By Wayne Alt, National Sales Executive
When purchasing pallets, one of the key decisions businesses face is whether to choose new wooden pallets or opt for recycled ones. While cost is often a driving factor, it is essential to understand the differences between the two options and what each truly offers in terms of value.
Durable wooden pallets play a crucial role in the global supply chain, facilitating the transportation of goods between warehouses, suppliers, and customers. According to the National Wooden Pallet and Container Association (NWPCA), approximately two billion pallets are in use daily in the United States alone. Given this volume, environmental sustainability has become an important consideration in pallet procurement.
The Benefits of Recycled Pallets
Recycled wooden pallets are an integral component of today’s circular economy, promoting resource efficiency and waste reduction. Integrating recycled pallets into supply chains offers both environmental and economic advantages.
Environmental Benefits
- Reduces landfill waste: Old pallets that are discarded contribute to environmental degradation. Recycling diverts them from landfills, mitigating their impact. Research from Virginia Tech presented at a 2018 NWPCA conference revealed a dramatic decline in land-filled wood pallets — from over 178 million in 1998 to just 25 million by 2016.
- Lowers carbon footprint: Manufacturing new pallets requires significant energy and raw materials. Extending the life of pallets through recycling helps conserve resources and reduces the emissions associated with production, transportation, and disposal.
- Decreases demand for new lumber: New pallet production relies heavily on timber. By choosing recycled pallets, companies contribute to conservation efforts and help reduce deforestation.
Economic Benefits
- Cost savings: Recycled pallets can be up to 30% more affordable than new ones, providing a cost-effective alternative that lowers overall transportation expenses.
- Budget efficiency: Savings from pallet recycling can be reallocated to other business needs, improving financial flexibility.
- Enhanced reputation: Sustainability is a growing priority for customers and stakeholders. Demonstrating a commitment to responsible resource use strengthens corporate social responsibility efforts and enhances brand perception.
Potential Challenges of Recycled Pallets
Despite the advantages, there are considerations that businesses should evaluate before opting for recycled pallets:
- Condition variability: Unlike new pallets, recycled pallets may have hidden defects such as cracks or wear that impact their durability and performance.
- Contamination risks: While pallets only need to be treated once to receive certification, issues like mold, pests, and previous exposure to contaminants can affect their ability to transport goods safely.
- Limited customization: Recycled pallets are typically available in standard sizes. Businesses requiring custom dimensions may find sourcing suitable recycled pallets challenging and potentially more expensive.
Making the Right Choice
Like any procurement decision, selecting between new and recycled pallets depends on specific business needs. While new pallets offer consistency and reliability, recycled pallets present a compelling case for sustainability and cost efficiency. Given the substantial environmental and financial benefits, pallet recycling plays a crucial role in modern supply chain management.
At Ongweoweh, our pallet recycling programs help businesses save up to 75% per pallet compared to purchasing new ones. As Crystal Collins, an Executive Relationship Manager at Ongweoweh, explains: “We make pallet recycling second nature with our streamlined programs. Not only do they promote sustainability, but we also help businesses unlock additional revenue streams for pallets at the end of their lifecycle.”
Explore our recycling solutions today and discover how Ongweoweh can help optimize your pallet strategy while advancing sustainability goals. Got other waste-management challenges that go beyond pallets? Talk to our 7Gen Waste Logistics subsidiary: We help customers deal with their waste streams in all kinds of innovative, cost-saving, and even revenue-generating ways!