The number of pallets in use in the US is forecast to grow 2.4 percent annually to 2.6 billion in 2017, with annual demand for new pallets increasing 3.5 percent per year to 1.3 billion units. A number of factors will contribute to sales growth. First, rising manufacturers’ shipments will require producers to add to their existing stocks in order to have enough pallets on hand to handle higher output levels. Second, the 2007-2009 economic recession negatively impacted new lumber pallet demand because refurbished pallets were a lower-cost alternative for cash-strapped producers. As a result, relatively few new pallets were purchased during the downturn, leaving owners unable to maintain stock quality. Going forward, a more favorable economic climate will induce companies to discard these aging refurbished units and purchase new ones, fueling stronger demand growth. Third, block pallets are expected to make up a larger share of the market total, and growing numbers of manufacturers will replace their existing stringer pallets with new block units.
Manufacturing market to outpace warehousing uses
Manufacturing pallet demand will out-pace warehousing market sales through 2017, fueled by a rebound in shipments following a period of decline and supported by a trend toward insourcing as labor costs rise in developing countries and shipping costs continue to climb. Warehousing pallet demand will moderate from gains posted during the 2007-2012 period for two reasons. The primary reason is growth in use of pallet management services that are able to skillfully maintain pallet stocks with minimal new product purchases, tempering increases in demand. These firms provide producers and distributors with the pallets they require, eliminating the need for them to purchase and maintain their own pallets. The use of pallet management services also frees up pallet storage space that can instead be utilized for components and finished goods. The second reason for the expected deceleration in warehousing pallet market advances is the growing maturity of this industry, as much of the shift towards third-party providers has already occurred.
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Report Details:
Published: June 2013
No. of Pages: 309
Price:Single User License:US$5100 Corporate User License:US$7700
Plastic, metal pallets to gain market share on wood
Wood pallets are projected to remain the most commonly used product type through 2017, although competitive products will register more impressive sales gains. Plastic pallet demand saw their strongest advances historically in percentage terms, and they will continue to record above-average stock and demand increases. They last for many years and are fully recyclable, allowing producers to tout both their lower lifecycle costs and environmental friendliness. Metal pallet demand, however, will rise at the fastest pace of any product type through 2017 due to a large build-up in idle stocks during the 2007-2009 recession and the generally slow economic recovery that followed. As manufacturers’ shipments fell between 2007 and 2009, metal pallets were taken out of active stocks and put in storage because they represented too significant an investment to be simply discarded. As output levels recovered, these idle metal pallets were used to meet product requirements, severely limiting new pallet sales in 2012. Through 2017, demand will advance rapidly from the low 2012 market base as idle stocks are eliminated and new units are purchased.
Table of Contents:
V. Markets 151
General 151
Manufacturing 154
Food & Beverages 157
Industry Outlook 157
Pallet Market 160
Transportation Equipment 163
Industry Outlook 163
Pallet Market 166
Chemicals 168
Industry Outlook 169
Pallet Market 171
Electronic Products 173
Industry Outlook 174
Pallet Market 177
Metal Products 179
Industry Outlook 180
Pallet Market 181
Machinery 183
Industry Outlook 183
Pallet Market 185
Other Manufacturing 187
Warehousing 189
Construction 193
Other 195
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