How do I judge a pallet maker’s yard space and lumber stockpile?
Walk the yard and look at how much room there is to store lumber, build pallets and move trucks. Check the condition of the stockpile for rot or warping, compare it to inventory records, and find out whether the land is owned or rented and for how long.
Start with space. Where does lumber arrive, where is it stored, where are pallets built and where do finished ones wait for pickup? A yard that is already crowded leaves no room for growth. Watch how trucks and forklifts move and whether they can turn without blocking the work.
Then look at the stock. Wood that sits outside can warp, rot or grow mould, depending on how it is stacked and covered. Look at the oldest piles and ask how long they have been there. Ask how the seller decides what to reorder and how stock is counted. Compare the visible lumber with the inventory figure, and be wary of piles that cannot be identified.
Finally, ask about the land. Is the yard owned or leased, and what does the agreement say about use, storage and fire safety? Ask whether the insurer has set any conditions on how wood is stored. Your lawyer can read the lease and your insurance advisor can explain the coverage. A walk with a local contractor may also tell you how well the surface and drainage cope. Take measurements, since a rough guess of space often proves wrong.
Key takeaways
- Map the flow from delivery to storage to build to dispatch.
- Inspect the oldest piles for rot, warping and mould.
- Confirm the land arrangement and any insurance conditions on stored wood.
- Look at how stock is covered and drained, because wet piles can rot or warp and lose value.
Related reading
12 pages on the same subject, grouped by topic.
Due diligence
- Expert answerHow do I check a pallet maker’s lumber and cutoff supply sources?
- Expert answerHow do I check a lumber yard’s point-of-sale and inventory system reports?
- Expert answerHow do I review a lumber yard’s price swings and how staff manage stock risk?
- Expert answerWhat should I ask about a lumber yard’s inventory counting and shrinkage?
Buying
- Expert answerHow do I judge a pallet maker’s nailing machines and saws?
- Expert answerHow do I judge a lumber yard’s forklifts, boom trucks and racking?
- Expert answerHow do I check how a landscape yard tracks stockpile volumes through the season?
- Expert answerHow do I assess a lumber yard’s seasonal swings from spring to winter?
- Expert answerHow do I check a lumber yard’s specialty and treated wood inventory?
- Expert answerShould I buy a lumber yard or start one?
- Expert answerWhat should I check about a trucking company’s yard, shop and parking space?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat is inventory
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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