An apparatus is disclosed for manufacturing corrugated pallets from a base panel of corrugated material, a top panel of corrugated material and a plurality of spacers blocks. Each of the spacer blocks is bonded to the base sheet and top sheet. The apparatus comprises a loading station for receiving the base panel and top panel, and a glue applicator for extruding a plurality of continuous sheets of glue to predetermined areas of the base panel and top panel. An assembly station includes a locating system for receiving and locating the base panels, spacer blocks and top panel in relation to the base panel when the top panel is placed upon a plurality of spacer blocks to form the corrugated pallet. A transfer compression station for applying a continuous initial pressure to the corrugated pallet at the base and top panels of the corrugated pallet while simultaneously transferring the corrugated pallet in a horizontal direction. A final compression station for applying a final glue setting pressure to the corrugated pallet. A conveyor for transferring the base and top panels from the loading station through the glue applicator. The conveyor also transfers the base and top panels from the glue applicator to the assembly station. The compression conveyor transfers the corrugated pallet from the assembly station to the final compression station.