Market Update: August 2022
With 22+ years in the industry, Reed Esarove knows the pallet market. He recently shared what's impacting the recycled market right now and how businesses can prepare for the coming months. Check out our latest market update.
Reed Esarove is Director of New Pallet Operations for 48forty Solutions and has been in the pallet industry for about 22 years.
What’s impacting the pallet market right now?
Certainly, logistics are a challenge. The biggest concerns are the three M’s, material, manpower, and markets. So as we pay attention to those three M’s and understand in the markets that we serve where they all reflect on our inventories and on our service offerings, that’s pretty much how we try and anticipate how to handle the future. The markets right now are gonna be tight, manpower is always tight, and material, very tight right now for recycled components.
What are you seeing in the recycled markets?
In the recycled markets right now, core pricing is up. Demand for cores is significant, especially this time of the year, as everybody’s trying to convert cores to finished goods to meet the fall holiday retail seasons. The biggest opportunity right now is finding enough good quality cores at a marketable price and be able to convert those cores to finished goods.
Will customers see demand change anytime soon?
We would probably anticipate that there would be increased buying trends pretty much everywhere in the United States. Right now, we’re doing everything as an industry that we can to convert cores to finished goods so our customers have all of the pallets they need to ship from their DCs to the retail markets or customers.
How is 48forty helping customers through these supply chain challenges?
Discussing with our customers the good and the bad when we know it, gives them an opportunity to make educated decisions about their business model and how we can help mitigate as much of the cost as we can, whether it be through design or whether it be through inventory management, a species change, or a different type of remanufactured pallet. That open conversation gives everyone the opportunity to have a voice at the table and buy into the solution.