The Scale of Pallet Recycling in America
The United States uses approximately 2 billion pallets at any given time. Of those, around 400–500 million are recycled or repaired each year. The pallet recycling industry employs tens of thousands of people and diverts millions of tons of wood from landfills.
Step 1: Collection
Recycling begins with collection. Used pallets accumulate at warehouses, retail stores, and distribution centers. Companies like Universal Pallet Supply maintain collection routes, picking up used pallets on a regular schedule. Some pallets come from our buyback program, where businesses sell their surplus pallets back to us.
Step 2: Sorting
Collected pallets are sorted into categories:
- Reusable as-is: Pallets in good condition that need no repair
- Repairable: Pallets with minor damage (broken boards, loose nails) that can be fixed
- Dismantle for parts: Pallets too damaged to repair but with salvageable lumber
- End-of-life: Wood that can't be reused but can be ground into mulch, animal bedding, or biomass fuel
Step 3: Repair
Repairable pallets go to our repair line. Skilled technicians replace broken deck boards and stringers with reclaimed lumber, re-drive or replace nails and fasteners, and reinforce weak points. A repaired pallet meets the same structural standards as a new one.
Step 4: Dismantling
Pallets that can't be economically repaired are dismantled. Automated and manual processes separate good lumber from damaged pieces. Good boards become repair stock. Damaged wood moves to the grinding stage.
Step 5: Grinding and Repurposing
Wood that can't be reused in pallet form gets ground into:
- Landscape mulch: Colored or natural wood mulch for gardens and commercial landscapes
- Animal bedding: Clean, kiln-dried wood shavings for equestrian and agricultural use
- Biomass fuel: Wood chips burned to generate clean energy
- Particleboard feedstock: Ground wood used in manufactured wood products
The Environmental Math
For every pallet recycled instead of landfilled:
- 3.5 board feet of virgin lumber is saved
- ~25 kg of CO2 emissions are avoided
- Approximately 5 kg of waste is diverted from landfill
- 15 gallons of water (used in lumber production) is conserved
How to Participate
If your business generates used pallets, don't send them to the dump. Contact Universal Pallet Supply about our buyback and collection programs. We'll pick them up, recycle them, and put them back to work — saving you disposal costs and helping the planet.