Buyers of wooden pallets have a buyer power score of 3.6 out of 5, reflecting a slightly stronger level of negotiating power for buyers. Buyer negotiation power has declined over the three years to 2013. “Although pallet prices fell slightly in during the recession due to declining demand from major buying industries, they have grown at a slow and steady rate over the three years to 2013 as greater post-recession production levels stimulated demand for logistical materials and resources,” says IBISWorld business research analyst Hayk Muradyan.
Additionally, the rebounding economy has contributed to greater demand for lumber, the main input for newly manufactured wooden pallets. This has generated input cost increases for suppliers and has led to higher prices. However, pallet suppliers maintain diversified operations that include distributing used pallets at comparatively lower prices. This has kept average price increases smaller compared to input cost spikes. As a result buyers have benefited from relatively low price growth rates....Read more
