John Swenby is president of Paltech Enterprises, Inc., a multi-state pallet recycler that also manufactures new custom wood pallets and crates. Since 1999 when it started as a small company in Cedar Rapids, Iowa, Paltech has grown exponentially through partnerships and the mergers of 18 separate companies into four groups that serve Iowa, Illinois, Arkansas, Missouri and Indiana.
Pallet Enterprise: How did you first get involved in the pallet industry?
Swenby: My background is in automation and design, and I worked as a troubleshooter for a fluid power company. I fixed machines and sold components for machines in that industry, primarily pneumatics and hydraulics. Two guys I’ve known for a long time and myself decided we wanted to look for a different type of business. One day, someone made a comment about recycling, so we punched in businesses for sale and found a pallet recycling company for sale in Cedar Rapids. We went over and looked at it and less than a month later we owned it.
Pallet Enterprise: How do you think the pallet industry will change in the next 5-10 years.
Swenby: I think we’re going to see an interesting level of consolidation from the major companies, but small business needs will also continue to grow. We are smaller-business-oriented and fairly diversified. The major brokerages and buying groups are not going after those customers. So, we’re filling a need, and I believe that will continue to grow. We don’t have any major customers controlling our base. We try to keep it very diversified, so that gives us a little more strength.
Pallet Enterprise: Have you or your company recently started pursuing any new products or product lines?
Swenby: We’re doing more in custom wood boxes, shipping boxes and crates for customers. We see this as one of the areas where we’re growing more in the last couple years. Not everyone is making crates, and we can make special boxes for people and be profitable doing it.
Pallet Enterprise: How do you decide to try a new idea at your company?
Swenby: We give everyone an opportunity to bring something to the table, whether it be a customer opportunity or an idea in the production plant. We like to keep our ears open to the point that no idea is wrong until you prove it right or wrong. And most of the time, the simplest idea becomes the most beneficial, whether it be shipping a new product to a customer or redesigning the pallet for our customer. As an example, we recently had a customer who was buying three different parts, and one of our production guys came up with an idea that he wanted to try. We let him make a sample, and we took it to the customer. It cost us a little bit more, but it simplified the customer’s inventory, so we’re trying to reward that guy for his idea.
Pallet Enterprise: What do you like most about your job?
Swenby: I enjoy working with our customers and coming up with solutions. In the pallet recycling side, we will usually help them with their waste and then turn around and help them with their production. So, we help them on both sides. It’s much more rewarding that my previous career, where I would come in and work on their production machines, but never saw how they packaged or got their materials.
