Researchers propose single grade rule for evaluating hardwood pallet cants
Authors: | Hal Mitchell, Marshall White, Philip Araman, Peter Hamner |
Year: | 2008 |
Type: | Scientific Journal |
Station: | Southern Research Station |
Source: | Journal article Pallet Enterprise 28(10): 54-62. |
Abstract
In "price taker" markets, successful businesses are the low cost producers, and pallet manufacturers are no exception. The single largest cost component of pallet manufacturing is raw material costs. Cants and lumber typically account for over 60% of operating costs. In the last three decades, cants have replaced lumber as the primary raw material for hardwood pallet manufacturers. As stumpage prices and competition for wood-based raw materials increase, pallet cant prices will continue to rise as well.