60 Seconds With... Bruce Scholnick, National Wooden Pallet & Container Association
Staff -- Modern Materials Handling, 9/1/2009
Modern: Given the economy and the evolutions in the supply chain, what's the state of the wooden pallet today?
Scholnick: Evolution is a good word. Our industry is probably in the largest evolutionary movement it's been in since I joined the NWPCA in 2000 and certainly before that. Yes, we are feeling pressures from the economy, but the legislative and regulatory pressures are more pronounced than ever. Alternative materials, like plastic and metal pallets, are nipping at the industry's heels more than ever before. The economic situation will resolve itself. But these other trends will impact the future of the industry.
Modern: It seems like one of the biggest changes in the industry is the role of recycled pallets vs. new pallets. How big is recycling today?
Scholnick: The recycled pallet has emerged as the dominant platform for shipping, as it should. That's a huge change. Ten years ago, there was probably a 60/40 split, with new representing 60% of the industry. Today, I'd guess the split is 70/30, and 70% are recycled. It's rare to find a manufacturer of new pallets that doesn't do some level of repair for its clients as a service. That's resulted in another change. Twenty years ago, the industry was made up of hardworking lumber people who pulled trees out of the forest to make pallets. Today, a growing segment of the industry has an advanced academic and business background. Recyclers are clustering into networks that are run like a mainstream business and not a logging operation. There's more marketing and a more business-oriented approach to customer service. We've evolved to deal with the corporate customer.
Modern: What's the future of the industry?
Scholnick: At the end of the day, when everything is shaken out, we believe the wood pallet will remain the dominant shipping platform because it is the most cost-effective and the most environmentally compatible platform. But the industry will change. We have to realize that we are no longer a regional supplier of shipping platforms but are participants in a global supply chain. A pallet shipped to a manufacturer in the Midwest may end up in Europe or Asia. Add in recycling and we are forward and reverse logistics organizations that understand what the unit load means to our customers.
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