Western Pallet Magazine April 2025 | Page 29

April 2025

investment in automation to maintain production levels. Larger firms were also more likely to complete the survey—another hint at rising consolidation in the sector.

7. Pandemic Impacts Varied—But Most Companies Adapted Quickly

Despite widespread concern about raw material disruptions, more than half of companies reported stable or improved access by the end of 2020. Only 46% reported persistent procurement challenges.

In terms of operations:

- 33% of companies avoided layoffs

altogether

- 29% saw sales increases in 2020 over 2019

- Only 7% shut down for more than four weeks

The overall picture is one of resilience and adaptability, even amid unprecedented supply

chain pressures. The pandemic appears to have accelerated trends already in motion - greater automation, consolidation, and the shift toward softwood use.

Final Thoughts

The U.S. wooden pallet industry emerged from the pandemic not just intact, but in many ways stronger, leaner, and more future-ready. The sector’s ability to scale production, shift materials, and adapt to labor shortages demonstrates its crucial role in both domestic and global logistics.

At the same time, trends like rising customization, shifting size preferences, and evolving environmental expectations will continue to reshape the landscape in the years ahead.

For pallet manufacturers, recyclers, and their customers, keeping a close eye on these dynamics—and planning accordingly—will be key to staying competitive in a market that’s still full of surprises.

WPM