New Quality Standardization Initiative Targets U.S. Market, Eventually the World

New Quality Standardization Initiative Targets U.S. Market, Eventually the World

                A leading pallet maker in Germany identified a need and has sought to change the world of pallets forever. His name is Marcus Falkenhahn, and he wants to pioneer a whole new way of standardizing pallets across the globe. Instead of focus on just one footprint size or even style (block vs. stringer). He wants to focus on quality and reliability with a brand that means something to major corporations.

                Falkenhahn has recognized in many regions, including the United States, that quality is something that lacks in many pallets in the market. This isn’t the fault of any one person or entity. It is the race to the bottom that is caused by many companies not understanding how costly those cheap pallets really can be. The U.S. pallet market needs workable quality standards that can help differentiate a good from a bad pallet.

                That’s where the organizers behind WORLD Pallet America think they have come up with a solution. They want to develop a quality control program that can be used for various sizes/footprints around the globe. This concept is the brainchild of Marcus Falkenhahn, the CEO of WORLD Pallet AG, who took on in court the organizers behind the EPAL EUR pallet standard and won. Falkenhahn started his own quality standard when he found the EPAL system too expensive and cumbersome. He has developed one of the most technologically modern pallet plants in the world and has secured major accounts who opt for the WORLD certified pallet over EPAL Euro pallets.

                Having successfully launched the WORLD pallet in Europe, especially Germany, Falkenhahn wants to do the same in other key markets, focusing first on the United States. And he has found someone to run the launch of the program in the United States as well as some key initial partners and is seeking more who want to get in on the ground floor of the operation.

                Juan Diaz, who used to manage import and export lumber sales for Botkin Lumber, has assumed the position of CEO for WORLD Pallet America. Diaz explained that the WORLD pallet program will succeed in this market because the quality control program is less strenuous than EPAL, the pallet management is simpler than 9BLOC, and the pallet options are more flexible than rental programs.

                WORLD Pallet America plans to offer a number of platform designs,  including an 800x1200mm Euro pallet, a 48×40 block pallet and a 48×40 stringer pallet. Unlike EPAL, which tried to enter the U.S. market with only a European style pallet, WORLD recognizes that one footprint will not fit every market. Instead, it wants to focus on quality and branding to help develop a recognized quality standard. Diaz said that the WORLD pallet will be more practical than EPAL, which had very stringent restrictions on everything from lumber to specialty nails and security/anti-counterfeit measures.

                Three U.S. pallet companies have agreed to be part of the initial launch team –  Twin City Pallets in Minnesota, John Rock in Pennsylvania and Oakland Pallets in California. The organization is looking for 50-60 pallet companies with manufacturing and some recycling capabilities across the country.

                Diaz commented, “We are making this very easy for people to try because the fees are very low, and we will waive all license fees for the first year.” The idea is to develop a group of industry leaders who want a quality control program that is doable, added Diaz.

                Brian Laumeyer, president of Twin City Pallets, stated, “I believe the WORLD pallet will take off over time because the industry needs standardization.” He added that this is different from other programs because of its simplicity and number of pallet options being offered. Besides the first three in development, the organization is open to a number of different footprint sizes and quality grades.

                The simplicity comes in the management program used to facilitate the use of the pallet. Unlike rental programs, the WORLD pallet is designed to be sold or exchanged on the open market. Also, it is a more adaptable pallet to build compared to EPAL, 9BLOC or rental pallets according to Diaz.

                Laumeyer said that the design specification is not much different than what he already does for some clients demanding a high quality new pallet. The main difference is the inspection process, standardizations and quality brand that will be applied. Diaz said that initially the inspection process will be 4-6 times per year with more frequent inspections for companies that are found violating terms of the agreement. These inspections will be done at the discretion and on the timetable of WORLD pallet.

                Bill MacCauley, president and owner of John Rock, said that he is interested in the program because it can help improve pallet quality in the marketplace.

                The WORLD pallet program is different from 9BLOC or a rental program because it is defined for pallets primarily to be bought or sold although private rental networks are an option for true closed loops. For companies looking to make inroads into the European market, the WORLD pallet may make sense because it is widely accepted by some major European customers. And the upfront cost is minimal, which is one of the attractive aspects of the WORLD initiative. For more information, call 770-893-8833, email juandiaz@worldpalletamerica.com or visit www.worldpalletamerica.com.

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Chaille Brindley

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Pallet Enterprise July 2024