palletcentral

Pallet C e nt ral • Janu a r y -Fe b r u a r y 2 0 24 25 W e expect demand will stay at the pre-pandemic surge levels of 2019 as supply chains continue to work off and rightsize excess inventory. Pallets should regain a modest level of pricing stability sometime in the second quarter of 2024. Today's historically low costs are not likely to remain long term. It will likely last until excess inventory is downgraded after a few cycles, combined with less infusion of new pallets and combos. Most forecasts are projecting global pallet growth to be in the mid-single digits for the next few years. Increased usage will be primarily driven by the growth of e-commerce, multi-touch fulfillment processes, and adaptation of cross dock operations—all of which is focused on speed to market, faster delivery, and getting goods closer to the consumer. at all requires more touches and hand-off points, with more break bulk and fewer full pallets. While environmental regulations and sustainability are always a consideration, until the USA mandates such programs, it has been more of a feel-good talking point for large conglomerates than something that is actionable in everyday pallet operations. e pallet industry is primed for a technological upgrade in how day-to-day B2B business activity is managed and executed. We developed PalletTrader to be a part of that change as a neutral, independent, collaborative platform for all. We hope to build the movement toward digital pallet buying and selling from within the industry, with the goal of avoiding outside tech influence that may not understand the business nor have the long-term best interests of industry players big and small at heart. I see more opportunity for organic pallet growth than disruptive growth as manufacturing, mega DC centers, and cross docks continue to be built, and as consumers and retailers continue to embrace evolving e-commerce practices, which will drive consistent volumes of e-commerce traffic. I am not sure we will see another event like the pandemic surge. We will more likely return to traditional seasonal trends. e impact of weather and other disaster-related disruptions will always be a factor but for short durations. e overall headwind that could impact pallets seeing a sustained demand spike or a period of increased costs is the low barrier of entry, Pallets are simply wood and nails. As market factors shift and demand changes, new inventory can readily be built and introduced by new as well as existing players. John Vaccaro, President, Bettaway Pallet Systems I believe that companies like PalletTrader present a great future opportunity for pallet manufacturers and suppliers to reach a broad market with no investment yet with tremendous opportunity to streamline business processes and reduce cost of sales. e biggest challenge in 2024 will be surviving the whiplash effect from the downturn in the markets. e strong and adaptive will survive and the weak will depart. It's my view that with the recent collapse of pallet pricing, the appetite from the investment community for mergers and acquisitions will subside.

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