PGT Bulletin — Q1 2023 Edition

Robert Hoelke
Senior Vice President, Commercial

As we enter a period of post-pandemic recovery, there is potential for a return to more normal market dynamics in 2023. However, high inflation, rising interest rates, supply chain issues and other geopolitical risks continue to fuel uncertainty in the economy, likely impacting consumer buying patterns in the near term.

Early 2023 results have been better than expected, as customers in the major industries we service are beginning to see more price stability in their products, leading to a more predictable supply and demand equation. Additionally, PGT has maintained strong asset utilization following the traditional holiday slowdown, thanks in part to minimal weather disruptions in our primary network. Expectations are for a steady Q1 2023, including an anticipated increase during spring construction season. The outcome for the remainder of the year is unclear, as there is still the potential for a mid-year slowdown or even recession. The Federal Reserve will likely continue to aggressively combat inflation, and if consumers significantly reduce spending as a result, PGT customers will see a lowered demand for their products.

Meanwhile, rising costs continue to plague the trucking industry, making it difficult for carriers to maintain an appropriate level of service. PGT remains focused on partnering with customers who push us to differentiate our transportation solutions. When PGT delivers on our commitments, we show our customers the value created in our service-based approach.