Brambles Discusses Lumber Supply and Alternative Materials
CHEP is diversifying its lumber supply, according to Carmelo Alonso-Bernaola, Senior VP, Global Supply Chain for Brambles. He spoke recently Brambles presentation in London. While the company has traditionally sourced lumber in regions where lumber was needed, he said that the practice left them heavily exposed to any market fluctuations within those regions.
“So, the first action we're putting in place if diversifying the supply of our lumber needs in the different regions,” he said. “For example, in the U.S. we are today procuring significant volumes from Latin America. With inflation in the U.S. we are divesting more volumes towards Latin America and importing into the US market.”
In Europe, the company is exploring Russia as a lumber source. Alonso-
Bernaola stressed that the initiative is still in the early stages as no tall lumber coming from Russia is yet certified. Another challenge is sawmilling quality. However, they “partnering with local players there to develop them as a way to create alternatives for the European Market.”
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Economic Impact Study Shows Wood Packaging Industry Supports 173,000 U.S. Jobs
One example of NWPCA efforts to fill data gaps is its recent economic impact study. Funded by The Pallet Foundation and conducted by the Manufacturing Institute's Center for Manufacturing Research in partnership with INFORUM, the research found that the wooden pallet and container manufacturing industry has a direct or indirect impact on more than 173,000 jobs and generates a total economic impact of US$31 billion in economic activity. The study titled “Economic Analysis of the U.S. Wooden Pallet and Container Industry” illustrates the far reaching positive effects of the industry.
“The wood packaging industry is more than just wood and nails. We are tightly interwoven in urban and rural communities, working with other industries to supply materials, parts, as well as financial, IP and logistics, both nationally and globally,” said Larry Howell, NWPCA Chair and President of Cottondale Wood Products based in Alabama. “Our products truly move the world by bringing goods to all homes and businesses.”
Key Findings
- Direct or indirect impact on more than
173,000 jobs and generates an economic impact of US$31 billion. Total impacts of $35.1 billion to the U.S. economy and employment of 197,300 jobs
- Labor compensation reached $3 billion; robust growth has outpaced job gains, indicating higher average wages
- Direct output exceeded $10.7 billion, the highest level of output since 2007
- Production levels increased 4% per year from 2009-2016, outpacing the overall economy.
According to NWPCA President/CEO Brent McClendon, “The research was undertaken to highlight the impressive impact that our industry has in this very complex value chain. We now have the critical data that shows the continued expansion of the industry and which has the potential to inform policies that create jobs and support local communities. We’re proud of the role wood packaging plays for economic growth.”
JANUARY 2019