They may not be glamorous, but wooden and other types of pallets are the workhorses of the global economy. These seemingly simple shipping “platforms” underpin the complex dance of manufacturing, distribution, and retail that keeps store shelves stocked and goods flowing across continents.
It’s not hard to see why.
Pallets offer a unique combination of functionality and affordability. They’re strong enough to handle heavy loads, yet lightweight enough to be easily maneuvered. They’re also readily available and relatively inexpensive compared to alternative materials like plastic. This has made them – and continues to make them – the “go to” solution for a vast array of industries, from food and beverage to heavy equipment, automotive, paper products, and pharmaceuticals.
In addition to pallets themselves, we must give due credit to the vast workforce that keeps the pallet ecosystem running smoothly. Pallet manufacturers — often small and medium-sized manufacturing businesses scattered across the country — source lumber and assemble the platforms according to specific industry needs. Repair crews extend the life of used pallets, reducing waste and keeping costs down. Brokers facilitate the buying and selling of pallets, ensuring a steady supply for businesses. Logistics managers meticulously track pallets through the supply chain, optimizing their use and minimizing downtime. And finally, the skilled operators behind the wheel of forklifts keep the pallets moving – loading, unloading, and stacking them with precision.
Why, even pallets that can no longer be used continue to be ‘useful’ and generate jobs – when other companies and parties in or adjacent to the sector convert them to mulch, wood pellets, or compost.
Economic Impact and Efficiency
The impact of pallets is undeniable. According to the National Wooden Pallet & Container Association, the US wood packaging industry alone generates over $30 billion in economic output and supports nearly 173,000 jobs (see the An Economic Analysis of the US Wood Packaging Industry – National Wooden Pallet and Container Association). Imagine the countless warehouses and distribution centers that would grind to a halt without these sturdy platforms for stacking, storing, and transporting goods.
Other statistics highlight the importance of pallets in logistics. A 2012 article makes the case that approximately 80% of all U.S. commerce is carried on pallets. This statistic underscores their critical role in the economy, as pallets support the vast majority of goods transported within the country.
The impact extends beyond just keeping businesses running. Pallets also facilitate international trade, allowing goods to be efficiently shipped and unloaded across vast distances. They also play a critical role in national and worldwide sustainability efforts, as many pallet manufacturers use recycled wood and source lumber from sustainably managed forests.
Finally, and lest you conclude pallets are a stagnant technology, it’s worth noting their design and processes involved in their manufacture – do continue to evolve to meet modern challenges like weight reduction goals, targeted increases in durability, and the quest for ever-improved functionality. Additionally, pallet-management strategies like pallet pooling wherein pallets are shared among multiple companies – also drive new efficiencies, resource conservation, and waste reduction.
So, next time you see a product on a store shelf…
…take a moment to appreciate the silent heroes who made it possible. It wasn’t just the manufacturer or the retailer, but the entire network – from the lumberyard to the forklift operator – and, more than likely, the humble wooden pallet that played a crucial role in getting those goods to you.
