An Economic Analysis of the U.S. Wooden Pallet and Container Industry
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1. Introduction
This report presents a current snapshot and summary of the recent economic evolution
of the domestic wooden pallet and container industry. The analysis provides information
on the size, scope, and growth of the industry as a whole, along with its contributions to
the U.S. economy.
The industry segment analyzed in this study
includes a portion of "Wood Container and Pallet
Manufacturing" (NAICS 321920).
Total direct output of the focus industry
amounted to $10.7 billion in 2016. This activity
supported roughly 67,000 jobs and generated $3.8 billion of
value added, including $3.0 billion of labor compensation.
Together with upstream suppliers and downstream distributors,
the wooden pallets and containers industry accounts for $35.1
billion in output and 197,300 U.S. jobs.
Important economic trends and developments impacting this
industry are primarily:
General Economic Health – Strong economic performance helps both consumers
and businesses. A recession or economic slowdown would result in reduced
revenues for manufacturers.
Trade Policy – A significant amount of traded goods are transported on wooden
pallets. A large decline in world trade volume would reduce the demand for
wooden pallets and containers through a decline in wholesaling, transportation,
and warehousing activity.
Price of Lumber – Wooden pallets and containers' primary input is raw lumber.
Any significant swings in lumber prices could affect the industry's production
levels and profitability.
Total Impacts, 2016
Output: $35.1 billion
Employment: 197,300 jobs
Direct Upstream Impacts, 2016
Output: $10.7 billion
Employment: 67,000 jobs
