What Wood Pallet Manufacturing and Recycling Equipment Should I Buy First?
- Nate Jones, CPCU, ARM, CLCS, AU

- Nov 18
- 2 min read
Starting a wood pallet manufacturing and recycling business requires the right equipment to ensure efficiency, safety, and profitability. Choosing the right tools and machinery upfront can save you time, reduce waste, and help you deliver high-quality pallets to your customers.

In this guide, we’ll cover the essential equipment you need to start your pallet business, along with tips for budgeting and insurance considerations.
Why Equipment Selection Matters
The right equipment impacts:
Production speed – Faster assembly and repair processes
Quality control – Consistent pallet dimensions and durability
Safety – Reduced risk of workplace injuries
Cost efficiency – Lower material waste and labor costs
Essential Equipment for Pallet Manufacturing and Recycling
1. Pallet Jigs
Pallet jigs help maintain uniform size and structure during assembly. They are critical for producing pallets that meet industry standards.
2. Nail Guns and Fasteners
High-powered nail guns speed up assembly and repair. Invest in durable fasteners to ensure pallet strength.
3. Circular Saws and Band Saws
Cutting lumber accurately is essential for pallet manufacturing. Circular saws are great for straight cuts, while band saws handle irregular shapes.
4. Forklifts and Material Handling Equipment
Forklifts are necessary for moving heavy stacks of pallets and raw materials. Consider commercial auto insurance for forklifts and delivery trucks.
5. Safety Gear
Protective equipment such as gloves, goggles, and steel-toe boots is non-negotiable. Safety compliance also affects your workers’ compensation insurance requirements.
Optional but Recommended Equipment
Pallet Dismantling Machines – For recycling old pallets efficiently
Heat Treatment Chambers – For ISPM-15 compliance in export pallets
Automated Nailing Systems – For high-volume production
Budgeting for Equipment
Start with essential tools and scale up as your business grows. Consider:
New vs. Used Equipment – Used machines can reduce startup costs
Maintenance Costs – Factor in repairs and downtime
Insurance Coverage – Protect your investment with equipment insurance
Insurance Considerations for Pallet Businesses
Your equipment is a major investment. Protect it with:
Final Thoughts
Investing in the right equipment is the foundation of a successful pallet manufacturing and recycling business. Start with essential tools like pallet jigs, saws, nail guns, and forklifts, then expand as your operations grow. Don’t forget to protect your investment with specialized insurance coverage—Wexford Insurance can help you find the right policies for your business.
Contact Wexford Insurance today.




