Best of 2024 Articles

Thinking Ahead – Letter from Chaille: CHEP Sues California Recyclers Over Disagreement about Recovery Fees, Practices

By Challie Brindley

In California, CHEP USA has sued two separate recyclers over the failure to return of less-than-truckload quantities of pallets. A major hurdle is that most pallet recyclers reluctantly acquire proprietary pallets from street vendors or customers who offer mixed loads on a take it or leave it basis. In most cases, the pallet recyclers do not pay for them and find these proprietary pallets to be a nuisance. In very few cases do pallet users contact the proprietary pallet owner before getting rid of these stray pallets or maintain records on length of possession or chain of custody. These marked pallets are treated like any other pallet by most users unless they have a contractual relationship with the pooler or provider. That’s why a California (AB 1730) is causing problems for both rental providers and

The core of the dispute is what constitutes good faith possession as well as what a recycler must do to take possession of these stray assets and what records must be kept. Also, under dispute is when the 35-day clock starts for declaring the property abandoned.

Insurance Outlook 2024: Anticipate Higher Rates, Expectation to be Best in Class

By Rick LeBlanc

Commercial property insurance rates and securing coverage was challenging in 2024 for the general wood products sector, including for wood pallet suppliers.

Wood product companies should also brace for significant increases. One indication that rates are poised to increase is that rates from reinsurers are climbing. Reinsurers provide backing for insurance companies looking to reduce risk, increase stability, and access additional capital.

One leading carrier experiences a rate hike of 15% and 20% from their reinsurer at the beginning of 2024, and other carriers will face similar issues.

“We strive to help them become the cream of the crop,” Stephen Sedlak, president of Pallet Risk Solutions , said. “It can help save them a boatload on their premiums.” For example, most carriers require an inspection. Pallet Risk Solutions tries to coordinate the inspection so it takes place on the best day possible. Good housekeeping, as well as effective dust collection and sprinkler systems, all make a difference. “It’s crucial to make sure your electrical system is updated and inspected regularly, and you keep proof of this,” Sedlak said. “The storing of pallets can be a critical factor as well.”

Leading brokers help their clients become attractive to insurance companies, whether by ensuring that sprinkler testing is undertaken, maintenance programs are adhered to, or mock OSHA walkthroughs are scheduled if companies need help with their Worker’s Comp programs. “We have agents to help customers with all that,” said, Paul Quandt, senior vice president of commercial insurance at Hub Northwest.

Letter from Ed: No Standard Is Not a Good Standard

By Edward C. Brindley, Jr.

 Let’s face it, pallet quality has been a race to the bottom over the last few decades. It isn’t even just the white-wood sector. Our staff has heard complaints that even pooled pallets are not living up to some customers’ expectations. Something has to change.

As warehouses and distribution centers are automating, pallet quality is an increasingly important issue for some product producers. This may only be a small percentage of the overall U.S. pallet pool. But the time has come for the U.S. pallet industry to investigate developing a verified quality control program for both new and used pallets.

A number of pallet users/distribution centers are in the process of installing vision-based pallet inspection systems. Pallet quality can affect everything in supply chains. These inspection systems provide data and oversight to ensure compliance with whatever standards a company needs for its facilities and operations. While these systems are just beginning to make inroads into U.S. supply chains, the fact that they are there at all shows how important the pallet quality discussion is for some applications. The Enterprise staff believes these conversations will only intensify.

IVISYS Pallet Inspection System Installed at Niagara Pallet, Automation Leads to Limited Touch Pallet Line

By Chaille Brindley

Why jump into automation in a big way? Fred Vrugteveen of Niagara Pallet said, “During COVID, we struggled to staff our teardown line. On a good day, we had two out of four saws running. And there were even days when we had nobody show up for an afternoon shift. The whole process was very labor intensive. Out of necessity, we were taking a lot of the good teardown material and putting it through the shredder. So, the Robotic Pallet Dismantler was a no-brainer. We should have put it in a long time ago.”

Niagara Pallet added an IVISYS’ PALLETAI inspection system. Vrugteveen projected, “When this system is fully running to capacity, we will double the productivity per person in our facility. This automation is not about reducing headcount but increasing efficiency and capacity.”

The process starts with a tipper, operated by one person who singulates the pallets, inspecting each pallet and deciding what happens to every pallet coming through the line. Eventually, this inspection process will be handled by the IVISYS PALLETAI 2-D pallet inspection system and AI-assisted analysis software.

Pallets that can be repaired are conveyed to 12 Alliance Automation repair stations. Pallets that are good to go are conveyed underneath to the main stacking area. If it’s a tear down or scrap, it gets swept off to the Robotic Dismantler. Odd sizes are conveyed to the end of the line and hand stacked into different sizes. Initially, Niagara Pallet only expects to have eight out of 12 repair stations running based on the current level of production. At the end of the line are eight Alliance Automation stackers. Niagara Pallet sorts between 16 and 20 different categories between automated and manual stacking.

PALLETAI has been extensively used in Europe to manage a variety of pallet pools to monitor quality, grade pallets and manage control standards. Alliance Automation has signed an exclusive contract to sell the PALLETAI inspection systems and software in North America for the pallet industry.

ERPs and Data Security: Are ERPs a Good Solution for Securing Business Data?

“ERP systems act as a secure central hub for all a company’s business data, simplifying management and protection,” noted Philip Varley of Pallet Connect.

ERP providers recommend boosting the security of their devices by:

• Using strong passwords and encryption: create strong, unique passwords for each account as well as the Wi-Fi networks. Utilize VPNs for added encryption.
• Keeping software updated: regularly update operating systems and antivirus software.
• Being cautious online: avoid clicking on suspicious links or downloading from unknown sources.
• Regular backups: backup important data regularly to avoid loss.
• Enable two-factor authentication (2FA)/Multi-Factor authentication wherever possible to add an extra layer of security.
• Educate employees on cybersecurity awareness and best practices to mitigate the risk of social engineering attacks.
• Use active endpoint detection monitoring at the device or system level.

PFK/POST Pallets Expands, Introduces Autonomous Forklifts

By Rick LeBlanc

PFK/Post has developed a strong reputation for automation and precision. The company recently embarked on a new journey of introducing automated guided vehicles (AGVs) or autonomous forklifts for in-plant material handling. As always, the Netherlands-based company has made these investments with customer service excellence in mind.

Customer care is etched into PKF/Post’s DNA. It has been at the forefront of the company’s guiding principles since it was founded.

“AGVs — they are the future,” remarked Erik Post, managing team member. “Not only because of the scarcity of labor but also because of accuracy, safety and reliability.”

“This does require tight concrete floors, something that has been taken care of in the new production environment,” he cautioned. Good housekeeping is particularly important in running AGVs. The company has always prioritized keeping its plants clean and tidy.

PKF/Post has gained enormous practical knowledge through using the AGVs, enabling it to further optimize its processes. As a partner, Toyota has also gained new insights into operating in a wood pallet production environment. Post noted that PKF/POST expects to expand AGV usage across the company for other applications in time. Investing in new technologies and learning from them to increase optimization is a recurrent theme when talking to PKF/Post. Manual forklifts, however, are still used for loading and unloading trucks.

NWPCA Secures Non-EU Wood Pallet Exemption for PPWR

By Staff

It looks like the global wood pallet industry dodged a bullet with proposed Packaging and Packaging Waste Regulations (PPWR) being developed in Europe. The PPWR were originally designed to reduce packaging waste through recycling and reuse efforts.

Officials in the EU were leaving specific definitions of reuse up to specific industries and stakeholder partners based on real-world conditions. But one major requirement in the PPWR is that packaging compliance needs to be able to be verified. For pallets, this would likely require tracking of each cycle of a pallet so that it is reused a minimum number of times. For example, the European Pallet Association (EPAL), which runs the popular EPAL pool, has come out with a new QR code serialization system so that each pallet can be tracked, and data can be cataloged in a central database of pallet activity.

A major problem with compliance for U.S. pallet manufacturers is that only a handful of companies are now authorized to produce official EPAL pallets, for example.

The National Wooden Pallet & Container Association (NWPCA) just announced, “We are thrilled to report that the ‘within the territory of the Union’ is in the final negotiated language…This exemption is a clear win for wooden pallet manufacturers globally. Any pallet manufacturer building pallets that ship goods into or out of the EU will be exempt from challenging, costly and new reuse requirements. This will minimize disruptions to the supply chains and protect the pallet industry.”

The NWPCA suggested this is a formality expected to occur without a problem. But the NWPCA did warn, “However, in politics and an election year, anything is possible.”

Designing the Perfect Pallet

By Rick LeBlanc and Stewart Richardson

 The supply chain can sometimes suffer from a pallet misalignment. If a logistics system has undergone changes to products, packaging, handling equipment, transportation mode or distribution channel, then the building blocks of that system, such as the pallet, should be reassessed. The importance of aligning pallet specifications to the application will take on even greater significance in the years to come as North American industry continues to transform. The growing importance of trends such as warehouse automation, robotics, e-commerce and IoT will spotlight opportunities for pallet design improvement.

The proper pallet must have the following attributes:

1. Have the load carrying capacity and stiffness required to support and protect the anticipated range of loads while maintaining full functionality in the expected range of storage and handling conditions.
2. Meet the material handling requirements of shipper, receiver and other supply chain stakeholders.
3. Be durable enough to perform reliably on a projected number of pallet trips and be fully recyclable at the end of its life. (A pallet trip is considered six handlings, and a handling is considered one movement). Pallets built for durability typically are “overbuilt” to meet the requirements of a specific application for an anticipated number of trips.
4. Contribute to the most cost-effective, comprehensive logistics solution in comparison to other possible unit load base or non-unitized handling options.

Propak Founder, Steve Clark, Shares His Vision for the Future of PLA, Pallet Trends, Talent Recruitment and Changing Customer Demands

By Chaille Brindley

Dealing with major problems for big brands and retailers has become a specialty for Steve Clark, the founder of Propak Corp. and the new president of PLA, a national pallet management and supply chain services provider.

As Clark takes over the helm for PLA, he took some time to share his insights and thoughts on the pallet market and its relationship with major retailers. He commented on what made Propak successful and how he sees pallet trends changing in the future.

The Enterprise asked Clark about today’s market compared to the unprecedented pallet shortage and price spikes during the pandemic.

Steve Clark responded, “We have to consider that the ‘normal’ that people want to benchmark against no longer exists given the investment that major retailers are making in automation. How retailers are carrying inventory is forever changing our industry. And that affects the question that you asked me. So, it’s no longer, ‘When will it get better?’ You can’t ask that question because it implies a certain stability on the consumer side. And that isn’t necessarily the case because the rapid pace of change that is occurring is unprecedented. I think that’s where having a more holistic perspective is going to play the role in separating those who succeed and those who don’t.”

Safety Check: Hiring Minors in a Production Environment Can Be Fraught with Danger

By Jary Winstead

 The issue of child labor has come to the forefront in the forest products sector recently, as a few high-profile accidents involved minors working in potentially hazardous jobs. A bipartisan Senate bill recently introduced in Congress would seek to address these concerns by increasing child labor fines to a maximum of $132,270. For serious injury or death, a company could be fined up to $601,150 for each violation.

Hiring minors is a very risky business, and your human resources department needs to know the laws. They have to be old enough to operate power-driven equipment before they can legally work for you. The most common child labor violations include: working longer or later than legally allowed, driving a motor vehicle or forklift, and performing jobs that are off-limits for their age.

Most of this information covers federal laws. It’s always recommended that you check local state laws. Don’t employ a minor for any position until you know it’s legal, and then always make sure you get copies of training certificates, age verification, and parental authorization.

Do your best to verify age by asking for appropriate identification for all applicants. If someone appears much younger than his or her identification, you can always seek to further verify the age in other ways just to be sure.

Pallets with a Purpose – Pallets Do More than Just Move the World/Cresswood Cares Initiative

By Chaille Brindley

One of the joys of working in the pallet industry is that so many of the companies are small, family-run businesses. Many are owned by people of faith or just those who are extremely committed to their communities. Not only do pallet companies hire many second chance workers or immigrants, they also offer programs to help employees and their communities.

One way Cresswood makes an impact is by seeking input from employees and different departments to decide which charities and projects will be supported. This gives workers a sense of pride and ownership of the process. And it gives them another reason to work hard, to support the causes that matter to them. The focus for Cresswood is to develop a culture of servanthood. Once a month, Cresswood takes turns asking different departments if there is a local charity that they would like for the company to highlight and support. As an American-made company, Cresswood values local impact and outreach.

FCA: Multi-Site Packaging Business Powered by a Customer-First Focus and Design Expertise

By Staff

An integral component of FCA’s value proposition is its DTEC (Design, Testing and Engineering Center). The ISTA-Certified DTEC houses degreed packaging engineers and packaging testing equipment, including a hydraulic vibration table for transportation testing, a compression table and an incline impact sled. The company uses FEA (finite element analysis) capabilities to design and test customer products virtually.

The secret sauce of FCA’s continued success is its deep customer relationships. “The growth in the number of FCA manufacturing locations has been driven by our customers’ needs and requests to serve them in other locations as they grow,” David Wilsted, CEO, explained.

FCA’s ability to quickly establish new locations in response to customer needs is a core competitive advantage. “When customers choose FCA Packaging as their primary and usually sole provider for wood, steel, corrugated and hybrid material custom packaging,” Wilsted continued, “they tend to stay with FCA and ask us to grow with them. If they are expanding or moving to different sites, they ask that we put in new facilities to support them.”

Proximity to customers allows FCA to provide Just-in-Time (JIT) service, which saves on freight and provides other benefits as well. By ordering on a JIT basis, a manufacturer can generally limit its inventory, reduce the storage space required, and reduce the amount of handling required. Overall, a JIT approach promotes a leaner, more responsive approach to inventory management and production scheduling, which can lead to substantial cost savings and efficiency gains. However, it also requires precise planning and excellent supplier communication to avoid supply chain disruptions.

Dry Pallet Lumber to Prevent Mold, Stain

By Tim Cox

To prevent mold and stain, the goal is to provide enough airflow to enable moisture to be drawn away from the surface. The longer the lumber remains in a dead-pack, the greater the chances for chemical staining. This stain is often not detected until the lumber is further processed after drying.

Two common non-kiln options for drying are air-drying or fan sheds. However, humidity and poor drying conditions will impact the effectiveness of both methods – high humidity, poor air movement, and too much lumber in a small area can all affect the rate of drying. If the lumber is outside, unprotected from rain, that can negatively impact air-drying.

“Fan sheds are a great way to get wood down to the fiber saturation point quickly,” said Dr. Brian Bond, professor and extension specialist at Virginia Tech University. Fan sheds have the benefit of protecting the lumber from rain and direct sunlight. A bank of fans is used to force air through lumber stacked with stickers. Airflow is critical for drying wood above the fiber saturation point, or 30% moisture content. Above 30% moisture content, the higher the air flow, the greater the drying rate. By adjusting the fan speed, the drying rate can be adjusted. The airflow through the material should be checked. A hand-held anemometer will measure air flow across the length of the lumber. (The rate of flow typically varies more from the bottom of the pack to the top.) Make sure the drying loss or moisture content loss per day is the rate desired. Use lots of open space between the material to achieve faster drying.

48forty Solutions ESG Director Outlines Recycler’s Plans for Sustainability and a Greener Future

By Chaille Brindley

48forty Solutions recently became the first North American pallet recycler in the United States to achieve certification for pallet recycling activities under the Sustainable Forestry Initiative (SFI) Chain-of-Custody (COC) Standard. Pallet Enterprise recently sat down with Jessica (Jess) Bonsall, director of ESG, to understand the process behind this certification achievement and what it means for the company and possibly the industry as a whole.

Pallet Enterprise: Why seek this certification now with SFI?

Jess Bonsall: We have been receiving more and more customer requests about material sourcing. Do you source from SFI or PFC certified sources? Do you understand where your wood is coming from? Do you have a traceability program in place? And a lot of those questions are difficult for a pallet recycler to answer. And we did a bit of research, and the Sustainable Forestry Initiatives (SFI) COC certification really seemed like the right fit for us. It focuses on how the company manages materials.

 Pallet Enterprise: Are there other factors leading to this decision?

Jess Bonsall: Yes, another major driver is transparency in reporting. There are a number of regulations in Europe that have come in force. We’re seeing some of that movement here in the United States, particularly in California. The Securities & Exchange Commission (SEC) is also developing regulations that will impact a lot of our customers when it comes to sustainability claims. Usually, those regulations require some kind of third-party verification on sustainability data that’s reported to an agency. So, undergoing the SFI COC process gave us the opportunity to develop answers to questions being asked by customers as well as provide a third-party certification for our processes.

 Pallet Enterprise: What was harder than you expected in the process?

Jess Bonsall: Mapping out everything was more cumbersome than I had anticipated, given the different approaches taken at various plants. But the auditing process itself was less cumbersome than I had initially anticipated.

Veteran Taps Military Experience to Grow Pennsylvania Pallet Firm

By Alex Brengle

Dan Ullmann has called on his leadership skills and experience as an Army officer to successfully grow his pallet business. Along the way, he has made significant investments in machinery and equipment from some of the leading suppliers in the pallet and sawmill industry.

For example, as the recycled market has become tough over the last year or so, DJ Pallets has shifted to doing more new pallet production and customization. Ullmann explained, “A former boss in the military told me, ‘Dan, don’t come to me with a problem. Tell me this is messed up. Come to me with a solution.’”

Recently, Ullmann started implementing the Entrepreneurial Operating System in his business. He used a book called “What the Heck is EOS” to guide his process. The pallet industry is a “simple business,” said Ullmann, “but you can add layers of sophistication to it to make it more competitive.” Over the past few years, DJ Pallets has automated its operations.

Initially, Ullmann bought cut stock when he began using new lumber to repair pallets, build combination pallets or manufacture new pallets. He soon decided it would be better to invest in equipment to manufacture pallet lumber. As the company has moved to produce more custom pallets and packaging, having the versatility allowed by an internal lumber operation makes sense. Ullmann said, “We’re able to cut the size and the dimensions that we need, no matter the thickness or length. This allows us to make longer-length and heavier-duty pallets efficiently.”

Safety First: Wood Dust Is a Major Risk Area for Pallet Operations

By Mike Seiwert

While a number of risk exposures threaten pallet manufacturers on a daily basis, wood dust is a major concern for any pallet company that saws lumber or cants. It is an area resulting in climbing clams, but steps can be taken to reduce the risk.

This past year set records for dust explosions in facilities across the territory I oversee. Dust accumulated in facilities, which led to explosions. To mitigate the risk of a dust explosion, consider these best practices:

• Develop a formalized housekeeping program to ensure dust is properly and regularly cleaned. All dust piles should be cleaned within a day.
• When cutting wood, dust piles should be at least 50 feet away from the building. If not, heavy concrete blocks should be used to create a firewall that is taller than the wood dust pile.
• Train employees at hire, annually and after any dust related incident.
• Use a and regularly maintain a dust collection system that includes a spark detection and suppression system.
• Clean dust from the dust collection systems with a vacuum or wash. Do not attempt to blow the dust with an air hose.
• Consider purchasing wood cutting machines attached to local dust collection systems.
• Conduct inspections and check for blockages in ductwork at least semi-annually, looking in the blower motors, the blower fans, and the belts.
• Utilize thermography to check key systems for overheating.

 A Conversation with Experts from Alliance Automation – Autonomous Vehicles for Pallet Facilities – Has Their Time Come?

By Chaille Brindley

The Enterprise staff discussed opportunities, challenges and capabilities of autonomous vehicles for pallet applications with Doug Wenninger and Kevin Wantz of Alliance Automation.

PALLET ENTERPRISE: Why would pallet companies want to consider autonomous vehicles?

Doug Wenninger: From a very high level, the obvious reason that companies would want to do this is cost savings. I’ve asked this question not only to pallet companies but also to many manufacturers: ‘What is the annual cost for each forklift in your facility?’ Typically, the responses range from $100,000 to $150,000 per year. This includes the capital cost of the forklift itself, the maintenance costs, and the driver plus benefits.

PALLET ENTERPRISE: What does a pallet plant need to have to even consider autonomous vehicles? What about forklift and usage patterns?

 Doug Wenninger: Any manufacturing space where you have repeatable patterns is a viable candidate for using this technology. Pallets coming off the end of line and going to inventory. Going in and out of trucks with cores or finished pallets, that’s not easy to do, but possible.

 PALLET ENTERPRISE: How complex does the pattern or list of duties have to get to make autonomous vehicles less viable?

 Kevin Wentz: We currently can bring any kind of finished goods from a warehouse or a loading dock area, or from another piece of equipment in the plant to where you need it to be. This action can be programmed very simply. You don’t need complicated human-to-machine interface screens. Operators can use a simple tablet to execute an order.

Trailer loading and unloading will be a thing for us next year. It’s a lot more difficult with stacks of pallets because they can easily shift. So, we are going to really start with stable loads, boxed goods and items that are stretch wrapped. But once a stack of pallets is moved out from a truck and placed on a loading dock, it is much easier to use autonomous vehicles to transport those stacks to repair lines.

Trucking Trends Update: Emerging Technology and Safety Developments

By Rick LeBlanc

The trucking market in the United States has seen tough times over the last two years. However, recent data points to signs of improvement, especially regarding technology and safety.

The promise of automated trucks remains elusive for now. John Vaccaro of Bettaway stated, “We are still far out from self-driving trucks doing commercial mainstream deliveries. The good news is that trucks are so much better and smarter than 10 years ago, with automatic transmissions, lane departure systems, blind spot alerts, and good GPS routing. The job has certainly become easier as well. So, I see a wide demographic of people wanting to be drivers as the rucks become easier, and the demand grows. It’s a good, steady job if you land with the right company, and pay should continue to improve.”

Technologies such as telematics, fleet management systems and Advanced Driver Assistance Systems (ADAS) are becoming increasingly widely adopted. Telematics involves using telecommunications and informatics to monitor and manage vehicles remotely. This technology integrates GPS tracking, onboard diagnostics, and various sensors to collect real-time data on vehicle location, speed, fuel consumption, engine performance, and driver behavior. Fleet management systems utilize this data to optimize fleet operations, enhance safety, and improve efficiency.

For fleet owners, telematics and fleet management systems provide a comprehensive view of their operations, generating precise location and optimized route planning. This reduces fuel consumption, minimizes idle time, and ensures timely deliveries. The ability to monitor driver behavior, such as speeding, harsh braking, and rapid acceleration, promotes safer driving practices. Additionally, telematics helps in preventive maintenance by providing alerts for engine diagnostics and maintenance schedules, reducing downtime and extending vehicle lifespan.

ADAS technologies, such as collision avoidance, lane-keeping assistance, and adaptive cruise control, are increasingly being integrated into trucks. These systems enhance safety by assisting drivers in avoiding accidents and maintaining better vehicle control.

Exploring Forklift and Delivery Risks for Pallet Operations

By Mike Seiwert

Forklift incidents can be separated into two categories – internal and external. Internal exposures involve a forklift injuring an employee or causing damage to the property. External exposures typically involve the loading of the vehicle, where the driver or a pedestrian could be injured, or the equipment is damaged. Comprehensive driver safety training is key to the safe use of forklifts in the workplace. Drivers should be trained to drive in reverse and be instructed to wear seatbelts to protect them from the weight of the vehicles. Owners and operators should post clear signage or cones instructing drivers and pedestrians where to stand. Consider assigning a spotter to protect pedestrians.       Other risks and best practices to consider:

• Propane fueling – Employees should be trained to replace empty propane tanks, connect the fuel and check for leaks. Employees should wear Personal Protective Equipment (PPE) while fueling to protect themselves from the cold propane.
• Charging and cables – Forklift charging cables left on the ground can lead to fires from exposed wiring or damage to vehicles. Operators should ensure cables are hung by the charging dock.
• Lithium-ion batteries – Batteries can combust and should be stored safely. Operators should avoid storing batteries near pallets. Fire extinguishers that can handle lithium-ion batteries should be on hand at all times. Workers should be aware that these batteries require different firefighting techniques than typical pallet or electrical fires.
• Fork wear and tear – Keep in mind that forks can wear out just like tires. Operators should require internal checks on forks to make sure they maintain the proper thickness.
• Loading and unloading pallets onto forklifts – Improperly secured trailers to docks can also present safety issues. When forklift drivers are loading or unloading from a dock to a trailer, the trailer must be connected safely so the trailer does not become repositioned and cause the forklift to fall.

The Basics of Hiring Second Chance Workers

By Alex Brengle

Every year, federal, state and county prisons release close to 11 million adults back into their communities. Commonly known as reentrants, these former inmates crave purpose while surviving solely on hope. As the world evolves without them, the only things inmates want are the things we take for granted.

Most prisons have correctional industrial jobs where inmates are put to work and learn skills such as making shampoos and bars of soap that are used in the prisons as well as in state-operated halfway houses and homeless shelters, learning to disassemble and reassemble buses and trucks, and manufacturing envelopes, stencils and truck decals. There are safeguards in place that make it more acceptable for employers to hire felons. One of the more important safeguards is that he/she will be assigned to a parole officer who already knows everything about this person. Essentially, you’ll have a direct line to law enforcement, who can respond to you at a moment’s notice, should you need it. If you hire multiple reentrant employees who live in the same area, the chances are that they will have the same agent, making for a simple relationship with the law enforcement that oversees them.

A second safeguard against hiring a reentrant who may still have felonious tendencies is to bond him through the Internal Revenue Service. IRS Form 8850, available on the IRS.gov website, allows employers to pre-screen potential employees who might qualify for a work opportunity credit (felons count for this) and bond them in order to protect business owners against potential thefts and damages. Complete one for each reentrant you wish to hire, and you can be insured for up to $5,000 in the event of any theft or damage to your business.

Wood Pallets Are Well Positioned for the Increased Urgency of Sustainability In Supply Chain Decisions

By Rick LeBlanc and Chaille Brindley

In this roundtable on sustainability and pallets, the Pallet Enterprise sought a wide range of perspectives, from pallet providers to diverse industry insiders and even a pallet user.

Pallet Enterprise: What are the best ways for a wood pallet provider to meet the sustainability requirements of customers?

Brad Gething: While wooden pallets have a strong track record of sustainability, the industry is continually striving to enhance its environmental performance. Environmental Product Declarations (EPDs) have been valuable in communicating the sustainability benefits of wooden pallets. However, more specific information is needed, particularly for custom pallets manufactured at individual facilities. To meet this need, the NWPCA, with funding from the Pallet Foundation, is developing a tool to provide detailed sustainability information tailored to custom pallets.

Fred Vrugteveen: One thing we offer customers is tree planting to offset pallet purchases. When we’re manufacturing new pallets, we allow our customers to include tree planting as part of the price. So, we plant one tree for every stack of new pallets we sell. We use an organization called Veritree. Our customers can go into a portal, and they can physically see that on their behalf, we planted 250 trees in the last three months, for 10 or 20 cents per pallet.

Cape Mach 2 Machines Unlock Efficiency Gains for Phoenix Wood Products

 A few years ago, Cory McGee, chief operating officer of Phoenix Wood Products, was discussing automatic nailing lines with Jeff Williams, president of PRS Group. Williams suggested that Cape might answer his nailing needs, encouraging him to visit the Cape Mach 2 at the state-of-the-art John Rock facility in Pennsylvania.

A best practice when considering investments in expensive machinery is to take time to see it in action at other facilities. McGee did just that, checking out John Rock’s Cape machine twice. While the Mach 2 ran great at John Rock, McGee observed that it used consistently square-edged components coming out of the John Rock sawmills. However, that wasn’t the situation at Phoenix. McGee also saw the Mach 2 work well with low-grade western softwood at a facility in Idaho, and then decided to order two Mach 2 machines.

The Mach 2’s extra capacity came to the forefront when Hurricane Helene recently struck the Southeast. Heart Wood’s electricity was knocked out, but Ashburn was able to successfully fill its orders as well as those of another pallet company that was hit by the power outage.

“Let’s put it this way,” McGee reflected on the two-shift operation. “Before the Mach 2, I was running six Champions and two Raycos, and the most pallets I had ever built in a week was 65,000 pallets. This past week, Hurricane Helene came through, and it knocked out electricity to our Heart Wood Products facility, and so Ashburn picked up the slack. Running three Champions, two Raycos, and that Cape, we built over 100,000 pallets. We were really pushing the limits, but it shows what is possible.”

Industry Sales Veteran Retires, Shares Insights on Pallet Sales Success

By Chaille Brindley

Pallet sales is not rocket science, but it certainly isn’t easy either. It takes street smarts and hustle. Keith Reinstetle has been selling pallets for more than 40 years, and he helped build some of the largest national pallet sales programs in the country. After recently retiring from PalletOne, Keith Reinstetle identified some of the biggest tips or advice he has for anyone in pallet sales.

1.) Look at an RFQ as an opportunity to get to know a customer or potential customer better.

2.) Pallet design is your friend.

3.) Look to solve for more than just the pallet.

4.) Sustainability metrics are here to stay. More and more customers will be asking for them. Get ready.

5.) If you are new to the industry, learn as much as you can about the wood resource, the sawmill and pallet production/repair process.

Bonus Tip: Usually, it’s not just the pallet that loses you a customer.

Pallet Industry Websites Continue to Evolve, Next Phase Is True Electronic Transactions

By Chaille Brindley

For many pallet companies, their website has been an afterthought for years, but it really is your front porch to the world. A consulting firm, McKinsey & Company, recently released a report on the effect of digital marketing on B2B sales growth. The report, based on surveys of B2B buyers, discovered that e-commerce is growing at “astonishing speeds” for B2B products and channels. And while this may be in its infancy for many pallet orders, the trend is likely to grow substantially over the next five years.

This survey found that “nearly two-thirds (65%) of B2B companies across industry sectors now offer e-commerce capabilities, defined as fully executing a sales transaction online. This is up from 53% in early 2021.” Respondents also suggested that B2B sellers are now more likely to offer e-commerce channels than in-person selling. While there is no substitute for having a good face-to-face relationship with customers, your website is a great vehicle to augment those conversations and allow for quick responses and even automated responses to inquiries.

From online chats to screening potential employees to actually conducting transactions, there are a lot of ways that you can use your website to automate and improve communications. Develop a team to dream about the future and consider how your website and social media can augment other communication efforts both internally and externally to various audiences. Then, management has to develop a budget, select priorities and develop a game plan to make these dreams a reality. This is a topic that you will likely want to explore with your Enterprise Resource Planning (ERP) software supplier. There may be ways for the computer system running your company to interact with customers through the Internet and texting.

Beyond ERP Basics: What features are you underutilizing that could enhance efficiency?

By Leah Lively

 One of the biggest misconceptions companies have about using and deploying ERP software is that their company is not large enough for the software to be beneficial. Small to midsize companies often feel that they don’t need an ERP software until they grow to a larger scale. Rob Zesch challenges these misconceptions. He noted, “These companies may not appreciate that adopting an ERP before you ‘need’ it positions you to grow your business faster and more profitably.”

Another misconception is that implementing and using an ERP system is more complicated than it really is. These systems are built with usability in mind, for every level in the company. Pallet Track offers plant floor data collection with “extreme simplicity” using pictograms and bilingual labels. This allows employees to operate the system within 30 minutes of training. With extensive onboarding teams, video training, and support portals, ERP software companies are waiting and willing to do everything possible to make the implementation process seamless for your company.

In order to gain the full benefits of these systems, it is vital for a customer to continually expand the usage of the systems, especially as new features are added. One easy way to do this is to set a goal to roll out key advancements twice per year. For example, integrations with other systems like accounting and payroll can reduce data entry time. Also, the more people who are using the software at all levels, the more the software can aid in production efficiency with fewer interruptions. As more employees become familiar with ERP, they can see how their seemingly small decisions can make an impact on the company as a whole.

Partnership Is Critical for Pulling the Trigger on Automation Solutions, Nevada Recycler Finds Success with AMS Repair Line

By Chaille Brindley

Pallet Broker started its automation journey in its Sparks location in 2017 with a used repair line. Pricing as well as compatibility with its PalMate software solution were major drivers. Matt Stephan, president and co-owner of Pallet Broker explained, “We had worked with Kris Chayer of AMS for a longtime, and we felt comfortable with their equipment and service. Knowing Kris made this an easy decision.”

Most recently, the company decided to install a new repair line from AMS in 2024 in its Las Vegas location. Matt Stephan noted, “We opted for a new line because it is more reliable and less likely to break down, regardless of the manufacturer. The new AMS line has enabled us to significantly boost production while making the jobs safer.”

The new Las Vegas system starts with a destacker infeed that efficiently dispenses individual pallets into a manual inspection station complete with an operator workstation. The destacker operator can thoroughly inspect each pallet before directing them to a streamlined three-tier repair line. The bottom tier seamlessly feeds pallets directly to the stacking system, while the middle tier is dedicated to pallets requiring repairs. The top tier features a conveyor for waste materials. Throughout the process, six repair stations are strategically positioned to ensure optimal efficiency. Once inspected and sorted, barcoded pallets are conveyed to six high-speed stackers, each tailored for specific pallet grades, ensuring precise handling and organization per Pallet Broker’s specs.

“Automation is key to making our Las Vegas location work well. We have been able to cut the number of employees from 24 to 18,” shared Matt. Also, creating a good working environment has enabled the company to build a good recruitment pipeline through referrals. Matt explained, “We have employees who are bringing their kids and family members down here to work with us. We’re seeing a ton of applications now.”

Automation allows for greater productivity while cutting hours and overtime. Chayer of AMS pointed out, “They were working six days a week, 10 hours a day. Now they’re working standard hours with no overtime.”

Basic Training Series: Frontline Employee Training Ideas for 2025

By Rick LeBlanc

The training of production workers at pallet companies has been a longtime necessity, something you just have to do to ensure safety compliance. However, companies are viewing it more as an opportunity to boost operation performance. “Training is part of how we become the employer of choice,” Brad Cutcher, COO of PLA stated. “We’re going to invest time on onboarding, and we want to give (new hires) the best chance to succeed. “

Emily Lubman, director of risk management at HUB International has recently noticed a shift in safety training and follow-up responsibility from dedicated safety professionals to plant supervisors and is seeing a significant increase in employer supervisory training requests. She explained, “I think there’s been an acknowledgment that our supervisors are our first line of defense. They’re the folks that interface most directly with our hourly employees, and they have the strongest relationships and rapport with them.”

When you think of training as an ongoing process rather than an event, daily interaction with supervisors is critical in ensuring that procedures are consistently followed, and corners are not cut over time.

Lubman highlighted the value of informal coaching, which continues after the initial training sessions. Supervisors should take the opportunity to observe employees during their shifts and provide one-on-one feedback. This continuous improvement mindset ensures that employees hone their skills and stay updated with the latest safety procedures.

Pallet Recycling Leader to Hand Over Control to Leadership Team

By Staff

After building one of the largest pallet companies in the country, Bernie Kamps handed over leadership to a seasoned team, including his two sons, Mitchell and Justin, serving as CEO and VP of northern operations.

Pallet Enterprise: Looking at the pallet industry, what are a handful of changes that you see coming over the next two to five years? What are things that not only your company is aware of and working on, what are things you think any smart pallet operator needs to be aware of?

Bernie Kamps: Because of the cost of labor, we have pushed so hard into automation and mechanization. John Rock has its own set of robots and other automation. We have installed large & small Urban Sawmill lines. That technology really is a game changer. The reason for that is because it reduces labor costs. With one man on a bandsaw and one man on a chop saw, their net cost per board is much higher than ours, and we’re going to be able to produce 30 to 50,000 boards a day or per shift in each plant.

Smaller operators may say that their facility and equipment costs are lower. But they have to constantly deal with turnover and training. I don’t think people realize how expensive turnover is. Reducing net labor cost is the key. We love harvesting the ‘Urban Forest.’