26 WESTERN PALLET
In his recent WPA webinar, Chaille Brindley emphasized the difficult economic climate and the ongoing struggles many in the industry are facing. He highlighted that while there were initial hopes for economic improvements in 2023, these have not materialized, and many are now looking towards 2025 for potential recovery. "Inflation has been much stickier than a lot of people thought it was going to be," Brindley remarked, reflecting on the broader economic conditions impacting the industry.
Brindley noted that demand in the pallet market remains significantly down, with some companies reporting declines of 25% to 45% compared to previous years. He pointed out that the industry feels like it has been in a recession for the past year or more, even if official economic indicators do not reflect this. The inconsistency of orders and pressure to lower prices has made it difficult for businesses to plan and manage their operations effectively.
He also discussed the rising costs of various inputs, including labor, which has seen significant increases. "Wages rose by between 23 and 47% depending on the job and difficulty of filling that job," Brindley shared, emphasizing that these increases are now a permanent part of the industry's cost structure.
Despite the challenges, Brindley mentioned some areas of resilience, such as specialty pallets and packaging, which have proven to be more robust markets. However, he cautioned that companies must be strategic in managing their costs and pricing, especially given the ongoing pressures in the market.
Overall, Brindley’s comments paint a picture of an industry grappling with significant challenges, uncertain about when relief might come, but still finding ways to navigate the difficult economic environment.
WPM
Looking Back: WPA Online Events
Looking Back at the First Half of 2024
Cont'd from Page 25
If you haven't been attending WPA's online events, you are missing out on a lot of great ideas for improving your business, not to mention opportunitis to network with other members in a supportive environment. Here are online events from the first half of the year we have reporte in Western Pallet Magazine.
Artificial Intelligence
To get a sense of the pallet industry’s interest in AI, the February 28 WPA Master Learning Group (MLG) forcused on that topic. The conversation revolved around the potential of artificial intelligence (AI) to drive business growth and improve industry operations.
Participants discussed various applications and benefits of AI, including content creation, art, marketing, and streamlining tasks. One attendee is integrating AI into the back end of their website to support automated ordering. To read our report, check out the March issue of Western Pallet Magazone.
Women in the Pallet Industry
WPA's March 28 online event featured a Master Learning Group session titled "Women in the Industry."