Pallet recycling and repair yard

Collect used pallets, repair and sort them by grade, and resell them to warehouses and manufacturers.

Startup cost$15k to $60k
Monthly revenue$8k to $35k
Time needed30+ h/week
First incomeMonths
  • $15k-60k
  • Part-time
  • Own premises

Estimates for a small start in the US, not guarantees.

Official data

2,793 US businesses with employees in this field, +0.9% in a year

NAICS 321920 “Wood container and pallet manufacturing”. Source: U.S. Census Bureau, County Business Patterns 2023.

What it is

A small yard or rented industrial unit where you collect used pallets, repair broken boards and sort them into grades. You then sell the reconditioned pallets to local businesses.

Your first three steps

  1. Visit local pallet yards and ask nearby businesses where their surplus pallets go, to find a supply and buyers
  2. Find a yard or industrial space, and check zoning and fire rules with your city or county before signing a lease
  3. Buy a pallet dismantler or nailer, a used forklift and safety gear, then line up two or three regular buyers
Who pays

Warehouses, manufacturers, distribution centers and logistics firms that want lower-cost pallets, plus businesses that pay to have surplus pallets taken away.

How it makes money

You sell repaired pallets by the piece or truckload, and sometimes earn pickup fees. Sorting and repair labor and the price of core pallets set your margin.

Skills that help
  • Hands-on repair work
  • Safe forklift and pallet handling
  • Sourcing and pricing used pallets
Watch out for
  • Zoning, since many residential areas do not allow pallet yards, so check with your city or county
  • Fire risk from stacked wood, so check fire code limits and insurance requirements
  • Forklift training and workplace safety rules, check OSHA requirements
  • Workers' compensation insurance once you hire
  • Heat treatment (ISPM 15) rules if customers ship pallets overseas
  • Local stormwater or waste rules for scrap wood

Deep research report · US

Everything you need to start: pallet recycling and repair yard

Researched with live web search for United States: real startup prices, the licences and rules, what others charge, a break-even example, how to find your first customers and a 30-day launch plan. With sources.

  • Startup costs with real prices
  • Licences, registration and rules
  • Pricing: what others charge
  • Break-even example
  • Finding your first customers
  • 30-day launch plan
  • Risks and how to reduce them
Ready in about 2 minutes · one-off payment, tax included

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Questions people ask

How much does it cost to start a pallet recycling yard?

Startup costs are typically around $15,000 to $60,000, depending on your yard or unit, equipment such as a forklift, and opening pallet stock. These are estimates, so get quotes for your own site.

How much can a pallet recycling and repair yard earn?

Monthly revenue is typically around $8,000 to $35,000, depending on pallet volumes, the grades you sell and whether customers pay for pallet pickup. Treat these as estimates, not guarantees.

What rules apply to running a pallet yard?

Check zoning with your city or county, since many residential areas do not allow pallet yards. Also check fire code limits and insurance, OSHA forklift and safety requirements, ISPM 15 heat treatment for overseas shipping, and local stormwater or waste rules.

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