What Should Pallet Buyers Expect in 2022?

What to expect

We understand that you have concerns regarding pallet supply and management in 2022. And you’re not alone. The best way to plan in the New Year is to stay informed. Pallet Enterprise magazine recently published an economic forecast for 2022. Below are some key takeaways that may impact your strategy:

1. Pricing – The pricing indexes on pallets doubled in 2021; it will likely be mid-to-late 2022 before we get back to a proper balance (source).
2. Availability – Pallets continue to be in short supply and there are limited capabilities to improve in the short term. Many DCs and retailers are holding onto used pallets in good condition which further depletes supply.
3. Demand – Current levels of demand will continue well into 2022.
4. Materials – The pallet market will continue to compete with the construction industry for lumber. In addition to home building, non-residential construction (warehouses and suburban offices) is expected to increase.
5. Labor – Labor concerns will continue in 2022 with more warehouses and DCs relying on automation to bridge the gap.
6. Re-Use – Pallets that would usually get scrapped are being repaired and put back into service.
7. Quality – Customers that typically buy recycled pallets have little choice but to buy new. Unfortunately, those “new” pallets are being designed with less material (due to lack of lumber), which can compromise strength and integrity.
8. Trends – Businesses are tending to buy in smaller quantities from an increased number of suppliers located in different regions.

To read the economic forecast in its entirety, please click here.

As we did last year, Rose Pallet will do our best to provide transparent communication to our customers and assist however we can.  We are here for you as a resource and as a partner. And we are confident that, together, we can navigate these ongoing challenges. Contact us anytime.