An assessment of the impacts of a domestic phytosanitary treatment regulation for wood packaging material manufacturers
2010
Hassler, Curt C. | Grushecky, Shawn | Slahor, Jeffrey J. | Turk, Philip
The results of a mail survey undertaken in mid-2008 to determine the response of wood packaging material (WPM) manufacturers to a universal treatment requirement, similar to ISPM 15 "Guidelines for Regulating Wood Packaging Material in International Trade," are described. Reactions to a universal requirement were positive (nearly 60% in favor), with larger companies tending to be more positive. Less than 9 percent of respondents indicated they would cease WPM manufacturing. Impacts on pallet pricing were most prevalent at or in excess of $1.00 per unit, with nearly two-thirds of respondents indicating that their customers would accept the true cost of treatment. While only 36 percent would like to see the universal requirement implemented sooner rather than later, these companies were heavily involved in custom heat- treating services and are therefore anticipating the associated marketplace opportunities. The accompanying capital investment in new or additional heat-treating equipment would benefit equipment manufacturers. As the process to create and implement a universal treatment requirement in the United States evolves, policymakers should take into account the current state of the economy, and the WPM industry in particular, and how a change of this magnitude would impact the businesses comprising this industry sector.
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