Third Semi-Annual Pallet Market Survey Finds Buyers, Sellers Cautiously Optimistic on Market Demand, Growth Prospects
Potential impact of tariff policies, lumber prices, rising operating costs and economic uncertainty weigh on market sentiment.
“Our third semi-annual survey found that both the current viewpoint as well as future outlook sentiment among pallet market participants was generally optimistic yet tempered by a number of potential short- and long-term headwinds,” noted John Vaccaro, PalletTrader’s chief executive officer. “Among the most widely cited concerns were choppy economic activity due to uncertainty over tariff policies, their scope, duration and potential impact on growth and costs.”
The survey interviewed hundreds of participants in North America over a three-week period concluding in early May of this year. Respondents encompassed pallet suppliers, including manufacturers, resellers and brokers, and pallet buyers in manufacturing, freight forwarding, warehousing and distribution.
The survey found pricing over the past six months for white-wood pallets to be generally flat to slightly increasing, reflecting a stable but tenuous balance between supply and demand. Some sellers nevertheless reported higher competitive pressures that depressed pallet pricing in some regions, likely representing changing supply chain dynamics as well as buyer caution due to economic uncertainty.
Among the headwinds cited were tariff increases, anticipated to have a negative impact by 60 percent of respondents; and lumber prices, with 60 percent of respondents expecting increases this year. Inflation and general operations expenses also were cited as ongoing cost concerns.
Looking ahead, respondents expect demand to remain relatively strong over the next three months, coinciding with shipping’s annual peak season. While modest growth was expected from existing customers, some 42 percent of suppliers and 56 percent of buyers anticipate substantial growth from new customers.
On the supply side, 71 percent of respondents reported no change in pallet supply compared to six months ago, with only 7 percent experiencing tightening. Some 79 percent of respondents forecast no change in supply over the next three months. Lastly, the survey found that on-hand pallet inventory retreated to more normalized levels, with 67 percent reporting two weeks or less of on-hand inventory. Only 10 percent reported inventory levels greater than 30 days.
PalletTrader operates as an independent, neutral online business platform, enabling and streamlining the sale and collection of pallets in a collaborative, secure self-service eCommerce environment, or under a fully managed service, providing its user community with workflows and tools to drive new efficiencies and visibility into pallet supply and management. It was conceived, funded and built by Bettaway Supply Chain Services.
For more information about PalletTrader please visit www.pallettrader.com, phone us at (877) 777-7495 or email support@pallettrader.com. To obtain a free copy of the full report, visit this link.
About PalletTrader & Bettaway Supply Chain Services -- South Plainfield, NJ-based PalletTrader is transforming the way businesses handle pallet procurement and order management. Leveraging advanced technology, PalletTrader provides comprehensive pallet solutions spanning a wide spectrum of services. Their fully managed solution offers a seamless, centralized solution, simplifying fragmented processes and enhancing visibility. PalletTrader’s self-service solution offers a centralized marketplace empowering both buyers and sellers of pallets with more control, convenience, and choice. Trust PalletTrader to reshape your pallet needs- where innovation meets practicality. Bettaway, who founded PalletTrader, is an integrated material handling, transportation, and supply chain management company. Bettaway is an industry leader in pallet management solutions, delivering a managed service program built on an active network of some 550 facilities, and an active supplier database of 1,200, providing a centralized suite of pallet services. The company also provides quality transportation with its own dedicated fleets on both the east and west coasts, and national 3PL network. Value-added services include a full-scope warehouse operation with a variety-pack line, e-commerce fulfillment and distribution management for beverage and other CPG products, as well as supply chain consulting services.
Gary Frantz
Bettaway
+1 925-594-1434
gary@gnfcomms.com
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