Researchers Propose Single Grade Rule For Evaluating Hardwood Pallet Cants

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. The value of cants to pallet manufacturers is a function of pallet part yield and sawing costs. A previous U.S. Forest Service study examined the percentage of unsound volume in hardwood pallet cants. This research showed that 90% of hardwood cants have less than 10% unsound volume, and that only 2% of cants have more than 30% unsound volume. This study, as well as the others, supports the justification that cant quality can and should be assessed in order to predict pallet part yields and to better control raw material costs. Knowing the value of cants will help pallet manufacturers more accurately control costs and