February 2025
Chaille Brindley, Publisher of Pallet Enterprise Magazine, took the stage at the Annual Meeting to share his vision of the next generation pallet plant. In a session packed with insights, Brindley discussed automation, quality standards, and the role of AI, urging industry leaders to prepare for sweeping technological changes already reshaping supply chains.
Looking Back Before Looking Forward
Brindley opened with a nostalgic reflection, acknowledging the industry's evolution. "If you remember being in the pallet industry when all you needed was a pickup truck, a Sawzall, and a nail gun—those were the good old days," he quipped. "But the pallet plant of the future is going far beyond that."
He emphasized that while Europe is 10 to 15 years ahead of the U.S. in automation, change in the U.S. industry is inevitable.
"There's always buzz around new technology," Brindley noted. "At first, it's all talk, and nothing happens. Then suddenly, we hit a tipping point, and everything changes at once. I think that’s what’s happening in our industry now."
Automation and Quality: The Tipping Point
Brindley identified a clear trend: rising demand for premium-quality pallets as automation becomes more prevalent in warehouses and distribution centers.
"If you have high-quality pallets, you can sell them. But if you're relying on lower-grade pallets, demand is shifting," he explained.
A key driver behind this shift is vision inspection technology, which has been used in Europe and is now making inroads in the U.S. Large retailers and Fortune 500 companies are deploying these systems to ensure pallet consistency—a development that will have ripple effects across the industry.
"These inspection systems aren’t coming from the pallet industry first; they’re coming from your customers," Brindley warned. "They’re going to expect better-quality pallets, and you have a choice: meet those standards or let your competitor do it."
He pointed to companies already adopting AI-driven pallet inspection, which reduces reliance on human error.
"Let’s be honest—no matter how conscientious your people are, they’re going to get tired. They’re going to get sloppy. But automation doesn’t take breaks."
Defining Quality in an Automated World
With automation driving stricter quality expectations, Brindley suggested that the industry will need a collaborative effort to establish better-defined standards for pallets used in highly automated supply chains.
In Europe, organizations such as EPAL (European Pallet Association) already enforce strict quality control measures, and some U.S. customers are beginning to seek similar levels of third-party verification.
"Not everyone in the U.S. industry has the same level of automation, so we need to figure out a quality standard that serves the largest number of people at the lowest cost," Brindley explained.
While no formalized standard exists yet, he suggested that pallet producers may need to develop a framework for an "Automation-Ready" pallet—a concept that could eventually influence industry-wide best practices.
He also cautioned that quality expectations will continue to increase as robotics and AI-driven sorting systems become widespread. As automation grows, pallet manufacturers will need more precise quality control systems to meet tighter tolerances and specifications.
AI and Data: The Next Big Leap
AI is poised to play a much larger role in pallet inspection, warehouse operations, and supply chain forecasting.
"Too many people think AI is just for tweaking their website or using ChatGPT. But the real game-changer is how AI can enhance pallet design, predictive analytics, and operational efficiency," Brindley stressed.
He encouraged companies to hire or assign a dedicated AI lead to explore applications in production, inventory management, and customer interactions.
"If you don’t have someone in your company looking at AI, you need to go out and find that person tomorrow," he urged.
AI-driven systems could also improve real-time tracking and reporting, providing valuable data on pallet performance, durability, and lifecycle management. Brindley suggested that data-driven decision-making will soon be a competitive advantage for pallet companies looking to optimize operations and reduce waste.
The Labor Factor: Will Automation Replace Workers?
While automation and AI offer compelling benefits, Brindley acknowledged industry concerns about the impact on labor.
"I don’t think labor rates are going to get any cheaper," he remarked. "It’s not really a question of whether you’re going to automate—it’s what you’re going to automate and when."
Brindley pointed to automated dismantlers, board loaders, and robotic pallet sorting systems as examples of technologies that are already reducing manual labor demands. However, he emphasized that automation is not about eliminating jobs but reallocating human resources toward higher-value tasks.
Key Takeaways: What Should Pallet Companies Do Next?
Brindley wrapped up with a practical roadmap for industry leaders:
✅ Engage with customers to understand their automation needs.
✅ Evaluate vision inspection systems to improve quality control.
✅ Consider adopting AI to streamline operations.
✅ Assess the role of automation in pallet repair and production.
✅ Prepare for a shift in labor dynamics, as automation offsets rising wages.
"You don’t have to do everything at once," Brindley reassured the audience. "But you need to figure out what works for you. The key is to take that first step."
Brindley closed with an optimistic note:
"We’re entering the golden era of technology in the pallet industry. There has been more innovation in the last five years than in the previous 20. It’s an exciting time—but you have to be ready to adapt."
For those looking to stay ahead, Brindley recommended following industry updates and discussions on LinkedIn and reading the latest issue of Pallet Enterprise Magazine.
The Future of Pallet Plants: Are We in the Golden Era of Technology?