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What Would Happen If Pallets Became Extinct

17 Sep 2018

A pallet is a flat structure which assists with the transportation of heavy goods in a stable way. Pallets are moved by forklifts or even cranes. Essentially, they make up the structural foundation of a load, and they enable easy handling and efficient storage. If pallets became extinct, this would have a knock-on effect on industry, transportation and even the world economy.

Goods are placed on a pallet and secured with strapping for transportation. And while most pallets are made out of sturdy wood, they can also be made of plastic, metal and even recycled materials.

new and used plastic pallets

A Knock-on Effect Can Be the End Result

Who would have thought something so small, simple and innocuous could put the brakes on the economy? If pallets became extinct, this would lead to unemployment, a slowing in the world economy and the interruption of supply chains. Less efficient methods of transportation would have to be adopted, resulting in the destruction of goods, including perishable items. Transportation of emergency supplies to countries affected by natural disasters would also be disrupted.

A world without the existence of pallets would have a much larger impact that you may initially imagine. The number of plastic pallets is increasing every year with more companies looking at replacing traditional wooden pallets with reusable plastic pallets. Forecasts suggest that the market for pallets will continue to rise in the future.

Pallets make it much easier to transport heavy loads. Loads with pallets can be hauled by forklifts. Movement is easy, and businesses using pallets for loading and unloading enjoy faster movement of goods and materials. All types of businesses use pallets – for example, distributors of accessories would use pallets in warehouses, while car manufacturers use pallets to transport component parts. If pallets became extinct, businesses would function more slowly, leading to a loss in profit.

Recessions Will Come About, Leading to a Drop in Spending

It’s clear to see that the extinction of pallets would result in a recession which then would have a domino effect, increasing unemployment, and this in turn would lead to less growth and a drop in consumer spending. This would ultimately affect businesses, which would then have to make workers redundant due to a lower turnover.

When an economy is facing recession, business sales and revenues drop, which cause firms to stop expanding. Demand would therefore not be high enough, and then businesses would start to report losses. At first, companies may attempt to reduce costs by inviting workers to accept lower wages or indeed keeping salaries at the same level. Firms may also put a halt to hiring new workers, which would have a domino effect, resulting in a rise in the unemployment rate. A drop in the GDP may cause firms to ultimately report losses. In some cases, this domino effect may result in some companies going bankrupt.

The beginning of a recession can be slow, but it can start to snowball and the overall picture can worsen. When there are redundancies or indeed rumours of layoffs circulating, consumers in general would be inclined to tighten their belts and make savings where they can.

When there is a slower drip-feed of money, the demand for goods and services will be less. This drop in demand would lower the growth rate of firms and the global economy – all if pallets became extinct.

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