Tensions Rise in The Pallet Industry

Admin, January 8, 2015 06:14

Recent years have seen new entrants into the pallet industry, as our facilities can attest to daily in our volume handled. Multiple poolers of block pallets, returnable plastic containers, and other materials have brought competition front and center for all players. A natural off-shoot is a rise in competitive tension, and it is clear the pallet industry is fast becoming a hotbed of tension. Hostility between the “white wood” industry (non-pooled pallets) and pooled providers is nothing new, but in recent years the waters have calmed. Enter iGPS and the NWPCA, at odds regarding plastic vs. wood pallet safety. A quick history of the current dispute and some commentary can be read here, written by Dr. Ed Brindley with Pallet Enterprise. The article is an excellent summary from an independent point of view. The public relations battles are sure to rage on, with the threat of litigation always looming.

There is room for all players in the market, especially as the economy begins to show signs of life. Propak prides itself on its strong relationships with all players, and we look forward to future opportunities with them all. One thing that is clear though for all parties involved, competition is raising the bar for everyone. As the economy expands and market share is up for grabs, it is clear the battles will be waged on multiple fronts.