Greystone Logistics recycles approximately 88 million pounds of post-consumer HDPE into plastic pallets each year. | Freedomz / Shutterstock

A major manufacturer of recycled polyethylene pallets experienced a decline in sales and revenue figures last year, but given the numerous market challenges they have recently faced, the company’s leadership is satisfied with these figures.

Greystone Logistics operates in Bettendorf, Iowa, recycling approximately 88 million pounds of post-consumer HDPE into plastic pallets each year. The internal production capacity of this listed company is nearly 2.2 million pallets per year.

In the most recently released annual report, Greystone reported that sales for the 2021 fiscal year were $64.9 million, a decrease of 15% from the previous year. The company's net income was 3.6 million U.S. dollars, a decrease of 27% from the previous fiscal year (the company's fiscal year was June 1 to May 31).

Chief Executive Warren Krueger said in a press release: "Despite the adverse effects of COVID-19, labor shortages and rising plastic prices, I am at a loss for this year's strength." "Operation of new equipment. Problems occurred this year, but our maintenance staff immediately resolved these problems to minimize supplier downtime and recurrence."

In its annual financial report, Greystone attributed the decrease in sales mainly to the decline in the price of certain pallets. Greystone lowered the price of these pallets because the customer provided some of its own plastic to make the pallets. In addition, part of the decline in sales revenue was due to the decrease in overall pallet sales in the 2021 fiscal year.

The report pointed out that in general, COVID-19 has not reduced the demand for pallets, which are used by important entities in logistics. But like almost all companies, the labor market has always been a challenge.

The annual report states: "In the second half of fiscal year 2021, finding and hiring new employees has become a challenge for Greystone, resulting in the inability to maintain a full machine production time."

Like other manufacturers, Greystone now pays more for recycling plastic bags. According to RecyclingMarkets.net data, in August 2021, the average price of natural HDPE and color HDPE packages in the United States was 1.08 US dollars and 58 cents per pound, respectively. These national average prices are higher than 44 cents (natural) and 3.8 cents (color) a year ago.

In Greystone's 2021 fiscal year, the average price of natural HDPE in the United States is approximately 62 cents per pound, and the national average price of colored HDPE is approximately 16 cents per pound. These prices are higher than the approximately 39 cents and 10 cents in the previous fiscal year.

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