La Porte, TEXAS—If there’s a typical playbook that most pallet manufacturers follow in the United States, Larry and Hinton Howell threw it out the window a long time ago. While many pallet companies try to do a little bit of everything, focus on customization and produce their own lumber, the Howell brothers have taken a different approach with the Hinton Lumber Products facility in La Porte, Texas.
This is one of the top manufacturing plants in the country when it comes to speed and efficiency. It runs three CAPE Tandem nailing lines complete with robotics. The facility is designed to serve the rental and petrochemical industries producing block and block pallets for very demanding customers who require tight specifications and tolerances.
The La Porte facility received the fourth and fifth CAPE machines installed in the country. These are the first CAPE Tandem machines installed in North America, and they are designed to be able to produce either block or stringer pallets.
Hinton Howell, vice president of Hinton Lumber and its sister company Cottondale Wood Products, stated, “Automation is always evolving. This plant was designed to be high-production, with high-quality focus. Automation is the only way to have really tight and consistent standards.”
Hinton went on to suggest, “You really have to decide between two paths in the U.S. market. Your operation is either highly automated with consistent quality and highly specialized, or you custom build designs focusing on small runs and niche customers.”
Larry Howell, president of Cottondale Wood Products and Hinton Lumber, reflected, “In our company history, about every 15 years we are building an entirely different product.”
The company started off in the sixties building only ammunition boxes. In the seventies and early eighties, the company made mostly windshield crating. The Howells didn’t really build pallets until 1998, when they bought a Viking Unimatic. Then, the company entered the beer business with plywood block pallets. Ultimately, the Howells went all stringer pallets in the early 2000s.
Larry said, “Over the last 5-10 years we have seen a shift toward block pallets in the market, and now we are shying away from the stringer pallet business. Although we still build a ton of stringer pallets, it is not our primary focus today.”
Automation has been a 15 year process for Hinton Lumber. The journey started in 2001. Hinton explained, “We had to develop a customer base that required the volume and quality needed for automation. The next step of this process is to identify a procurement strategy that would be acceptable for the automation. After this identification process developing a standard to ensure each pack of material from multiple supplier across the globe are packaged in the same manner can be challenging. But the greatest challenge with automation is the fact that you can’t be everything…You will not be able to produce customized, small-volume runs and that is difficult to stomach at times.”
Their aim today with Hinton Lumber and the La Porte facility is to be the most efficient producer in the country capable of handling the most complex designs and customers.
Singular Focus or Vertical Integration
Between the two plants, the Howell brothers have experience with both models. The Alabama facility operates a resaw operation and automated pallet nailing, a picture of vertical integration. The newer La Porte facility does one thing and does it really well. All the lumber comes precut from a variety of sources including imported lumber from South American producers. It’s kind of odd to visit a pallet plant with little to no saw dust. But the La Porte facility is as clean and efficient as you will find anywhere in the country.
Larry explained, “We went into all of these European power manufacturers, and they are light years ahead of us with automation. They’re not cutting lumber. All of the lumber comes precut. And we wanted to emulate that somehow. And we found this niche that enabled us to emulate the European model.”
Looking at changes in the industry, Hinton predicted, “Pallet manufacturing is going to occur where the customers are. In the past, pallet manufacturing was done in whatever town you were located in and the pallets shipped to the customer base. But the logistics component of pallet manufacturing has become too costly.”
The Howell’s strategy is to keep the manufacturing facility as close to the customer and the population base as possible. Also, they are seeking to produce lumber as close to the source as possible. This precut, ready-to-go material is then shipped to the manufacturing facility for pallet assembly.
Hinton commented, “We recently had this debate whether you should be vertically integrated or not. We are not a proponent of being vertically integrated.”
The Howells believe that it is very difficult to run a sawmill or resaw operation and a top-notch pallet manufacturing facility at the same time. Hinton stated, “It may work for other people. But it doesn’t work for us.”
The La Porte facility opened in 2020, purpose-designed from the ground up to produce petrochemical pallets. The company added block rental pallets to diversify its customer base. As the facility began, it was able to supplement pallets and lumber from the Alabama plant. Hinton Lumber processes 35 truckloads of incoming lumber per day from its own mill in Alabama, imports from South America and source supplies from some other domestic producers. The Howell brothers seek a diverse supply mix to be able to take advantage of ebbs and flows in the U.S. lumber market. The company has been sourcing from international suppliers for the last five years and has worked to develop an extensive network in Brazil and Argentina.
Speaking candidly about the lumber market, Hinton commented, “The global market has changed a lot over the last five years with supply shortages. You couldn’t go with 100% international or 100% domestic sources. We have a big fiber basket in the United States. But it is manipulated by major producers. We will never see super lows, or they will start to idle sawmills like they have done this year.”
The Alabama facility may transition to a more lumber production focus over the coming years or supplemental pallet production.
Why CAPE? – Relationships Matter, Diagnostics Drive Performance
Before settling on CAPE, the Howells visited plants all over the country and Europe. They talked with a variety of domestic and international nailing machinery suppliers. They didn’t take the process lightly when it came to selecting the right partner.
Larry admitted, “I think our ultimate choice on the equipment came down to the relationship we have with Marc Perez. As a co-owner, he can work with his team to ensure our success. The installation went so smoothly because Marc prepared us in advance.”
When the La Porte team installed its first CAPE line back in 2020, the manufacturer expected it would take three to four months to get everything running right. But the process went smoothly only taking three to four weeks before consistent pallet production was achieved.
Hinton added, “We chose CAPE because the way they run their business is the same way that we run our company. If you have a problem, you can get one of the owners to the phone to talk it out.”
CAPE equipment is manufactured in Barcelona, Spain and sold in North America by Jeff Williams and PRS Group, Inc. Local support comes from PRS with technical assistance from CAPE’s team in Spain. Support was a critical aspect of why the Howells chose CAPE.
Larry explained, “Marc Perez has a vision for the future, and it is exciting to see some of the innovation that he is working on, and a lot of that has to do with better maintenance and equipment diagnostic tools.”
Marc Perez, president of CAPE, commented, “That’s part of the focus now. We are trying to improve diagnostics to get more out of the machines. While we are always trying to make faster machines, we have reached a point with the technology where we must be more efficient with the existing equipment. You want to reduce the downtime and use diagnostics to help the maintenance guys identify which parts might wear out soon and need to be replaced. Sensors on the machine can check temperatures and monitor vibrations. This level of diagnostics is coming soon.”
CAPE anticipates having more advanced diagnostic abilities within the next year or two. Strong reporting tools help managers identify bottlenecks and problem areas as well as processes that may need to be re-engineered or material sourcing issues. CAPE reports don’t just provide statistics on the whole line. Analysis can be done on each part of the line from the block area to the mat nailer to the assembly section.
Jeff Williams of PRS added, “Data from the machine can be very useful in a lot of different ways from lumber quality to block performance to nail quality. Your operator may just say the machine had problems. But the data lets you see what part of the machine was underperforming to better identify root causes.”
As the first CAPE Tandem lines installed in the country, they were the initial test case to prove the technology could work well here. The machines produce 320-325 pallets per hour with five workers.
Hinton added about PRS, “Jeff’s guys have done an exceptional job at understanding the Tandem line. Installation is a complex project that the team at PRS and CAPE have pulled off, and now this line is running extremely well.”
Instead of sprinting at the starting line, Perez and the CAPE team have worked with managers at Hinton Lumber to ensure that they are ready for each stage of the ramp up process. As goals are achieved, CAPE removes governors on how fast the machine can run to ensure consistent quality and performance. CAPE is looking for partners that focus on pallet quality and will run decent quality lumber to ensure consistency.
Hinton admitted, “We fit their model. They’re interviewing us just as we’re interviewing them to see if they want to do business with us…We don’t use a piece of number four grade lumber in this entire facility. Really, we don’t use much number three grade material either. They know we are using higher grade material so that it will feed better in the machines.”
In Depth Look at the CAPE Tandem Lines
Today, Hinton Lumber operates three identical CAPE Tandem lines. Each line consists of three nailing heads per line, including a Mach nailing station for producing mats. The lines include robots to grab layers of blocks and deck boards for singulating and feeding into the line.
The CAPE #1 line starts with a robot grabbing a layer of blocks from a unitized load and transferring them to a conveyor where they are singulated. The robot has the ability to transfer block layers to one of two staging sections as well as remove paper layers between major sections of blocks on the unit loads. Singulated blocks are grabbed three at a time and placed on the main conveyor. The robot puts a mat top on the blocks. The tops are nailed together. Pallet tops are flipped over, and a robot places the bottom perimeter base on the bottom. Then, pallets go through the second Tandem nailing head. The perimeter bases are built on an adjacent proprietary machine and stacked. Finished pallets may be corner cut or branded, depending on the design. Pallets are stacked in a typical stacker and conveyed in stacks to the end of the line.
The Tandem line is capable of producing a wide variety of pallet types from stringer to block to even the most complex pallet, such as a CP-7 pallet that consists of five layers. CAPE’s system is designed in modules so that capabilities can be added after the initial installation.
The new CAPE’s are quieter and exert less pressure on the overall line, according to James Eaves, the assistant plant manager. One thing you have to be aware of is the amount of space required for a Tandem line. It takes up a lot more space although it requires fewer operators due to the robotics and automation involved.
Compared to the previous technology, Lorenzo San Miguel, the general manager of the Texas facility, commented, “The intensity and wear and tear on the workers is nowhere near as tough – only 1 of the 4 operators is handling lumber; the others are watching and tending the machine. As a result, the guys are much happier to work here. Turnover is way less.”
Paper Trail Adds Complexity
One of the things that makes the manufacturing process so difficult for Hinton Lumber is the certification requirements it seeks to satisfy. Hinton Lumber is one of the few companies in the country certified to produce FSC certified pallets. This involves specialized lumber procurement partnerships, segregating FSC lumber in its shop, tracking everything with a robust enterprise resource planning (ERP) software and undergoing regular audits.
Eaves stated, “Because of what we do here, the tracking of everything has to be pretty tight. We get audited at least once a month, usually twice. We get audited by ALSC, TPI, FSC and our customers.”
When it comes to FSC, not all types of lumber are the same. Some are 100% FSC lumber vs FSC controlled. Hinton Lumber uses the PalMate ™ ERP to manage inventory, production, billing, shipping, staff/HR functions, etc. Eaves added, “It would be difficult to comply with all our paperwork requirements without PalMate. Every single load of imported lumber for example has to pass through U.S. Customs.” The ERP also makes the audit process much easier.
The Howell brothers have been PalMate customers for 20 years although they didn’t fully implement the solution until 2020. Hinton said, “The industry is changing where data is critical…What we are seeing is a push to acquire data and connect various parts of our operation.” Sometimes companies are capturing data that they don’t know how to fully use but they believe will be helpful in the future.
Eaves commented, “We have worked with PalMate to connect with our marine trafficking system to locate specific cargo ships so we can better forecast import lumber shipments.” Full traceability is key to ensuring adequate sourcing across the globe as well as compliance with various standards and requirements that Hinton Lumber must meet. The ERP helps connect various aspects of the business into one system.
Continuous Improvement – Not Standing Still
From the moment the CAPE machine arrived, Hinton Lumber has been thinking about how to improve the line. Larry said, “We’re adding to the machine now. We’re adding block in feeders on the backside…Then, the next automation for the CAPE machine is to put an automatic strapping line at the end of the stacker.”
Currently, Hinton Lumber has to manually strap every CP-7 stack that comes off the line. Automatic strapping is not very common in the United States, but it is standard in Europe.
CAPE offers a number of add-on modules, such as corner cutting, branding, stenciling, rotators, an auto loader, banders, etc. Each unit is plug-and-play because all CAPE lines come prewired for easy integration of special modules.
Better automation and reporting also results in better lumber quality control. The CAPE line is equipped with sensors that detect the length and ensure the proper board dimension. Perez explained, “We are helping some customers to detect critical tolerances. For example, the length is crucial on the mat nailing machine. We are already checking for this on the La Porte, Texas machines. Our machines check for the correct length. If boards are too short or long, the boards are rejected.
Sometimes you think deck board variance is much smaller than it really is. These differences impact how well a machine runs in addition to the consistency and quality of the pallets produced. Beyond size, the CAPE sensors look for wain and large knot sizes.
Jeff Williams and the PRS team also helped Larry and Hinton solve mold treatment issues with an innovative dip tank design. Hinton retold, “I couldn’t find exactly what I wanted at the time. So, I asked Jeff to help design a prototype that would dip an entire stack at a time.” Hinton Lumber uses a moldicide for some customers to completely encapsulate the pallet.
Taking the automation challenge up a notch wasn’t easy. But the Howell brothers knew they needed to look toward advanced automation to solve the labor challenge. Hinton admitted, “I know one of the things that scared us the most turned out to be fairly easy and that was the robot.” Beyond just connecting a robot to the line, CAPE’s advanced control system ensure proper coordination between the nailing line and the robots doing various functions. CAPE has sold lines in 38 countries, and its commitment to solving customer challenges is what has made the company so successful.
Perez said, “You have to know why the customer calls to improve your processes. It’s all based in relationships.”
Looking to the future and what technological advancements could be a game changer, Larry predicted, “I think the next big innovation that we are going to see is truly autonomous forklifts. Not just an AGV, but a true autonomous forklift. That technology doesn’t exist yet unless you have millions to map out your whole facility. That will be the next gamechanger for us.”
The Howells set out to run a different business focused on challenging pallet designs with strict lumber requirements. They are successfully doing it each day. And the innovation never stops.
