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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 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
Exporting Goods with Wood Packaging • Who’s in Charge? • International Plant Protection Convention • Overseen by World Trade Organization
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
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
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
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
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
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
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
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
BE PATIENT!!!!!!!!!!!!!! • www.palletcentral.com • www.aphis.usda.gov
Who’s the Competition – Both to the Pallet Mfg., Recycler & you the Hardwood Supplier • Third Party Pallet Rental • Chep • Peco • Used GMA Pallets
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!
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
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
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
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