what’s on the mind of today’s western pallet supplier?
DESCRIPTION
What’s on the Mind of Today’s Western Pallet Supplier?. What is Important to Me?. Changing Export Laws Who’s the Competition? Future of the Alder GMA Pallet is Just a Pallet …..Right? What’s in store for the Western Pallet Guy Lumber Price & Availability. - PowerPoint PPT PresentationTRANSCRIPT
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 !!!!