How to Start a Pallet Manufacturing Business

Learning how to start a pallet manufacturing business is easier than people may think. You just need a few licenses and a few tools of the trade. You can start a pallet making business in a small building with electricity. In fact, many of these businesses have been started in a garage. Most pallet businesses use the lean manufacturing method of making pallets, which means that they make pallets on demand so they keep no inventory.

Difficulty: Easy

Instructions

Things You'll Need:

• Table saw
• Nail gun
• Wood
• Tape measure
• Tables the size of a finished pallet
• Federal ID number (EIN)
• Local business license
• State Tax Stamp
• Building zoned for business

1. Look for a building that is already zoned for business. If you use a building that is not zoned for this type of business, you will need to have the zoning changed before you apply for any licenses. The building should have enough room to build the pallets and store them until they are picked up or delivered to the client.

2. Apply for a state license for a business. Apply for a Federal ID Number (EIN) at the IRS Website. Then apply for a State Tax Stamp to operate the business; you will find the form for doing this at your local state government website. The EIN number is free. The State Tax Stamp usually costs $10, and the local licenses vary for every locale.

3. Set up the building so that each operation flows from the beginning to the end of the process. The first table will be for measuring the wood. Use a tape measure for this process or make marks on the table to make the process of measuring easier and faster.

4. Place the table saw next in line. This is where you will make your cuts for each pallet board. After the table saw, you will have the next table where you will assemble the pallet.

5. Place the nail gun by the last table where the assembly will take place. You will assemble the cut wood making a finished pallet. Then place it in the storage area nearby.

Tips & Warnings

• Pallet manufacturing businesses can be run by one person or by a few people. It is possible for one person to make sixteen pallets a day alone. If you have a person for every step, you could quadruple that amount. As your business increases, you may want to add more assembly lines to increase production. Some pallet companies also take free bad pallets from companies and use some new wood to fix the bad pieces. This adds to the profits.
• Never use wood that has a bad odor to it for making pallets.

Resources

• IRS Website