Pallet Management

Pallet Management is an important part of any Waste Reduction / Environmental Program. This Guide is designed to assist businesses in reducing waste generation and costs. According to a 1991 study that appeared in Pallet Enterprise, approximately 540 million wooden pallets were manufactured in the United States. Wooden pallet production has increased almost 250 percent in the last 20 years, from 155 million manufactured in 1972. Over half of wooden pallets manufactured are the one-way expendable (disposable) design. The wood pallet industry is the largest user of hardwood lumber in the U.S., on a volume basis, consuming almost 42 percent (four times the next highest industry). Over 25 percent of the total non-expendable pallet production was purchased by the grocery and related products industry and that number is increasing.

A study that appeared in Forest Products Journal states that Ohio ranks as one of the top two states in the number of pallet-producing firms and hardwood lumber consumed for pallets. During 1991, Ohio produced about 32 million pallets. Hardwoods make up 72 percent of the total production, softwood 15% and mixed 13%. One-third of the pallets were constructed for reuse and two-thirds of the pallets were one-way, or disposable pallets. Only 7.5 million pallets were repaired or recycled. The study estimates that disposing wood from pallets into landfills claims the equivalent of the saw timber on more than 18,000 Ohio acres each year. Eventually, a substantial quantity of wood pallets enter landfills, thus rendering this valuable resource useless.

Tips on Managing Pallets

A reduction in wood pallet waste may require cooperation between the supplier and the manufacturer. Redesigning and rethinking the transportation of goods could reduce pallet waste and provide noticeable savings for both parties involved. The following list of ideas may help eliminate or reduce wood pallet waste in shipments of goods and supplies.

Work with suppliers in redesigning packaging and cargo to eliminate the need for pallets. Take the initiative and be persistent.
Ask suppliers to offer options such as:

returnable or recyclable top and bottom cardboard covers instead of pallets
returnable boxes and crates instead of pallets
returnable metal carts or pallets with wheels to deliver supplies
cardboard pallets which can be recycled with other cardboard packaging

Arrange a "closed loop" system with all suppliers requesting them to take back their pallets for reuse. Use permanent in-house pallets to store supplies
When possible use returnable plastic pallets. There is an initial investment to purchase plastic pallets, but the cost may be recovered in money deferred from purchasing, repairing, disposing or recycling wood pallets.
Use corrugated cardboard pallets. Cardboard pallets are lighter than wood pallets which may result in lower freight costs, and they are often cheaper to buy and recycle than wood pallets.
Exchange pallets with nearby businesses. Network with industries to determine if pallets can be exchanged between companies. Contact the solid waste district in your area for information to exchange pallets. Calculate savings gained by purchasing reusable pallets in good condition from nearby industries rather than paying for new pallets. It may be cost effective.
For long term heavy-use, consider investing in metal pallets. Metal pallets are recyclable and easily repaired.
List unwanted pallets with local programs: Hamilton County Solid Waste District at 513-333-4754; Mahoning Valley Materials Exchange at 330-742-2742; Ottawa/Sandusky/Seneca Solid Waste District at 800-899-1649 or contact the Ohio EPA, Office of Pollution Prevention at 614-644-3469 to receive a materials exchange Fact Sheet to access the statewide Ohio Material Exchange List Server. These services are free of charge.

The Ohio Environmental Protection Agency, Division of Solid and Infectious Waste Management and Office of Compliance Assistance & Pollution Prevention have compiled the Directory of Pallet and Wood Waste Recyclers listing businesses located in Ohio, including Non-Wood Pallet manufacturers and recyclers. Please contact Nancy Moore at 614-644-2928 for more information.

Office of Compliance Assistance and Pollution Prevention
Ohio Environmental Protection Agency
P.O. Box 1049
Columbus, Ohio 43216-1049
Phone (614) 644-3469
Fax (614) 644-2807
Toll Free (800) 329-7518
E-Mail: p2mail@epa.state.oh.us

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page last updated: November 24, 2004