ST. LOUIS, MO. — In spite
of its perception of maturity, the wooden pallet manufacturing industry continues to offer
opportunities for many people.
Richard Duff, owner of PPL Systems Inc., is someone who sees
opportunity in wooden pallet manufacturing. Those who wonder if the potential for success
in our industry is a thing of the past should take a look at his start-up and rapid
growth.
Rich has supplied industrial products to his customers for a number of
years. Since pallets are one of the most expensive industrial products purchased by many
companies, they were a natural to eventually attract Rich. In late 1997, one of his best
customers was not happy with its pallet supply situation. Rich went to work, made some
pallet connections, solved their problem, and saved his customer money in the process.
After about six months of wholesaling pallets, PPL Systems began pallet
manufacturing in the spring of 1998. Located in the metropolitan St. Louis area, PPL is
well situated to supply pallets quickly and in all quantities needed. While Missouri is
known as a major pallet manufacturing state, most pallets are hauled from at least 50 to
100 or more miles out of the southern part of the Missouri into St. Louis. PPL can deliver
small orders as well as tractor-trailer quantities; about 75% of its orders are in full
tractor- trailer volumes.
Rich started the company’s pallet manufacturing operation using
cut-to-size material as his raw material. Seeing a number of benefits from being able to
cut his own stock, Rich studied what is involved in lumber processing and began cutting
his own pallet stock in late 1998.
"The pallet business can be a good business," said Rich.
"I suggest, however, that anybody who is not knowledgeable about lumber processing
learn how to cut lumber before depending on his own lumber production. There is a learning
curve to just about anything. In pallet manufacturing, lumber supply is too important to
take lightly. If I had to do it over again, I might hire a consultant. I will say,
however, that Sam Baker of Kent Corporation was extremely helpful with his machinery and
manufacturing recommendations."
From its pallet manufacturing start less than a year ago, PPL now has
15 people working on two shifts. "We can get plenty of people," said Rich,
"but getting the right ones is not easy. I was new to the business. This work is
physically demanding. On top of that, I did not know what I could realistically promise
people. That just added to the difficulty. I have tried to be tolerant, which has helped
us to develop a work force. Some of our best people have been people on parole. But
everybody in the pallet business knows that getting and retaining good people is one of
the biggest challenges."
PPL builds about 3,500 stringer pallets per week starting with cants
that come from southern Missouri. Most are hardwood, but the company also builds about 250
pine pallets weekly. Pallet sizes range from 30 inches to 120 inches long. PPL has avoided
pallet recycling so far, but being located in a major metropolitan region makes it a
possible option in the future.
When Rich began to consider investments in machinery, he contacted Sam
Baker, president of Kent Corporation, and they spent a productive evening discussing his
cutting options. "He had a lot to explain," Rich recalled. "I needed help
because I had virtually no background in lumber processing. I felt comfortable with Sam
and followed his recommendations."
PPL started with a Kent single-head notcher. Rich did not see the need
for higher speed notching at first, but it has not taken long for him to decide that he
needs a Kent whole pallet double-headed notcher, too. He is considering becoming a local
cut stock supplier and knows that he will need more notching capability to satisfy the
market.
Rich likes 4×6 cants, but he also buys 6×7, 6×8, and three-sided cants.
PPL uses a Kent chop saw to cut the cants to the desired length. Three Kent single-head
horizontal band saws — two with returns and one without — are used in-line to
process the cut-to-length cants into pallet material; the cants are resawn on the three
band saws to achieve the desired lumber cuts, and the cut stock is diverted to a turntable
to be stacked.
"I have had only two problems with our lumber processing line of
machinery," said Rich. "Sam and a technician came up to help me with the first
problem. The technician handled the second one by himself. Both times it was simply a
matter of my not knowing enough to completely understand how to get the best results from
my machinery. The problem was not with the machinery."
PPL does most of its nailing on semi-automatic nailing systems that use
coils of collated nails. The company first bought a used GAP nailer and then a new Pallet
Chief nailer. "Our Pallet Chief works fine," said Rich. "A friend of mine
has one. It looked simple and good for training." The company recently bought and
installed a second Pallet Chief.
The company also uses both Paslode and Stanley-Bostitch hand nailers
and nails. Rich said he has been pleased with RV Evans, a St. Louis Paslode supplier that
provides the hand tool service that is so valuable to the pallet industry.
Six months is not a very long time to place all the productive elements
of a pallet manufacturing operation into effect. PPL is putting its sawdust in one
container and scrap lumber in another. A trash removal company picks them up and hauls
them to a landfill. Rich knows that in the future he will need to explore more
cost-effective solutions to handling waste.
PPL uses common carriers to deliver most of its products, which
simplifies this aspect of the business for the time being.
Pallet manufacturers often say that there are too many people chasing
too little business. But then there are people like Rich Duff who are new to our industry
and enjoy the challenges. He has shown that opportunities are still there for the right
people with the determination to provide the service required by our customers.
And opportunities are still there for machinery suppliers like Sam
Baker who take the initiative to provide the kind of support that a person who is new to
our industry really needs.
Entrepreneurship is still alive and well in the pallet industry.
