While walking around the pallet industry meeting held in San Diego in March, one thing stood out to me – the number of changes that have taken place in the North American pallet sector. Very few people go back as long as I do. The old guard has retired, sad to say, passed away, or just don’t travel much and prefer to stay at home and let the young bucks attend industry gatherings.
First, our industry and its associations have grown significantly. National Wooden Pallet & Container Association (NWPCA) meetings used to draw fewer companies and their leaders. In spite of the fact that NWPCA meetings in the West often attract fewer registrants, this year over 500 people attended. I can recall years ago when the number of attendants for a meeting was often closer to the lower 300s. WPA meetings were once closer to 50 to 75 attendees, whereas they now draw 200 to 300 people. The bottom line is that more people are attending pallet industry functions. Why? In my opinion, the biggest reason is the importance of pallet networks and brokers to the industry. You are no longer just selling the product to the manufacturer down the street. Most pallet companies buy and sell some loads to brokers, pallet management companies or possibly even pallet rental operations.
These gatherings have become important as pallet companies look for lumber, cores, pallet orders and more.
Another noticeable trend is the number of women who are in key positions in the industry. This has been particularly true in the WPA where some of the association’s top leaders are women. Increasingly, women are running companies or taking top roles, such as managers or key sales personnel. Women tend to bring different skills and expertise that have been lacking in our industry.
This year one interesting family fact is that Jordan Piland of Williamsburg Millwork Corp. took over the reigns as the new Chairman of the NWPCA Board. The Pilands are the second family to have three members serve as Chairman of the Board, including Jordan, his father Raymond Piland III, and grandfather Raymond Piland Jr. The other family that has had three family members serve as Chairman are the Binleys from New York – Clint Binley, his father Art Binley III, and grandfather Arthur Binley Jr. I am fortunate enough to have known the two youngest members of these two families. This kind of dedication to the pallet industry by members of our industry has truly been a blessing to many pallet companies across North America and even around the world.
Even as the industry changes, the backbone remains families who are dedicated to their businesses as generations work to continue the legacy started by their predecessors.
This transition reminds us all that we are stewards of our own legacy and impact. What we do today will lay the groundwork for the industry tomorrow. So, what will it take to succeed in the future in the pallet industry?
I believe that successful companies will share the following key capabilities – technology and automation, human resources and labor management, a strong network of suppliers and partners, and a solid reputation with customers and others in the industry. These things are not new. But how you go about improving them is changing.
Technology and automation will become increasingly important as labor becomes harder to find and customers become increasingly picky about quality and delivery schedules. Technology includes everything from customer data to robotics to consistent production quality through automated production lines.
Wood is among the most variable products used in manufacturing. That is one of the reasons why advanced automation technologies have been difficult in the past. We are starting to see major strides in automation, but it does come at a cost in terms of dollars, floor space and better lumber sortation and management. You have to really inspect every aspect of your company to see where more automation is the answer. In some cases, you can simply use lean management principles to optimize your current processes. Look for the Enterprise to continue to cover automation, technology and lean topics to help you improve your bottom line.
If you want to get the most out of your plants, it all starts with the people. That is why the most successful companies will develop a strategy to identify standout employees and develop them. If your company hasn’t tapped someone to lead your employee development efforts, that should be your next hire or promotion.
Increasingly, pallet companies are not alone, and the strength of your supplier and partner network can mean the difference between delivering on your promises or falling on your face. That is why you need to find your own connections and some companies have even developed their own capabilities from harvesting to timber processing and resawing operations. How secure is your supply of logs, lumber or cores? How flexible is your operation to respond to various sizes or species of logs and lumber?
The last key area where pallet companies must succeed is building a strong customer reputation. This goes beyond simply delivering on your promises. Have you empowered lower-level employees to identify quality concerns? What quality promises do you offer customers? How do you connect with customers so that they can quickly know the status of their orders? Data and information will become a bigger part of customer service. Many pallet companies are looking into ways to allow for online ordering as well as offering customer portals.
As the industry moves faster, the Pallet Enterprise exists to help you succeed in the future. Think of us as your idea factory and research department all in one. Let us help you. If you have a topic or concern that you would like for us to investigate, please e-mail the idea to edb@ireporting.com. We will get right on it…
