28 WESTERN PALLET
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Navigating Uncertainty: Insights from Chaille Brindley on the 2025 Pallet Market
As 2025 enters its second half under the second Trump administration, the pallet industry finds itself grappling with tepid demand, fluctuating economic signals, and long-term strategic shifts. Chaille Brindley, Vice President of Operations and Publisher at Pallet Enterprise Magazine, offered a candid mid-year analysis during a July 30 webinar hosted by the Western Pallet Association.
Titled Looking for Certainty in an Uncertain Market, the session outlined key market drivers, offered forecasts on demand and capital investment, and called on pallet leaders to take proactive steps in automation, data strategy, and quality improvement.
Demand Steady—No Surge
Brindley opened with a blunt observation: “Demand for pallets has been disappointing in the first half of the year.” He emphasized that while there has been some movement, the traditional late-summer uptick may not materialize as strongly in 2025. Factors such as port volume reductions tied to tariff maneuvering and broad economic caution are holding back growth.
“There’s still a lot of uncertainty. The bump you normally get in August and September likely won’t show up in full,” he said, citing anticipated slowdowns in container volumes, particularly in the wake of shifting trade dynamics with China.
Still, Brindley sees reasons for guarded optimism. “The economy is strong enough—not booming, but stable—and most retailers are predicting an uptick for the Christmas season,” he noted.
Despite weak performance in new pallet sales, the recycled market is holding up better. “Recyclers are doing relatively well,” Brindley explained, due in part to cost-conscious buyers and the growing interest in combo and premium remanufactured pallets. In particular, quality remains the decisive factor—especially in supply chains where warehouse automation requires consistent dimensions and build tolerances.
Brindley warned against cutting corners. “Pallets are supposed to protect the loads they carry. If they’re poorly made, they do the opposite,” he said. With more pallet users relying on automation and robotics, consistent specs are no longer a luxury; they’re a requirement.
Automation Drives Quality
According to Brindley, the rise of auto- mation and smart warehousing is reshaping customer expectations. “Retailers are building more micro-fulfillment centers, centers—smaller, urban facilities that need better pallets and often different formats like half or block pallets,” he said.
This shift is driving interest in pallet inspection technologies and camera-based quality control systems. “Expect to see higher levels of inbound and outbound pallet inspections,” he noted. "There are several ways to skin that cat—what matters is picking the one that fits your operation."
He also discussed the possibility of smart pallets playing a greater role in future supply chains. While tagging pallets has historically been viewed as too expensive or unnecessary, that attitude may be changing in highly automated, data-driven environments.
Long-Term View: Data, CapEx, and the Evolving Workforce
Brindley repeatedly returned to a central theme: this is the time to plan. “If you're not preparing now, you won't be ready when the market rebounds,” he said. He encouraged companies to begin or refine their data strategies, automation plans, and capital investment roadmaps.
Asked about capital expenditure expectations for 2026 and beyond, Brindley said, “I’m optimistic. There are tax incentives coming, and as trade deals settle, people will feel more confident in pulling the trigger on equipment purchases.”
But he also urged companies to remain realistic. “Even if the Trump administration wants to increase domestic timber supply through executive orders, it won’t be immediate. Loggers and truckers are still in short supply. Legal challenges will delay new timber sales. But it’s a step in the right direction.”
Meanwhile, he hinted at a future where labor challenges could be offset by emerging technologies. “We joke about humanoid robots in pallet plants. But if labor shortages persist, it may not be a joke forever.”
Trade and Tax Policy in Flux
The webinar also touched on the “Big Beautiful Bill” tax legislation, expected to bring about permanent cuts and new tax-free savings accounts. While Brindley welcomed the clarity, he emphasized the ongoing influence of trade tensions.
“Certainty is critical for investment,” he said. “A big trade deal with China could change everything. But until that’s done, expect hesitancy.”
He also pointed to the need for more predictable import costs, particularly for machinery suppliers and manufacturers. “You don’t want to put down a deposit on a saw or nailing line and then get hit with a surprise tariff.”
Final Thoughts: Evolve or Be Left Behind
As the webinar wrapped, Brindley emphasized that the pallet industry is at a crossroads. While no dramatic shift is expected in the immediate months, 2026 may bring more substantial growth—if companies position themselves accordingly.
“This isn’t your grandfather’s pallet business,” he concluded. “We’re not going back to the old normal. The companies that succeed will be the ones that embrace change, invest wisely, and stay ahead of customer expectations.”
For businesses still waiting for conditions to improve, Brindley had a final note of caution: “Don’t just wait. Use this time to get ready.”