better. He urged leaders to identify the “vital few” priorities that truly drive impact, eliminate distractions, and execute with clarity.
One of his central questions resonated with many in attendance: What is the future state you desire to create, and what courage is required to build it?
For pallet companies balancing operational stability with transformation, the framework offered both perspective and practical direction.
Timber Markets: Supply, Housing, and 2026 Outlook
If Hermans addressed leadership mindset, Antonio Gallotta and Ian Templeton of Fast- markets addressed the numbers behind the business
Their data-rich presentation examined lumber supply trends, trade dynamics, labor costs, and the evolving composition of the pallet market.
Several key themes emerged:
Southern Yellow Pine remains abundant. Long-term growth in Southern softwood inventory has outpaced harvest rates, contributing to stable and relatively low framing lumber prices.
Hardwood markets remain constrained. After years of reduced domestic manufacturing and export volatility, hardwood supply dynamics differ sig- nificantly from softwood trends.
Retail sales remain resilient. Consumer demand for goods continues to support pallet usage, even as broader manufacturing activity shows mixed signals.
Housing will likely determine 2026. A meaningful rebound in homebuilding would place upward pressure on framing lumber prices, which in turn influences pallet-grade material costs.
The presenters emphasized that the construction market for softwood lumber is far larger than the pallet sector, meaning