Many people in the pallet industry have heard of the Pallet Foundation (PF), the non-profit organization tasked with developing resources and conducting research and outreach on behalf of the wood pallet sector.
Many of you have probably given to or supported the PF. You are helping to develop a better future for all wood pallet companies. Others have stayed on the sidelines up until this point. But I want to share what PF is doing for you and why you might want to get involved.
The PF has tackled a number of industry issues to help prepare the sector for challenges coming in the future. From environmental issues to industry statistics to strategic research partnerships and the development of software, such as improvements to the Pallet Design System™, the Pallet Foundation funds these projects. Many of them require ongoing support to ensure that work done in the past is updated and maintained. For a list of successful PF projects, see Sidebar 1.
Every industry and company needs to have people who spend time thinking about the future. That’s a big part of what the PF does for the entire pallet industry. Some of these projects are just too big for any one pallet company to tackle. And they require foresight and advanced planning to have resources in place long before the needs are fully realized by the industry.
For example, the Pallet Foundation began talking about the environmental impact of wood pallets years ago, long before companies were focusing on sustainability or environmental goals. Brent McClendon, the president of the National Wooden Pallet & Container Association, (NWPCA) commented, “Talking about carbon and environmental impact. The Pallet Foundation started this conversation seven to eight years ago. It funded the Landfill Avoidance Study and the Environmental Product Declaration (EPD) that is helpful to quantify the true green footprint of wood pallet production and recycling. Research and industry cooperative efforts like this aren’t built overnight. And that’s why having an organization like the Pallet Foundation is so critical. It can think ahead and look to the future in a way that is hard for any one company to do on its own.”
Financially, the Pallet Foundation remains on strong footing with continued year-over-year revenue growth and a healthy cash position to fund projects. But investing in all these projects requires money and continued investment.
Steve Yelland, the owner of JFR Holdings and the chair of the PF, stated, “I’m not sure everyone knows this, but this year we’re spending close to $700,000 in projects supporting the industry. The annual support from our donors through our fundraising activities is enabling us to approve many projects that promote the value of wood, a pallet design system, and outreach to supporting industries that will help us grow our potential to support the industry.”
Primary fundraising avenues for the PF include auctions at the NWPCA and Western Pallet Association (WPA) annual meetings, funds from the Canadian Wooden Pallet & Container Association (CWPCA), individual contributions from pallet and lumber companies, events such as golf tournaments and the October Virtual Fun Run, etc. And while these funding efforts are critical, they can’t carry the weight alone.
McClendon explained, “Everybody thinks of the Pallet Foundation and the auction, right? The NWPCA auction raised $300,000 last year. That’s phenomenal. But our budget is $700,000 this year. It is met by those individual contributions, family foundations and other in-kind contributions that support industry projects and continue to grow. The support the industry has shown is heartwarming.”
The Pallet Foundation has limited overhead because all the board members are volunteers and the NWPCA provides free administrative support to the organization. This means that the majority of the dollars raised go to funding projects and building up the endowment base for the future. Contributions are tax deductible, which means donations can be a good way to reduce tax liabilities.
One of the biggest things that more people need to realize is that the work of the Pallet Foundation benefits everyone in the industry, and the majority of its research and resources are open to everyone. From a Fire Code Compliance Manual developed in conjunction with the NWPCA to the EPD and the Landfill Avoidance Survey as well as a recent study of the basic economic impact of the industry, these projects are available to everyone. Whether or not you have paid to support the foundation, the Pallet Foundation is working for you. Research conducted as part of the Economic Impact Study was used to justify pallets as an essential industry when the pandemic hit. Otherwise, pallet producers may have had to shut down in some localities, just like restaurants or schools. Thanks to work funded by the Pallet Foundation, major fire codes have provisions to provide manufacturers and recyclers with special considerations when it comes to pallet storage and handling.
New areas of focus for the PF include human resources through a workforce study to be done in conjunction with the National Association of Manufacturers. This analysis will be used to develop a game plan for the PF to assist pallet companies in improving new employee recruitment. The PF will also direct a project this year to answer just how many pallets are circulating in the wood pool in the United States. For years, the figure of approximately 2 billion has been cited without being scientifically verified. The Pallet Foundation will seek to determine the real number and back it up with credible data. Finally, the PF will study the underlying risks of wood pest interceptions at U.S. ports. The main purpose of this study will be to publish a peer-reviewed article that helps regulators and policymakers understand that not every pest being intercepted poses a risk to U.S. forests.
A big aspect of PF funding has been the continued development and innovation of the Pallet Design System™ (PDS) software. Many pallet companies are becoming more advanced through automation and operations, and PDS will be changed in the future to meet the evolving needs of users over the next several years. PDS helps companies make sure that pallets are designed optimally for each scenario without having to engage in costly testing for each design.
You may be wondering, “All this industry research is great. But how can I use PF research and resources in my everyday operations?” That’s a great question. I asked a few pallet people to respond. Steve Yelland commented, “The primary areas are PDS, ISPM-15, and fire code safety. We use PDS every day, in all areas of our operation. We use PDS as the primary tool in production for producing pallets according to customer specifications. We also use it for sales and customer support. We’re heat treating pallets every day. Our fire marshal expects us to follow the fire codes for storage of wood, work in process and finished pallets. Knowing we have continuing input into regulations is very helpful.”
John Swenby of the Paltech Group suggested that PF research has been helpful in communicating key issues with customers. He explained, “We recently had a customer inquire about how their ‘Pallet Supplier’ protected the environment. We were able to blow the customer away with PF-funded research called the ‘Landfill Avoidance’ study. This research supported and documented how well the wood pallet sector has, for years, protected and benefited the environment.”
Swenby added, “I see the continued development of the PDS program becoming a major international environmental resource. And the continued support of research programs, like the Landfill Avoidance, is a major way for our industry to show the world what a true ‘GREEN’ industry can do to help society.”
How can you support the PF? The first way is through contributions or by participating in a fundraiser. If you are a member of the NWPCA or WPA, you can choose to add funds when you handle your yearly membership dues. You can also donate online through the website at https://palletfoundation.org/. Or you can participate in one of the auctions at an industry event or one of the fun events held throughout the year, including golf tournaments and the October Fun Run.
The second thing you can do is learn more about the PF and put its resources to good use. Visit the Pallet Foundation website and consider using info from the Landfill Avoidance Survey or the EPD to promote the benefits of wood packaging. You may also want to visit the Nature’s Packaging website at https://naturespackaging.org/.
Another thing you can do is talk about the Pallet Foundation with business partners, co-workers and suppliers. Encourage them to participate and spread the word.
Finally, if you want to be really involved, you could serve on the Pallet Foundation Board or help staff one of the many fundraisers. These are exciting times in the industry and working together has never been more important. Yelland explained why he supports the Pallet Foundation. He said, “It’s the right thing to do. The wood packaging industry has meant so much to my family over the last sixty years. I truly believe in order to sustain the continued success of wood packaging as the solution of choice for securing and transporting unit loads globally, we need to continue supporting research and promotion in our industry.
That support takes more than the annual dues supporting our association. We’re stronger as a group than individually. The proof of that is the fact that we’re starting to see funds come in from supporting industries. They’re seeing the power of our Foundation and want to be a part of that success story. That progress will never come from us individually. It takes the commitment of many to ensure our continued success as an industry.”
For more information on the Pallet Foundation or to donate, visit https://palletfoundation.org/.
Sidebar 1
Important Pallet Foundation Projects and Industry Wins
The following are recent projects funded by the Pallet Foundation:
• Environmental Product Declaration for Wooden Pallets: The first of its kind for wood packaging, this provides a “nutrition label” for wood pallets that certifies a wood pallet’s strong environmental attributes. The results based on industry data and sound scientific principles highlight the renewable, biodegradable, reusable, and recyclable aspects of the industry.
• Economic Impact Study: This study calculated the total economic contribution that the wooden pallet and container industry makes to the U.S. economy. This information has been used to justify the industry’s importance to lawmakers and consumers. The study found that the wood pallet industry has a direct or indirect impact on more than 173,000 jobs and generates a total economic impact of US$31 billion in economic activity.
• Landfill Avoidance: Research shows that wood pallets are recycled at a rate of 95%. The number of pallets entering landfills has shrunk dramatically as industry soars in pallet reuse, recycling, and conversion into other materials, such as mulch, animal bedding and bioenergy.
• Pallet Market Survey: An analysis of major industry trends used by many companies.
• Fire Code: Developed a comprehensive Fire Code Compliance Manual designed to help pallet companies be safe and reduce fire risks. The manual provides real-world information needed to develop a strong fire plan for both manufacturers and recyclers.
• Comprehensive Look at U.S. Residuals Markets: Research was conducted to better understand the relationship between the supply and demand of wood residual materials over a 14-year period.
• Pallet Design System: Ongoing research and development of the Pallet Design System™ software.
• Nature’s Packaging: Creation and development of an environmental outreach campaign called “Nature’s Packaging”, including the popular “Nature’s Packaging” website.
• Academic Partnerships: Educational outreach to universities and packaging programs to increase the visibility of the wood packaging sector.
