Construction firms including BAM, Morgan Sindall and Willmott Dixon are backing a new scheme that aims to significantly reduce the number of pallets wasted in the industry each year.
Other firms to back The Pallet LOOP include Bradfords Building Supplies, BDL/Careys, the Finishes & Interiors Sector (FIS), Meronden, MKM, MSK, and Platt & Reilly.
Each year, around 18 million pallets are manufactured for the construction industry but fewer than 10% are reused, according to The UK Wood Pallets & Packaging Market in 2020.
Starting in 2022, The Pallet LOOP will incentivise pallet returns via a deposit-based system.
The green, 100% FSC LOOP pallets have been designed to be, on average, 100% stronger than existing designs. They will be distributed to building materials manufacturers, which can use them to transport products to builders’ merchants and construction sites nationwide. Building material manufacturers will pay a deposit per pallet (along with a separate issue fee that the manufacturer absorbs) to The Pallet LOOP.
“The current industry specification for pallets works on the assumption that they will be scrapped or skipped once they reach their final destination. We’re turning this outdated, inefficient and linear practice on its head.”
As the pallets move through the supply chain, the deposit will pass from manufacturer to merchant to end user. Once materials reach their final destination, pallets can be stacked and stored for collection by The Pallet LOOP, which has a dedicated recovery infrastructure in place. Pallet collection is simple and users will be able to book a pick up slot via phone or online. Once a collection is booked, pallets will be picked up from as little as 72 hours later. Deposits are then repaid, in full, to the end-user.
The scheme has been developed by Paul and Ryan Lewis (formerly HLC Wood Products) and pallet producer Scott Group. They claim that widespread adoption of The Pallet LOOP across the construction sector would greatly reduce the burden pallet production currently places on the environment and forests – achieving approximately 40% less CO2 emissions and an estimated up to 75% reduction in timber usage.
To create construction industry pallets, an estimated 6,000 acres of forestry are harvested every year, with a further 236,000 acres grown to cater for future demand.
Paul Lewis, founder of The Pallet LOOP, said: “As a business we’re committed to reducing the impact on the planet that comes from pallet use in the construction industry supply chain. We aim to sustainably manage and reduce the cost of pallets for our customers – making palletised logistics greener and leaner.
“At present, the vast majority of pallets circulating in the sector are designed for single use. The current industry specification for pallets works on the assumption that they will be scrapped or skipped once they reach their final destination. We’re turning this outdated, inefficient and linear practice on its head. In a step-change for the sector, we’ve developed a range of standardised pallets, engineered to last and to be used again and again.
“Adoption of The Pallet LOOP requires a shift in mindset from ‘deliver, distribute, discard’ to ‘recover, repair and reuse’, but we’re confident the time is right and that the UK construction industry is ready to embrace this transformational shift towards a circular solution.”
