Wednesday, January 18, 2012

9BLOC - Pallet Recyclers Look to Control Their Future

What can a recycler do when the incoming supply of material for processing begins to diminish? Certainly, public awareness is a factor for many participants, such as for aluminum beverage container sector (although I would argue that convenient recycling bin location is probably a bigger factor than the public being aware of the importance of recycling aluminum).

pallets

The pallet recycling sector is in a unique position where their multi-billion dollar industry is in jeopardy as pallet using companies choose to purchase fewer pallets, choosing instead to rent them from companies such as CHEP. As a response, pallet recyclers are looking to switch from a pallet purchase model to a cost per trip model which will encourage new pallet purchase, while allowing pallet suppliers to compete with pallet rental pallets in terms of price. The new program they have developed is branded 9BLOC.

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