How is the Economy Affecting Pallets?

It’s no secret that our economy has been dealing with a constrained supply chain for the past few years. And this constraint has impacted availability of many goods and materials.  The pallet pooling industry is also affected. As rental availability has dwindled, many rental customers have switched to white-wood pallets—wherever they can be found. This new demand has caused a remarkable shift in pricing. Whether customers can get their hands on used or new, the cost differential between the two products is now the smallest on record.

But, as with any cycle, stabilization will return. As orders for new pallets increase, it will help build up the pool of used pallets again to normalize supply and pricing. Although the quality of cores may decrease as today’s new pallets are typically engineered with less lumber. (This is something buyers should be wary of in the future.)

The looming question remains—will demand remain high? As the country faces weak economic growth over the next year, consumers may pull back on spending. Retailers will then work off inventory and reduce their safety stock of pallets. These factors combined could lower demand for pallets. However, it remains to be seen.

For now, pallet companies—including Rose Pallet—continue to work overtime to secure pallets for existing and new accounts desperate for pallets. While lead times remain a little longer, we are still delivering much-needed supplies for our clients. If you’re in the market for pallets, we recommend trying new sizes or types such as combo pallets or other varieties that are more plentiful in order to meet urgent demand.

If you would like more information, please contact us. Our staff and our suppliers are eager to work with you to solve your pallet problems and fulfill all your needs.