Paul Lewis, Founder of The Pallet LOOP

 

When you grow up in a family business, it becomes a part of your identity. For years, my family’s pallet manufacturing company (HLC) produced high-quality pallets used by different industries across the country. It was a well-oiled machine, and we took great pride in knowing we were a vital part of supply chains nationwide. Over 15 years, we increased company revenues, ending up with three pallet production facilities. In 2019, as a family, we decided to sell the business to the Scott Group, and I took some time out to think about my next step. However, it quickly became clear that I couldn’t escape pallets. After many years in the industry, they were part of my DNA. Add to that the fact that pallets are literally everywhere, and I kept returning to the idea of a new kind of pallet venture.

For years it had bugged me that pallets are, mostly – and certainly in the construction sector – used just once then skipped or scrapped. With time on my hands, I decided to channel my passion for pallets and my knowledge about the business into creating a new distribution model that would leave a lasting, positive impact on future generations: A circular economy pallet reuse scheme designed to reduce waste, cut emissions, and transform the pallet lifecycle for good.

Making The Pallet LOOP a reality

 

In 2019, I set about making my idea a reality. Working with a small team, I began shaping my thoughts for a pallet collection service targeted at UK construction – one of the biggest consumers of pallets. With the industry manufacturing 20 million new pallets every year to move building materials – and just 10% getting reused – it seemed like the natural place to start; and I was confident we’d be pushing on an open door. The time felt right with sustainability rising up the corporate agenda. The reality was slightly different.

While everyone agreed – in principle – that the existing approach to pallets was unsustainable, there was a nervousness around making a seismic change that would impact every part of the building materials supply chain. What followed was several years of close collaboration with key decision makers throughout the industry – listening to their concerns and revising our model to meet the needs of a sector emerging from a pandemic and facing a lack of resources and inflationary pressures.

Initially, The Pallet LOOP team had envisaged our offer would be a deposit-based scheme. However, over time, it became apparent that a system that would penalise non-returns, by imposing an upfront cost on users, would not fly. Going back to the drawing board, we devised a financial incentive scheme that would reward participants for responsible behaviour – encouraging returns through positive reinforcement. The notion of the LOOP PayBack was born, and the rest – as they say – is history. With a consensus from key industry players on the specifics of its scheme, we secured our first customer.

In April 2024, the management team at Saint-Gobain showed real sustainable leadership – announcing that British Gypsum would become The Pallet LOOP’s first customer. Over the following 12-weeks, we worked closely with a dedicated project team. Our focus was threefold. To spread the word that green reusable pallets were going to enter the market; to educate pallet recipients about what to do with green pallets; and to encourage them to sign up for LOOP collections. At the end of May, the first LOOP pallets rolled out of British Gypsum, loaded with bagged plaster. Plasterboard pallets followed in July 2024. Then in January of this year, Isover also started using LOOP.

Waste reduction and a greener future

 

Eight months on, I’m filled with immense pride at what we have achieved together with our first customer, and their customer base. By the end of January 2025, we had:
• Issued more than 650,000 green LOOP pallets
• Set up more than 7000 locations on our system to return pallets
• Recovered more than 400,000 pallets (green and white)
• Saved the sector an estimated 378 tonnes of CO2e
• Saved the sector more than £2 million by diverting pallets from skips
• Paid back merchants, principal contractors and housebuilding companies almost £250,000.

These numbers are impressive and will grow further this year as more companies make the move to green pallets, and we collect more pallets back from the sector. But for me, this was never just a numbers game.

I’m proud of the fact that The Pallet LOOP is also contributing to a new culture in the construction industry – where sustainability sits at the forefront, alongside safety. For the team at The Pallet LOOP, the idea of reducing waste and embracing circularity wasn’t just a business strategy; it was a mission that gave us and our partners a sense of purpose. Everyone was excited to be part of a solution that could help reduce waste and make a tangible impact on the environment.

Leaving a lasting legacy

 

At the heart of my decision to start The Pallet LOOP was the desire to leave a positive legacy for future generations. By embracing circular economy principles, we’ve created a business model that reduces waste, conserves resources, and helps build a more sustainable future. This is more than just a business – it’s part of a movement. A movement that rethinks how we use and reuse materials.

When I look back on the last five years, I feel proud. I’m proud that we’re helping companies move toward a more sustainable future. But most of all, I’m proud that we’re showing others in the industry that it’s possible to change, innovate, and create a business that benefits not only the bottom line but the planet.

If there’s one thing I’ve learned along the way, it’s that the future belongs to those who are willing to take bold steps, challenge the status quo, and make decisions with the long-term health of the planet in mind. It takes resilience, but it can be done. The transition to a circular economy isn’t just a passing trend – it’s the future of industry. And at The Pallet LOOP, we’re incredibly excited to be part of that journey.

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