Mid-Year Update from the President of Rose Pallet

First off, I want to thank all of our readers for following us and reading our blogs and email newsletters.

We are working on our editorial format for the second half of the year and will continue to include timely and relevant content about pallets and packaging. But, we’d like to get your input and feedback as well. Please tell us what is most interesting or concerning to you!  Simply comment on this post below or email us.

I would like to take this opportunity to provide an update on some exciting things that have transpired in the first half of 2019 at Rose Pallet as well as a brief market summary.

Recently, we installed a nailing machine at one of our plants in Indiana and it is producing high-quality, uniform pallets. This enables us to deliver more consistent combo pallets that can be used in most automated packaging systems. Furthermore, our remanufactured variety are a reliable alternative to buying new pallets. Watch this video to see it make one pallet per minute!

In other pallet news, several customers and prospects are reevaluating the use of the “CHEP pallet.” Two factors contributing to this are the significant cost of the program as well as the hidden, soft costs on the tracking and accounting side. Rose Pallet has costing tools that can assist you if you are interested in evaluating a switch to white wood pallets.

As it concerns material pricing and supply, the price for hard wood continues to trend upwards. One year ago, the average cost for hard wood was $464 per 100bd/ft and it is now over $500 per 100bd/ft. We do not see significant indicators for a reversal of price. Douglas fir and SPF prices are down from one year ago; however, the extremely wet weather in most parts of the nation and increased trucking costs are prohibiting any relief on this wood supply chain.

Even with the market challenges pertaining to raw materials, Rose Pallet has increased our supply capacity for the upcoming busy season. We do appreciate it, however, when our clients give us an estimate as to how much additional supply is needed.

Again, thank you for your loyalty as a reader and customer. We will continue to keep you updated on relevant industry news.