Issue link: http://palletcentral.uberflip.com/i/893182
palletcentral.com PalletCentral • September-October 2017 11 INSIDE NWPCA Wood Pallets: An $11.5 Billion American Success Story I n every home, in every business, the goods that keep us going, come to us on a pallet. Pallets truly move the world, and over 90% of goods are moved on a wooden pallet. The wooden pallet and container industry is an $11.5 billion American success story, with close to two billion wood pallets in use every day in domestic shipping and warehousing operations. Given the product is made from wood, it is critical that we protect our forests – a valuable renewable natural resource – from tree pests, both at home and abroad. New York & U.S. Economic Impact, Trade and Labor Statistics In New York, the state reports the wood products manufacturing sector employs 8,312 people, earning wages totaling $361 million; the average employee earns over $43,000 (New York Department of Labor statistics from 481 reporting units in 2016.) In 2016, the U.S. imported $2.252 trillion worth of goods and exported $1.45 trillion worth of goods. Additional facts: • 2 billion wooden pallets in daily use in the U.S. with growth of 1.9% annually to 2019. • 94% of all products move around the U.S. on a wood pallet. • Wood packaging is worth $11.5 billion to the U.S. economy. • Wood pallet and packaging consumes 45% of hardwood sawmill production and 15% of softwood production. • In 2015, the U.S. wood pallet and container industry employed over 52,000 workers. 1 • There are over 2,700 established businesses in the wooden pallet and container industry. 2 • Wood packaging companies employ an average of 17 workers. 3 • From 2014 to 2015, the value of the wood packaging industry increased by $1 billion. 1 • In 2016, 88% of pallet users used more or at least the same number of wood pallets for their businesses than the previous year. 4 • Over 90% of pallets are made of wood; 96% of pallet users use wooden pallets. 4 Alternative Materials Wood wins, and the sustainability of U.S. forests relies on markets. Wood is the only 100% renewable, recyclable and reusable industrial material available. Eighty-seven percent of the wood contained in pallets received for recycling is used again in a pallet. • Plastic, coated corrugated, engineered products, have limited recycling options, many go direct to landfills. • Oregon Department of Corrections independent study (February 2017) highlight safety risks and higher costs to the state associated with corrugated pallets. Protecting Forests: ISPM-15 Works ISPM-15 was adopted in 2005. Infestation rates of live pests in wood packaging decreased 52% from 2003-2009, according to a Nature Conservancy study. Before implementation of ISPM-15, several high-profile invasive pests garnered national attention, and led to the international consensus for ISPM-15, for example: • Asian Longhorned Beetle was first discovered in the U.S. in 1996. • Emerald Ash Borer was found in the U.S. and Canada in the 1990s. Recommendations Because of the value that solid wood packaging material provides to the marketplace and the success of the ISPM-15 program in minimizing the threat of invasive pests, the NWPCA advocates the following: • Increased funding to the USDA Department of Agriculture, Plant Protection & Quarantine for enhancements to the ISPM- 15 program. • Additional inspections at ports of entry for cargo, including "hitch-hikers" in cargo shipments for import and exports. • Accessible data collection and reporting would support evaluation and costs of policy alternatives. PC 1 Data from 2014-2015 Annual Survey of Manufacturers – U.S. Census Bureau Report 2 Data from 2012 Census of Manufacturers – U.S. Census Bureau Report 3 2010-2015 County Business Patterns, U.S. Census Bureau 4 2016 Modern Materials Handling Survey The wooden pallet and container industr y is an $11.5 billion American success stor y, with close to two billion wood pallets in use ever y day in domestic shipping and warehousing operations.