“Nobody ever got rich shipping air,” that’s what Nathan Gustafson of A&B Pallet in Mansfield, Arkansas said when talking about this company’s freight optimization strategies. Pallets and freight complement each other and have been linked for the pallet manufacturer ever since its early days.
A&B Pallet recently invested and installed the first Timber Wolf nailing machine from Viper Industrial Products. Nathan Gustafson was willing to take a risk on the new machine because he said he knew the quality of people behind it. The company needed a new machine to boost production and improve worker utilization.
Timber Wolf Fits A&B’s Needs
A&B Pallet took possession of its Timber Wolf nailer in March of 2022, and the reason for the purchase was to keep up with customer demand and improve staff utilization. Gustafson explained, “Producing pallets by hand on tables requires a certain amount of experience and skill. If regulars got sick or other situations arose, we had to put people out on the tables who were not accustomed to this work. Production lagged as a result. It is much easier for a novice worker to be more productive building pallets on the Timber Wolf. The operation is easy and consistent. “Really, I just need somebody to put boards on there, and we’re good to go.”
Gustafson added, “The Timber Wolf increases the versatility of our operations because we can better use staff regardless of their physical strength. This machine has performed well. We produce 1,000 to 1,200 pallets per day compared to 200-220 stick-built pallets per worker.”
While the Timber Wolf was a new model for Viper, Gustafson knew the Viper team would work tirelessly to ensure its success. He commented, “I have known Todd for like 25 years, so ever since I was teenager. There is a lot of trust there. The Viper team has been perfect to work with. Tony Grilo, specifically has helped us tweak a few things to meet our exact needs.”
The machine worked well out of the box, but one improvement they requested was a change to the brander. Gustafson explained, “When we first got it, the process to change out the template on the brander was difficult. They made some improvements so that it’s very easy to do now. We are very impressed with the production capabilities and ease of use of the Timber Wolf.”
When asked what the top selling feature was, Gustafson laughed and said, “I could get it instantly. All the other machines were on back order for about two years out. Plus, I really liked the capabilities of the machine.”
Another plus are the Viper people. He added, “I knew I was going to work with great, knowledgeable people. They would stand behind the machine and helps us be successful with it.”
Viper designed the Timber Wolf to be a two-operator machine that goes a step beyond what the Woody can do. Tony Grilo, director of automation for Viper, said, “The Woody makes a perfect one-man machine. But we wanted to expand our line with a fully automated two-man machine for added production.” We looked at what was on the market and tried to have the best features compared to the competition.”
Produced overseas, the Viper nailing machines have a much shorter lead time than just about anything on the market, with capacity to build five machines every month. Grilo stated, “Without a shadow of the doubt, we offer a fantastic build quality, and we can deliver a machine in five months from the date an order is placed.”
Some of the top features of the Timber Wolf include touchscreen controls, bilingual (English and Spanish) user interface and easy-to-understand machinery diagnostics. Grilo said, “It’s a pretty straightforward user interface from setting up nailing patterns to troubleshooting issues. So, you don’t have to look around the machine trying to determine what’s not working. The system diagnoses the issue and puts specifics on the screen. This means the operator needs little mechanical or electrical knowledge.”
Grilo suggested that automation is as much as about solving the lack of labor issue as reaching super high production totals. He explained, “Our perspective and focus on automation isn’t solely increased production, as much as a reliable source of production with dwindling reliable labor markets. The learning curve to operate Viper machines is far less than to be an efficient productive hand builder. By reducing the physical demands of building pallets, the pool of potential pallet builders increases.”
A&B Pallet uses the Timber Wolf to produce its most common sizes, 48×40, 44×44, and 40×48 pallets, and it’s capable of producing up to 60×50 pallets. Combos and odd-sized are produced on their nailing tables. Changeovers for various styles of three stringer pallets usually take only 30 minutes on the machine.
The production capacity of the machine varies depending on the complexity of the pallet. Grilo said, “There’s so many variables involved with what your output could be. The machine typically produces anywhere from 1,000 to 1,200 pallets on a shift. A lot depends on the design, the quality of the wood and how hungry the crew is.”
Over the last year Viper has sold five Timber Wolf machines, with A&B’s help giving demos to prospective customers, and spent extensive time testing it before promoting it to the industry. Grilo stated, “It’s a rock-solid machine that is simple to operate and gets the job done.”
Pallets and Logistics Go Together to Improve Customer Service and Stickiness
Located at the foot of a national forest on a mountain, A&B isn’t strategically located near a major city. But it has been committed for years to optimizing trucking routes and eliminating empty backhauls. This focus goes all the way back to A&B’s founder, George Gustafson, Nathan’s father.
Nathan Gustafson explained, “When my father started the business. He began from scratch. He had always been in the trucking business and understood that market. He would work with customers and others in the shipping area to find out their trucking needs and develop backhaul opportunities. That way you are making money on both the outbound and inbound trip. You don’t want to haul sailboat fuel as we have always called it. Empty miles in one leg cuts way into your profit.” Optimizing backhauls also allows the company to be more competitive on its pallet pricing since the return trip is paying for itself.
The process at A&B begins with conversations to identify freight opportunities. As truck driver, many times Nathan will go and visit a customer and inquire about freight brokerage needs. He added, “The pallet business helps us get a foot in the door for freight services, and vice versa. We also look online for freight opportunities near customers to ensure proper use of our trucks.”
Having its own trucking fleet, A&B can quickly respond to customer needs. Gustafson said, “A lot of times people will call us, and they need a load right then. My driver may be busy. But I can jump in a truck and takeover what is needed. Our ability to handle our own loads and provide rapid response certainly helps drive customer loyalty. Because we have our own trucks, trailers and drivers, I am not waiting on anyone to deliver orders.”
Company Growth During the Pandemic
Over the last few years, the business has been challenging when it comes to pricing, personnel and ability to keep up with customer demand. Gustafson said, “Our business has changed a lot, but the main thing is God has blessed us. We give him all the glory first and foremost. Our business has grown probably about 50% over the last two to three years.”
Growth has been fueled by a combination of organic growth as well as new clients who called A&B when other suppliers were out of pallets. Gustafson admitted, “Customers we helped out of binds during the pandemic have stuck with us. We were able to supply customers even when some other companies couldn’t during pandemic shortages.”
Gustafson went on to explain, “We had the capacity to store everything and build up inventory. And we have some really great core accounts that we’re getting cores from.” About 50% of its volume is recycled pallets while the remainder is new pallets.
A& B Pallet can service customers in a 500-mile radius including Arkansas, Texas, Missouri, New Mexico, Tennessee, Kansas and Oklahoma. The company began in 1982 under the name Pallet Source, started by George Gustafson. The name changed to A&B Pallet in 2009.
While George is still involved somewhat in the business, the next generation is leading the daily operations. Nathan said, “It’s me, my sister, my brother and my brother-in-law running the company. My brother is a truck driver for us. My brother-in-law handles maintenance. My sister and I are plant managers while my sister also runs the trucking management part of the operation.”
Overview of A&B Operations
The company mainly buys precut material although it processes some material in its cut-up area. Over the years, A&B has transitioned from a mixture of hardwood and softwood to mostly softwood due to the price and availability. Broken pallets are dismantled in a tear down operation using a Smart bandsaw dismantler and trim saws. When it comes to stringers, many of those arrive as precut to size without the notch. Gustafson explained, “We notch our own stringers and have a Brewer double head notcher. It runs great to feed the machines and four nailing tables.”
In the recycling area, the company has 7-8 repair stations. On the nailing tables, A&B assembles a lot of combo pallets with old deck boards and new stringers. Gustafson has found a use for some throwaway lumber by producing a 48×20 pallet design.
A&B Pallet used to operate its own sawmill. But the company eliminated this part of the operation to focus on pallet production. Gustafson recalled, “Running a sawmill is a maintenance nightmare. It was a fun experience. But it was always something new to fix.”
Focus on Its People
Getting and retaining quality people is always a challenge in the pallet industry. A&B’s leadership team has taken steps to respond to employee needs. Gustafson explained, “We have changed our pay and have become more competitive. New workers start at $13.50 per hour and good builders can average on piece work $20-25 per hour.”
Management recently started putting on a monthly dinner to show appreciation for workers and to provide an opportunity for community building. A&B provides health, dental and vision insurance for workers, paying up to 80% of the cost. Thanks to higher costs in the pallet market overall, A&B has been able to provide these extra benefits to employees. Currently, the company employs 37 people and has 40 trailers for deliveries.
Delivering on time and meeting customer needs has been the hallmark of A&B Pallet. Adding the Timber Wolf is just the next part of that commitment to fulfill customer expectations. Its simplicity of use provides tremendous versatility for managing the workforce at A&B Pallets.
For more information, visit www.viperindustrialproducts.com or call 501-679-6814.
