Southwood Pallet is a third-generation pallet manufacturing business. The Hochstetler family started in the lumber business in 1950 as a sawmill. The family later started a retail lumberyard called Northwood Lumber in 1970. In 1984, Northwood Lumber was sold, and Southwood Lumber & Pallet, Inc. began on the property directly South of the Northwood Lumber property.

Starting with just one nailer and five employees in 1984, Southwood has grown to be one of the leading pallet manufacturers in the Eastern US.