KraftPal, USA, a market leader of sustainable corrugated cardboard pallet solutions, recently established its first US operations in a 32,000 square foot facility in Ontario. We spoke to President, KraftPal USA Martin Fishman, on the decision to locate their first US operations in San Bernardino County and how their product will forever change the pallet industry.

What makes KraftPal such a unique business?

Our palette is made of cardboard. It’s a game changer because KraftPal uses 80% less material from trees and it’s 100% recyclable including the cardboard and glue that’s used to bond it and create the strength structure in the pallet. For any industry, it means we are providing sustainable solutions that can be repurposed and reused.

Who is your target audience?

We are a business-to-business organization and manufacturer with a distribution partner who is one of the largest supply chain distributors. KraftPal is now working in industries such as pharmaceutical, medical instruments, parts distribution, food and beverage, and logistics companies.

How are you differentiating in the market?

What we offer companies is that our product is lightweight – the pallet weighs less than 15 pounds. That is a huge difference compared to a wood pallet that weighs 60 to 70 pounds. That weight difference provides tremendous savings on freight costs. It’s also a much safer product to use as there are no nails or splinters, so it limits medical related issues for production and warehouse employees. In addition, the weight aspect of the pallet is a huge advantage to employees who are lifting and stacking them. 

I often invite people to touch and lift our palette, especially when we’re at trade shows. They’ll say, it’s unbelievable that it could be so lightweight, and yet it’s strong. However, it will support over 5,000 pounds. Our product can support tremendous levels of weight, but we have a very targeted focus because we have customers who want a clean, sterile, heat-treated pallet for their products.

What made Ontario the right location for KraftPal?

Ontario is one of those sites where you say, how can you miss? California is the beachhead where we wanted to establish the company in the United States, and our major investor is also here. The amount of distribution services and access to rail, air and road is tremendous. We are literally a mile from Ontario Airport with access to air freight customer opportunities and all the major shipping depots that are here, including UPS, FedEx, Amazon Prime, DHL. It’s tremendous.

How would you describe the workforce potential of the region?

KraftPal is looking for highly skilled staff members who can manage automation production. We employ a very advanced robotic system to produce these pallets. Since we are in startup mode, we’re lean for the moment, but we’re going to scale up according to customer demand.

What are your greatest business challenges as you grow?

KraftPal is leading a transition. There is a strongly established market for wood pallets. It’s been out there for a while and “why would we change” is the mentality. Our biggest challenge is helping customers understand KraftPal’s value proposition and how they can improve the environment by utilizing pallets that are sustainable, that are not reducing the forest, because we need the forest to reduce carbon emissions. We go through a much more extensive qualification process because our product is cardboard. It’s lighter weight so everybody needs to be comfortable and familiar with how it will handle and work within their existing processes which may include conveyor and racking systems – all these places that pallets typically are used. We know it will take education and training to help companies better understand the immense benefits.

How is IEGO working to help solve those – and are there other partners you are working with to grow/expand?

IEGO is helping create buzz for KraftPal to attract businesses that align with our sustainable palette option. We also believe KraftPal can help community colleges better understand their manufacturing and technology demands. It’s a great way to ensure community colleges have a business voice when they’re developing their curriculum.

What is the most important thing we need to know?

Bottom line, wood pallets that are a commodity. There have been no changes for 50 or more years in the pallet business. It’s a market that represents 6 billion pallets sold globally. Think about how many trees and forests that volume represents. We can’t replace trees fast enough for the wood pallets now being produced.

We must educate younger generations on the importance of saving the planet and environment and help students and universities realize what sustainability is all about as well as how companies can succeed in helping the global ecosystem and be more environmentally friendly. KraftPal wants to keep jobs and opportunities here. More than that we want to be a solution for the future.

For more information about KraftPal, visit their website: https://www.kraftpal.com/.