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December 2025
market share if they position themselves carefully.
Competitive pressure in softwood low-grade markets has become intense, to the point where several specialty low-grade producers have been forced to curtail operations or close facilities as volumes shrink. Canadian imports tarrifs. have added another layer of disruption.
At the same time, the spread of automated warehousing means pallets are receiving more scrutiny.. New scanning technology combined with machine-learning tools can now quantify lost revenue from downtime caused by pallet breakage.
Breakage rates and downtime are being tracked by large warehouse operations at a precision only previously dreamed of. As performance data becomes more granular and visible, the inherent durability advantages of higher-quality lumber may become more valuable to pallet users.
This year, Sam’s Club release a new directive that all pallets they receive must be block pallets, joining Costco, which has had a block policy since 2011.
Opportunity abounds for buyers who look to maximize efficiency and minimize downtime in increasingly automated distribution centers.
WPM