Stacking up: Renewed manufacturing activity will boost revenue despite increased competition

Due to steady growth in US consumer spending, demand for pallets has increased over the past five years. Nevertheless, the industry has faced increased competition from substitute materials, such as plastic, metal and paper. Although wood still dominates the pallet market due to its lower cost, competition from substitutes has intensified primarily due to sanitation issues. Over the five years to 2022, industrial production and consumer spending are expected to continue rising, fueling revenue growth. Although external competition will continue to rise, operators will focus on pallet recovery, which entails manufacturing pallets using wood recycled from used pallets...purchase to read more.

Industry Statistics & Market Size
Revenue
$10bn
Annual Growth 12-17
6.1%
Forecast Growth 17-22
Profit
Employment
54,348
Businesses
2,698
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Industrial production and consumer spending are expected to continue rising, fueling industry growth
  • Wood pallet and skid producers have encountered heightened competition in recent years
  • Demand from the industry’s largest downstream markets is anticipated to continuing growing
  • Industry Report - Industry Key Buyers Chapter

    The industry has a very low level of market share concentration. No single pallet manufacturer generates more than 5.0% of overall industry revenue. The majority of companies operate regionally or within a single state, mainly because shipping wood containers and pallets across long distances is not profitable, given the high transport cost and low price point of the products. Additionally, the increased adoption of just-in-time manufacturing, in which companies cut inventory costs through more frequent, timely delivery of inputs, has increased demand for industry companies that operate locally and can deliver pallets regularly with minimal turnaround time. Therefore, industry operators are generally reluctant to significantly expand their operations or geographic reach...purchase to read more.

    Additional Insights for the Wood Pallets & Skids Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Wood Pallets & Skids Production Industry are

  • Optimum capacity utilization
  • Having contacts within key markets
  • Having a cost effective distribution system
  • IBISWorld analysts also discuss how external factors such as Industrial production index and Demand from wholesale trade in the Wood Pallets & Skids Production industry impact industry performance..

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    What's in this report

    What is the Wood Pallets & Skids Production Industry?

    Companies in the Wood Pallets and Skids Production industry manufacture wood pallets, wood box shook, wood boxes, wood skids, other wood containers and wood parts for pallets and containers. Companies purchase hardwood and softwood lumber from sawmills to manufacture this industry’s wood products. These products are then sold to a host of downstream industries that use the pallets and containers to store and transport consumer and industrial goods.

    Industry Products
  • Nailed and lock-corner wood boxes and shook
  • Recovered wood pallets
  • New wood pallets
  • Other wood containers and parts
  • Industry Activities
  • Producing wood containers and boxes
  • Producing wood pallets
  • Producing wood box shook
  • Producing wood skids
  • Producing wood parts for pallets and containers
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Industrial production index
  • Demand from wholesale trade
  • External competition for the Wood Pallets and Skids Production industry
  • Price of sawmill lumber
  • Trade-weighted index

  • Current Performance
  • Supply and demand
  • Wood pallet alternatives
  • Profit and structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream demand and competition
  • Industry landscape
  • New innovations
  • Table: Wood Pallets & Skids Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Wood Pallets & Skids Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Vegetable Farming
  • Fruit & Nut Farming
  • Soda Production
  • Bottled Water Production
  • Tractors & Agricultural Machinery Manufacturing
  • Automobile Engine & Parts Manufacturing
  • Aircraft, Engine & Parts Manufacturing
  • Fruit & Vegetable Wholesaling
  • Supermarkets & Grocery Stores
  • Fruit & Vegetable Markets

  • Key Selling Industries
  • Chemical Wholesaling
  • Organic Chemical Manufacturing
  • Sawmills & Wood Production

  • Products & Services
  • New wood pallets
  • Other wood containers and parts
  • Recovered wood pallets
  • Nailed and lock-corner wood boxes and shook
  • Chart: Wood Pallets & Skids Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Food and beverage sector
  • Chemical and pharmaceutical sectors
  • Agricultural goods wholesalers
  • Metal and machinery manufacturers and wholesalers
  • Other wholesalers
  • Other manufacturers
  • Construction sector
  • Exports
  • Chart: Major Market Segmentation for the Wood Pallets & Skids Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Wood Pallets & Skids Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Wood Pallets & Skids Production Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Wood Pallets & Skids Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Wood Pallets & Skids Production Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Industrial Production Index (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Dimension Stock
  • Lumber and worked wood products cut or shaped to specialized sizes; also called cut stock.
  • Radio Frequency Identification (Rfid)
  • A technology that tracks products from the time they leave the assembly line to the time they leave the store by releasing continuous signals from a chip.
  • Shook
  • The various wood panels and parts that are required to produce wood boxes.
  • Skids
  • A pallet without a bottom deck that is often used for transporting goods or as a base for machinery.
  • What Our Customers Say

    Why buy this report?

    The Wood Pallets & Skids Production industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    IBISWorld industry market research reports enable you to:
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    This report on Wood Pallets & Skids Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Wood Pallets & Skids Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Wood Pallets & Skids Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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