38 WESTERN PALLET
Looking Ahead: Cutting Through the Noise in Policy and Planning Challenges with Policy, Partnerships, and Purpose
They say there are two certainties in life: death and taxes. But I’d argue in today’s world, there’s a third: the constant hum of political noise. Everywhere we turn whether it’s on our phones, in our offices, or over a casual dinner conversation there’s opinion, stance, and platform layered on top of each other like an orchestra warming up. It can feel overwhelming. But just as a musician finds harmony in the midst of dissonance, as business leaders we have to learn to cut through that noise and focus on what truly impacts our industry and our companies.
That perspective was reinforced for me recently in Mexico at an industry LATAM conference. It was a powerful reminder that the global economy is deeply interconnected. Decisions made in one country ripple far beyond its borders. A tariff related to Brazil doesn’t just shift numbers on a spreadsheet, it impacts families, supply chains, and ultimately our own businesses here in the U.S. The pallet and packaging world is global by nature, and understanding that interconnectedness is vital if we want to prepare for what’s ahead.
I’m also still carrying the lessons from the June fly-in in Washington, D.C. It’s one thing to read headlines or skim policy updates in your inbox. It’s another to be in the room, to shake hands, and to voice concerns directly to decision-makers. That experience didn’t just inform me, it connected me. Now when I follow the news, I see more clearly how those conversations translate into policies and priorities that matter to our work.
Plan, Participate, Lead
By now, you’ve probably seen emails from the WPA about board elections. Those aren’t just routine announcements—they’re invitations. An invitation to move from watching and talking to actively shaping the future. Serving on a committee, like Advocacy and Insights, running for the board, attending a fly-in, or traveling to an international conference are all ways to turn insight into impact. Being proactive isn’t just about resilience. It’s about opening doors to opportunities you might not have seen otherwise.
Our members influence regulations, secure industry wins, and strengthen the pallet sector for decades to come. A major milestone this summer illustrates that clearly: the passage of the reconciliation bill included every tax policy our industry requested, from permanent 100 percent bonus depreciation to expanded business interest deductions, full expensing of production property, structural depreciation, R&D expensing, and the Section 199-A deduction. These victories didn’t happen overnight—they’re the result of sustained advocacy and member engagement over the years. For pallet companies, these provisions aren’t just paperwork—they’re tools to invest in operations, modernize equipment, expand facilities, and retain skilled workers.
Watching the Global Pulse
While tax wins are tangible, other issues are still developing. Timing may be uncertain, but the Section 232 investigation on lumber and derivatives could disrupt pricing, sourcing, and margins once tariffs are announced. Country-specific developments also matter: Canada is likely to lose its USMCA exemption, which could bring all lumber imports under new tariffs; the European Union has proposed a 15 percent cap on lumber tariffs, though political opposition could stall the deal; and lumber imports from Brazil remain subject to a 40 percent tariff due to unresolved trade disputes.
Meanwhile, USMCA negotiations, FY2026 appropriations, and the Farm Bill all carry implications for exporters, timber supply, sustainable management incentives, and operational costs. Forward-looking companies should model scenarios now, track deadlines, and work with associations like WPA to understand impacts before they hit the shop floor.
Extended Producer Responsibility legislation is also gaining traction, especially in California with SB 54, the Plastic Pollution Prevention and Packaging Producer Responsibility Act. The Renewable Fuel Standard is another area to watch. Efforts to expand the definition of qualifying woody biomass would allow small trees, harvest residuals, and mill scrap to become transportation fuel. This supports sustainability while opening new markets for residual materials which is a win for pallet operators and mill partners alike.
Looking Ahead
As we begin to close out the year and look toward 2026, the questions remain: how will you cut through the noise? How will you move from observer to participant? The more personal your connection to advocacy becomes, the clearer the path ahead—for your business and for our industry as a whole. Participation, engagement, and insight are not just optional—they are the keys to turning regulatory uncertainty into opportunity.