Wood Pallets & Skids Production in the US - Industry Market Research Report

Wood Pallets & Skids Production in the US - Industry Market Research Report

  • February 2021 •
  • 54 pages •
  • Report ID: 198705 •
  • Format: PDF
Knock on wood: A rebounding economy will likely encourage increased downstream demand


Wood Pallets & Skids Production in the US

The Wood Pallets and Skids Production industry has a very low level of market share concentration. The majority of companies operate regionally or within a single state, mainly because shipping wood containers and pallets across long distances is not profitable, given the high transport cost and low price point of the products. Notable relevant companies include PalletOne Inc. and Northwest Pallet Services.

Transport costs and innovation hinder market growth

• The increased adoption of just-in-time manufacturing, in which companies cut inventory costs through more frequent, timely delivery of inputs, has increased demand for industry companies that operate locally and can deliver pallets regularly with minimal turnaround time. Therefore, industry operators are generally reluctant to significantly expand their operations or geographic reach. Access to labor has recently become a greater barrier to entry for the industry. Skilled labor is becoming more important as operators work with new technology, such as laser scanning systems that detect imperfections in recovered pallets.

Price, quality and location drive competition
• Pallets typically cost less than $10.00 each, and since pallets are bought in bulk, even marginal decreases in per-unit prices can represent significant savings for industry customers and provide a competitive advantage for lower-cost producers. Strength and durability are also important considerations for industry customers seeking to control costs, as these factors determine the reusability of a pallet. Wood pallets can usually be reused multiple times, and the more times they can be reused, the lower shipping costs are for industry customers, thus, providing a major factor of competition within the industry.

Companies in the Wood Pallets and Skids Production industry manufacture wood pallets, wood box shook, wood boxes, wood skids, other wood containers and wood parts for pallets and containers. Companies purchase hardwood and softwood lumber from sawmills to manufacture this industry’s wood products. These products are then sold to a host of downstream industries that use the pallets and containers to store and transport consumer and industrial goods.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

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