Wood Container and Pallet Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 2,300 wood container and pallet manufacturers in the US produce pallets, shipping crates and cases, barrels, wooden boxes, casks, and parts for wood pallets and containers. Wood pallets used for shipping is the largest product category. Companies produce new wood pallets from raw lumber or recycled wood. Companies also repair and resell used wood pallets. Wood waste from the production process, along with used pallets that cannot be repaired, are typically ground up and sold as mulch, animal bedding, or wood shavings.
Raw Material Cost and Availability
Wood container and pallet manufacturers purchase industrial lumber from saw mills for production of new products.
Pallet Pooling or Rental
To reduce costs and focus on their core business, some customers are opting to rent, rather than own, pallets.
Industry size & Structure
The average wood container and pallet manufacturer operates a single location, employs 28 workers, and generates about $6 million in annual revenue.
- The wood container and pallet manufacturing industry in the US consists of about 2,300 companies with annual revenue of $13.7 billion and 65,000 employees.
- The industry is highly fragmented: the largest 50 companies account for only 39% of industry revenue. Due to shipping costs, companies typically serve customers within 150 miles of their production facility.
- Between one and two billion wood pallets are used annually in the US for shipping goods. The majority of these pallets are used pallets.
- Firms typically manufacture new pallets and also repair and recycle used pallets. Some firms also rent pallets to customers.
- The states with the largest number of wood container and pallet manufacturing facilities are California, Pennsylvania, Ohio, Texas and Illinois.
- The largest new wood pallet manufacturer in the US is PalletOne, Inc., headquartered in Bartow, FL.
Industry Forecast
Wood Container and Pallet Manufacturers Industry Growth
Recent Developments
Apr 4, 2025 - Steel Tariffs Drive up Pallet Makers’ Nail Costs
- On March 12, the Trump administration levied a 25% tariff on all steel and aluminum imports, which includes certain derivative products, according to Pallet Enterprise. The typical pallet manufacturer has seen nail costs rise between 5% and 10%, and some believe prices could increase further. However, industry insiders warn that stockpiling nails as a hedge against further price rises risks being stuck with high-cost inventory if tariffs are lifted and prices come down. In response to US tariffs, the European Union has proposed tariffs on several types of US wood products, including casks. However, pallets and wood boxes are not currently on the EU’s proposed list of products facing increased tariffs.
- Exchange operator CME Group began trading in Southern yellow pine futures on March 31, 2025, according to The Wall Street Journal. The move comes as more sawmills migrate from Canada to the US to mitigate the effects of rising tariffs. Giving US-grown Southern lumber their own futures contracts will allow sawmills and wood-consuming industries to better manage their exposure to price fluctuations. Before the launch of Southern Yellow Pine Futures (ticker: SYP), lumber futures excluded southern pine and were based on deliveries of Northern conifer boards, much of which were Canadian spruce, pine, and fir. The new Southern yellow pine futures will be settled in cash, allowing speculators to trade without holding lumber inventories.
- US manufacturing activity contracted in March 2025 following two months of expansion, which came after 26 consecutive months of falling manufacturing activity, according to the Institute for Supply Management (ISM). In March, the ISM’s Purchasing Managers Index (PMI) was 49%, down 1.3 percentage points from February’s reading. A reading above 50% indicates manufacturing expansion. March’s New Orders Index decreased by 3.4 percentage points to 45.2%. The March Production Index fell 2.4 percentage points to 48.3%. Eight of the 18 manufacturing industries tracked by the ISM reported growth in January. In verbatim responses to the ISM survey, several respondents said they’d seen a decline in orders amid customers’ tariff-related jitters. Manufacturing activity is a leading demand driver for wood containers and pallets.
- A tariff-related lumber futures rout could reduce production costs for pallet manufacturers. Lumber futures fell when President Trump unveiled his reciprocal tariff plan on April 2, 2025, and Canadian lumber was not among the targeted products, according to The Wall Street Journal. Lumber prices had been ticking up amid anticipated increases of existing levies on Canadian lumber imports. Prices may also be drifting downward due to expectations of weaker housing demand as tariffs increase the costs of building homes, reducing affordability. The fresh rounds of tariffs are forecast to add about $6,400 to the cost of building the average house, according to a UBS analyst.
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