Founded in Michigan, 3R Pallets is working to transform what can be an environmentally costly component of global logistics: the shipping pallet. The company creates reusable composite pallets made with recycled plastics and reclaimed plant fibers, designed to reduce waste and extend product lifespan, offering a scalable alternative to traditional wood and plastic models.

SBN Detroit interviewed co-founder Kylee Guenther about innovation in the pallet industry, the environmental consequences, and the outlook for Southeast Michigan and beyond.

Q: What was the impetus behind founding 3R Pallets?

A: I’m the second-generation in my family to work in Michigan’s plastics industry—I literally grew up on the shop floor, learning from the bottom up. My dad worked on everything from one-gallon milk bottles to those little lemon-shaped juice containers. I was always fascinated by the engineering, but I was also concerned by the amount of waste I saw.

As an adult, I became more focused on sustainability and how I could be part of the solution, so I decided to do something about it.

That’s how 3R Pallets was born. Our goal is to disrupt the archaic wooden shipping pallet industry with the world’s most sustainable pallets. Not only are our pallets sustainable, but we help save our customers money. Traditional pallets damage and destroy product, cause production downtimes and need constant repair and endless reordering. With our drop in solution, we’re disrupting this space.

We just graduated from TechStars and are the first company from Lansing to ever be accepted. It’s one of the most competitive and respected accelerators in the country. We’re also currently raising a $1.2 million pre-seed round to help onboard new customers, build inventory, and grow our team.

Q: What do most people misunderstand about the scale and impact of pallet production?

A: People just don’t think about them. Pallets are invisible to most consumers. They’re not something you interact with every day, so it’s hard to grasp the scale unless you’ve worked in logistics or manufacturing.

Compare that to straws, bags, or plastic bottles—people have firsthand experience with those, so there’s a clear sense of impact. But over 90% of the goods we use were shipped on a pallet at some point. It’s a massive part of the supply chain that’s often overlooked.

Q: With pallet use expected to increase in the next decade due to e-commerce growth, what are the biggest sustainability challenges facing the industry today?

A: The first big challenge is access to materials. We’re already seeing lumber shortages in many places, and if demand doubles, costs will rise, and pressure on forests will increase. We can’t pretend there’s an endless supply of trees to meet that need.

Plastic pallets are often seen as an alternative, but not all plastics can be used in pallet manufacturing. And recycling plastic isn’t a forever solution—it degrades over time.

Our approach uses recycled plastic and reclaimed bamboo fibers which actually strengthens the material and increases how many times it can be reused or recycled.

Q: Most wooden pallets are only used a few times before being discarded. Why has reuse or recycling been such a persistent challenge?

A: The main issue is durability. Wooden pallets simply aren’t built to last. They break down after a few uses, especially when hit by forklifts or exposed to the elements. And if they’ve been fumigated, they often can’t be recycled at all.

Our composite pallets can be used 50 to 60 times. They won’t degrade like wooden pallets and can be repaired or recycled when necessary. That’s a huge improvement in terms of both cost and environmental impact.

Q: What is the typical lifecycle of a pallet from production to landfill, and where are the biggest environmental pain points?

A: For wood, a tree is grown, cut down, milled, and nailed into a pallet. It’s sent to a distributor, then to a customer, used a few times, and if it’s damaged or treated, it goes to a landfill. Best case scenario is they enter a secondary market after being repaired and get a couple more uses.

Plastic pallets are usually injection molded, often using virgin plastic. They might last for 30 to 40 cycles, then either get recycled or landfilled depending on their condition.

Our pallets are different. They’re made with non-edible plant fibers with recycled plastic and molded into a durable product. They can go through 50 to 60 uses, and in many cases can be repaired or recycled again. That means fewer pallets are needed overall—and far fewer are discarded.

Q: How does Michigan contribute to or feel the impacts of pallet consumption?

A: We use a lot of pallets here—there’s no doubt about that. But Michigan also gives us a big opportunity because the automotive industry is one of the most forward-thinking when it comes to closed loopy supply chains.

We’re already seeing traction in that space. Our value proposition is simple: help customers ship more goods with fewer pallets. That’s good for business and good for the planet.

Q: How does the end-of-life of a pallet impact the total carbon footprint of a shipping operation?

A: It’s huge. Most traditional wood or plastic pallets end up in landfills and producing new ones requires more energy and raw materials. That adds up.

If you extend the life of a pallet and reduce the number of replacements needed, you lower emissions, reduce waste, and conserve resources. Our composite pallets are designed to be durable and recyclable, which makes the whole system more sustainable from start to finish.

Q: What has innovation been like in the pallet industry?

A: There truly hasn’t been a lot of innovation. Most of it is on the software side but the heart of shipping is still the pallet.

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