US Pallets Market

  • June 2013
  • -
  • Freedonia
  • -
  • 309 pages

US demand to rise 3.5% annually through 2017

The number of pallets in use in the US is forecast to grow 2.4 percent annually to 2.6 billion in 2017, with annual demand for new pallets increasing 3.5 percent per year to 1.3 billion units. A number of factors will contribute to sales growth. First, rising manufacturers’ shipments will require producers to add to their existing stocks in order to have enough pallets on hand to handle higher output levels. Second, the 2007-2009 economic recession negatively impacted new lumber pallet demand because refurbished pallets were a lower-cost alternative for cash-strapped producers. As a result, relatively few new pallets were purchased during the downturn, leaving owners unable to maintain stock quality. Going forward, a more favorable economic climate will induce companies to discard these aging refurbished units and purchase new ones, fueling stronger demand growth. Third, block pallets are expected to make up a larger share of the market total, and growing numbers of manufacturers will replace their existing stringer pallets with new block units.

Manufacturing market to outpace warehousing uses

Manufacturing pallet demand will outpace warehousing market sales through 2017, fueled by a rebound in shipments following a period of decline and supported by a trend toward insourcing as labor costs rise in developing countries and shipping costs continue to climb. Warehousing pallet demand will moderate from gains posted during the 2007- 2012 period for two reasons. The primary reason is growth in use of pallet management services that are able to skillfully maintain pallet stocks with minimal new product purchases, tempering increases in demand. These firms provide producers and distributors with the pallets they require, eliminating the need for them to purchase and maintain their own pallets. The use of pallet management services also frees up pallet storage space that can instead be utilized for components and finished goods. The second reason for the expected deceleration in warehousing pallet market advances is the growing maturity of this industry, as much of the shift towards third-party providers has already occurred.

Plastic, metal pallets to gain market share on wood

Wood pallets are projected to remain the most commonly used product type through 2017, although competitive products will register more impressive sales gains. Plastic pallets have seen the strongest advances historically in percentage terms, and they will continue to record above-average stock and demand increases. They last for many years and are fully recyclable, allowing producers to tout both their lower lifecycle costs and environmental friendliness. Metal pallet demand, however, will rise at the fastest pace of any product type through 2017 due to a large build-up in idle stocks during the 2007-2009 recession and the generally slow economic recovery that followed. As manufacturers’ shipments fell between 2007 and 2009, metal pallets were taken out of active stocks and put in storage because they represented too significant an investment to be simply discarded. As output levels recovered, these idle metal pallets were used to meet product requirements, severely limiting new pallet sales in 2012. Through 2017, demand will advance rapidly from the low 2012 market base as idle stocks are eliminated and new units are purchased.

Study coverage

Details on these and other findings are contained in the upcoming industry study, Pallets, priced at $5100. It presents historical demand data (2002, 2007, 2012) plus forecasts for 2017 and 2022 by material, product, market and US region. In addition, the study assesses market environment factors, examines the industry structure, evaluates company market share, and profiles 50 competitors in the US industry.

Table Of Contents


TABLE OF CONTENTS

INTRODUCTION xi

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4

General 4
Macroeconomic Environment 5
Demographic Trends 8
Manufacturing Outlook 12
Durable Goods 15
Nondurable Goods 17
Warehousing Expenditures 20
Construction Expenditures 23
Historical Overview 26
Environmental Issues 28
Cross-Contamination Issues 30
Competitive Products 35
Pricing Trends 37
Metal 40
Plastic 40
Engineered Wood 41
Lumber 41
Corrugated Paper 43
Foreign Trade 43
World Market 47
Western Europe 48
Asia/Pacific 49
Other Regions 50
Pallet Management Services 52
Relationship Between Stock and Demand 54
Pallet Lifespans 56

III. MATERIALS 59

General 59
Wood 60
Lumber 62
New Pallets 64
Refurbished Pallets 65
Engineered Wood 67
New Pallets 69
Refurbished Pallets 70
Plastics 71
Demand by Resin 73
HDPE 73
Other Resins 74
Demand by Source 75
New Resin 75
Reclaimed Resin 76
Corrugated Paper 77
Metal 78
Steel 80
Aluminum 82
Fasteners 83

IV. PRODUCTS 86

General 86
Pallet Supply and Demand 87
Pallet Demand in Unit and Value Terms 89
Pallet Stock 93
Wood Pallets 96
Supply and Demand in Unit Terms 98
Demand in Value Terms 100
Lumber Pallets 102
Characteristics 105
Manufacturing 107
Design 109
Stringer 110
Block 111
Type 112
New Pallets 112
Refurbished Pallets 113
Engineered Wood Pallets 114
Characteristics 116
Design 119
Block 119
Stringer 120
Types 120
New Pallets 120
Refurbished Pallets 121
Plastic Pallets 122
Supply and Demand in Unit Terms 123
Demand in Value Terms 125
Characteristics 126
Manufacturing 128
Types 130
HDPE 130
Other Resins 132
Metal Pallets 134
Supply and Demand in Unit Terms 135
Demand in Value Terms 137
Characteristics 138
Manufacturing 140
Types 141
Steel 141
Aluminum 143
Corrugated Paper Pallets 144
Supply and Demand in Unit Terms 145
Demand in Value Terms 147
Characteristics 148

V. MARKETS 151

General 151
Manufacturing 154
Food and Beverages 157
Industry Outlook 157
Pallet Market 160
Transportation Equipment 163
Industry Outlook 163
Pallet Market 166
Chemicals 168
Industry Outlook 169
Pallet Market 171
Electronic Products 173
Industry Outlook 174
Pallet Market 177
Metal Products 179
Industry Outlook 180
Pallet Market 181
Machinery 183
Industry Outlook 183
Pallet Market 185
Other Manufacturing 187
Warehousing 189
Construction 193
Other 195

VI. REGIONS 198

General 198
Regional Demographic and Economic Trends 199
Population Patterns 199
Economic Outlook 202
Manufacturing and Warehousing Value-Added 205
Regional Demand for Pallets 208
Northeast 211
New England 213
Middle Atlantic 214
Midwest 215
East North Central 218
West North Central 219
South 220
South Atlantic 222
East South Central 224
West South Central 225
West 226
Mountain 228
Pacific 230

VII. INDUSTRY STRUCTURE 232

Industry Composition 232
Manufacturers and Refurbishers 233
Pallet Management Specialists 237
Market Share 239
Wood Pallets 239
Other Pallets 240
Pallet Management Specialists 241
Competitive Strategies 242
Research and Development 244
Marketing 247
Distribution 249
Cooperative Agreements 251
Mergers and Acquisitions 253
Company Profiles 256
Airdex International Incorporated 257
Arrington Lumber and Pallet Company 258
Associated Pallet Incorporated 259
Battle Lumber Company Incorporated 260
Botkin Lumber Company Incorporated 261
Brambles Limited 262
Buckhorn, see Myers Industries
CHEP Americas, see Brambles
Commercial Lumber and Pallet Company Incorporated 263
CORBI Plastics, see Menasha
Corrugated Pallets Company 264
Decade Products LLC 265
Edwards Wood Products Incorporated 266
Fabri-Form Corporation 267
Great Northern Corporation 268
Greystone Logistics Incorporated 269
IFCO Systems US, see Brambles
iGPS Company LLC 270
Industrial Pallet Corporation 271
Intelligent Global Pooling Systems, see iGPS
ITW Plastic Packaging, see Illinois Tool Works
Kamps Incorporated 273
Lannes Williamson Pallets, see Millwood
LEFCO Worthingon, see Worthington Industries
Litco International Incorporated 274
LM Containers LLC 275
MAUSER AG 276
Menasha Corporation 277
Millwood Incorporated 279
Myers Industries Incorporated 281
Nepa Pallet and Container, see Universal Forest Products
Northwest Pallet Supply 282
Oakland Pallet Company Incorporated 283
ORBIS, see Menasha
Pallet Factory Incorporated 284
PalletOne Incorporated 285
PECO Pallet Incorporated 286
Potomac Supply Corporation 287
Rehrig Pacific Company 288
Rewind Otd, see LM Containers
Rotonics Manufacturing, see Snyder Industries
Schäfer (Fritz) GmbH 290
Schoeller Allibert Limited 291
Snyder Industries Incorporated 293
Sonoco Products Company 295
Southwest Forest Products Incorporated 296
Spara Logistics, see TriEnda Lexington Logistics
SSI Schaefer Systems International, see Schäfer (Fritz)
Stratis Plastic Pallets, see Snyder Industries
Tasler Incorporated 297
TriEnda Lexington Logistics LLC 298
Universal Forest Products Incorporated 299
WNC Pallet and Forest Products Company Incorporated 301
Wooden Pallets Limited 302
Worthington Industries Incorporated 303
Other Companies Mentioned in Study 304

LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY

Summary Table 3

SECTION II -- MARKET ENVIRONMENT

1 Macroeconomic Indicators 8
2 Population and Households 12
3 Manufacturers’ Shipments 15
4 Durable Goods Shipments 17
5 Nondurable Goods Shipments 20
6 Warehousing and Storage Expenditures 23
7 Construction Expenditures 26
8 Pallet Demand, 2002-2012 28
9 Pallet Pricing Trends 39
10 Foreign Trade in Pallets 47
11 Pallet Management Service Revenues and Pallet Stock 54

SECTION III -- MATERIALS

1 Raw Materials Demand in Pallets 60
2 Wood Demand in Pallets 62
3 Plastic Resin Demand in Pallets 72
4 Corrugated Paper Demand in Pallets 78
5 Metal Demand in Pallets 80
6 Fastener Demand in Pallets 85

SECTION IV -- PRODUCTS

1 Pallet Supply and Demand 89
2 Pallet Demand in Unit and Value Terms 91
3 Pallet Stock 95
4 Wood Pallet Stock, Supply, and Demand 98
5 Wood Pallet Value Demand 101
6 Lumber Pallet Stock and Demand 104
7 Engineered Wood Pallet Stock and Demand 116
8 Plastic Pallet Stock, Supply, and Demand 124
9 Plastic Pallet Value Demand 126
10 HDPE Plastic Pallet Demand 132
11 Other Plastic Pallet Demand 134
12 Metal Pallet Stock, Supply, and Demand 137
13 Metal Pallet Value Demand 138
14 Steel Pallet Demand 143
15 Aluminum Pallet Demand 144
16 Corrugated Paper Pallet Stock, Supply, and Demand 147
17 Corrugated Paper Pallet Value Demand 148

SECTION V -- MARKETS

1 Pallet Stock and Demand by Market 153
2 Manufacturing Market for Pallets 156
3 Food and Beverage Shipments 160
4 Food and Beverage Market for Pallets 162
5 Transportation Equipment Shipments 166
6 Transportation Equipment Market for Pallets 168
7 Chemical Shipments 171
8 Chemical Market Demand for Pallets 173
9 Electronic Product Shipments 177
10 Electronic Product Market for Pallets 179
11 Metal Products Shipments 181
12 Metal Products Market for Pallets 183
13 Machinery Shipments 185
14 Machinery Market for Pallets 187
15 Pallet Demand in Other Manufacturing Markets 189
16 Warehousing Market for Pallets 192
17 Construction Market for Pallets 195
18 Pallet Demand in Other Markets 197

SECTION VI -- REGIONS

1 US Population by Region 202
2 Gross Domestic Product by Region 205
3 Manufacturing and Warehousing Value-Added by Region 208
4 Pallet Demand by Region 210
5 Northeast Pallet Demand 213
6 Midwest Pallet Demand 218
7 South Pallet Demand 222
8 West Pallet Demand 228

SECTION VII -- INDUSTRY STRUCTURE

1 Pallet Sales by Company, 2012 236
2 Selected Cooperative Agreements 253
3 Selected Acquisitions and Divestitures 255

LIST OF CHARTS

SECTION II -- MARKET ENVIRONMENT
1 Pallet Pricing Trends, 2002-2022 39
2 World Market for Pallets, 2012 48
3 Pallet Lifespans 58
SECTION IV -- PRODUCTS
1 Pallet Demand by Product, 2012 92
2 Pallet Stock by Product, 2012 96
SECTION V -- MARKETS
1 Pallet Demand by Market, 2012 154
2 Manufacturing Pallet Demand by Market, 2012 157
SECTION VI -- REGIONS
1 Pallet Demand by Region, 2012 211

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