Kingwood, TX -- (ReleaseWire) -- 06/30/2023 --The U.S. economy has shifted throughout 2023 in many positive ways, and one industry that's reaping the benefits of widespread economic growth is the wood pallet industry.

Pallet prices have officially softened this year, and this is largely due to lower demand, decreased lumber prices, and overall better pallet availability. All of this is great for pallet suppliers and countless businesses nationwide, but a large number of pallet suppliers are also experiencing staffing shortages.

The experts at The Pallet Guys have provided the below list of industry trends that are impacting thousands of businesses nationwide this summer!

Moderate Relief of Pallet Prices

2022 was one of the most unprecedented years in the pallet industry's history, as prices skyrocketed until slowly but surely normalizing toward the beginning of this year.

As of June 2023, the FRED Index price of wood pallets is now back to where it was in June of 2021. This has a lot to do with softwood lumber's price decreasing at the end of last year, so raw material increases have subsequently led to pallet price reductions.

And with so many businesses across America strapped for their logistics budgets, this type of relief is much needed!

Labor Shortage Continues To Plague Pallet Providers

Although it may seem like everything is improving throughout the wood pallet industry, there are many constraints that pallet providers are currently experiencing. On of these ongoing constraints is the labor shortage that's still impacting countless industries nationwide.

Staffing requirements have ultimately shifted as pallet industry trends have shifted, and many pallet providers are still struggling to meet expansion opportunities. Increased wage competition in other industries and a shortage of unskilled labor is making things more difficult on pallet companies, but the good news is that these labor shortage issues are beginning to get a little bit better this summer!

Material Prices Are Down

Because lumber prices have come down in recent months, pallet prices have seen price relief. So, it goes to show just how connected the lumber industry is to not only just the pallet industry, but also every logistics company.

Recycled pallets blew up in popularity throughout last year, mainly because new wood pallets were abnormally expensive. But today in 2023, more companies are interested in purchasing brand new wood pallets once again, and this is making significant improvements for pallet providers and shipping companies alike.

Transportation Trends

The transportation industry is also connected to the pallet industry, and now more people are using wood pallets for long distance shipping as compared to years past. This has a lot to do with ongoing fuel and pallet price decreases, because these are huge factors for a logistics company's bottom line.

Flatbed spot rates have significantly decreased in 2023 as well, which is significantly impacting how businesses ship products from state to state!

Businesses Across America Rely Upon Wood Pallet Industry Trends!

Wood pallets aren't necessarily used within every company's daily activities, but every company relies upon wood pallets for their incoming and outgoing shipments of all kinds.

Wood pallets are in many ways the lifeblood of the entire shipping industry, and the economy ebbs and flows in unison with pallet prices. The above pallet industry trends are a good starting point for every company's logistics strategies throughout the rest of 2023!

About The Pallet Guys
The Pallet Guys are one of the top producers of wood pallets in the San Antonio, TX area, and their specialists have supported businesses throughout Texas for decades.

The Pallet Guys are available for comment regarding the ongoing pallet industry trends, and they can be reached via this contact page or by calling 832-895-7555.