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November-December 2026

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2 0 Pallet C e nt ral • No vem be r-D e cem be r 2 0 26 O nce the operation is prepared for growth, the next question is where that growth should come from. New customers were members' most common answer, followed by greater share of existing accounts. But expanding an existing relationship is often faster and less disruptive than entering an unfamiliar market. A 2027 growth review might examine: • Existing Accounts: Can the company supply additional pallet sizes, packaging, repair, recycling, or other services? • Adjacent Offerings: Are there opportunities in crates, custom wood packaging, cutstock, recycled products, or other capabilities that fit the existing operation? • New Markets: Can current capabilities serve another customer PLAYBOOK CONT. segment or geographic area without creating excessive logistics or capital requirements? • Partnerships or Acquisitions: Could another company provide capabilities, capacity, or market access more efficiently than building everything internally? Members are already testing these paths, from selling cutstock alongside pallets to adding crating, CNC machining, and recycled custom sizes. About one in five named acquisitions, and Schaefer sees the timing as favorable: "I believe there are owner- operators who are more willing to sell at a fair price than anytime in the past 2-3 years." e important question is not simply, "Can we sell this?" Leaders also need to ask whether the opportunity fits the business. Every expansion requires equipment, people, raw material, transportation, working capital, and management attention. A new account that strains production or delivers weak margins may create activity without creating healthy growth. Sustainable growth usually builds on an existing strength. Leaders should identify what the company does exceptionally well, where customers value it most, and where that advantage can travel next. Grow: Find More Than One Path To Expansion "Every expansion requires equipment, people, raw material, transportation, working capital, and management aention."

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