Bridging the Gap, with Kat Vasquez
with Kat Vasquez
Kat Vasquez, Contributing Writer
10 WESTERN PALLET
Hey Industry Trailblazers! I've witnessed how technology transforms industries across the spectrum, and today, I'm convinced that AI represents the most profound shift of our lifetimes—one that will fundamentally transform the pallet industry just as it's reshaping every sector of our economy.
The winners in this new era won't be those who simply deploy AI tools, but those who strategically integrate AI capabilities into their core business processes while maintaining their unique human expertise. Technology works best when it amplifies human ingenuity rather than replacing it.
The AI-First Business Strategy
Recognizing that AI isn't just another IT investment is crucial—it's the foundation of your future competitive advantage.
Let me be specific: The pallet companies who thrive in this new world will be those who reimagine their operations from the ground up with AI capabilities at the center. This isn't incremental improvement; it's transformational change.
Imagine AI systems monitoring every aspect of your production line in real-time. Picture machine learning algorithms analyzing thousands of pallet designs against real-world performance data to create optimized designs that use less lumber or alternative materials while increasing load-bearing capacity. Consider how agent-based AI systems could revolutionize your supply chain, creating autonomous networks where pallets essentially manage their own lifecycle—from raw lumber procurement to customer delivery to repair and recycling.
But implementation is where most companies fail. The technology itself isn't enough—success requires organizational transformation. You need to build your operations around the free flow of information, rapid iteration, and a deep commitment to data-driven decision making.
The 10X Mindset for Industry Leaders
I constantly advocate for what is called the "10X mindset"—seeking improvements that are ten times better, not just 10% better. Incremental thinking won't secure your future in the age of AI. Ask yourself: How could AI make our pallets ten times more sustainable? How could it make our production ten times more efficient? How could it make our customer experience ten times better?
Here's my practical advice for pallet companies who want to blaze the trail:
Invest aggressively in data infrastructure: AI is only as good as the data it learns from. Instrument every aspect of your operations—from lumber receiving to quote conversion rates. Don’t forget your network infrastructure is just as important.
Hire technical talent and empower them: Find engineers who understand both AI and wood products manufacturing. Put them in positions where they can drive change.
Create a culture of experimentation: Test new approaches continuously. Expect failures but learn quickly from them.
Build strategic partnerships: No company can do everything alone. Partner with AI startups, university research labs, and even competitors on pre-competitive technology.
Focus on your uniquely human advantages: AI will handle pattern recognition and optimization, but your deep industry knowledge, customer relationships, and strategic thinking remain invaluable.
Reorganize for speed: Traditional hierarchies slow decision-making. Create small, empowered teams focused on specific challenges.
Develop an AI governance framework: Address questions of data ownership, algorithmic transparency, and ethical use of AI early.
The New Economics
Technology fundamentally changes economic equations, and we’re about to experience this disruption firsthand.
The traditional cost curves in our industry—where scale and efficiency have been paramount—will be rewritten by AI capabilities. Small, AI-enabled companies may achieve cost structures that previously required massive scale. Meanwhile, large companies who effectively deploy AI could see unprecedented efficiencies.
This will create winners and losers. Technology-driven markets tend toward consolidation with a few dominant players capturing disproportionate value. The question is: which category will your company fall into?
Your Leadership Is Imperative
Leadership matters more than ever during these transitions. Your people will look to you not just for direction but for confidence in an uncertain future.
You must become bilingual—fluent in both the language of traditional pallet manufacturing and the emerging vocabulary of AI and Business Analytics. You need technical understanding deep enough to make informed strategic decisions from the data you pull.
Most importantly, you must paint a compelling vision of the future: how AI will make your company more successful, how it will create new opportunities for your employees, and how it will better serve your customers.
We have a proud history of adapting to change — we’re still the dominant species after all. AI represents our next great adaptation, one that could make our industry more efficient, more sustainable, and more valuable than ever before.
The future isn't something that happens to you—it's something you build. Let's build it together.
As Henry Kissinger wisely said, "The task of the leader is to get his people from where they are to where they have not been."
Until next time—keep leading, keep innovating, and keep Bridging the Gap!