Are you paying attention to what’s happening in our industry?
Too often, we get so busy we don’t see gradual shifts happening around us. These shifts, over time, can have a monumental impact on business success.
That’s why we keep our finger on the pulse of the markets we serve, constantly looking for ways to innovate and improve our offerings. Let’s briefly recap what we’re seeing in the pallet and crating industry, and then we’ll talk about how we can help.
What’s happening in the pallet market:
Good news! The Global Pallet Market Outlook anticipates the market to rise considerably, growing at a CAGR of about 5.7% in the forecast period of 2024-2032, reaching over $160 billion by 2032.
Another publication surveyed 160 manufacturing, wholesale trade and retail professionals to get their take on trends. The 2023 Pallet Survey Report by Modern Materials Handling (MMH) says 44% of companies use more used pallets than they did one year ago.
Other key points included:
> Sustainability: 71% of companies reuse pallets, emphasizing environmental concerns.
> Challenges: Supply chain disruptions and rising costs are major issues, with 55% experiencing difficulty sourcing pallets.
> Innovation: Increased interest in automation and tracking technology.
The LINC Systems team hit the tradeshow scene this year, and from what we saw at the National Wooden Pallet & Container Association (NWPCA) Annual Leadership Conference, that sounds about right. Cutting-edge solutions and best practices were on the agenda and offered strategies to overcome challenges like high supply costs, limited labor pools and building a more sustainable business.
Whether you build or assemble pallets and crating, LINC Systems is your total solution for service and support. Learn more.
Sure, innovation and technology are usually major focal points for tradeshows. But what does that mean for your business? Below, we break down ways we’ve seen businesses modernize their operations to adapt to market conditions.
Advancement of Supply Chain Technology in Pallet and Crating Assembly
Continuous innovation always influences the market. New pallet designs optimized for specific goods, RFID-enabled pallets for better tracking, and smart pallets integrated with IoT (internet-of-things) are driving demand. These innovations enhance goods protection and optimize space, reducing transportation costs and saving on inventory holdings.
Consolidating your supply chain to a few trusted suppliers can do more than save on the costs associated with purchase orders. Our manufacturer customers have mitigated expenses and cut operational costs as a result of partnering with LINC Systems by:
> Application-specific fastener and tooling selection
> Equipment and tool repair & maintenance
> Improved safety programs (Stay Safe! Safety Training)
> Automated processes (packaging and palletizing)
> Consultant services for operational challenges
> Vendor-managed inventory programs
What’s trending? An article in Workplace Material Handling & Safety says pallet manufacturers must expand pallet stocks to keep up with anticipated market growth. Using tracking and sensor technologies, pallet manufacturers can improve pallet traceability and recycling history and create seamless collaboration across supply chain stakeholders.
Related: The Pallet Nailer Guide to Better Wooden Pallet Assembly
Sustainability Initiatives for Pallet and Crate Manufacturers
There’s been a growing emphasis on sustainable packaging solutions. Demand for pallets made from recycled or eco-friendly materials is rising. While wooden pallets have traditionally dominated the market, plastic pallets are gaining traction due to their lightweight nature and longer lifespan. This means we may have to rethink the strength and durability of wood pallets. Better fasteners with higher withdrawal and pull-through values can create better-performing and stiffer pallets, keeping wooden pallets competitive.
>> Learn how our Pro-Drive Premium Pallet Nails can help you build a better pallet.
LINC Systems leads with sustainability. Through several programs, including preventative maintenance and materials analysis, shipment consolidation and careful vendor selection, we are focused on how we can continue to work alongside our customers to keep our planet thriving.
We collaborate closely with our customers to deliver sustainable and economically efficient options. For example, we conduct thorough cut and weigh analysis on stretch wrapping systems to assess film performance, minimize consumption and reduce waste.
>> How LINC Systems Leads with Sustainability.
What’s trending? According to Pallet Central, the wooden pallet industry produces near zero waste. With nearly 2 billion pallets in use, it recovers, repairs and recycles at a higher rate than other packaging materials.
Use of Pallet Automation and Robotics
How can pallet and stretch wrapper automation help your manufacturing operation?
Pallet automation is a software-controlled system that uses technology to automate pallet storage and retrieval processes from racks in a warehouse. Automated stretch wrappers use machines to stretch film to wrap pallets without the need for manual operation.
By automating these processes, you can increase production volume without additional staff, create more accurate and secure loads, handle mixed loads, improve worker safety and optimize space.
With a limited labor force, we’ve found that companies that attempt to make do with a skeleton crew end up with increased injury and decreased worker satisfaction. To overcome this, we recommend automating processes for a safer and more efficient production line. Our experienced reps arrive on-site to assess your current state of operations, identify bottlenecks and provide detailed tooling recommendations to help cut labor costs, reduce rejects and improve plant processes.
>> Achieve Manufacturing Sustainability Goals With Automated Packaging Systems
What’s trending? In the report by MMH, 46% of respondents do all of their stretch wrapping manually (down from 53% last year). In comparison, 25% say they have some automated stretch wrappers and 23% say all their operation uses semi- or fully automated stretch wrappers (up from 17% last year).
Watch how MasterBrand Cabinets improved safety and productivity with an automated pallet wrap solution:
Developing an Inclusive Workforce in the Pallet and Crate Industry
According to the National Association of Manufacturers (NAM), women now account for 29% of the manufacturing workforce, helping ease worker shortages and inflation.
Some say advances in manufacturing automation attract more women to the industry. Once arduous, task-based physical work is shifting to overseeing machines responsible for output. Plus, new lift-assist devices allow a company to safely expand a person’s job duties. Job roles and responsibilities are being rewritten, putting more emphasis on software and equipment.
Not only does this open the door for more women considering a career in manufacturing, but it also alleviates labor challenges and closes a growing skills gap.
What’s trending? According to the Manufacturing Institute, women comprise about 29% of the manufacturing workforce and are expected to reach 35% by 2030. Research shows that gender diversity benefits a manufacturing firm by improving its ability to innovate, providing higher return on equity and increasing margins.
Shop Top Pallet and Crating Products
Partnerships with a reliable supplier can help you meet your business goals. LINC’s expertise and long-held supplier relationships help you make informed decisions based on market conditions.
Looking to improve your pallet and crate manufacturing operations?
Contact us to schedule an on-site evaluation with a knowledgeable LINC Systems representative who will arrive on-site to:
> assess your state of operations
> identify bottlenecks
> provide detailed tooling recommendations
> help you cut labor costs and reduce rejects
> improve plant processes
We can demo our tools and fasteners on-site so you can see how they will perform with your applications to ensure success.
LINC Systems has the tools and advice to help you work safely and efficiently. If you have any questions or want to schedule an on-site consultation to automate your production line, please click here to contact us. Or give us a call at 800-513-9918.