The leader of the Los Angeles Pallet Association (LAPA) shares about key issues affecting the California pallet sector including local zoning reforms, economic hardships and increased immigration enforcement. Kenia Gil is a second-generation pallet company leader for A&I Pallets and the director of LAPA.
Pallet Enterprise: What are some of the zoning challenges facing LAPA members?
Gil: On the zoning side, we are seeing regulatory shifts not just in Los Angeles County, but across San Bernardino County, Perris, Riverside, Fontana, and surrounding regions. The pressure is widespread and ongoing.
Many of these ordinances require pallet businesses to make significant structural changes. Some require pushing back property lines by three to five feet. While that may seem minimal on paper, pallet yards depend on open storage space. Even a few feet can reduce capacity, limit workflow and directly impact revenue.
Other requirements include constructing or rebuilding twelve-foot block walls around properties. We understand and support the goal of improving safety and beautifying industrial neighborhoods. However, these upgrades represent major capital investments.”
Pallet Enterprise: Why is company size and structure a challenge for many California recyclers?
Gil: For pallet yards that own property, compliance requires substantial reinvestment. For those who lease, the situation is even more complex. Tenants may be required to fund expensive improvements on land they do not own, and landlords are not always willing to absorb those costs. That places many small operators in a financially vulnerable position.
It is important to recognize that many pallet yards are not large corporations. They are family run, mom and pop businesses that have served their communities for decades. They provide local jobs, support recycling infrastructure and play an essential role in supply chain logistics.
Pallet Enterprise: How are California pallet companies responding to economic pressures?
Gil: Insurance costs have increased. Fuel prices for gas and diesel continue to fluctuate at high levels. Operating expenses across the board have risen. Yet pallet pricing in many sectors has remained flat or even decreased due to market oversupply and competitive pressure.
There have been moments where I personally had to step back and assess the direction of our industry. I asked my father, who has been in this business for over 30 years, where he saw things heading. His response put everything into perspective. He said this has been one of the longest and most difficult cycles he has seen. He even noted that 2008 did not feel this prolonged for our sector. We are cutting costs where possible. We are pivoting where necessary. We are supporting one another as an association.
Pallet Enterprise: How is increased immigration enforcement affecting the pallet market in Southern California?
Gil: Many members are navigating growing safety concerns tied to immigration enforcement activity across Los Angeles and surrounding counties. A significant portion of pallet yard owners and workers come from Latino, Black, and other diverse backgrounds. When enforcement activity increases in industrial corridors and surrounding neighborhoods, it creates tension and uncertainty.
In response to that uncertainty, many yard owners have had to make difficult decisions. Some temporarily close their yards to the public to keep workers and customers safe. Others close earlier than usual when activity is reported nearby. In some cases, workers choose not to come in due to concern for their safety or their families. These reactions are understandable, but they directly affect operations, staffing stability and revenue. There have also been moments when protests are occurring in nearby areas.
Pallet Enterprise: Since pallet yards operate as open recycling hubs how have disruptions affected the public-facing side of the business?
Gil: We rely on steady drop offs from small businesses, independent haulers, and community members. When yards close early or reduce access, material flow slows. When staffing becomes uncertain, production decreases.
We acknowledge the importance of lawful enforcement, community safety, and neighborhood improvement. We support beautification efforts and reasonable compliance standards. What LAPA members are asking for is balance, dialogue and recognition of the realities small pallet operators are facing.
Pallets are a vital part of the supply chain. Most products move on pallets, and any disruption can cause significant supply chain disruptions. LAPA and other local pallet groups are working to tackle these challenges in California.
Editor’s Note: To find out more about LAPA, visit https://tinyurl.com/mtxctwpt.
