Andy Archer is the sales manager for Cleveland Custom Pallet & Crate (CCPC), a pallet recycling company serving the Cleveland area.
Pallet Enterprise: What is the biggest challenge right now working in the pallet sector? What solutions do you see to fix this challenge?
Archer: There is definitely more than just one challenge in the industry right now. Labor shortage remains a big challenge facing our industry. The extra money from the government for unemployed people only makes that challenge worse when it comes to attracting good help. Cores are always a challenge, having enough and the decline in overall quality. Solutions to these challenges are tough. There is no silver bullet solution.
For the labor piece, a big factor is you have to pay a competitive rate based on similar types of work in your area. It’s not another pallet shop you are competing with as far as pay rate. It’s the 15 other manufacturing jobs that are blocks away from your facility. But we all know pay is not the only thing millennials look at in a job anymore, making it all the more challenging.
For the cores, I would say ‘’STOP SELLING JUNKY PALLETS!!’’ we all agree the cores are looking worse and worse. But if pallet guys don’t scrap out the junk, we will always have this issue. If I sell junk to a customer then another pallet guy buys those junk cores then he sells junk and I buy those junk cores round and round it goes. There are only so many repairs you can do and sell the pallet at a profit. That means we are doing all that work for little to no profit on those junk pallets.
Pallet Enterprise: How has your company changed over the past three years? Maybe people, facilities, equipment, focus, etc.?
Archer: We have worked diligently on diversifying our product base, as well as trying to create more custom products for some customers. Really finding out what their application is, rather than just throwing standard pallets at them and hope it all works out. At times a customer doesn’t even know what options are out there and what our capabilities as a supplier are. That’s critical information for both parties involved.
Pallet Enterprise: How have customer expectations changed, especially with COVID-19 concerns?
Archer: Biggest change we have seen is that customers will keep using and ordering pallets but are likely to delay payments well beyond agreed terms.
Pallet Enterprise: What is the best business advice that you have ever received?
Archer: The Golden rule. Most business questions as well as questions about life in general can be answered the best way by doing to others as you would have them do to you (Matthew 7:12). In most cases if you trade shoes and think how would I want to be treated in this situation and really be honest with yourself, the answers become clear.
Pallet Enterprise: What is your company doing to train and raise up workers and improve culture?
Archer: At CCPC, we are doing extensive hands on training for pallet repair as well as prep and pallet sorting. Our management team is looking for those employees that will invest in what we do and where we want to go and then try our best to reciprocate that back and invest in them. We are striving to incorporate Mission, Vision and Values on a personal level to each team member. Our hope is this personal investment will then transfer into the company by default.
