Looking back at 2021, raw material scarcity is particularly striking. Almost every sector faces raw material shortages, including the new pallets sector. The raw material wood increased tremendously in price during the year 2021 due to huge shortages in the wood market, created by huge global demand.
Sharp rise in timber prices
New wood in 2021 was 84% more expensive than in 2020. So the price of wood almost doubled in 2021. Partly due to the huge price increases of new pallets, there was also a demand explosion for used pallets. Supply and demand in imbalance, and consequently, huge price increases of used pallets.
Security of supply for all our customers
Turbulence all around, which called for accurate forecast estimation, because “security of supply” is what Palletcentrale stands for. We fully lived up to this security of supply with all customers in 2021.
In the absence of sufficient used pallets, we deployed new pallets or, in extreme cases, plastic variants as a suitable alternative. Anything to supply our existing customers with pallets and to date, all our deliveries are guaranteed. Once again, the pallet as a load carrier has a very prominent place in the entire supply chain. No pallet, no output.
This is why “security of supply” is a requirement for our customers. Our customers get their pallets, always and in the right quantities.
Bode Industrial Packaging takeover
In February 2021, Pallet Central Group acquired Bode Industrial Packaging. Bode Packaging is an industrial packager with over 30 years of experience. The company has a hugely comprehensive range of services. Standard packaging, on-site packaging, customised packaging, XL packaging, transport boxes, lashing & securing, exhibition boxes, cases, transport saddles and transport cases. All products are packed quickly and professionally to prevent transport damage.
Revenue growth 2022
The acquisition of Bode Industrial Packaging had a positive impact on 2021 sales and was partly responsible for the substantial sales growth achieved. Of course, this turnover growth was also caused by the huge price increases that were necessarily implemented. We are proud that, despite the turbulence in the market, we were able to supply all our customers this year. A smart purchasing strategy and good communication with our customers were of great importance here. This enabled us to make even a slight increase in the number of pallets sold.