Issue link: http://palletcentral.uberflip.com/i/860755
32 PalletCentral • July-August 2017 palletcentral.com MARKETS For now and the foreseeable future, demand in the pallet market is reflective of a buoyant and growing economy. According to a study produced by the Freedonia Group and published in 2015, "the total number of pallets in use in the U.S. will grow 1.7 percent annually through 2019 to 1.4 billion units. Wood will remain the dominant material although plastic, metal and corrugated paper pallets will gain some market share. Manufacturing will remain the dominant market, but warehousing will grow the fastest." Moving forward, positive conditions in downstream markets will likely support industry growth over the next five years. Consumer spending is also forecast to rise steadily, and this will sustain demand for pallets and crates by front-line retailers. Currently, most decisions with regard to use of pallets are based on cost and value, with purchase price being the key driver. But there are also considerations about customer requirements, shifts in demand and destination, need to keep shipments on time and on track, and sometimes problems acquiring and replacing pallets. Other influencing factors may include compliance requirements, strength, durability, cleanliness and safety considerations, which can drive decisions about the types of pallets used and an increase in the use of pallet management programs, pooling strategies and recycling programs. Although wooden pallets continue to dominate the market in most areas, pallets manufactured from alternative materials such as plastic, wood composite, metal and corrugated cardboard are also used. Still, while factors such as compliance, reliability, strength and durability are important, price and cost control usually rule the day. Trends like pooling and recycling appear to be growing in importance, but these too fall into the category of cost containment. "There are a lot of ways to add value with customized boxes and pallets," said Anova's Fahrendholz. "There could be a market for more robust pallets designed for specific products or new, innovative ways to stabilize contents with inserts, pads. Packaging specific to product size and shape of specialized blocking lumber. There is a need for innovation out there and plenty of room for growth and improvements in the way we do things. I'm quite sure this industry is going to see a lot of change going forward." PC Leah Wheeler is a professional copywriter specializing in webwriting/SEO optimization, marketing and business communications, technical writing and articles. She may be reached at lleahwheeler@gmail.com.