Pallet Kiln Economics Home Kiln theory Heat treating (pallets)

Profitability will always be the main reason for investing in a pallet kiln. This can either be a positive reason, such as increased price of the pallets; or a negative reason, such as not loosing a valuable customer. Regardless of your specific reasons, we have compiled some numbers below to show you the cost of operating a kiln.

The following expenses are included in these numbers:

• Inspection cost in order to be certified.
• Energy cost for heat treating the pallets.
• Labor and forklift costs for loading/unloading.
• Labor for stamping and paper work.
• Leasing cost based on 60 months with 10% buy-out.

These costs are naturally then divided by the number of pallets in the table below to give you an estimated cost per pallet.

Model / Pallets per week:	300	600	1200	2400	7200	10800	14400
Piggy-Back Cont. Kiln (400 per load)	0.88	0.57	0.41	0.34	---	---	---
PHT-271111 (300 per load)	1.11	0.68	0.46	0.36	---	---	---
PHT-471111 (600 per load)	1.22	0.73	0.48	0.35	0.27	---	---
PHT-471212 (600 per load)	---	0.77	0.49	0.35	0.25	0.24	---
PHT-471412 (800 per load)	---	---	0.51	0.36	0.26	0.24	0.23
IMPORTANT NOTE: Since the Piggy-back unit utilizes an insulated container or van-body, which are designed for cold storage and not high temperatures. This means that you cannot expect it to last as long.
SIDE-LOADED pallet kilns are not included in the table above, but please call us for details. We do consider the models above the most economical and the side-loaded are better designed kiln but they do cost significantly more.

In the long run, based on our experience, you will probably be best off with the PHT-471212 if you expect to heat treat more than 2-3 loads per week. Rarely do we believe the PHT-471412 makes sense due to the much higher freight costs and the fact that it will not have 1.3 loads to heat treat everytime. If you know you will heat treat less than 2-3 truck loads per week and do not plan to heat treat for others, then the PHT-271111 will probably be your best choice.

Example of cost Savings:
These potential profit calculations are estimates. Please remember that they include leasing costs for the unit, inspection costs, labor costs to operate the unit, and energy costs. So when the first line says $1.25 per pallet, you can see this as the value added to the pallet for heat treating or you can consider it how much you currently pay to have it done (including transport costs to and from the kiln).

Annual profit from operating pallet kiln.

Weekly HT production	Price for HT	Kiln model	Extra profit annually
600 pallets	$1.25/pallet	PHT-271111 Junior short	$19,656.0
1200 pallets	$1.25/pallet	PHT-271111 Junior short	$52,416.00
1200 pallets	$1.25/pallet	PHT-471212 High eff standard	$49,296.00
1200 pallets	$0.90/pallet	PHT-471212 High eff standard	$27,456.00
2400 pallets	$1.00/pallet	PHT-471212 High eff standard	$86,112.00
2400 pallets	$0.75/pallet	PHT-471212 High eff standard	$54,912.00
7200 pallets	$0.75/pallet	PHT-471212 High eff standard	$198,432.00

We are not sure where your company fits into these numbers, but you can also use the formula to help you see how much you stand to save or profit from a kiln.

Value added (Current cost) - Expense (Table Above) = Saving/Profit per Pallet * # of Pallets * 52 Weeks = Profit/Savings.

We hope this has been beneficial and we are looking forward to the opportinity of working with you and your company.