Anyone Else Following the Pallet Shortage?

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This has the potential to impact a wide array of industries.

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The problem, Raushel and others said, is linked to a surge in the economy as the COVID-19 pandemic dies down. Companies of all kinds slowed their operations last year as the pandemic forced restrictions on activity.

Now, as business begins to pick up, sawmills aren’t staffed. Some truckers are on the sidelines. Korean nail factories are running months behind in filling orders. And pallet makers often are bidding for scarce wood against homebuilders. Result: The price of wood, in some cases, has tripled. Bottom line, a new pallet that sold a year ago for $12 to $14 now costs $25 to $28.

“There just isn’t enough [wood] to go around,” said Tim Logan, owner of Viking Pallet in Maple Grove, Minn. “It’s just a constant headache.” Logan spends much of his time these days trying to find wood, trucks, nails and workers.

“You’re just running from crisis to crisis,” he said. At least Logan doesn’t have to worry about finding customers. Viking Pallet is turning away new accounts in order to be sure it can take care of its existing customers.

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