Pallet-Management-Services - AFM

Pallet-Management-Services
IFCO SYSTEMS is North America’s leading Pallet-Management-
Services company, specializing in the procurement,
reconditioning and distribution of wood pallets to and from the
manufacturing and retail sectors. IFCO SYSTEMS offers the only
true, nationwide single source solution to national pallet needs.
Pallets are used in virtually all industries that transport products.
We estimate that approximately 2.1 billion wooden pallets are
in circulation in the United States every year. In 2006, the US
pallet market volume was approximately US $7.7 billion, which
should continue to develop with overall industrial development in
the future.
DOMINANT NUMBER ONE IN THE UNITED STATES
The US pallet market consists of the sales of new pallets,
the leasing of pallets or “pooling”, and the reconditioning and
distribution of used pallets or “recycling”. IFCO SYSTEMS
focuses on pallet reconditioning and the surrounding supply
chain logistics services – including pallet procurement, repair,
shipping, tracking, sorting and retrieval solutions – to provide
total, 360-degree Pallet-Management-Services. With the market
share of new pallets in decline, the Pallet-Management-Services
business is advancing significantly. Today, more than 40% of all
US pallet sales are of reconditioned pallets – creating a market
of approximately US $3.0 billion.
The US pallet service market is heavily fragmented with over
3,000 predominantly local providers. IFCO SYSTEMS is the
largest nationwide provider of Pallet-Management-Services in
the United States, supported by 137 total locations, of which 56
are our primary pallet refurbishment centers and 81 are other
operating and satellite locations, many of which are located at
or near retail distribution centers. We also have 127 partner
companies that help complete our geographical coverage. Our
North American headquarters in Houston, Texas operates as
the principal back office for this business segment. As the
singular national presence, IFCO SYSTEMS is the market leader
| PALLET-MANAGEMENT-SERVICES |
for recycled pallets by a wide margin with in excess of 12%
national market share. By comparison, IFCO SYSTEMS believes
the second largest provider accounts for less than 1% of the
national market.
Our growth opportunities in the US pallet market are equally as
compelling as in the RPC sector. We are uniquely positioned
as the largest nation-wide network competing in a highly
fragmented market. This gives IFCO SYSTEMS decisive
competitive advantages and enables us to provide single source
Pallet-Management solutions to large manufacturers and
retailers across a diverse range of industries and geography.
Retailers such as Kmart and Target, food producers such as
PepsiCo, Purina Mills, Del Monte, Tyson Foods and Pilgrims
Pride, conglomerates such as Cargill, logistics group Exel
Logistics, manufacturers such as General Electric, Black &
Decker, Georgia Pacific and Weyerhauser and technology leader
Dell are all utilizing one or several of our Pallet-Management-
Services offerings, thereby optimizing their logistics processes
and achieving supply chain efficiencies and cost savings.
IFCO SYSTEMS Pallet-Management-Services business segment
generated US $362.1 million revenues in 2006. We believe that
our unique position and value added service offerings in the
Pallet-Management-Services market will allow us to profitably
expand our leading market position in future.
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