My first full-time job out of college was working at a public relations firm that specialized in the agriculture industry. And my primary account was the United Soybean Board, the checkoff research and promotion organization for the U.S. soybean industry. And I learned a lot about developing new markets from research and promotion to launching new products to responding to an industry media crisis.
As various sectors of the forest products industry have been adopting or considering checkoff boards, I have been thinking back to my experience and wondering what the U.S. pallet industry needs in terms of research, promotion, market development and overall brand marketing. If the hardwood checkoff board ever gets approved, it appears the pallet and low-grade lumber industries will be exempt. So the closest thing we have to an overall industry research and marketing organization is the Pallet Foundation.
Started in 1996, the Pallet Foundation has supported academic research, education/training and safety in the wood packaging industry while also promoting the industry to end-user markets. The Foundation has also consistently supported testing, data collection and analysis for further developing the Pallet Design System™.
According to the National Wooden Pallet & Container Association (NWPCA), which oversees operations for the Foundation, the following are some major initiatives undertaken using Foundation funds:
• Research adhesive fasteners for pallets (1998)
• Research impact of changes in shipping logistics on pallet markets (2000)
• Enable PDS to evaluate remanu-factured pallets and pallets constructed with recycled parts (2001)
• Modifying the PDS to predict the performance of pallets assembled with used, reclaimed wood pallet parts (2002)
• Cost Study: Renting vs. Purchasing Pallets (2003)
• Develop cost effective, light weight wood-based composite material not subject to IPPC Guidelines (2004)
• Pallet and container production & recycling research (2004)
• Finger-jointing of green hardwood pallet parts follow-up to verify technical feasibility of use in assembled pallets (2004)
• Topographical mapping of the mechanical stressing of wood pallets during use (2004)
• Grocery Distribution Study (2005)
• Webnet Safety & Health Training program (2005)
• Improving the properties of wood packaging (2006)
• Trends in raw material supply (2006)
• Trends in wood wastes and by-products (2006)
• Comparison of wood versus alternative materials (2006)
• Employer Policy & Procedures Manual (2007)
• I-9 compliance manual/training and enforcement training (2007)
• NWPCA Employer Policy & Procedures Manual into Spanish (2008)
• Lab testing @ Virginia Tech to develop the expanded structural and durability analysis and supplement wood pallet test data in PDS (2009)
• Purchase digital pressure mat to conduct initial laboratory testing for PDS (2011)
• Nature’s Packaging promotion program in conjunction with the Canadian Wooden Pallet & Container Association (2015)
• Additional pressure mat research for PDS (2015)
• Pallet industry outreach to packaging universities to build awareness of PDS and positive environmental attributes of wood packaging. (2015)
The Foundation is a 501(c)(3) charitable foundation and all contributions are tax deductible. Besides donations from industry members, the major way that the Foundation raises money is through an annual auction held every year at the main NWPCA meeting.
This year the auction set a new record, raising $125,000 for the Foundation. The owner of John Rock Inc., Bill MacCauley, has served as the auctioneer for several years, and has been integral in leading the fundraising efforts.
So with almost a million dollars in the fund, and the possibility of $15,000-$30,000 or more available each year for projects, the industry has some resources to move forward. The Pallet Foundation has done a number of great things in the past. The big question is, “What is really needed in the future to help propel the industry forward?”
While the majority of the funds have been given by NWPCA members, the main purpose of the Foundation originally was to develop research and promotion that would benefit the overall wooden pallet industry. It is time for the overall industry to contribute and be a part of the process.
There are a wide variety of projects that could be funded. The first that comes to mind is voluntary key performance standards or best practices on key concerns such as pallet storage and fire safety, mold mitigation and treatment (possibly mimic what the Europeans have done in developing a tiered service-level system), updated OSHA training manuals and procedures for equipment specific to the pallet industry, sanitation and food safety, or any other idea that would benefit pallet companies.
To develop key performance standards or best practices, you need to survey the industry to find out what people do, why and what has worked well. This data then needs to be collected, analyzed and used to develop key performance standards or voluntary best practices. This looks like a great way to help the industry stay on top of major issues and customer concerns.
When it comes to fighting against competing materials, such as plastics, metal or composite pallets, wooden pallets could use a variety of resources to combat the competition. This could include a life cycle analysis or basis to help companies develop their own assessments. The hardwood sector developed just such a thing via the Hardwood Export Council to help U.S. hardwoods defend its environmental credentials against foreign competitors. One big problem with environmental statements, certifications and claims is that the devil is in the details. It all depends on your assumptions and the figures that you use for your baseline. It is hard to ever get anything where a wide variety of industry companies or organizations used the same criteria.
Of course, the wooden pallet industry could use some educational videos or a marketing campaign that focuses on the benefits of wooden packaging for both the economy and the environment. The NWPCA and the Canadian Wooden Pallet & Container Association are working on Nature’s Packaging, a new branding campaign to come out over the next few years.
The NWPCA developed a very good intro video about the importance of wooden pallets to the U.S. supply chain. You can view the video at https://www.youtube.com/watch?v=0h3Tl7OC9E4. One of my favorite videos on why wood is good to use for the products was published by the Danish Wood Initiative in 2011. See the video at https://www.youtube.com/watch?v=XxfBxmr0ZnI. While these are great, the amount of junk and lies out there about the industry continues to grow, and we need to do something so that people don’t think that wood pallets are a menace or bad for the environment. The new Nature’s Packaging program and website is a step in the right direction. What else does the industry need?
Another key area of emphasis could be research on overall industry trends, customer preferences or wood science issues. What if the Foundation were to sponsor a listening tour where major pallet users were brought together for regional meetings to discuss key issues and develop a roadmap for the pallet of the future?
Also, the Foundation can fund further development of overall scientific research that could be used to benefit PDS, Best Load or other software products.
What if we were to think really outside of the box? What if the Foundation funded an industry app for smartphones and computers that help educate consumers, pallet users and the overall industry on pallets? This app could provide basic facts, pictures, explanations of terms, articles on hot topics, a locator service to find places to drop off or pick up pallets. Maybe the app could tie into PDS in some way and help general consumers understand all the ways that a pallet can be changed to alter its performance characteristics.
So what do you think? What does the industry need for a brighter future? My father is on the Foundation committee, and he would like to hear from you. Please email him at edb@ireporting.com. The good news is that the industry does have resources to improve tomorrow. We just need to make sure that we are generating the ideas and solving the problems that will truly make a difference.
