What’s on the Mind of What’s on the Mind of Today’s Western Pallet Today’s Western Pallet

Supplier? Supplier?

What is Important to Me?What is Important to Me?

Changing Export Laws Changing Export Laws Who’s the Competition?Who’s the Competition? Future of the Alder GMAFuture of the Alder GMA Pallet is Just a Pallet …..Right?Pallet is Just a Pallet …..Right? What’s in store for the Western Pallet What’s in store for the Western Pallet

GuyGuy Lumber Price & AvailabilityLumber Price & Availability

Exporting Goods with Wood Exporting Goods with Wood PackagingPackaging

Who’s in Charge?Who’s in Charge?

International Plant Protection ConventionInternational Plant Protection ConventionOverseen by World Trade OrganizationOverseen by World Trade Organization

What is the Goal?What is the Goal?

To stop foreign insects from To stop foreign insects from migrating from one continent to migrating from one continent to another via wood packaging another via wood packaging materials – Pallets, Crates & materials – Pallets, Crates & DunnageDunnage

A paperless regulatory program that A paperless regulatory program that meets the rules set-forth by each & meets the rules set-forth by each & every country who have signed on to every country who have signed on to participate without formal documentsparticipate without formal documents

How do we Meet the Goal?How do we Meet the Goal?

Global Agreement – International Standard for Global Agreement – International Standard for Phytosanitary Measures - ISPM 15Phytosanitary Measures - ISPM 15

Heat-treatment Heat-treatment Softwoods & HardwoodsSoftwoods & Hardwoods Core temperature of 56 degrees Celsius for minimum 30 minutesCore temperature of 56 degrees Celsius for minimum 30 minutes

FumigationFumigation Methyl BromideMethyl Bromide Will become illegal except for Export purposes – Bad for the Will become illegal except for Export purposes – Bad for the

OzoneOzone New Methods being Explored by many GovernmentsNew Methods being Explored by many Governments

Could take years Could take years Plus side Fumigation is a part of the Third Party Certification Plus side Fumigation is a part of the Third Party Certification

ProgramsPrograms Paperless TrailPaperless Trail

Key Word – Key Word – GOVERNMENTGOVERNMENT

And a lot of themAnd a lot of them!!

GOVERNMENTGOVERNMENT

134 Nations134 Nations Layer upon Layers of government Layer upon Layers of government

authority with varying degrees of authority with varying degrees of understandingunderstanding

Things as simple as languageThings as simple as languageBureaucracies with competing interestsBureaucracies with competing interestsCountries with official & unofficial Countries with official & unofficial

proceduresproceduresAny one level capable of delaying Port entry Any one level capable of delaying Port entry

& added unanticipated costs to shipper& added unanticipated costs to shipper

What makes this so Delicate?What makes this so Delicate?

134 Countries with wide range of 134 Countries with wide range of Wealth & TechnologyWealth & Technology

Larger Countries leading the way, Larger Countries leading the way, trying to accommodate those with trying to accommodate those with few resourcesfew resources

No one wishes to break the Treaty No one wishes to break the Treaty because of the long term benefit to because of the long term benefit to protect against pestsprotect against pests

Nor does any Country wish to start a Nor does any Country wish to start a Trade War Trade War

The Delicate US Side of it AllThe Delicate US Side of it All

US Homeland SecurityUS Homeland Security

Adding multitude of rules is Adding multitude of rules is complicating issuescomplicating issues

US Trading Partners are asking for US Trading Partners are asking for delays on Non-National Security delays on Non-National Security regulations – ISPM 15regulations – ISPM 15

ChinaChina

Still not Signed on to ISPM 15Still not Signed on to ISPM 15 Will ExceptWill Except

Hardwoods properly marked “NC-US”Hardwoods properly marked “NC-US”Softwoods – KDHTSoftwoods – KDHT All with proper documentationAll with proper documentation

Will not ExceptWill not ExceptFumigationFumigation

Will this Ever be Resolved?Will this Ever be Resolved?

DoubtfulDoubtful

Though a treaty is in place – No Though a treaty is in place – No Country will give up their Sovereign Country will give up their Sovereign right to change Policy to it’s best right to change Policy to it’s best interestinterest

Another delicate piece of the governmental Another delicate piece of the governmental coincoin

Bigger Part of the Global Supply Bigger Part of the Global Supply ChainChain

Customer ship over seas……so do Customer ship over seas……so do you!you!

Complexities are now on our Complexities are now on our shoulders to serve our customersshoulders to serve our customers

What do you do?What do you do?Act as if the IPPC program was in effectAct as if the IPPC program was in effectSign up with a Third Party company over Sign up with a Third Party company over

seeing Complianceseeing Compliance Must still stay up to date with the change Must still stay up to date with the change

made by Countries you Customers ship tomade by Countries you Customers ship to

BE PATIENT!!!!!!!!!!!!!!BE PATIENT!!!!!!!!!!!!!!

www.palletcentralwww.palletcentral.com.comwww.aphis.usda.govwww.aphis.usda.gov

Who’s the Competition – Both to Who’s the Competition – Both to the Pallet Mfg., Recycler & you the the Pallet Mfg., Recycler & you the

Hardwood Supplier Hardwood Supplier

Third Party Pallet RentalThird Party Pallet RentalChep Chep PecoPeco

Used GMA PalletsUsed GMA Pallets

Future of the Alder GMA PalletFuture of the Alder GMA Pallet

Increase need as GMA Pool ages Increase need as GMA Pool ages Nation-wideNation-wide

Re-design to Block pallet with or Re-design to Block pallet with or without Alderwithout Alder

Our question to you…”will you be Our question to you…”will you be there for us?”there for us?”

Limited options – Mid-West Hardwoods, Limited options – Mid-West Hardwoods, Aspen, South American EucalyptusAspen, South American Eucalyptus

Not without a cost!Not without a cost!

Pallet is Just a Pallet is Just a Pallet….right?....don’t think so.Pallet….right?....don’t think so.

Becoming a crucial part of ExportingBecoming a crucial part of Exporting Just can’t put on the boat or plane anymoreJust can’t put on the boat or plane anymore

Pallet Management ProgramPallet Management ProgramRepairRepairRetrieveRetrieveReuseReuse

Radio Frequency Identification Radio Frequency Identification Device – RFIDDevice – RFID

Wal-MartWal-Mart

Success will Require more than Success will Require more than just being Cheaper than the other just being Cheaper than the other guyguy

Ability to serve both Small & Larger Ability to serve both Small & Larger customers JITcustomers JIT

Think Like the Big GuyThink Like the Big Guy Running a Successful Pallet Company will not Running a Successful Pallet Company will not

mean working for a wagemean working for a wage Re-investing more back into the companyRe-investing more back into the company Smarter Faster EquipmentSmarter Faster Equipment More trucks for JIT & trafficMore trucks for JIT & traffic Need for more support staff as customer needs Need for more support staff as customer needs

become demanding & complexbecome demanding & complex

What’s in Store for the Western What’s in Store for the Western Pallet Guy?Pallet Guy?

ALL of the ABOVE!!!ALL of the ABOVE!!! Consolidation &/or new faces as current Consolidation &/or new faces as current

owners retire owners retire Aging ownershipAging ownership Sold or Next GenerationSold or Next Generation

Many Dependent on the Manufacturing Many Dependent on the Manufacturing SectorSector

Currently shrinking – OffshoreCurrently shrinking – Offshore Those Serving Agriculture SectorThose Serving Agriculture Sector

Facing Third Party Pallet Programs & RPC Facing Third Party Pallet Programs & RPC Chep & PecoChep & Peco GMA Pool Aging RapidlyGMA Pool Aging Rapidly Lumber PricesLumber Prices Lumber AvailabilityLumber Availability

GrowthGrowthStarting to show signs of recovery Starting to show signs of recovery

from 9/11from 9/11Future Looks to be GlobalFuture Looks to be Global

New Future Player on the blockNew Future Player on the blockChinaChinaFormer Soviet UnionFormer Soviet UnionBrazilBrazil

Always Remember that your Customer Always Remember that your Customer Signs your Pay CheckSigns your Pay Check

Thank you !!!!Thank you !!!!