Faircloth Forest Products Continues to Grow Its Pallet Business with Rayco Nailers

SWAINSBORO, Georgia — Back in the 1990s, Danny Faircloth, a Vietnam War veteran, operated a local welding fabrication shop. When his son, Jeremy, finished school, he began working with his father. Surrounded by timberland in that part of Georgia, much of their business involved building mills, installing equipment and assembling metal buildings.

“I started working on sawmills and building them,” Danny recalled. “And then,” he deadpanned, “I went completely crazy and built myself one.”

As it turns out, building the high-efficiency sawmill was the polar opposite of crazy. Fast forward over two decades, and Faircloth Forest Products has evolved to become a highly sophisticated and diversified producer of quality Southern Yellow Pine pallet cut stock, pallets, fuel pellets and carbon for filtration products. Danny is the 72-year-old CEO of the company, and Jeremy is president. And now, thanks to its six Rayco nailing machines and counting, the company is looking to further increase pallet production as part of its diversification and growth strategy.

 

Don’t Depend on One or Two Things

Faircloth Forest Products has been purposefully built with diversification at the heart of its strategy. “I believe you need an assortment,” Danny Faircloth said. “Don’t depend on one or two things. If something goes bad, you need something to fall back on.” The current initiative to expand pallet production is another example of that diversification mindset in action. It will allow the company to increase its production of value-added products such as pallets in addition to its cut stock sales.

The company is vertically integrated on the lumber side and horizontally diversified into other industries. For example, it owns timberlands as well as purchases timber. It has logging crews as well as employs contract loggers. “We own a lot, and we buy a lot,” Danny said of timber supply. “We have our own logging crews; plus, we hire other logging crews,” he explained.

Aside from pallet stock and pallets, all residuals are fully utilized, which is just part of the company’s impressive sustainability story. The bark is used to heat the dry kilns, while the sawdust is used to create pellets. This year, Danny estimates that it will ship around 225,000 tons of pellets destined for markets in Europe. Faircloth runs 15 of its own pellet trucks and typically hires another 15, subject to volume.

The company also has a carbon plant, managed by Ben, Danny’s other son. Carbon residuals from the company and other sources are taken to the plant for further grinding to create a uniform, saleable product.

Faircloth is also horizontally integrated, with commercial real estate and agricultural holdings and a vegetable packing house. Karen Faircloth, Danny’s wife, operates Georgia Sports Arena. It began as a riding ring for their grandchildren and is now a multi-use arena with seating for up to 5,000 people.

 

New Pallet Operations Powered by Rayco

One area of the company’s competitive advantage is its control of its inbound timber supply chain. This strategy enables Faircloth Forest Products to offer customers peace of mind regarding reliable wood supply, regardless of market volatility. Given an annual throughput of around 125 million board feet of cut stock, there is ample room to service the expanding list of new customers. Danny describes sales as roughly 90% cut stock and 10% pallets. The company is looking to continue growing the pallet segment of the business.

That’s where the Rayco Industries nailing machines come into the picture. “I started off with a Rayco about eight years ago, and I’ve been with them ever since,” Danny explained. “We started moving up, moving up, as orders increased,” he said, “and we got where we are today. We started off building just a handful of pallets, and it kept growing, so now we are up to six machines.”

The original Rayco Pro is still in full production. “We don’t have a lot of trouble with these machines, “Danny admitted. “If problems do emerge, a call for technical support can quickly get the machine back in production. You get on the phone, and they walk you right through what’s wrong. We can figure out what went wrong within just a few minutes.”

Jeremy agreed with that assessment. “The Rayco machines are just easy to work on,” he said. “They are just as fast. At the end of the day, you can build as many pallets as you can on most of the other machines in the market.” Two employees typically run each machine, with an average production rate of about 550 pallets per shift.

The standard Pro can build 24×24" up to 60×60" pallets, although customization is available to allow for larger sizes. The pneumatically powered machines offer benefits over hydraulics, including faster operation, lower maintenance costs and less downtime.

Faircloth Forest Products also assembles pallets by hand, including larger pallets – some as large as 25’x8’. The company welcomes challenging orders that other companies cannot build. “We build the pallets you can’t otherwise get built,” Danny said. “Although, of course, we also have our 48×40 line,” he added. The company serves broccoli and Vidalia onion growers in the area with 48x40s and builds 48x48s for bagged wood shaving producers.

Coil nails and nailing tool servicing are provided by the Atlanta location of Montgomery, Alabama-based Fastening Solutions, Inc.

 

Lumber Processing Features Cone, SmartMill, MOCA and Max Board Feet (AIT) Equipment

After logs are placed on the infeed deck by the company’s 25-ton Progress log crane, incoming logs are scanned and processed through the Cone Industries chip-n-saw system, which provides the primary breakdown. Recent machinery installations of note include its SmartMill lug loader (board feeder) as well as its MoCo stickering stacker, the latter machine purchased from the Bid Group. Jeremy is enthusiastic about both.

With the SmartMill lug loader installation, Danny and Jeremy were particularly impressed with the features and the level of service provided. “I put their board feeders in, and the service was great,” Jeremy recalled. “They come by every couple of months and just go through and look, and if it’s running good, they shake your hand and go out the door. If it’s not, they sit down and go to work and tune it in for you.” Increased productivity was another selling point. The lug loader, once installed, immediately boosted production by 35% and has been almost maintenance-free.

Based on that positive experience, the company purchased two SmartMail multi-saw trim lines, which are scheduled for installation in December 2023. While the current trim saw setup is limited to 95 lugs (pieces) per minute, when the new installation is complete, throughput is expected to increase to 140 to 150 lugs per minute, promising another dramatic productivity boost.

At the end of the line, the MoCo all-electric, servo-driven stickering stacker offers improved performance and reduced energy use. Jeremy likes that it can use regular 1×4" boards that can be reused multiple times. It has eliminated the need to buy stacking sticks.

Faircloth produces boards with its three high-speed Max Board Feet (AIT) HY400 thin-kerf, center-cut industrial saws. A Baker notcher looks after notching requirements.

The company has two A.W. Stiles (Tommy Stiles) continuous kilns heated with biomass debarking residuals in a boiler supplied by Georgia-based Hurst Industrial Boilers. HT certification is provided through another Georgia-headquartered operation, Timber Products Inspection, Inc. 

 

A Successful Family Business

Danny Faircloth described the business as a “true family partnership,” and the pride of having that passionate family involvement was exuded in our conversation. Along with sons Jeremy and Ben, two of the five grandchildren are involved in the operation. He is hopeful that there will be more in the future.

Jeremy noted that while he hears about some family businesses having issues, that has not been his experience. Being able to share ideas at the dinner table is just an added opportunity to brainstorm. When asked why they have been so successful, he noted that he came to understand his father’s expectations at an early age and that, over time, their thought processes regarding the business have become very much in sync.

Jeremy stressed, however, that it takes more than the family to run a successful family enterprise – it takes a dedicated team. “If a sawmill is ever going to survive, you need the right people and good people in the right places,” he concluded. With that mindset, an entrepreneurial spirit, and a 250-acre property on which to expand, the company seems poised for further growth – and no doubt further diversification – in the years ahead.

For more information about Faircloth’s  services, call (912) 562-3447 or visit www.fairclothforestproducts.com.

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Rick LeBlanc

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Pallet Enterprise December 2024