-forth by each & every country who have signed on to participate without formal documents

  5. How do we Meet the Goal? • Global Agreement – International Standard for Phytosanitary Measures - ISPM 15 • Heat-treatment • Softwoods & Hardwoods • Core temperature of 56 degrees Celsius for minimum 30 minutes • Fumigation • Methyl Bromide • Will become illegal except for Export purposes – Bad for the Ozone • New Methods being Explored by many Governments • Could take years • Plus side Fumigation is a part of the Third Party Certification Programs • Paperless Trail

  6. Key Word – GOVERNMENTAnd a lot of them!

  7. GOVERNMENT • 134 Nations • Layer upon Layers of government authority with varying degrees of understanding • Things as simple as language • Bureaucracies with competing interests • Countries with official & unofficial procedures • Any one level capable of delaying Port entry & added unanticipated costs to shipper

  8. What makes this so Delicate? • 134 Countries with wide range of Wealth & Technology • Larger Countries leading the way, trying to accommodate those with few resources • No one wishes to break the Treaty because of the long term benefit to protect against pests • Nor does any Country wish to start a Trade War

  9. The Delicate US Side of it All • US Homeland Security • Adding multitude of rules is complicating issues • US Trading Partners are asking for delays on Non-National Security regulations – ISPM 15

  10. China • Still not Signed on to ISPM 15 • Will Except • Hardwoods properly marked “NC-US” • Softwoods – KDHT • All with proper documentation • Will not Except • Fumigation

  11. Will this Ever be Resolved? • Doubtful • Though a treaty is in place – No Country will give up their Sovereign right to change Policy to it’s best interest • Another delicate piece of the governmental coin

  12. Bigger Part of the Global Supply Chain • Customer ship over seas……so do you! • Complexities are now on our shoulders to serve our customers • What do you do? • Act as if the IPPC program was in effect • Sign up with a Third Party company over seeing Compliance • Must still stay up to date with the change made by Countries you Customers ship to

  13. BE PATIENT!!!!!!!!!!!!!! • www.palletcentral.com • www.aphis.usda.gov

  14. Who’s the Competition – Both to the Pallet Mfg., Recycler & you the Hardwood Supplier • Third Party Pallet Rental • Chep • Peco • Used GMA Pallets

  15. Future of the Alder GMA Pallet • Increase need as GMA Pool ages Nation-wide • Re-design to Block pallet with or without Alder • Our question to you…”will you be there for us?” • Limited options – Mid-West Hardwoods, Aspen, South American Eucalyptus • Not without a cost!

  16. Pallet is Just a Pallet….right?....don’t think so. • Becoming a crucial part of Exporting • Just can’t put on the boat or plane anymore • Pallet Management Program • Repair • Retrieve • Reuse • Radio Frequency Identification Device – RFID • Wal-Mart

  17. Success will Require more than just being Cheaper than the other guy • Ability to serve both Small & Larger customers JIT • Think Like the Big Guy • Running a Successful Pallet Company will not mean working for a wage • Re-investing more back into the company • Smarter Faster Equipment • More trucks for JIT & traffic • Need for more support staff as customer needs become demanding & complex

  18. What’s in Store for the Western Pallet Guy? • ALL of the ABOVE!!! • Consolidation &/or new faces as current owners retire • Aging ownership • Sold or Next Generation • Many Dependent on the Manufacturing Sector • Currently shrinking – Offshore • Those Serving Agriculture Sector • Facing Third Party Pallet Programs & RPC • Chep & Peco • GMA Pool Aging Rapidly • Lumber Prices • Lumber Availability

  19. Growth • Starting to show signs of recovery from 9/11 • Future Looks to be Global • New Future Player on the block • China • Former Soviet Union • Brazil • Always Remember that your Customer Signs your Pay Check

  20. Thank you !!!!

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