South Bay, Alviso to GilroyRequests: info@sanjosepalletbuyers.com

Santa Clara County

Santa Clara County is the whole of the South Bay's pallet market, with San Jose as county seat and largest city. About 6,500 high-technology companies are headquartered here, and almost all of them receive and ship on pallets.

The county in numbers

6,500high-technology companies headquartered
$340Magricultural production, 2021

Nursery plants, at over $109 million, and mushrooms, at $79.48 million, led the 2021 farm figure. That farm side sits in the south, around Morgan Hill and Gilroy, and its pallets are clean and dry. The technology side sits in the north, and its pallets are equipment skids, crates and the standard 48x40.

ZIP codes

The county's ZIPs run 95002 (Alviso), 95008, 95013, 95020 (Gilroy), 95035 (Milpitas), 95037 (Morgan Hill), 95046, 95050, 95051 and 95054 (Santa Clara), 94085 to 94090 (Sunnyvale), and the 951xx series for San Jose. A request that names a ZIP can be placed more exactly than one that names only a city.

The cities

San Jose takes in its districts and Coyote Valley. North to south, the other cities run: Santa Clara, Sunnyvale and Milpitas for the equipment and electronics docks, then Morgan Hill and Gilroy at the south end.

Santa Clara

Santa Clara is where chip-tool makers and server farms sit side by side. Its 2024 financial report lists these employers:

EmployerEmployees, 2024Kind of freight
Applied Materials8,500Semiconductor equipment
Intel7,801Chips and fab supplies
AMD3,000Chips
Kaiser Foundation Health Plan2,600Medical supplies
Nvidia2,500Computing hardware
Dell2,088Computing hardware

More than 50 data centers in the city use about 60 percent of its municipal utilities' energy, and each build or expansion leaves a mixed pile: standard 48x40s under the racks, odd skids under the cooling plant and crates around the switchgear. US-101 passes through next to San Jose International Airport, and Caltrain, ACE, the Capitol Corridor and VTA light rail serve the city.

Sunnyvale

Most of Sunnyvale north of SR-237 is zoned for industrial use, and its docks serve aerospace, medical devices, diagnostics and e-commerce. The city's 2025 employer list includes Intuitive Surgical at 3,836, Lockheed Martin Space at 3,362 and Cepheid at 3,042.

TradeTypical packagingNotes
Aerospace and defenseCustom crates and skidsHeavy, often export-marked wood
Medical devices and diagnosticsClean Grade A or new palletsCleanliness matters at receiving
E-commerce and logisticsMixed 48x40 in volumeHigh turnover, broken stock

Five highways serve the city: I-280, US-101, SR-82, SR-85 and SR-237. Caltrain stops downtown and at Lawrence, and Moffett Federal Airfield sits on the north side, so a Moffett Park building and a downtown storefront face very different truck access.

Milpitas

Milpitas is a city of contract manufacturers, network-equipment makers and wafer-tool suppliers. In 2020 its largest employers were Cisco with 3,347 workers, Flex with 2,732, KLA with 2,223 and Sandisk with 1,913, and computer and electronic products employed about 34.1 percent of working men and 26.9 percent of working women.

That mix sets the pallet flow. Contract manufacturers receive components by the trailer, so inbound pallets pile up faster than they ship out; a wafer-tool maker's docks fill with crates and skids, a distributor's with mixed 48x40s. I-880 runs through the industrial west side and I-680 along the east, SR-237 begins in the city, and Fremont's Warm Springs and Bayside industrial areas lie just across the county line.

Morgan Hill

Manufacturing is Morgan Hill's largest industry, and its docks ship test equipment, bicycles, medical devices and food. The city reports an industrial vacancy rate of 11.1 percent and lease rates lower than most Bay Area cities, which draws pallet-heavy tenants but also makes a standing pile cheaper to keep.

EmployerEmployees, 2018Trade
Anritsu480Test equipment
Specialized Bicycle Components380Sports products
Paramit300Contract manufacturing
NxEdge280Semiconductor parts
Lusamerica Foods270Food
Toray Advanced Composites250Composites
Infineon Technologies240Electronic components

Mushrooms, a damp product shipped daily in cartons, once made it the self-styled Mushroom Capital of the World, and their packers want dry, clean pallets. Monterey Road is the main street, Caltrain's station has weekday rush-hour service, and the north edge meets San Jose at Coyote Valley.

Gilroy

Gilroy, the self-styled Garlic Capital of the World, ships garlic, food and farm goods on pallets that must be clean, and moves them in peaks. Its top employers include Christopher Ranch and Olam International, and it has more than 20 wineries and tasting rooms. The Gilroy Dispatch reported in February 2018 that Performance Food Group planned a 195,000-square-foot food distribution facility on 30 acres at 5480 Monterey Road. US-101 and SR-152 meet in the town and Caltrain's line ends there, so a pickup is a long haul from North San Jose.

Questions

How many pallets does the county use?

No count of pallets is available for the county, and any estimate would be a guess.

Is Fremont in Santa Clara County?

No. Fremont is in Alameda County; see South Alameda County.

Keep reading

  • Door by door: the South BayPallet buying, clearing and supply from Alviso to Gilroy: the cities of Santa Clara County and Fremont, and San Jose's industrial districts.
  • South Alameda CountySouth Alameda County's industrial districts along I-880 and I-680, next door to Milpitas, and the pallets they ship on.
  • Pallets by tradeSemiconductor tools, contract manufacturing, data center builds, medical devices, food and farm, 3PLs and stores: what each sheds and needs.
  • GuidesPlain guides to pallet grades, sizes, heat treatment, value, trailer counts and floor space, written for South Bay docks.

Sources, last reviewed 12 November 2026

Send a request