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Pallets


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US demand to rise 6.1% annually through 3015
US demand for pallets is forecast to rise 6.1 percent per year to 1.3 billion pallets in 2015, valued at $15 billion. This pace will represent a rebound from the 2005- 2010 period, when demand fell 4.5 percent annually, reflecting the decline in manufacturers’ shipments between 2007 and 2009 and only the partial rebound through 2010. Through 2015, pallet demand gains will be driven by an expected advance in manufacturers’ shipments from their low 2010 base.

Plastic pallet demand to grow at double-digit rates
Plastic pallet demand is projected to advance at a double-digit pace through 2015, rising to 34.5 million units. Demand will be driven by consumer interest in the use of these pallets because of their performance qualities. Plastic pallets resist damages caused by wear and tear and can last a long time without requiring repair. The pallets are impervious to contamination caused by bacteria and other pathogens, and can easily be cleaned. Plastic pallets are also seen as being environmentally friendly, as they can be recycled once they have reached the end of their lifespan.

Pallets made from wood -- primarily lumber -- will continue to account for the largest share of the US pallet market. Demand will be driven by the new pallet market, as manufacturers’ shipments rebound and more pallets are needed to ship and haul products. However, refurbished wood pallets, which accounted for 65 percent of wood pallets sold in 2010, will continue to lead the market in 2015. Pallet refurbishing firms, which repair damaged and worn pallets, will see more demand for their services, as it is often more economical to repair an existing pallet than to purchase a new one. Environmental concerns will also boost demand for refurbished pallets, as less wood is required to repair a pallet than to construct a new one.

Manufacturing to remain largest market for pallets
Manufacturing will continue to account for the largest share of pallet demand, totaling 75 percent of the market in 2015. Demand will be supported by continued recognition of the suitability of pallets as an inexpensive way of shipping and hauling goods while avoiding product damage. Providers of warehousing services -- such as pallet management services and pallet pools -- will post 2.5 percent annual gains in pallet demand through 2015. These companies, which manage pallets and coordinate the shipping and handling of materials from original manufacturer to end user, will purchase new pallets and expand their pallet refurbishing operations to add to their pallet stocks and more effectively serve existing customers.

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PRESS RELEASE

US Demand for Pallets to Reach 1.3 Billion Units in 2015

US demand for pallets is forecast to rise 6.1 percent per year to 1.3 billion units in 2015, valued at $15 billion. This pace will represent a dramatic turnaround from the 2005-2010 period, when demand fell to fewer than one billion pallets in response to a decline in manufacturing output between 2007 and 2009 and a partial rebound in 2010. Through 2015, demand gains will be driven by an expected advance in manufacturing from the low 2010 base. These and other trends are presented in Pallets, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Manufacturing will continue to account for the largest share of pallet demand, totaling 75 percent of the market in 2015. Demand will be supported by continued recognition of the suitability of pallets as an inexpensive way of shipping and hauling goods while avoiding product damage. Providers of warehousing services will purchase new pallets and expand their pallet refurbishing operations to add to their pallet stocks and more effectively serve existing customers. Pallet stock growth will be driven by the increase in manufacturing activity as the US economy rebounds from the 2007-2009 recession. Growth in shipping activity will spur demand for pallets to transport and store goods. Plastic pallets will account for a larger share of the US pallet stock in 2015.

Pallets made from wood -- primarily lumber -- will continue to account for nearly 95 percent of the US market. Demand will be driven by the new pallet market, as manufacturers’ shipments rebound and more pallets are needed to ship and haul products. However, refurbished wood pallets, which accounted for 65 percent of the wood pallet market in 2010, will continue to lead the market in 2015.

Plastic pallet demand is projected to advance at a double-digit pace through 2015, rising to 34.5 million units. Demand will be driven by consumer interest in the use of plastic pallets because of their performance qualities. They are resistant to contamination caused by bacteria and other pathogens, and can be cleaned easily. Plastic pallets are also seen as being environmentally friendly, as they can be recycled once they have reached the end of their life span.

INTRODUCTION
I. EXECUTIVE SUMMARY
II. MARKET ENVIRONMENT
General
Macroeconomic Environment
Demographic Trends
Manufacturing Outlook
Durable Goods
Nondurable Goods
Warehousing Expenditures
Construction Expenditures
Historical Overview
Environmental Issues
Cross-Contamination Issues
Bacterial Contamination
Phytosanitary Contamination
Fungal Contamination
Other Sources of Contamination
Competitive Products
Pricing Trends
Lumber
Engineered Wood
Plastic
Metal
Corrugated Paper
Foreign Trade
World Market
Western Europe
Asia/Pacific
Other Regions
III. MATERIALS
General
Relationship Between Stock & Demand
Pallet Life Spans
Wood
Lumber
New Pallets
Refurbished Pallets
Engineered Wood
New Pallets
Refurbished Pallets
Plastics
Demand by Type
HDPE
Other Resins
Demand by Source
New Resin
Reclaimed Resin
Metal
Steel
Aluminum
Corrugated Paper
Fasteners
IV. PRODUCTS
General
Pallet Overview
Pallet Stock
Wood Pallets
Unit Terms
Value Terms
Lumber Pallets
Characteristics
Manufacturing
Types
Refurbished Pallets
Engineered Wood Pallets
Characteristics
Types
Refurbished Pallets
Corrugated Paper Pallets
Unit Terms
Value Terms
Characteristics
Plastic Pallets
Unit Terms
Value Terms
Characteristics
Manufacturing
Types
HDPE
Other Resins & HDPE/Other Resin Blends
Metal Pallets
Unit Terms
Value Terms
Characteristics
Manufacturing
Types
Steel
Aluminum
V. MARKETS
General
Manufacturing
Food & Beverages
Transportation Equipment
Chemicals
Metal Products
Machinery
Electronic Products
Other Manufacturing Markets
Warehousing
Construction
Other Markets
VI. REGIONS
General
Regional Demographic & Economic Trends
Population Patterns
Economic Outlook
Manufacturing & Warehousing Value Added
Regional Demand for Pallets
Northeast
New England
Middle Atlantic
Midwest
East North Central
West North Central
South
South Atlantic
East South Central
West South Central
West
Mountain
Pacific
VII. INDUSTRY STRUCTURE
Industry Composition
Manufacturers & Refurbishers
Pallet Management Specialists
Market Share
Wood Pallets
Other Pallets
Pallet Management Specialists
Competitive Strategies
Research & Development
Marketing
Distribution
Mergers & Acquisitions
Cooperative Agreements
Company Profiles
Airdex International Incorporated
Allied Pallet Company Incorporated
Associated Pallet Incorporated
Battle Lumber Company Incorporated
Botkin Lumber Company Incorporated
Brambles Limited
CHEP Americas, see Brambles
CORBI Plastics, see Menasha
Corrugated Pallets Company
Decade Products LLC
Edwards Wood Products Incorporated
Fabri-Form Corporation
Great Northern Corporation
Greystone Logistics Incorporated
IFCO SYSTEMS, see Brambles
iGPS Company LLC
Illinois Tool Works Incorporated
Industrial Pallet Corporation
ITW Plastic Packaging, see Illinois Tool Works
Kamps Incorporated
LEFCO Worthington, see Worthington Industries
Litco International Incorporated
LM Containers LLC
MAUSER AG
Menasha Corporation
Millwood Incorporated
Myers Industries Incorporated
ORBIS, see Menasha
PalletOne Incorporated
PDQ Plastics Incorporated
PECO Pallet Incorporated
Potomac Supply Corporation
Rehrig Pacific Company
Ross Skid Products Incorporated
Rotonics Manufacturing Incorporated
Schäfer (Fritz) GmbH
Schoeller Arca Systems Group BV
Snyder Industries Incorporated
Sonoco Products Company
Sonoma Pacific Company
Southern Packaging Incorporated
Southwest Forest Products Incorporated
SSI Schaefer Systems International, see Schäfer (Fritz)
St. Mary’s Box Company Incorporated
Tasler Incorporated
Thermodynamics, see Rotonics Manufacturing
TriEnda LLC
Wisconsin Pallets Incorporated
WNC Pallet & Forest Products Company Incorporated
Worthington Industries Incorporated
Additional Companies Mentioned in Study
LIST OF TABLES
SECTION I -- EXECUTIVE SUMMARY
Summary Table
SECTION II -- MARKET ENVIRONMENT
1 Macroeconomic Indicators
2 Population & Households
3 Manufacturers’ Shipments
4 Warehousing & Storage Expenditures
5 Construction Expenditures
6 Pallet Demand, 2000-2010
7 Prices for Selected Pallet Types
8 Foreign Trade in Pallets
SECTION III -- MATERIALS
1 Raw Material Demand in Pallets
2 Wood Demand in Pallets
3 Plastics Demand in Pallets
4 Metal Demand in Pallets
5 Corrugated Paper Demand in Pallets
6 Fastener Demand in Pallets
SECTION IV -- PRODUCTS
1 Pallet Overview
2 Pallet Stock
3 Wood Pallet Stock, Supply & Demand
4 Wood Pallet Value Demand
5 Lumber Pallet Stock & Demand
6 Engineered Wood Pallet Stock & Demand
7 Corrugated Paper Pallet Stock, Supply & Demand
8 Corrugated Paper Pallet Value Demand
9 Plastic Pallet Stock, Supply & Demand
10 Plastic Pallet Value Demand
11 HDPE Plastic Pallet Demand
12 Other Plastic Pallet Demand
13 Metal Pallet Stock, Supply & Demand
14 Metal Pallet Value Demand
15 Steel Pallet Demand
16 Aluminum Pallet Demand
SECTION V -- MARKETS
1 Pallet Demand by Market
2 Manufacturing Demand for Pallets
3 Food & Beverage Market for Pallets
4 Transportation Equipment Market for Pallets
5 Chemicals Market for Pallets
6 Metal Products Market for Pallets
7 Machinery Market for Pallets
8 Electronic Products Market for Pallets
9 Other Manufacturing Markets for Pallets
10 Warehousing Demand for Pallets
11 Construction Demand for Pallets
12 Other Markets Pallet Demand
SECTION VI -- REGIONS
1 Population by Region
2 Gross Domestic Product by Region
3 Regional Manufacturing & Warehousing Value Added
4 Pallet Demand by Region
5 Northeast Pallet Demand
6 Midwest Pallet Demand
7 South Pallet Demand
8 West Pallet Demand
SECTION VII -- INDUSTRY STRUCTURE
1 Pallet Sales by Company, 2010
2 Selected Acquisitions & Divestitures
3 Selected Cooperative Agreements
LIST OF CHARTS
SECTION III -- MATERIALS
1 Raw Material Demand in Pallets in Value Terms, 2010
2 Pallet Life Spans
SECTION V -- MARKETS
1 Pallet Demand by Market, 2010
SECTION VI -- REGIONS
1 Pallet Demand by Region, 2010

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