Industry Cooperation Is Key for the Pallet Foundation’s Success, Come Join the Fight!

While many people think of pallets as just wood and nails, anyone in the industry knows that there is a lot more to it. And as pallet users spend more on automation in the supply chain, the industry needs funding and visionaries to be thinking about the future.

The Pallet Foundation (Foundation) is the leading non-profit organization dedicated to research and promotion within the international wood pallet market. Distinct from trade associations, it tackles projects beyond their scope, focusing on advancing science, technology, and innovation for the wood packaging industry. By funding research and defending the industry, the Foundation supports the global use of wood packaging in unit-load solutions and helps companies thrive. This year has been a record-breaking one for donations and project funding, underscoring its growing impact. This has been a record year for the Pallet Foundation when it comes to donations as well as money spent to fund projects.

Brent McClendon, the president of the National Wooden Pallet & Container Association (NWPCA), said, “Each year builds off the momentum of the previous year and off the shoulders of those industry leaders that brought us here. We did have a record year of contributions in 2024 and approved project funding of $900,000. We are excited to announce that we are supporting twice that amount of financing in 2025, with $1.8 million in projects funded. This outstanding growth is primarily attributable to our success in winning government grants. These grants are only attainable if the Pallet Foundation is well-positioned financially and has a strong reputation for delivering on its commitments. Unwavering industry support in these areas over many years allows us to now seek these competitive opportunities.”

Steve Yelland, the chair of the Foundation board and the CEO of JFR Holdings, noted, “We’re bringing in record contributions by offering more events that help raise awareness in what we’re funding each year. The fact that we’re not only relying on the auctions in our fundraising efforts should allow us to build visibility and hopefully communicate the importance of the Pallet Foundation to the ongoing growth of our industry.”

Some of the exciting new projects that the Foundation is undertaking for the next year include a research project evaluating the feasibility of developing a crate design software similar to the Pallet Design System™ (PDS) and a research project looking into new markets for wood waste and residuals. The wood fiber research in conjunction with a grant from the Forest Service will focus on biochar as another strong market for waste coming from pallet operations.

McClendon commented, “Our members often report having only one customer for residuals or are worried about what will happen if the paper company near them closes. Some companies cannot seek growth opportunities because they have no outlet for more residuals. We are seeking federal funds to assist us in delivering the first-ever comprehensive project on this issue that will ultimately lead to tangible solutions for our industry. It also informs our government of the urgency of this issue, allowing us to work even closer with them in the future. Ultimately, the goal here is to provide resources to our members that allow them to, at the bare minimum, have a break-even strategy to deal with residuals but hopefully do better than that and generate some profit.”

Some of the new projects focus on defending the industry against competitive threats. The Foundation warned, “Opponents of ISPM-15 and the use of wood packaging for international shipping continue to question the effectiveness of ISPM-15. The North American Plant Protection Organization (NAPPO) has recently approved a project to verify the efficacy of the ISPM 15 heat treatment schedule (56ºC or 133ºF for 30 minutes).” Funds from the Foundation are helping to underwrite the cost of the research that will provide sound scientific data for the continued efficacy of the established international standard.

Also, the Foundation is continuing to enhance the capabilities of the PDS when it comes to file sharing and license management. In addition, the team behind the PDS is planning on adding a carbon calculator to make carbon impact calculations on custom pallets manufactured from specified facilities.

Besides special projects, the Foundation has a lot of ongoing commitments that need regular funding. One example is the Nature’s Packaging® campaign. Regular funding ensures this industry promotion campaign can deliver environmental messaging to pallet users and the broad public through social media, video, websites, and direct mail. All three major trade associations (the NWPCA, the Western Pallet Association and the Canadian Wooden Pallet & Container Association) have unified around this environmental messaging. Using science-based information, the campaign clearly shows the many benefits of wood pallets.

The Foundation also has funded collaboration with experts who have helped the industry address critical issues, such as ISPM-15 and evolving phytosanitary standards, fire code changes connected to pallet storage, and the development of the industry’s first Environmental Product Declaration (EPD) and Life Cycle Analysis (LCA). All of these projects are too big for any one company to tackle and be successful. That is why collaboration is the key to everything that the Foundation does.

Even if you don’t support the Foundation, it is supporting your business. There are competitive threats looking to limit the potential market for wood pallets. For example, McClendon explained, “We monitor to see is the government, here or abroad, considering a policy that could put our industry at a competitive disadvantage? For example, almost annually, we battle well-meaning Congressional representatives who believe they can better protect U.S. forests by stopping the use of wood pallets in international trade. That’s just one example of where Nature’s Packaging and the hand-and-glove connection between the Pallet Foundation and NWPCA is critical and pays dividends.”

Some efforts need to be updated regularly to stay relevant and useful. For example, the Foundation is investing in a software tool used for economic impact analysis. This data is used when pallet companies, associations and representatives meet with government leaders to explore the economic impact of various decisions.

Also, the EPD must be updated every five years to maintain its relevance. The Foundation is underwriting the data collection and analysis efforts that will be taking place in 2025. The EPD tells the environmental story of the industry using sound scientific research and validation criteria. It explores the environmental benefits of wood packaging looking at key ecological metrics. To find out more, check out the video: https://tinyurl.com/3dmpsy56. This is a resource you can use even if you were not involved in the initial research. The Foundation will be working on more research this year and can use your help to make its data sample even better. Look for more information on this data collection effort in a future issue of Pallet Enterprise.

Over the last ten years, the Foundation has had many accomplishments; you can read more on its website at www.palletfoundation.org. McClendon pointed to three top achievements – major enhancements to the PDS, the creation of the Nature’s Packaging industry promotion and outreach campaign, and the development of the EPD for wood pallets. Focusing on the EPD, McClendon explained how the Foundation has a vision to see things before many in the industry even know something is needed. He recalled, “The Foundation funded that initiative before anyone considered pallets’ environmental footprint. The vision of our trustees has brought us to the point where today, we have a critical tool our members use when meeting their customers’ procurement needs. We are looking to expand on the value of the EPD by fully incorporating it with PDS so users can now estimate a customized environmental impact according to the pallet they have designed and their unique operating conditions.”

So, what can you do to get involved? That’s a great question. The Foundation needs funding, leadership and participation in research projects. Those are the three areas where you can really make an impact.

McClendon stated, “There are opportunities to participate with the Foundation throughout the year. The most marquee events occur around the WPA and NWPCA annual meetings, with the Pallet Foundation auctions. In 2025, for the first time, the Foundation is hosting an exclusive event, a Wine Pairing Dinner, which will be a unique opportunity to savor the flavors of Napa Valley and network with industry colleagues. In the fall, the Foundation hosts a virtual “Fun Run” race that promotes wellness and builds community in the industry.  Contributions of any level are also welcomed online throughout the year by visiting palletfoundation.org.”

But beyond just funding, the Foundation is also looking for volunteer leadership and ideas to drive the future. McClendon added, “We welcome submissions of project ideas through our online portal. While ideas can be submitted throughout the year, we ideally work through projects in May/June for board consideration in the fall.”

Yelland invited greater industry participation no matter the size or focus of the pallet company. He suggested, “We would love to see more pallet companies consider being active in the governance of the Pallet Foundation. If you’re contributing to the Foundation, and are willing to participate in two of our three annual meetings, and are willing to use your sphere of influence to the benefit of the industry, you’ve met the expectations of being a trustee. You can reach out to Brent or any trustee to learn more.”

Chaille Brindley

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Pallet Enterprise February 2025