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There was once the notion that only the industry's heavy hitters had to worry about sustainability. Times have changed. Sustainable pallet manufacturing is now at the forefront of keeping even small businesses competitive. Why? And how can you pivot to embrace these trends?
From food distributors to e-commerce giants, your customers are increasingly looking for sustainable pallets, typically because their customers make these demands of them. For you, this means focusing on using recycled content, relying on FSC-certified wood, or introducing repair or reuse options for customers who buy pallets from you.
It is not just your business. Environmental regulators are now interested in eco-friendly pallet production. Changing rules discuss waste, chemical treatments, heat treatments, and responsible sourcing. To stay competitive, now is the time to adapt your warehouse's practices and machinery to the new rules and your customers' new demands.
Besides learning how to reduce pallet waste because of new regulations or because your customers ask for it, sustainable pallet manufacturing comes with benefits. Using reclaimed wood, reducing scrap, and selling byproducts all help cut down on operating costs. And, because repairing pallets allows you to pass on savings to the customer, they will appreciate doing business with you.
Among the top sustainable pallet practices is the commitment to using reclaimed wood instead of virgin timber. Reclaimed wood is any type of lumber material from old, damaged, or defective pallets. Some pallet makers are pivoting to focus on using recycled plastics or composites while moving away from wood altogether. They argue that recycled plastics offer customers the durability and weather resistance they are looking for while reducing waste in the warehouse.
Pallet recycling and using recycled materials in pallet production are part of what business insiders call the circular economy model. Instead of replacing pallets, you refurbish or repair them. It gives your products an extended lifespan. Some competitors have also entered the market of renting pallets instead of selling them. After use, they will pick them up, fix them, and then rent them to the next customer. Buy-back pallet programs also fall under the heading of the circular economy. If many of your customers are focused on sustainable business practices, introducing these services will be easy and is sure to become a popular selling point of your brand.
Some wood is now certified by the Forest Stewardship Council (FSC), an international organization that helps businesses make sustainable choices when selecting raw materials. The FSC certification means that the wood you are using comes from forests where logging companies and processes prioritize ecosystem health and biodiversity protection. At this time, there are three FSC certifications:
Your customers may prefer FSC-certified pallets to meet their own sustainability goals.
Another stamp to look for is the Programme for the Endorsement of Forest Certification (PEFC). It is another international organization that promotes responsible logging and the use of certified or recycled wood. However, it does not certify wood itself but national forest certification systems. If you do a lot of business with Europe, where this program is more popular than in the United States, this stamp matters because the certified wood can be traced through the supply chain.
Warehouse sustainability initiatives inevitably point toward manufacturing without waste. Typical waste products include sawdust and the cuts and chips you cannot use for any job. However, instead of throwing these away, the sustainable warehouse finds ways to reuse them. For example, some turn these waste items into mulch or wood pellets for other uses. It is even possible to sell these products to interested parties.
However, zero-waste manufacturing may require some initial investments. You may need to invest in more efficient machinery or modify your factory's layout to optimize the process flow. Moreover, addressing the chemical treatments the pallets undergo may be necessary. Another consideration is the switch to renewable energy sources. Updating your machines will naturally address several of your environmental zero-waste manufacturing goals if your machines are old.
Laminated veneer lumber (LVL) and cross-laminated timber (CLT) allow for higher levels of stability and longevity. Both are engineered wood products. Multiple layers of wood are glued together to make LVL. The result is a dimensionally stable product that can even be made from the type of lumber you would not typically use for pallets. In contrast, CLT refers to wood-laid layers by stacking them perpendicular. You can make it using sustainably sourced lumber or smaller trees you would not use for standard pallet making. However, these types of design changes, although excellent for achieving higher levels of sustainability, also call for retooling your factory.
Pallet recycling, the circular economy, pallet take-back and repair programs, and using FSC-certified wood can be challenging, particularly for small businesses.
Of course, with customer demand calling for recycled wood pallets, support of sustainable forestry, and measurable pallet sustainability metrics, most manufacturers have little choice but to embrace sustainability. It does not have to be complicated.
Replacing virgin wood with FSC-certified product is one of the first and easiest steps you can take toward sustainability. While there is an increased expense, your wooden pallets advertise the use of this lumber type, which will make them more popular with customers.
Offer a new service to your customers: pallet repair. Fix older pallets at a reasonable cost. From there, it is a short step to offering a buy-back program. Your customer pays a deposit that they get back when they return the pallets to your factory. You can then reuse them. If you want to make it easier on your customers, offer a buy-back program they can participate in if they wish.
It starts with using renewable energy in pallet plants. From there, it is time to evaluate the machinery to see if it allows for the most accurate cuts possible. If you find that older machines are causing waste, replace the most egregious offenders. Be sure to train your employees to use the new machines with an eye on accuracy. Together, these changes position your company as a forward-thinking leader in sustainable pallet manufacturing.
Whether you are mulling over plastic vs. wood pallets' sustainability, are looking for ways to use sustainable energy when applying the ISPM-15 heat treatment, or want to get serious about waste reduction once and for all, it is an existing time in the pallet business.
Once you make changes aimed toward sustainability, be sure to let your customers know. This involves website design, optimization (SEO) for sustainable search terms, and creating social media posts that advertise your new approach to business. Because a pallet manufacturer cannot do it all, why not focus on sustainability while our pallet business marketing company handles the advertising?
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