Our Story
From a single truck and a mission to keep wood out of landfills, to one of Southern California's most trusted pallet operations.
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How It All Began
The American pallet industry is enormous. An estimated 2 billion wooden pallets are in circulation across the United States at any given time, forming the invisible backbone of virtually every supply chain. Yet for decades, the default approach was disposable: use a pallet once, maybe twice, then toss it in a dumpster. Our founder saw this waste first-hand while managing warehouse operations in San Diego's industrial corridor, and it didn't sit right.
The math was simple. A standard 48×40 GMA pallet contains roughly 11 board feet of lumber. Multiply that by the millions of pallets discarded prematurely every year, and you're looking at a staggering volume of wood, trees that took decades to grow, reduced to landfill bulk. Meanwhile, businesses were paying premium prices for brand-new pallets when a properly repaired recycled pallet could deliver identical performance at a fraction of the cost and environmental impact.
SD Re Palletwas launched to close that gap. The concept was deceptively simple: collect used pallets from businesses that no longer need them, inspect and repair them to rigorous quality standards, and redistribute them to businesses that do. The pallets that couldn't be economically repaired would be dismantled for parts, with remaining wood diverted to mulch production, animal bedding manufacturers, or biomass energy facilities. Nothing goes to the landfill. Nothing.
The early days were lean. With a borrowed flatbed and a rented quarter-acre yard near the San Diego waterfront, we started by picking up surplus pallets from a handful of local warehouses. We repaired them by hand, stacked them neatly, and sold them to any business willing to give recycled pallets a try. The first customers were skeptical, but once they saw the quality, and the 30–50% savings compared to buying new, they became evangelists. Referrals started pouring in.
By our second year, we had outgrown the original yard. We invested in a dedicated sorting line, hired trained repair technicians, and acquired our first box truck for in-house deliveries. That same year we signed our first large-scale contract: 1,500 pallets per month for a regional food distributor. It was a turning point. We weren't just a scrappy startup anymore; we were a reliable supply-chain partner.
Growth brought new challenges and new opportunities. In 2018, we obtained ISPM-15 heat treatment certification, which meant we could serve exporters who need internationally compliant pallets. In 2020, we hit our proudest milestone: zero wood waste to landfill. Every scrap of every pallet that enters our facility is either reused as a pallet component, sold as reclaimed wood, or converted into a secondary product. Learn more about how we achieved this on our sustainability page.
Today, SD Re Pallet processes millions of pallets and operates a growing fleet that serves businesses across San Diego, Orange County, and the broader Southern California region. We offer new and recycled wood pallets in every standard size, custom pallet fabrication, ISPM-15 heat treatment, pallet management programs for enterprise clients, and complete pickup and removal services so surplus pallets never pile up in your dock.
But the mission hasn't changed since day one. Every pallet we recycle is a small victory against deforestation, landfill overflow, and supply-chain waste. We believe that sustainability and profitability are not at odds; in fact, they reinforce each other. Recycled pallets cost less to produce, cost less for the customer, and cost the planet far less than the alternative. That's a win-win-win, and it's why we come to work every morning.
Key Milestones
The Spark
After years in the logistics industry, our founder witnessed thousands of perfectly usable pallets being sent to landfill every week. Driven by the belief that there had to be a better way, SD Re Pallet was born in a small yard in San Diego with a single flatbed truck and a crew of three.
First Major Contract
We landed our first ongoing supply contract with a regional food distributor, providing 1,500 recycled pallets per month. Word spread fast that our Grade A recycled pallets were indistinguishable from new.
Facility Expansion
Demand outgrew our original yard. We relocated to a larger facility, tripling our processing capacity and adding automated inspection equipment. The new site allowed us to process up to 8,000 pallets per week.
ISPM-15 Certification
We earned our ISPM-15 heat treatment certification, enabling us to serve clients who ship internationally. This milestone opened the door to export-oriented manufacturers across Southern California.
Zero-Waste Milestone
We achieved our long-standing goal: zero wood waste to landfill. Every component of every pallet is now reused, repaired, or converted into mulch, animal bedding, or biomass energy. Not a single board goes to waste.
Fleet & Regional Growth
We expanded our delivery fleet and extended our service area to cover all of San Diego County, Orange County, the Inland Empire, and parts of Los Angeles County. Same-day delivery became standard.
Pallet Management Programs Launch
We introduced comprehensive pallet management programs for enterprise clients, offering on-site sorting, scheduled pickups, inventory tracking, and custom reporting to help businesses optimize their pallet spend.
The Founder's Journey
Before SD Re Palletexisted, our founder spent over a decade working inside the logistics industry, managing warehouse operations for three different distribution companies in San Diego's Otay Mesa and Miramar industrial corridors. Every week, he watched forklifts stack hundreds of perfectly serviceable pallets into dumpsters because it was cheaper (or so the math seemed) to buy new than to repair used.
The numbers never added up. A standard 48×40 GMA pallet costs $11–$18 new. A recycled pallet of identical structural quality costs $5–$9. Multiply that $6–$12 savings by the 3,000–5,000 pallets a mid-size warehouse cycles through every month, and you are looking at $18,000–$60,000 in annual waste, money literally thrown in a dumpster while trees are felled to replace it.
What started as a spreadsheet analysis became an obsession. He visited recycling operations up and down the West Coast, studied European pallet pooling systems (where return rates exceed 95%), spoke with lumber scientists at Oregon State University, and mapped out the entire San Diego pallet ecosystem: who generates surplus, who needs supply, and where the inefficiencies hide. The conclusion was clear: San Diego needed a modern, quality-focused pallet recycler.
In the spring of 2014, he took the leap. With personal savings, a borrowed flatbed truck, and a handshake lease on a quarter-acre yard near the waterfront, SD Re Pallet opened for business with a crew of three, including the founder himself on the repair line every morning before dawn.
Early Challenges
The first year tested every assumption. The biggest obstacle was perception: many warehouse managers equated “recycled” with “low quality.” Overcoming that stigma required boots-on-the-ground demonstrations. Our founder would show up at a prospect's dock with a stack of Grade A recycled pallets next to a stack of brand-new ones and challenge the dock supervisor to tell them apart. Most couldn't.
Cash flow was razor-thin. Revenue from selling recycled pallets had to cover truck fuel, yard rent, lumber for repairs, wages for two employees, and insurance, all before any profit materialized. For the first eight months, the founder drew no salary, reinvesting every dollar into equipment and inventory.
Supply was inconsistent. Some weeks the yard overflowed with pallets; others it was nearly empty. Building a reliable inbound pipeline meant cold-calling dozens of warehouses, visiting distribution centers, and offering free trial pickups. Gradually, recurring collection agreements replaced the feast-or-famine cycle.
Weather presented its own problems. San Diego is famously mild, but winter rains turn an unpaved yard into mud. The first rainy season destroyed stacked inventory and brought operations to a standstill for three days. That experience led to an immediate investment in gravel surfacing and covered storage, lessons written in lost revenue.
Key Turning Points
The Food Distributor Contract (2015):Our first large-scale client needed 1,500 pallets every month, delivered on a predictable schedule. Meeting this commitment forced us to professionalize: we built standardized grading criteria, implemented a tracking system, and hired two additional repair technicians. When the distributor reported zero pallet failures after six months, they doubled the order. Word traveled fast through San Diego's logistics community.
The Facility Move (2017): By late 2016, our original yard was processing pallets faster than it could stack them. The move to a facility three times larger in the Otay Mesa industrial area was our biggest financial risk to date, but it unlocked processing capacity of 8,000 pallets per week and room for a dedicated repair line, sorting area, and covered storage for finished inventory.
ISPM-15 Certification (2018): Installing our own heat-treatment kiln and earning ISPM-15 certification transformed our addressable market overnight. Suddenly, every manufacturer shipping internationally from San Diego was a potential customer. Within a year, export-oriented clients accounted for 25% of our revenue.
Zero-Waste Achievement (2020):Reaching zero wood waste to landfill required rethinking waste as a product. We invested in a horizontal grinder, negotiated offtake agreements with mulch producers and biomass facilities, and trained our dismantling crew to maximize board recovery. The day we processed our last load without sending a single piece to landfill was the proudest moment in our company's history. Full details on our sustainability page.
Employee Growth Timeline
Our people are the backbone of everything we do. Here is how our team has grown alongside the business.
| Year | Headcount | Key Additions |
|---|---|---|
| 2014 | 3 | Founder + 2 repair technicians |
| 2015 | 7 | First delivery driver, additional repair crew |
| 2017 | 15 | Dedicated QC inspector, sorting team, office admin |
| 2018 | 20 | Kiln operator, second delivery driver, sales rep |
| 2019 | 25 | Enterprise account manager, safety coordinator |
| 2021 | 32 | Pallet management program staff, third driver |
| 2022 | 38 | Expanded fleet drivers, second shift repair crew |
| 2024 | 45+ | Custom fabrication team, automation technician |
Customer Milestones
Our growth has always been driven by customer referrals. When we do the job right, our clients tell their peers. Here are some of the milestones that mark our customer journey:
- 50
50th Customer (2016): A craft brewery in North Park. Still a customer today, ordering 200 pallets per month for keg and case distribution.
- 200
200th Customer (2018): An aerospace components manufacturer requiring ISPM-15 pallets for international shipping. Our certification made the difference.
- 500
500th Customer (2020): A national retail chain with five Southern California distribution centers. They consolidated all pallet purchasing through SD Re Pallet after a six-month trial.
- 1K
1,000th Customer (2023): A pharmaceutical logistics provider in Carlsbad who chose us for our lot-level traceability and documentation capabilities.
Today, we serve businesses across every major industry, from single-location shops to multi-site enterprise operations. Our customer retention rate exceeds 92%, a testament to the quality, reliability, and value we deliver every day.
Looking Ahead: Our Vision for 2025–2030
We are not done growing. Over the next five years, SD Re Pallet plans to expand on multiple fronts while staying true to our founding mission of zero-waste, high-quality pallet recycling.
Geographic Expansion: We plan to open a second processing facility in the Inland Empire by 2027, reducing delivery times to Riverside and San Bernardino County customers while adding 12,000 pallets per week of processing capacity.
Technology Investment: We are piloting automated pallet grading systems that use computer vision to assess board condition in under two seconds per pallet. This technology will increase throughput without sacrificing our 100% inspection standard.
Sustainability Goals: By 2028, we aim to convert our entire delivery fleet to compressed natural gas (CNG) or electric vehicles, reducing fleet emissions by an estimated 70%. We are also targeting carbon-neutral operations by 2030, accounting for all scope 1 and scope 2 emissions. See our full environmental roadmap on the sustainability page.
Product Innovation: We are developing a line of hybrid wood-recycled-plastic pallets that combine the strength and repairability of wood with the moisture resistance and longevity of recycled HDPE. Early prototypes show 40% longer service life than standard wood pallets in wet environments.
Community Impact: We will double our mulch donations to community gardens to 1,000 cubic yards per year and launch a paid apprenticeship program for 20 young adults annually in partnership with the San Diego Workforce Partnership.
Be Part of Our Next Chapter
Whether you need pallets or want to sell yours, we'd love to work with you.