What you don’t know about your nailing and fastening systems could be hurting your bottom line. There is a lot more to success in your nailing operation than just buying low-cost nails. From your air handling system to the quality of the pneumatic tools to proper maintenance practices, and Southern Fastening Systems (Southern) understands all the key aspects to nailing success. The company, which has become one of the largest independent nail suppliers and service providers in the country, offers a high quality of service that goes all the way back to the company’s founder, Steve McKinney, who himself started out in the pallet business.
Southern began in the 1980s as a division of McKinney Lumber, which operated a sawmill and pallet operation. Joe McKinney, Steve’s brother and president of McVantage Packaging (the current McKinney pallet operation), said, “Southern was originally formed to help us save money on our pallet nails. We were going to hire one salesman with the objective to do just enough business to keep our distributorship, and we were going to buy our nails at cost.”
The McKinney family was successful in the collated nail business beyond their wildest dreams in that they have built one of the largest nail distribution and service companies in the country with 80 locations in 17 states. Southern has also developed a national accounts department that services large industrial and construction accounts nationwide, including pallet companies.
Jim Whitley, the president of Southern, explained, “The account gets what it wants. One billing process. One price and the same quality service we have offered in a large geographic coverage.” In areas where Southern does not have service representatives, it will work with other local suppliers or vendors to satisfy customer requirements.
Commitment to service has defined the company since its beginning thanks to the mindset that Steve McKinney brought to the business. Steve passed away last year and has left a strong legacy in the company that he built. Joe explained, “We started with the industrial side of the business — furniture construction, crating, pallets, etc… And the reason for our success is we provide service. We don’t look at it as we are selling a product. We are selling a service – we have to keep that tool running. As a pallet builder, when my nail guns go down, I am out of business.”
Southern offers a wide variety of pneumatic tools and nail brands including: Paslode, DUO-FAST, Hitachi, MAX, Senco, Stanley-Bostitch and Mid Continent Nail. Whitley commented, “By having all the major nail lines and brands, we can provide the best tool and nail for the situation. There is no one tool or nail that can do it all. By offering a wide variety of options, we can connect customers with the best solution at the best price. We try not to push something even if we make more money on it if that tool won’t work well for the customer.”
Fixing Typical Problems for Pallet Companies
Beyond simply supplying nails, Southern has developed a reputation for solving customer problems and boosting productivity at customer facilities. Southern will help customers evaluate their current situation and identify problem areas covering everything from the air handling system to maintenance practices to the type of tool used. The best metric to measure the effectiveness of a hand pneumatic nailing system is the downtime associated with broken tools. Whitley explained, “We typically expect 20-30% more productivity due to less downtime with our solutions.”
Whitley added, “The main problems we see in pallet mills is the air flow to the tools. Air tools are designed to run off good, clean, dry air. An operation can have a good compressor that is putting out a lot of air. But it may not have the volume that is needed by the time the air gets to the tool.”
In the South, high humidity and other factors can impact the air compressor and air line so that by the time the line actually gets plugged into a tool, it may be blowing as much water and dirt into the tool as it does air.
Whitley stated, “The number one thing we do, particularly with the larger mills, is that we visit the air system. We want to make sure that the system produces the right amount of pressure as well as the right volume of air at the point where the line plugs into the tool.”
A lot of factors can effect performance. The air lines may be undersized. There could be too much moisture and/or dirt in the line. Frequently, Southern recommends separators that catch the water and remove it from the line. The pneumatic tools may not be oiled and lubricated appropriately. Surge tanks may need to be added to ensure an adequate amount of air pressure at the tool.
“Pneumatic nailing tools have rubber parts running inside metal, which produces a lot of friction. We recommend in-line oilers so that the tool gets oiled enough. The best way to ensure that a tool gets properly oiled is to have an in-line oiler so that the tool gets the right amount of lubrication each time it fires,” Whitley stated.
Even with the best tools and the best maintenance program, you will have some breakdowns that is why regular service visits are critical for maximum performance. When it comes to longevity of the tools, having the right service matched with the best tool is optimal. Whitley added, “If you can get a pallet operation good, quality tools with proper maintenance and an effective air handling system, you won’t have that many issues and the tools should last you several years.”
Typically, Southern has found that the tools it provides customers last 7-8 years if properly used and maintained. Each sales representative also acts as a repair and customer service technician too. They come with a toolbox and can fix most basic problems except things like broken housing and handles. Whitley said, “First our reps walk through a plant and check on the tools to make sure they are all working well and can fix any problems as they arise before taking any nail orders.”
Southern typically will set up a regular service schedule to ensure that pneumatic tools are working properly and to deliver new nail supplies.
Commitment to Service
It is one thing for companies to talk about customer service. It is another thing when customers rave about it. And there was no shortage of clients willing to say great things about Southern and its founder Steve McKinney.
One of the company’s oldest clients, Keith Bennett, owner of Kabco Builders, a manufactured home company located in Boaz, Alabama, commented, “Steve was dandy. He was the most persistent, demanding person as far as the quality of the product. Whatever they have to do to keep the customer happy, they are going to do. And that all comes down to Steve’s leadership.”
Southern provided a full-time service technician on site free of charge to Kabco due to its volume of business and needs at the time.
Jim Taylor, president of Best Pallets in Arkansas, has worked with Southern for the past several years. He explained the level of service offered by Southern. He said, “Southern Fastening Systems came on site and helped us set up and diagnose some issues with some Pallet Chief equipment, which is certainly outside of what you would normally expect from a nail supplier.”
He added, “Sales technicians from Southern are here regularly and keep us supplied with a good inventory of nail guns so that if something goes down we can quickly replace it. Southern Fastening has been able to do that at a very competitive price.”
When pallet and crate companies have needed help with new nailing activities, Southern has offered its expertise to help clients figure out the best ways to do things. Taylor said, “Southern has experience in the pallet and crate business, and we rely on their expertise. We started building some large crates and doing things that we hadn’t usually done. And they helped educate us on best practices and how to use bigger nails and using crate type assembly practices.”
Keith Jones, the owner of Spring Hill Pallet in Longview, Texas, has worked with Southern for more than 20 years. His company builds both new and used pallets as well as crates. Jones stated, “I was redoing some stuff in the shops in terms of my compressors. And they helped me design and set up how to run all my nail guns, where to put my major hookups, and quick connects. I showed them my plan. And they helped me design the layout of what I have now.”
He said, “Their nail prices are good, but their service is why I use them. I don’t have to worry about my nails. I have guns go down all the time. But they keep us going. They get stuff to me within an hour or so to fix my problems.”
Quick service and delivery is another major benefit offered by Southern. Lonnie Stout, the crate shop supervisor for Viking Packaging, remembered, “I called them once on a Saturday at six o’clock in the morning. I came in and saw we were out of nails. Southern brought us nails by 8:00 a.m. on a Saturday.”
Expertise and training is another key benefit of working with Southern. It routinely provides safety, maintenance and operation training to customers and their employees. Stout said, “They have helped us many times by informing us about innovative tools that we did not know existed. They informed us about screw guns. They came and set up our entire air handling system in our shop.”
Southern has also provided training on how to oil and maintain guns as well as safe operation for some customers.
Legacy of Service
Jim Whitley is no stranger to the nail business. He started with DUO-FAST in 1980 and owned a nail distribution company in Arkansas before joining Southern in 2003. He explained Steve’s philosophy, “Both Steve and I were firm believers that the service aspect is what drove our business and enabled us to get better customer relationships and better profit margins. Our success is driven by the fact that every sales person on the road has a tool box and is willing and able to fix the customer’s tools right on the spot.”
Chester McKinney, the CEO of Southern and Steve’s brother, added, “What we sell is a service. Our products are merely vehicles that we use to sell that service… We offer the best price, the quality and the service. You can pick any two of the three but you can’t have them all. Over time, you can’t provide all three.”
While Chester said that his company can offer the lowest price due to its size, he said that over time most customers choose the quality and service due to the operational improvement it brings. He told of his employees’ commitment to servicing the customer when a major client had a fire resulting in the loss of its nails and pneumatic tools and despite the fact that there was an ice storm going on in Texas at the time and the roads were virtually impassable. Southern’s staff found a way to quickly get nails and tools to the client despite the logistical challenges.
Offering a personal touch has helped set Southern apart. Joe said, “My brother focused on people. Steve never had a computer or an email address. He dealt with people directly over the phone or in person. And this is reflected by our commitment to service and taking care of your people.”
High levels of service may cost a bit more. But most customers say it is worth it according to Southern. Whitley commented, “You get what you pay for. With us, you will have a quality system that works, and you are not going to have the downtime that you may with cheaper nail options from other suppliers.”
Southern also chooses to work with quality suppliers and brands. When it comes to pallet nails, one of its largest sources is Mid Continent Nail Corp. with its manufacturing facility in Missouri. Whitley said, “We buy as much fasteners as we can from Mid Continent Nail. We like to buy made in the USA products. Mid Continent makes a quality nail, and its delivery times are ahead of the curve.”
Southern also works with import suppliers too depending on price and supply constraints.
Strategic Growth
For a company that wasn’t supposed to get very big according to its original business plan, Southern has succeeded beyond the wildest expectations of the McKinney family. Its family pallet business is still in operation today and is run under the McVantage Packaging name.
The company’s roots in the pallet industry means its management team and key decision makers understand the pallet business and what is needed to make their clients successful.
Joe stated, “A lot of our growth has come through strategic acquisitions. And the reason our model has worked so well is the service aspect.”
The first retail store began in Muscle Shoals, Alabama and the second was opened in 1987 in Huntsville to service the booming building sector at the time. The company grew through both opening new facilities and strategic acquisition. Joe explained, “We would put the right sales person in the area and rent a nearby public warehouse space. Once we get enough business in an area, then we would open a retail store. The sales guy in the store would help handle service needs of existing customers and would also cover any walk-in trade at the store.”
In the early 1990s, the company doubled in size after a strategic acquisition of another distributor that was facing bankruptcy troubles. Today, it operates 80 retail stores mostly throughout the Southeast.
The company did four acquisitions last year and opened up four new locations this year and has an eye toward expansion in Florida.
Commenting on his company’s daily focus, Whitley said, “We think we do it better than anybody else in terms of service. If you do the service right, the customers will stay with you.”
