What is pallet pooling?

PECO Pallet maintains a large nationwide "pool" of high-quality wood pallets. PECO rents pallets to manufacturers, who ship their product to distributors and retailers throughout PECO's extensive service network. Empty pallets are picked up and returned to an authorized depot, where they are inspected, cleaned, and repaired before being reissued. This pallet pooling system is efficient, cost-effective, and environmentally sustainable.

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I am very pleased to announce that PECO Pallet was acquired by The Pritzker Group at the beginning of March. PECO Pallet had already secured a pre-eminent position in the field of pallet pooling by delivering world-class service and demonstrably higher standards of pallet quality. Now, with substantial market potential and the backing of one of the most successful and innovative private investment groups in the world, PECO Pallet is positioned to continue expansion in its chosen markets with the level of quality, reliability and economic efficiency that those markets both expect and deserve.


PECO's acquisition by the Pritzker Group comes at an important time for the pallet industry. Over these last few months, industry leaders have embarked on a new journey designed to ensure that the block pallet finally replaces the increasingly inefficient stringer. Pole position in this "convert to block" initiative has been taken by Costco, which now requires all suppliers throughout North America to use block pallets. But Costco is not alone in demonstrating a preference for the block. Countless other manufacturers, retailers, and shippers depend on a robust and solid pallet base for cost-effective and efficient supply chains.


As more and more shippers make the switch to block pallets, PECO Pallet has capitalized on its continuously improving reputation in the marketplace. By proving the long-term value of pallet pooling and the benefits of PECO's high quality wood block pallets, PECO has moved strongly into new markets—all in support of customer demands. As a result, our salespeople have been very busy signing up new accounts in the last few months. PECO's customer base has grown by almost 40% since this time last year!


PECO Pallet has also expanded services in both Mexico and Canada. PECO Pallet recently registered "PECO de México" as a legal entity and Importer of Record, and several customers (including Costco and Colgate) have already begun shipping on PECO pallets throughout Baja California and Mexico. We have established a plant in Guadalajara that will manufacture, repair, and store PECO pallets.


We have also established PECO Pallet Canada and have significantly increased our business north of the US border, picking up new accounts that previously used whitewood stringer pallets exclusively. We currently service our Canadian clients from depots located in border cities but are rapidly building infrastructure within Canada so we can expand our business there even further.


Of course, in order to keep up with this growth, PECO Pallet will continue to expand its pallet pool and infrastructure. Our manufacturing network is now well established across North America and is producing new pallets at ever increasing rates. With the financial backing of The Pritzker Group, PECO Pallet is now both well-funded and well set up for further substantial expansion during the remainder of 2011 and for the foreseeable future. There's no stopping us now!


Even as we grow, at PECO Pallet we remain firmly committed to working in close partnership with all of our customers, both old and new. We sincerely pledge to continue providing the same high-quality pallets and dedicated, responsive service that distinguish PECO Pallet from the competition. Quite frankly, that's the only way we know how to do business.


David Lee

Chief Executive Officer