I once heard someone say of the pallet industry, “It’s a dog-eat-dog world out there, and I feel like I am wearing ALPO underwear.” It is true that the pallet industry is among one of the most competitive industries in the United States. Customers will jump ship for a nickel per pallet. At the same time, the pallet industry is friendly. It is filled with amazing people who have leaped from many different fields including banking, investing, retail, manufacturing and even law.
While the burden of entry can be low, the difficulty to make money and remain in business can be great. This column is intended to guide newbies through some key issues as they start-up their pallet business or acquire an existing one. I will also identify some resources that can help new people in the industry develop expertise, learn basics and make key contacts to bolster success.
Come on in, the water is fine. But there are some sharks and whales in the water.
First, you need to decide what type of pallet company you want to be. Some companies are brokers. Others are strictly manufacturers or recyclers. Some have sawing operations. Others only buy precut material. Are you focusing on common sizes or specialty runs? Some companies come up with hybrid approaches or novel business niches. This may include specialty packaging, crates and dunnage. Or it might involve secondary wood or packaging products. Some companies offer trucking or warehousing services. This issue of the Pallet Enterprise includes an interview with John Charles Wilker who has developed a novel approach that eliminates a lot of the costs and headaches associated with a traditional brick and mortar location strategy. Find out more on page 62.
You have to discover what is needed in your area. And that starts with informal surveying of your target market. What are others failing to do? Or what are others doing poorly? What has enough margin that you can make money with the service or product?
Second, you need to learn more about the industry. You probably will have some internal company insight and wisdom if you buy an existing business. This should be a key part of any buy agreement. If you are starting a pallet company from scratch, you could hire someone with industry experience as a foreman. Or you can dive in and learn as much as possible on your own.
The Pallet Enterprise is a great place to start. Check out our website (www.palletenterprise.com), which includes thousands of articles, links to videos, machinery guides, and much more. Our content is free. All we ask is that you tell the advertisers you saw them in the magazine. You can view full digital editions or do keyword searches on our homepage.
If you find out about somebody who has a particular machine or read a story about someone doing something that you want to mimic or learn from, give them a call. As long as the company is not a direct competitor in your region, you might be surprised how they will help. Some pallet companies may even let you come for a visit. Every issue of the Pallet Enterprise offers insight on existing plants as well as the latest on machinery and industry trends. And you can’t beat the price. It is free for those in the industry.
The Pallet Enterprise also offers a moderated LinkedIn page where you can post questions, seek feedback or comment on topics discussed. Check it out online at https://www.linkedin.com/groups/8133689/.
Second, go to industry events and network. From trade shows to association events, these can be great places to hear ideas that spark innovation. More importantly you can meet potential customers (usually brokers), suppliers or business partners. The major pallet industry trade show where you can see live equipment running is EXPO Richmond. It will be held in Richmond, Virginia on May 20-21, 2021.
There are three major trade associations serving the U.S. pallet market.
The largest is the National Wooden Pallet & Container Association (NWPCA), which holds its annual meeting in
the winter, usually in a nice place to visit and escape the cold. NWPCA (www.palletcentral.com) also offers plant tours and other events. The Western Pallet Association (WPA) puts on one of my favorite industry gatherings in January in California. The WPA (www.westernpallet.org) is a great place to start if you are a pallet company in the West. And then the North American Pallet Association (NAPA) began a few years ago in response to arson fires and local concerns for California-based recyclers and manufacturers. NAPA is made up of mostly Hispanic-owned businesses. Its last winter meeting focused on how recyclers can deal with changing asset recovery fees from rental companies. For more information on NAPA, e-mail palletrusinc@hotmail.com.
Finally, there is one information source that is a secret weapon for many in the industry. In addition to the Pallet Enterprise, our staff also develops a weekly market report, the Pallet Profile. This report provides market information as well as strategic insight on key trends and issues. Our best journalism and reporting is published in the market reports. For recyclers, we publish the Recycle Record, which focuses exclusively on the recycled market. Check these reports out online at www.palletprofile.com or www.recyclerecord.com or call Rick at 804-550-0323, ext. 105, to find out more information and see a recent sample.
One of the benefits of subscribing to our market reports is one free hour of consulting that we offer on any topics that we have expertise in. I have answered questions on everything from lumber market topics to HR issues to equipment to plant operations to strategies for selling or passing along a pallet business. Chances are if you have a question, somebody else is wondering the same thing. Many times, these questions have ended up becoming articles in a publication. If you want to find out about our consulting service, e-mail me at chailleb@gmail.com.
It often surprises people how much there is to know to do well in this business. People think, “It’s just wood and nails. How hard can it be?” But the pallet industry can be harder than many realize. If you want to be successful, keep your eyes open and seek out some of the resources that I mentioned in this column.
I once heard someone say of the pallet industry, “It’s a dog-eat-dog world out there, and I feel like I am wearing ALPO underwear.” It is true that the pallet industry is among one of the most competitive industries in the United States. Customers will jump ship for a nickel per pallet. At the same time, the pallet industry is friendly. It is filled with amazing people who have leaped from many different fields including banking, investing, retail, manufacturing and even law.
While the burden of entry can be low, the difficulty to make money and remain in business can be great. This column is intended to guide newbies through some key issues as they start-up their pallet business or acquire an existing one. I will also identify some resources that can help new people in the industry develop expertise, learn basics and make key contacts to bolster success.
Come on in, the water is fine. But there are some sharks and whales in the water.
First, you need to decide what type of pallet company you want to be. Some companies are brokers. Others are strictly manufacturers or recyclers. Some have sawing operations. Others only buy precut material. Are you focusing on common sizes or specialty runs? Some companies come up with hybrid approaches or novel business niches. This may include specialty packaging, crates and dunnage. Or it might involve secondary wood or packaging products. Some companies offer trucking or warehousing services. This issue of the Pallet Enterprise includes an interview with John Charles Wilker who has developed a novel approach that eliminates a lot of the costs and headaches associated with a traditional brick and mortar location strategy. Find out more on page 62.
You have to discover what is needed in your area. And that starts with informal surveying of your target market. What are others failing to do? Or what are others doing poorly? What has enough margin that you can make money with the service or product?
Second, you need to learn more about the industry. You probably will have some internal company insight and wisdom if you buy an existing business. This should be a key part of any buy agreement. If you are starting a pallet company from scratch, you could hire someone with industry experience as a foreman. Or you can dive in and learn as much as possible on your own.
The Pallet Enterprise is a great place to start. Check out our website (www.palletenterprise.com), which includes thousands of articles, links to videos, machinery guides, and much more. Our content is free. All we ask is that you tell the advertisers you saw them in the magazine. You can view full digital editions or do keyword searches on our homepage.
If you find out about somebody who has a particular machine or read a story about someone doing something that you want to mimic or learn from, give them a call. As long as the company is not a direct competitor in your region, you might be surprised how they will help. Some pallet companies may even let you come for a visit. Every issue of the Pallet Enterprise offers insight on existing plants as well as the latest on machinery and industry trends. And you can’t beat the price. It is free for those in the industry.
The Pallet Enterprise also offers a moderated LinkedIn page where you can post questions, seek feedback or comment on topics discussed. Check it out online at https://www.linkedin.com/groups/8133689/.
Second, go to industry events and network. From trade shows to association events, these can be great places to hear ideas that spark innovation. More importantly you can meet potential customers (usually brokers), suppliers or business partners. The major pallet industry trade show where you can see live equipment running is EXPO Richmond. It will be held in Richmond, Virginia on May 20-21, 2021.
There are three major trade associations serving the U.S. pallet market.
The largest is the National Wooden Pallet & Container Association (NWPCA), which holds its annual meeting in
the winter, usually in a nice place to visit and escape the cold. NWPCA (www.palletcentral.com) also offers plant tours and other events. The Western Pallet Association (WPA) puts on one of my favorite industry gatherings in January in California. The WPA (www.westernpallet.org) is a great place to start if you are a pallet company in the West. And then the North American Pallet Association (NAPA) began a few years ago in response to arson fires and local concerns for California-based recyclers and manufacturers. NAPA is made up of mostly Hispanic-owned businesses. Its last winter meeting focused on how recyclers can deal with changing asset recovery fees from rental companies. For more information on NAPA, e-mail palletrusinc@hotmail.com.
Finally, there is one information source that is a secret weapon for many in the industry. In addition to the Pallet Enterprise, our staff also develops a weekly market report, the Pallet Profile. This report provides market information as well as strategic insight on key trends and issues. Our best journalism and reporting is published in the market reports. For recyclers, we publish the Recycle Record, which focuses exclusively on the recycled market. Check these reports out online at www.palletprofile.com or www.recyclerecord.com or call Rick at 804-550-0323, ext. 105, to find out more information and see a recent sample.
One of the benefits of subscribing to our market reports is one free hour of consulting that we offer on any topics that we have expertise in. I have answered questions on everything from lumber market topics to HR issues to equipment to plant operations to strategies for selling or passing along a pallet business. Chances are if you have a question, somebody else is wondering the same thing. Many times, these questions have ended up becoming articles in a publication. If you want to find out about our consulting service, e-mail me at chailleb@gmail.com.
It often surprises people how much there is to know to do well in this business. People think, “It’s just wood and nails. How hard can it be?” But the pallet industry can be harder than many realize. If you want to be successful, keep your eyes open and seek out some of the resources that I mentioned in this column.
