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Save Costs With Recycled Pallet Materials

Save Costs With Recycled Pallet Materials - Man working on a recycling pallet company
Shelly CochranShelly Cochran
July 18, 2025

Have you heard industry talk about pallet recycling? For your customers, this usually means focusing on sustainable shipping solutions and carbon footprint reduction. However, for you, the pallet manufacturer, the benefits of using recycled materials go well beyond environmental benefits. By introducing sustainability in manufacturing, you may introduce a whole new customer demographic to your company. Let’s take a closer look.

Building pallets out of recycled wood

How to Use Recycled Materials in Pallet Manufacturing

If you have always relied on virgin materials for pallet manufacturing, you may have been spending too much money on making products that customers may not want. Therefore, using recycled materials is an eco-friendly and cost-effective approach. For some companies, eco-friendly pallet manufacturing is a process to be developed, not a change of fabrication methods to jump into.

Using Recycled Wood for Stringer and Block Pallets

Sources for recycled wood range from used or damaged pallets to old wooden crates. If introducing this wood source to your raw materials, develop processes to remove nails and trim usable wood to standard pallet dimensions. Combine the recycled materials with new wood to strengthen the end product.

Using Recycled Plastic for Standard Export Pallets

Sourcing post-consumer plastics typically involves bottles and other types of food containers. You can also use plastic waste from commercial operations. To process this material, you must invest in shredding equipment that breaks plastic into flakes or pellets. Next, standard injection molding or extrusion is used to form the pallet components.

Position Your Business as a Trusted Source in the Eco-Friendly Pallet Supply Chain

The benefits of using recycled materials in pallet manufacturing will be lost if your customers don’t know what you are doing. There are several ways of advertising your brand’s direction without sending out more sales collateral.

  • Fabricate pallets so that they are easy to repair and reuse.
  • Develop a process for customers to return damaged, used, or unwanted pallets to your plant for remanufacturing.
  • Incorporate a brand-centric label for each pallet with recycled content for transparency and marketing.

Remember that there are also regulations on recycled pallet materials. A case in point is the ISPM 15 regulation for wood pallets and packages used in international shipping. If you are making recycled wood pallets a significant part of your business model, consider applying for the FSC certification that showcases your business uses responsibly sourced recycled wood.

Explain the Benefits of a Circular Economy

Your customers remember the supply chain breakdown during the pandemic. They are working diligently to be in a position to weather this type of problem again. Introduce your business model of reusing materials, repairing pallets, and refurbishing pallets as a viable alternative to the old model of making the pallets and then having the customers dispose of them. Because you do not have to rely on new materials for manufacturing pallets, you will likely be able to weather supply chain problems in the future. Your customers will understand how this business model benefits them in the long run.

Eco-Friendly sign

Going the Extra Mile for Eco-Conscious Customers

Some customers are incorporating sustainability and eco-consciousness into their branding. They need more than your assurances that your products suit their needs. For this consumer demographic, it makes sense to develop a pallet life-cycle assessment.

In this process, you assess energy use during material extraction and manufacturing, resource depletion, waste generation, reusability in the supply chain, and end-of-life options. It is critical to emphasize metrics such as water usage, global warming potential through CO2 emissions, and waste generation. Prove to your customers that your business knows how to recycle pallets effectively, provide cost savings to the customer, and minimize landfill impact.

What Your Customers Are Looking for When Shopping for Recycled Pallets

So far, we have discussed the benefits of using reclaimed lumber for pallets that your company will experience. But what is it that your customers are looking for?

  • Savings. There should be considerable savings (up to 50%) for customers buying recycled pallets.
  • Durability. Your recycled pallets' strength, quality, and durability must be on par with the new ones.
  • Supply. When your customers see the benefits of pallet repair and reuse, they want to know that a steady supply meets their demand.

Some mid-sized manufacturers are boosting their benefits of using recycled materials in pallet manufacturing processes by offering buy-back programs for used pallets. It allows customers to dispose of pallets without incurring waste management costs, while you have a steady source of recycled materials for manufacturing. In short, your customers don’t want to take additional steps, download more apps, or sign up for new things. If you can commit to an organic integration of pallet recycling into your business, there is a good chance that customers will be interested.

Stacks of recycled pallets with the sign that says "Wood pallet recycling"

What are the Challenges to Recycling Pallets as a Business Model?

Although using recycled pallet materials makes sense and could provide a whole new product line for your business, there are some challenges. You must incorporate a sorting setup that prepares wood for manufacturing. If you don’t want to do this in-house, you must forge a professional relationship with a recycling business that will handle this aspect of material sourcing.

Moreover, it is critical to tweak the manufacturing process when incorporating reclaimed materials to ensure that the finished pallets are as durable as those made from virgin materials. If you notice that you cannot make this claim, you may have to reevaluate your manufacturing processes.

When you can confidently claim that your recycled pallets work as well as your new products, it is easy to sell the concept to customers who are not necessarily driven by eco-consciousness. Because recycled materials are a mixed bag, you will need to commit to frequent product testing to guarantee the expected performance of your buyers.

A New Revenue Stream! Now, How Do You Advertise?

Advertising and brand-building remain vital elements of your business model. Whether you use all-new materials or are beginning to integrate recycled wood and plastic, your business needs to find a comprehensive way of getting new customers interested in your product and service. Our pallet marketing company is here to help you with this aspect of doing business. We’ll design your website, set up search engine optimization (SEO), handle social media, and boost visibility in local customer searches. Schedule a call today!

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