Pallet Recycling and Material Substitution: How Will Hardwood Markets Be Affected?

Abstract

An estimated 4.53 billion board feet of solid hardwood and 1.79 billion board feet of solid softwood were used in the production of pallets and containers in 1995. When compared to estimates for 1992, the use of both softwoods and hardwoods has decreased. Use for pallets and containers, as a percentage of total lumber production, also decreased for both materials between 1992 and 1995. Decreasing use of new solid wood for pallets can be attributed to stagnant production of new pallets, increased recovery of pallets and pallet material, higher quality pallets, and the use of pallets made from materials other than solid wood. In 1995, 171.1 million pallets were recovered by firms in the pallet industry, a 160 percent increase from recovery in 1992. Eighty-seven percent of the recovered pallet material is used again in a pallet. Pallets also were recovered at landfills, although usually for use in products other than pallets. Plastic and corrugated paperboard pallets have gained some market share previously held by wood. However, the success of these products is usually linked to the total product offered to the pallet user rather than to inherent material superiority. Third-party management systems may result in decreased use of solid hardwoods for pallets. Overall, the use of new solid hardwoods for pallets is likely to decrease.

Citation

Bush, Robert J.; Araman, Philip A.; Reddy, Vijay S. 1997. Pallet Recycling and Material Substitution: How Will Hardwood Markets Be Affected?. Eastern Hardwoods - Resources, Technologies, and Markets. 67-73.