The last year has seen unprecedented times in the pallet nail market. Even amidst shortages and rising costs, Mid-Continent Steel and Wire remains the largest domestic nail manufacturer, and it is a critical player in developing American manufacturing independence for key products, such as construction and pallet nails.
This article covers some of the things that Mid-Continent Steel and Wire is doing to secure its position in the industry as a leader in service and production capabilities. It also includes some testimonials from customers as well as best practices when it comes to managing nail programs and working with nail vendors. Mid-Continent and its MAGNUM® nail brand have developed a strong reputation for quality, especially in the bulk nail market, according to the customers interviewed.
Revamping Its Missouri Production Plant
Over the past several years, Mid-Continent has installed automation equipment and robotics in its Poplar Bluff, Missouri plant to reduce worker strain and streamline operations. These measures are an integral part of how Mid-Continent remains viable as one of the few remaining nail manufacturers in the western hemisphere. Bruce Kennedy, Specialty Products Sr. Sales Manager for Mid-Continent, said, “Taking the heavy lifting out of the equation whether it be manual labor or forklifts, adds to the efficiencies we need to remain competitive. Repetitive tasks such as packing collated nails into boxes have been automated boosting efficiency and ensuring consistent quality in every box.”
Even with automation, Mid-Continent remains focused on improving worker conditions. Kennedy explained, “Making nails is a ‘less than clean’ process not unlike making pallets. Recently, a high-tech dust collection system was added that improves air quality and cleanliness throughout the plant.”
The company also improved break areas and paved parking to further serve the needs of employees. To recruit workers and retain them, Mid-Continent has reinvented its new-hire onboarding and retention programs with improved attendance bonuses, production bonuses and an enhanced PTO and vacation structure. Kennedy added that new 2022 initiatives will refocus on recognition and training.
Enhanced Customer Connectivity and Information
Effectively managing inventory is key for pallet companies because you can’t produce or repair pallets without nails. Mid-Continent is launching a customer app and portal to allow them to track and place orders online from computers or smartphones in real time. Kennedy commented, “The app and portal are in the trial stages with a few select customers with expansion and access to all customers in the near future.”
Additionally, Mid-Continent is currently developing and implementing SalesForce.com as its customer resource management system. Kennedy explained, “This will allow us smoother communication on sales, logistics, customer support, inventory, service, quality, etc. across all divisions of the company, including the industrial channel supporting the pallet and crating industry.”
Top Quality Nails
Mid-Continent has developed a strong reputation in the bulk nail market. Also, over the last two years, Mid-Continent has expanded its capacity for producing collated nails for Woodpecker and Rayco machines. Kennedy said, “We have seen a lot of Raycos and Woodpeckers brought back to life or enter service, and we are working hard to service that market.”
Given the increasing popularity of block pallets in North America, Mid-Continent has also boosted its ability to sell clinched nails. These are ideal for block pallet production on Storti, Cape and Corali machines. Kennedy explained, “Clinch nails are different because they have a lower carbon content and are smaller diameter because they have to be able to bend.”
Quality is the main reason why many Mid-Continent customers have been loyal users of MAGNUM® nails. Christina Fowler-White of D.T. Fowler Manufacturing, a Michigan-based new and used pallet company, said, “Quality is a big reason why we choose Mid-Continent nails. We have tried a couple of other nails through the years, and they all seem to jam up our machines.”
D.T. Fowler runs a number of Viking nailers and has found that Mid-Continent’s bulk nails run very well in those machines. Christina said that little differences in nails can make a huge difference from nail head alignment to the thickness of the nail. Sometimes even the head angle has been off for competitors. But she finds that Mid-Continent delivers more consistency and better quality for bulk nails. Brett Fowler, her brother and co-owner in the business, also stated, “Buying American-made products is a big deal for us too. Most of the Mid-Continent nails are made in Missouri, and we have had a longstanding relationship with the MAGNUM® brand.”
Dean Fitori, general manager of Ace Pallet Service, Inc. in Kansas City agreed that consistent quality is a necessity for bulk nails. He said that he buys both bulk and coil nails from Mid-Continent. He advised, “Quality is paramount with a bulk nail. Lots of people make a decent collated nail. For bulk nails, Mid-Continent is heads and shoulders above anything that I have bought in 30 plus years.”
Some problems with other suppliers Dean remembered include finding rusty nails, dirty nails, debris in boxes, misshaped nails and irregular nails in other brands. He said, “Bad nails or heads that are off center, those nails get stuck in the chucks, and the downtime causes serious disruptions. It isn’t worth it to save a nickel to spend a buck.”
Dean admitted, “They aren’t the cheapest and don’t pretend to be. But I have used every kind of bulk and coil nail, and I don’t think that there are any others that are better.”
Above and Beyond Customer Service
Many of the customers interviewed identified ways that Mid-Continent staff has done things to ensure nails and tools function well from new equipment setup to maintenance programs to replacement tools to vendor-managed inventory.
Wade Kohler, president and owner of Pioneer Packaging in Portland, Indiana stated,
“Mid-Continent Nail has done a fantastic job for us for many years. Our sales rep is Brad Kinning, and our service rep is Greg Zarifis. They have both went above and beyond just selling nails and servicing our tools. They also help us set up our automated nailers and keep them running smooth. Just recently, we installed a used nailer and Brad took time out of his busy schedule and spent most of the day working on it for us to get it running smooth. Not many suppliers would do that in any type of business. They are always there for good advice as well on many types of equipment to buy or not buy. They see a lot of different brands of machinery out in the field and can usually give us some good direction as to what works best and who to contact.”
Problems don’t always occur when conditions are ideal. Kohler explained, “No matter how bad the weather is, extreme cold, heavy snow or freezing rain, Mid-Continent still shows up on the day they were scheduled.”
Mid-Continent has ten sales and service vans in the field serving customers in Michigan, Ohio, Indiana, Missouri, Illinois, Southern Iowa, Western Kentucky, Nebraska and Kansas. The company plans to expand its geography in the coming years. These sales and service techs repair pneumatic tools and perform vendor managed inventory to ensure customer supply.
Some Mid-Continent customers are located far away from the range of a typical sales/service van. The company recently relaunched a tote program called MAGNUM® Reload. Kennedy explained, “This program allows us to service more customers with the same number of boots on the ground.” In Mid-Continent’s old program, customers had to send the tools in for repair, which could take a week or more. This new program allows customers to order re-manufactured pneumatic tools from a pool stock that arrives in a few days; then the customer returns the broken tools for repair. Those tools are then added to Mid-Continent’s pool of ready-to-go re-manufactured tools. The customer gets back up and running faster, and Mid-Continent can keep sales and service vans in areas with higher concentration of customers.
Working to Keep Customers Supplied in Tight Times
While Mid-Continent has no secret stash of nails, through proper monitoring of usage patterns and vendor-managed inventory practices, the company is working hard to keep customers supplied with nails.
Both international and domestic nail supply have undergone significant strain over the last year. Kennedy stated, “Since COVID, we have had massive labor issues. There are four of five major manufacturers in our area that are drawing on a low population of people, For us, it’s not a steel issue. It’s a labor issue.”
Mid-Continent is down 100 workers from its ideal staffing situation. The company has worked to better manage customer inventory levels although customers are having to order more in advance. Kennedy admitted, “The days of just-in-time inventory management are gone and could be a hazard to your business.” Today, customers need to order weeks if not months in advance to ensure supply.
Many in the industry want to know if prices will go back down. Kennedy lamented that transportation costs have gone up about 25% over the past year. The company is able to deliver due to controlling its own fleet of trucks and drivers. But those costs have to be passed onto the customer. Mid-Continent is doing more to attract and retain labor as well as comply with COVID-19 procedures, and that all costs extra money.
Looking at imports, Kennedy suggested that prices are not likely going to change that much this year given the current situations in international freight and logistics. He said, “The price of getting ocean freight offloaded and over-the-road trucking is going to go up regardless of what steel prices do this year.”
Wade Kohler of Pioner Packaging commented, “Many companies have faced material shortages in the past 12 months, but Mid-Continent has kept us in good supply. In fact, we purchased around 200 million nails over the last 12 months from them. We have six large plants that are using hundreds of their tools, and they keep Pioneer Packaging running smoothly without any issues.”
Jim Kesting of Madison County Wood Products, a Missouri-based pallet manufacturer, explained why he sticks with Mid-Continent Nail. He said, “MAGNUM® nails are great for running in our automated Viking nailing machines. We can get our best production out of these machines using a top-quality nail. Mid-Continent has always produced what I needed, and they are very close to our operation and can quickly respond to any situation that arises.” Madison County produces a lot of pallets with hardwoods; a top-quality nail is essential to ensure proper driving of the nail.
Kesting admitted that over the years Mid-Continent has delivered specialty nails upon request although this has become less common of late as the company is working to streamline production to just its top sellers. He is active in working with his sales rep to order in advance and monitor supplies. He joked, “The industry is not in a condition where you can mess with your nail supplier. So, we have found developing a strong relationship and sticking with a proven vendor is the way to go.”
Vendor-managed inventory has become a popular service for many Mid-Continent customers. Laura Davis, plant manager for Kamps Inc.’s Versailles Ohio plant, commented about Mid-Continent after returning to the supplier. She said, “We went back to Mid-Continent for its competitive pricing and service. We do vendor-managed inventory where Mid-Continent’s sales team monitors my needs and keeps me in nails, even during the pandemic. This service takes one more thing off my plate. I never have to worry about having enough nails.”
Tips for Maintaining Pneumatic Nail Tools
A little bit of maintenance can go a long way when it comes to maintaining pneumatic hand nail tools. It all starts with three things – air pressure, lubrication and dry air. Keeping air lines clean and maintaining proper air pressure ensures that hand nailers work well and drive consistently with the right force. You want dry air lines without moisture.
Kennedy explained, “Proper lubrication – depends on the time of year. When there is a change of season from summer to winter, condensation shows up in air lines and compressors, and that causes lots of problems.” He added, “When going from winter to summer, people don’t lubricate their tools enough, and they get super dry. We see parts consumption swing a lot in the spring and the fall due to weather changes.”
Mid-Continent’s techs can help fix hand tools although it is a good idea for your workers to do little things like checking the air lines regularly and handling basic lubrication.
Davis of Kamps commented, “Mid-Continent does a real good job making sure that we are taken care of. Its service is phenomenal…COVID brought a whole lot of problems to everyone’s life, and I was very happy that nail supply and service was not one of them.”
Editor’s Note: For more information on Mid-Continent nails, fasteners and pneumatic tools, visit http://www.magnumfasteners.com/ or call (800) 867-6245.
