MILROY, Indiana – The business philosophy at Hoosier Pallet can be summed up in one word – partnership.
More than just a pallet supplier, the Indiana-based pallet manufacturer and recycler strives to solve a wide variety of challenges for customers. And the company continues to invest in technology enabling it to keep pace with the competition. Its latest investment is a Viking Voyager high-speed nailing machine that has helped the company boost capacity and handle complex pallet designs.
Daryl Keim, business administrator and controller for Hoosier Pallet LLC, explained, “We want to be a partner in all areas, and we strive to solve a wide variety of challenges for customers.” For example, Hoosier Pallet offers vendor managed inventory where it keeps a large inventory of pallets for key customers ready to ship. The company also does on-site crating and custom built packaging and has even handled rigging when the job requires it.
Keim added, “We have a custom machine shop and have even built parts for customers at the last minute when they got into a bind. We want to be the person that customers call when they have a lot of related problems, not just for pallets.”
Viking Voyager Dual Board Hoppers Eased Operator Fatigue and Stress
Hoosier Pallet added a Viking Voyager high-speed nailing machine in May of 2024. Keim recalled, “We were maxed out in production. So, we started looking around and a few machines caught our eye.” After visiting Savannah Pallet and discussing the pros and cons of the machines with operators who had made the Voyager really work for them, Hoosier Pallet’s leadership team selected the Voyager. Keim explained, “We decided on the Voyager because of the dual hopper design. We do a lot of pallets that have like a 5-1/2, 3-1/2 mixed top deck boards where it’s really difficult for an operator to keep up. So that was really a big selling point for us as well as the lead time.”
Keim noted, “The Voyager is just a different machine from anything Viking has ever offered. The pallet is very stable as it moves through the machine because there is a chain under each of the outside stringers instead of it riding on the deck boards.”
After running the machine for a while, Hoosier’s nailing team found that they liked the one nail bowl because it is easier to keep full.
Hoosier Pallet bought the 25th Voyager produced. What the pallet manufacturer learned from the start is that the lumber quality is a big factor when it comes to smooth production with the Voyager. Keim noted, “With most of our pallets, we run 5/8 deck boards or thicker. We produce a lot of specialty pallets on the Voyager. These are normal pallets that we drill holes in the top deck boards using CNC routers. The lumber quality, as well as the board placement, has to be true to the specs so that everything lines up with the holes.”
The Voyager production team works nine hour shifts with two 20-minute breaks. Operators may only produce a couple hundred of each design before changing over to a new design. Keim said, “We typically hit 2,000 pallets plus per day with 3-5 size changes per shift. We could get greater production if we ran longer runs. We are happy with the production from the Voyager. Its best day has been 2,800 pallets in a shift.”
Keim added, “We have set up the Voyager to run as few as 80 pallets for one size. It’s not a big deal for us to quickly changeover to a new size or design. Those resets take less than ten minutes. The process is very simple and efficient.”
Hoosier Pallet’s management team has also found Viking’s Smart Data application to be very helpful when it comes to monitoring production via a laptop or smartphone. Keim explained, “From a management standpoint, Viking’s Smart Data has done a lot to help us track production and break out specific pallet designs. It helps us troubleshoot and determine which pallets we can only effectively produce using our in-house lumber vs precut material.”
The nailing team had to overcome some initial obstacles. Keim stated, “This machine is different than the other Vikings we ran in the past. They told us that there is a minimum of a three months learning curve. You have to completely retrain the operators. You cannot expect to take people from a 505 or a Duomatic and expect them to go run a Voyager the same way. It just doesn’t work.”
The reason is simple – the auto recovery feature. With older machines, the operator may try to use a crowbar to dislodge a jammed pallet, but that is hard to do with the dual hopper design. The Voyager is designed to let the machine clear the jam. But too many operators don’t let the machine fix this problem on the touch screen. Their intuition leads them to do too much, which only makes the situation worse.
Keim noted, “The auto recovery feature works well. The operator just has to learn new responses to typical challenges.”
Viking has done a lot to help Hoosier Pallet get up to speed on the machine. Keim noted that Viking personnel came out to provide troubleshooting, updates and training as well as receive feedback. Keim said, “Viking has been great to work with. They have received our feedback and made changes to the machine.” For example, Viking has updated a number of sensors that helped the operator tremendously. Also Viking is working on some changes to the nail delivery system.
Besides the typical features that come standard, Hoosier Pallet added the optional inkjet printer for branding and ISPM-15 marks. Keim noted, “We really like the inkjet printer option. It is robust with great quality printing. It is mounted on the intermediate conveyor and can adjust automatically with the intermediate conveyor. There is no additional stand or manual adjustments required.”
The company has been very successful when it comes to growth and attracting new business. Keim admitted, “Even with the new Voyager, we are at about 90% capacity most of the time. To set ourselves up for success, we are looking at buying another Voyager from Viking. Now that we have learned it, we really like the machine and the service and support we have received from Viking.”
Longstanding Relationship with Viking
The company started as a joint venture between Abe Keim, Daryl’s father, and Abe’s brother, Steve, both having been d
airy farmers. They decided to do something different and started the pallet company in 1994. They ran the business for several years, until 2001, and then split up when Steve wanted to go with more automated equipment and Abe wanted to stay focused on specialty pallets, crates and packaging by hand. Daryl recalled, “My father and his brother had different visions for the future. Basically, my dad took the specialty stuff, and Steve took the standard pallets.”
Hoosier Pallet moved to Abe’s property with Abe and two employees. Then after a while Daryl got out of school and joined the business. Then in 2014, Hoosier Pallet started its own automation journey.
Early in the company’s history much of the work was done by hand. It had a few chop saws and resaws to cut components for specialty pallets. Then the company bought its first Viking nailer in 2014, a used Viking Champion 304 that needed to be rebuilt. The company still has the machine today. In 2016, Hoosier Pallet added a Viking Duomatic, which is still in operation.
Operational Overview
In 2012, Hoosier Pallet put in its first sawmill. It was a Baker band mill. About four years later, the company installed a new Hurdle circle sawmill. It is still operational and will be moved into a new building with a Wood-Mizer saw line. This facility does not cut any grade logs only low-grade material for pallets.
The Hurdle sawmill processes only random width hardwood cants (3-1/2 and 5-1/2 random width), producing about 10-15% of the company’s raw material. The rest is bought precut both hardwood and softwood depending on the customer requirements. Hoosier Pallet buys about 85% hardwoods, 5% green pine and 10% kiln dried pine.
The Hurdle is a four-man operation that was installed in 2016. Coming off the Hurdle is a Cornell edger. The sawmill does a lot of 4-quarter material that gets processed down into half-inch boards. “We like that the Hurdle is one-unit and was easy to install. It was all self-contained. We produce about 22,000 board feet per day. We could push it harder than we do. But we like the quality we get at that pace.”
In another process, hardwood cants go through either a Brewer gang saw line or a Baker band resaw line. The Brewer gang line is equipped with a Pendu notcher and M2L board stacker. Stringers and deck boards that are 9/16th and above are all produced on the Brewer gang line. Half inch and less material is processed on the Baker seven-head resaw line along with the 5-1/2 inch wide boards. Currently, there is a plan to add another seven-head resaw to boost capacity.
Keim commented about the Baker equipment, “We like the Baker equipment because it is simple to operate and is reliable. It just runs. It is also built well and last a long time.”
The Pendu notcher is equipped with a board bypass option. This system uses the same unscrambler, and it just passes over the top of it and goes to the stacker. It allows Hoosier Pallet to use one line to produce notch stringers or two-way stringers or boards, and use one board stacker.
Hoosier Pallet also has a Producto resaw line to process kiln dried pine. It starts with Newman KM-16 trim saw feeding a Producto splitter saw. Hoosier Pallet bought the KM-16 used. “It was a really old machine; it was rusted and in rough shape. We brought it in, and our maintenance team was able to get it going after a few days of work. The machine runs wonderfully. I was impressed with the durability and the repairability of the machine.”
New pallets are produced on the Voyager, Duomatic or one of three Woodpecker brand nailers. Two Woodpecker Jrs. are used for top frames and small pallets that are too small for the Vikings. The full size Woodpecker came with Milroy Pallet after this neighboring pallet company was purchased following a plant fire. Milroy Pallet also had a recycling operation that became part of Hoosier Pallet.
The recycling division has about 70 trailers and serves a lot of new pallet customers who also need to have scrap removed. Hoosier Pallets doesn’t really target core accounts. The process starts where pallets are sorted for the condition. Pallets that need to be repaired go to a Wood-Mizer Hawg or Smart Products dismantler. After being torn down, boards are cut to size using a Smart Product double-end trim saw. Recycled boards are mostly used to remanufac-ture pallets by hand. Some reclaimed lumber is used in the Woodpeckers on some pallets.
Some pallets are heat treated for ISPM-15 compliance. Hoosier Pallet runs a Converta Kiln wide load system and recently added a BolDesigns heat treating chamber. Keim raved, “The Converta Kiln has been phenomenal. What we really like about it is the fact that is a wide load machine. The bigger size really cuts down on the loading time.”
The trucking division, DK Trucking, was purchased from Daryl’s cousin, Dale, the beginning of this year. It consists of nine trucks with three doing mainly for-hire runs that allows them to reach a greater distance for sourcing lumber.
Customer-Service Focused
Hoosier Pallet employs about 72 people in its various divisions. There are three separate divisions – the new pallet and crating business, the recycling operation; and the trucking division.
Most of its customers are industrial or building materials accounts in the Midwest. Hoosier Pallet even has one customer that it provides pallets for its plants in Mexico. Keim added, “We strive to keep the customer happy and supplied, no matter their need.”
“Our market had flattened out and been very steady over the last year,” acknowledged Keim. “We haven’t had a lot of growth. But we have still been able to stay pretty busy. I think the reason for that is our relationship with our customers. We have some customers who go all the way back to when we started.”
Hoosier Pallet focuses on solutions for specialty pallets, crating and packaging needs. It has one customer that the company builds 82 different configurations for. Keim explained, “For certain customers a truck may have ten different packaging sizes and configurations on it. This particular customer is vendor managed. Daily we take inventory and builds out the next day’s load according to their needs. We have thousands of pallets in stock for these customers ready to go for same-day shipment. Our flexibility and willingness to do whatever it takes sets us apart.”
New Automation Updates on the Way
Hoosier Pallet is adding a new 33,000 sq. feet building to house a new Wood-Mizer board line for processing four quarter boards. In addition the company has worked with Alliance Automation to install a Pallet Max nailer, a specialty nailing machine with a robotic stacker behind it.
Keim explained, “We do a lot of oversized pallets like 4×12 foot wide pallets. So that’s what the Pallet Max will handle. The simplicity of the machine caught our attention. It’s not a machine that takes a lot of training. It has wooden fixtures on it. The Pallet Max will help relieve the stress on our workers with heavy, over-sized pallets.”
Hoosier Pallet is adding automation because its labor pool is only so big in small community. Beyond the equipment, the company is improving its data and business management. It is in the process of adding PalMate® software. Keim pointed out, “Keeping track of everything has become exhausting because we probably have 350 different pallet specs that we actively run. It has become exhausting trying to keep up with all the materials, all the different sizes and knowing the costs. PalMate will better enable us to control our inventory and now our costs and yield.”
In addition, Hoosier Pallet is in the process of adding a new Vecoplan grinder to its recycled division. This machine will be used to turn wood waste into animal bedding. Keim noted, “We liked the construction of the machine and the ability to make animal bedding in one pass.”
Family Business in Transition
Daryl and his siblings grew up around the pallet industry. He began working in the family business when he finished his schooling. Daryl started as a laborer doing various functions and has worked his way up the ladder.
Currently, there are two generations of the Keim family working in the business. Daryl’s daughter plans to join the company working in the office next year when she finishes her schooling. Daryl works in the business with two of his brothers (Wayne and Anthony) and father. Wayne manages the scheduling and production. Anthony, alongside his cousin Dale, oversees the trucking operations for shipping their products as well as for-hire trucking services. Daryl is the controller who assists his father in managing the accounting, financial and admin side of the business. He also manages all the lumber purchasing. Abe does all the sales and quotes for new business. Unfortunately Abe was not available to be interviewed for the article due to medical procedure. Thankfully, he is on the road to recovery.
Daryl commented on working in the family business, “My brothers and I appreciate the opportunity that we have. My father has given us the freedom to make decisions and truly work together as a family. It’s just been really good. God has truly blessed us beyond measure.”
For more information on Hoosier Pallet, call (765) 629-2899 or visit www.hoosierpallet.com.
(ADVERTORIAL)
A Word from Viking, Celebrating 50 Years Serving the Pallet Industry
At Viking, our mission is clear, “Take our Customers to the Next Level,” so nothing makes us prouder than seeing Hoosier Pallets’ remarkable journey with the Voyager nailing machine. It is a powerful reminder of why we do what we do – pioneering new solutions that drive growth for our partners and drive the entire pallet industry forward. The Hoosier Pallet story underscores the true measure of Viking’s 50 years of success: it’s simply our customers’ success.
As we celebrate our 50-year anniversary Viking is not only honoring our past but boldly investing in our future. We launched, “The Viking Exchange,” where customers can list and purchase used nailing equipment on the Viking website. The Viking website draws thousands of visits each month, and unlike other sites that juggle saws, stackers, and other categories, Viking’s traffic is virtually 100% concentrated on pallet nailing solutions. The Viking Exchange is a simple, no cost, no commission way to extend the life of a Viking, or other nailing machines, but most importantly supports our customers at every stage of their journey. Visit the Viking Exchange today at www.vikingeng.com/exchange.
The next era of pallet manufacturing has arrived, and Viking is shaping its future not only through the development and improvement of our innovative equipment but with key partnerships. We recently announced a collaboration with Zira. This partnership brings AI-driven vision and productivity tools that set a new standard in pallet production. Zira’s AI vision system maximizes nonstop throughput on Viking lines, eliminating downtime from operations, and automatically ensuring continuous, consistent quality in every pallet. And this is just the beginning – more exciting partnerships from material handling, block pallet solutions and more, are on the horizon, stay tuned.
We are also looking inward to strengthen Viking for the decades ahead. This fall we celebrated our 50th Anniversary and launched the Viking Ownership Program – a groundbreaking employee ownership platform that ensure the people who build Viking’s future, share in its rewards. A vision held by Viking’s founder Marv Chell is becoming realized.
For half a century, Viking has been privileged to partner with pallet manufacturers all over the world. To everyone who has trusted us since 1975: THANK YOU! You are the reason Viking stands where it does today. We look forward to the next 50 years of partnering with you in building the future of this industry.
– Kurt Larsen and the Viking Team
