Once you have a pallet specification that works well for your company, it typically is accepted and institutionalized. Over time, it can become so entrenched that no one even thinks about it. But given the high prices of pallets lately, that’s about to change.
In 2021, many companies that probably hadn’t reviewed their spec in some time received quite a surprise when they couldn’t procure their usual pallet. They had to scramble for alternatives on the fly. For example, rental pallet shortages sent rental customers in search of pallets to buy. Likewise, shortages of recycled pallets forced many companies to buy new pallets or explore other options such as presswood pallets.
Beyond the short-term scramble to find pallets in 2021, I noted in the last installment that there are several reasons to periodically review your specification. Merger and acquisition activities, different distribution channels, new customers, the introduction of automation, etc., should be prompts to take a fresh look.
When undertaking that review, one area of consideration is whether to purchase new pallets, used pallets or remanufactured units.
Let’s start with some basic definitions. New pallets are made from new lumber and fasteners. Used pallets are commonly referred to as recycled pallets and can include repaired or refurbished pallets. Remanufactured pallets are pallets that are built with pallet components recovered from other dismantled pallets. A variation of the remanufactured or reman pallet is the combo or hybrid pallet, which is constructed with a mix of new and recovered wood. A typical example of a combo would be a pallet with new stringers and recovered deck boards.
So which type is the most popular? The answer is that the production of new pallets is greater than recycled units, although recycled pallets continue to gradually gain market share. According to industry research undertaken by NWPCA, Virginia Tech and US Forest Service, U.S. production of new pallets in 2016 was 508 million, compared to 341 million recycled units.
When Do New Pallets Make Sense?
New pallets are prized for several types of applications. For example, a pallet made from freshly cut new lumber can visually enhance the attractiveness of the products it carries. Also, new pallets can provide a “farm fresh” ambiance at a farmer’s market.
Likewise, new pallets are highly uniform. This can be a key consideration in some automated material handling and storage systems that have limited tolerance for pallet damage or variability. That uniformity also allows for a more accurate load rating than used pallets, which are less uniform in dimension.
Durability is another plus. Compared to a used pallet of the same specification, new pallets last longer. And going with a new pallet is also a popular choice for custom pallets, especially ones with longer deck boards, where the typical 40" or less recovered deck boards are too short. Recovered deck boards of 40" can be cut down to build a smaller custom pallet, but longer lengths are more problematic.
How About Recycled Pallets?
Recycled 48×40" pallets are a great option for many pallet buyers. The pricing is more attractive than buying new GMA pallets, and, at least until recently, recycled GMAs have been widely available in the marketplace. That means that recycled pallets are often in stock and can usually be sourced more quickly than new pallets.
Recycled pallets are also attractive from a sustainability perspective because the harvesting is minimal or no new lumber is required to maintain them. And because recycled pallets don’t require significant new lumber, pallet pricing is less sensitive to the violent lumber price oscillations we have seen. Recycled GMA pallets are also popular with many receivers who accumulate and sell GMA pallets to generate revenue, or reuse them internally to palletize goods.
The Case for Remanufactured Pallets
Remanufactured pallets are typically more expensive than recycled but cheaper than new. And like for recycled pallets, the use of recovered material to build them provides a wonderful sustainability story. Remanufactured pallets are becoming increasingly popular as pallet providers continue to refine their production techniques to incorporate pallet nailing lines in addition to building them on jigs.
Aside from sustainability and price advantages versus new, remanufactured 48×40" pallets can be made with custom deck board placement for applications where it is important such as in supporting boxes to prevent corrugated deformation. Deck board and stringer size variability can also be addressed by sorting components by thickness prior to assembly. Recyclers typically sort recovered deck boards as “thins” (generally boards 3/8” – 1/2”) or “thicks” (typically boards 5/8 – 3/4”). Some recyclers also resize recovered stringers to provide uniform height. As a result, remanufactured wood pallets can provide a more consistent product than recycled.
Pallet buyers must decide between new, recycled or remanufactured pallets. As to which one is best for you, the answer is that it depends. As outlined above, all of them come with pros and cons. The decision ultimately comes down to your particular use case and more recently, pallet availability.
