How pallet recycling works, step by step
A recycler sorts collected pallets by size and condition, resells the good ones, repairs the repairable, dismantles the rest for boards, and grinds what's left. The split between those routes is what decides whether your pallets were reused or only chipped, so ask for it.
The line
- Collection from sites, often with a trailer left on site.
- Sorting by footprint and design; pooled pallets set aside for their owners.
- Grading of sound pallets for resale.
- Repair of pallets with a few broken boards.
- Dismantling of the rest, with boards sorted for remanufacture.
- Grinding of broken wood, with magnets removing nails.
- Sale: pallets to shippers, chips to mulch, bedding or fuel buyers.
Why the split matters
Reuse and repair keep whole pallets working and earn WARM's reuse credit. Grinding counts as diversion but earns no WARM credit for dimensional lumber. See remanufacture and mulch.
Rules recyclers follow
Several states regulate recyclers buying marked pallets or plastic pallets, with ID checks, records and payment rules; see the marked pallet law comparison.
Sources
- Documentation for Greenhouse Gas Emission and Energy Factors Used in WARM, Version 16: Construction Materials Chapters, ch. 12 Wood Products (EPA-530-R-23-020) U.S. EPA. Accessed October 27, 2026. Exhibits 12-3 (p. 12-3), 12-9, 12-13, 12-15 and 12-16 (p. 12-10).