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Industry experts discuss various topics of interest to the wood packaging industry. Learn what these thought leaders have to say on several issues, and share your comments.

 

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Predictions for the Global Pallet Market 2015-2019

Posted By Administration, Tuesday, January 19, 2016

A recent in-depth study conducted by Research and Markets, one of the world’s largest and most respected market research companies, has revealed that there are some exciting times ahead for the pallet market. The report covers the global pallet market from 2015 until 2019. Undoubtedly, the outstanding statistic contained within the research report is the prediction of growth within the pallet market of an astonishing 4.57%.

The Evolution of the Global Pallet Market

The pallet industry as a whole has certainly witnessed a vast array of changes over the past fifty years. The materials used and innovative techniques employed in the pallet manufacturing process continue to evolve. Vendors are still investing heavily in research and development in order to produce pallets that satisfy a number of criteria, including being recyclable, friendly to the environment, cost-effective and durable. Of these qualities, it is a pallet’s durability and overall strength which is currently considered as the most crucial. This is because end users want to be able to use pallets on multiple occasions within the supply chain process rather than just for a single trip.

This shift in pallet demand towards multiple use has had a knock-on effect in other areas. With pallets now been used more than once, the instances of damage are also naturally on the rise. This unfortunately leads to overall supply-chain costs mounting too. As a result, vendors are now focusing their attention on developing pallets of the highest quality in order to meet the ever-increasing demands of clients.

Predicted Growth for the Global Pallet Market

Much of the predicted growth for the pallet industry over the next four years can be attributed to the recovering global economy. After a number of years when the financial stability of the world economy was uncertain at best, the outlook is now much brighter. With the majority of the financial superpowers now out of recession, consumer spending has begun to increase. In particular, the housing sector has been the recipient of a welcome boost, with the knock-on effect being that the construction industry is now on a more solid foundation. A rise in activity in the construction industry has naturally led to a surge in demand for pallets.

With activity in the housing and construction sectors now on the rise, demand for other associated products, such as durable goods and accessories, will also increase. Again, this can only be good news for the global pallet industry, as the demand for logistics services grows ever stronger.

Although the continuing shortage of raw materials is forecast to pose a major challenge to the industry, the outlook for the global pallet market as a whole over the next few years remains very positive.

About

Associated Pallets offer a wide range of wooden pallets and are currently working with businesses all over the UK to improve their logistics and supply chain processes.

Tags:  global  market  pallet  prediction  research 

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Market Commentary: Fasteners

Posted By Jim Boyd, Monday, September 21, 2015

Comments from Universal Fastener Outsourcing, LLC for PalletCentral July-August 2015

“The pallet crating market is changing toward fastening with screws,” commented WC Litzinger, managing partner and owner of Universal Fastener Outsourcing. He further explains: The main reason is the increased demand for environmentally friendly products that are inherent with repaired and recycled pallets. For containers, screws offer more flexibility when you have to unscrew a lid to inspect the shipment, and then reclose it. We see more manufacturing end-user customers request more screws because it saves time with fewer damages to the wood packaging. It’s a good idea to be proactive and address this issue with your customers as an option on all your orders. They’ll appreciate that you offered them a choice before they have to ask.

Jim Boyd, sales and marketing, continues with comments on market trends: We’re seeing growing demand for high load, large coils (900 per coil of screws). More companies want these to use in "Mounted Tools" where high volume projects are made. For example, if you wanted to make 10,000 of something rather quickly and more efficiently using screws, this would save huge labor cost giving you a lower production cost, adding more profit to a company’s bottom line.  

Another trend for pallet and crating market customers was noted by Boyd: There is the increase in requests for approval reports, similar to those we receive from Virginia Tech. We see this in subfloor and shear wall applications in the construction industry by the International Building Code and the International Residential Code as well. Our customers want assurances that our products are consistently made with high quality materials that have been tested, and approved, by the experts. 

(Written exclusively for PalletCentral, July-August 2015)

Tags:  crating  fasteners  market 

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Pallet Industry Report

Posted By Administration, Monday, January 19, 2015

Submitted by Amy Angellotti, Rose Pallet

Our account manager, David Sexauer, explores the wooden pallet shortage and its impact on the quality of pallets in circulation in an article he authored entitled, “Is This the State of Affairs?” Below is an excerpt from this pallet industry report:

Many pallet manufacturers and recyclers will tell you that the 90’s were their best overall years in business, though their numbers began to level off when the market became more equalized after enough consecutive years of whitewood, CHEP, and plastic competition. It wasn’t until the mid-2000’s that the real challenges to the industry occurred. During a “normal” pallet cycle, companies that primarily buy used or reconditioned pallets would bolster their inventories by purchasing new pallets during their high shipping season (October – December). This influx of pallets would help replenish the pool for the following year and give life to the recycling industry. As the economy took a turn for the worse, many companies skipped out on their annual splurge of buying new; instead, opting for more reconditioned pallets. The most severe case occurred in 2008 when virtually none of these companies bought new pallets relative to prior years. This skip in the cycle caused a ripple effect that depleted a pallet pool already feeling pressures.

In January 2011, Costco, one of the largest purchasers of new whitewood pallets in the United States, decided to forgo buying stringer pallets and elected to go with CHEP, the rental block-style pallet. Without the large quantities of new pallets to replenish the recycled market, the downward spiral of the pallet life-cycle worsened. In addition to Costco, many other companies sought out standard #1 and high-grade #2 pallets. This high demand and low supply became a recipe for disaster. In order to compensate, manufacturers were forced to keep pallet cores in the overall pool much longer than before and continually recondition these pallets as much as possible, which ultimately lowered the quality of #1’s and #2’s into something virtually recognizable.

Click the "Download file" below for a full copy of this article to learn how market conditions and the quality of pallets are slowly improving and what your company can do to help the process and, in turn, drive down costs.


Amy Angellotti, Director of Sales & Marketing and Co-Owner, has over 9 years of experience in the wooden pallet industry. She has dedicated her career to serving the pallet management needs of Fortune 100 and 500 companies, both at regional and national levels. Currently, she focuses on national growth, building relationships, and developing new accounts. Amy also assists in running day-to-day operations and works closely with the sales team. Amy holds a Bachelor’s degree from Eastern Illinois University. In her spare time, she enjoys spending time with family and friends, traveling, attending Chicago Blackhawks games, and painting.

David Sexauer, Account Manager, is a seasoned sales professional with experience in various industries including medical, education, and information technology. His primary focus is developing regional and national pallet management programs for his customers across the country. David enjoys interfacing with clients throughout the supply chain; this helps him to better understand challenges and effectively respond with the right solutions. During his free time, David participates in and follows various athletic events, plays piano, and recycles.

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Tags:  Costco  industry  market  pallet 

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