APRIL 2021
Impactful Presentations
Speakers at this year’s Annual Meeting touched on an array of hot button industry issues, including insurance, the lumber market, current political landscape, pallet business advice and leadership.
John K. Smith, president and CEO of Pennsylvian Lmbermens Mutual Insurance Company, offered insurance insights, a crucial topic given the difficulty that many companies currently face finding suitable coverage. Smith advised attendees to work with an independent insurance broker, one whose sole job is to represent you and your interest to the insurance company. “They receive commission from the insurance company to work for you!” he said. “If you have the right broker, you do not need a separate insurance consultant.” He emphasized the importance of only dealing with finanacially stable insurance companies that will be around in the future when you need therm.
The University of Washington’s Dr. Kent Wheiler, Associate Professor and Director, Center for International Trade in Forest Products, spoke on The Outlook for Hardwood and Softwood Pallet Stock. He noted that historically, the U.S. imported about one-third of its softwood lumber consumption. In 2012, 97% of imports came from Canada, but that has steadily declined. Pine beetle infestations have led to a 36% decrease in BC production since 2016.
The trade war with China followed by the Covid pandemic were severe blows to the wood products industry, followed by an unexpected boom in repair and remodel activity, along with continued growth in housing starts. Supply chains are adjusting, he stated, but it will take some time. Prices are expected to pull back some over time but will stay at elevated levels though this year and maybe into 2023. Wheiler believes that supply and price relief will come first in the South, then with hardwoods in the East. Tight supply will persist in the West, he noted. Fortunately, the economic outlook is good, boosting demand and prices for pallets that will offset some of the added lumber costs.
Work on your business and not just in it
Chris Pienkowski, CEO of HELM (Helping Leaders AchieveMore Freedom) is a leadership and business coach working with entrepreneurial small and mid-sized companies to help them scale their businesses. He delivered a presentation called Gaining Clarity and Higher Profits from Your Business. He noted that business owners are too often working “in” their business rather than “on” their business, with 90% of owners regularly in “firefighting” mode. He emphasized the importance of working on your business rather than in it
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through the use of communication and delegation, setting and focusing on short and long-term goals, and understanding the key drivers of your business.
“You know, people look at you a little weird when you put a gas mask on,” Chaille Brindley said in introducing his session, No You Don’t Need a Gasmask: Prepping Your Business for the Changing Pallet Industry Landscape. “But weird was this past year in our industry, right?,” he continued. From his unique perspective as publisher of Pallet Enterprise Magazine, Brindley brings a broad perspective to the challenges and opportunities facing the industry.