§1The market
Tennessee had 132 private establishments in NAICS 321920, wood container and pallet manufacturing, in the 2025 annual average, 4.2% of the U.S. total of 3,143. That ranks 6th of the 50 states with QCEW data for the industry.
That is up 3.1% from 128 in 2020, against +5.8% nationally.
Employment averaged 2,449 in 2025 (+1.9% since 2020), at an average annual pay of $50,325, 7.3% below the industry's national average.
For raw material, Tennessee had 112 sawmill establishments (NAICS 321113) in 2025, employing 1,898 in 2025. Pallet plants outnumber sawmills in the state.
Pallet plants were recorded in 57 counties in 2025.
Freight context: retail diesel in the Midwest (PADD 2) region averaged $6.344 a gallon in October 2026, +74.3% on a year earlier (EIA).
§2Tennessee by year
| Year | Plants | Employment | Average pay |
|---|---|---|---|
| 2020 | 128 | 2,403 | $37,858 |
| 2021 | 132 | 2,468 | $42,004 |
| 2022 | 140 | 2,579 | $47,695 |
| 2023 | 140 | 2,645 | $48,324 |
| 2024 | 142 | 2,623 | $48,658 |
| 2025 | 132 | 2,449 | $50,325 |
Sawmills (NAICS 321113) in Tennessee: 2020 146, 2021 140, 2022 137, 2023 135, 2024 129, 2025 112.
§3What it means for buyers
With 132 plants, Tennessee supports a competitive RFQ inside the state: invite suppliers close to each delivery point, since freight is a large share of delivered price.
Supply clusters in Nashville, TN, Memphis, TN, Knoxville, TN; see the metro pages below.
States with a similar number of plants: Indiana (130), Illinois (169), Florida (109), Pennsylvania (189).
Ask each bidder which plant will ship to you, and price delivery as its own line in the bid-leveling sheet.
§4Metro areas
| Metro area | Plants | Employment |
|---|---|---|
| Nashville-Davidson--Murfreesboro--Franklin, TN | 24 | 339 |
| Memphis, TN-MS-AR | 20 | 584 |
| Knoxville, TN | 16 | 146 |
| Jackson, TN | 9 | 37 |
| Chattanooga, TN-GA | 6 | 89 |
| Johnson City, TN | 5 | 117 |
§5Neighbouring states
| State | Plants | Average pay (latest disclosed) |
|---|---|---|
| Missouri | 108 | $62,948 |
| North Carolina | 99 | $49,542 |
| Georgia | 96 | $65,149 |
| Kentucky | 85 | $56,370 |
| Alabama | 82 | $51,811 |
| Virginia | 60 | $53,621 |
| Arkansas | 48 | $39,847 |
| Mississippi | 42 | $61,015 |