CHELSEA, Massachusetts—When it comes to the pallet recycling business, a great location can make all the difference in providing superior customer service. And sometimes, location can be crucial in more ways than one.
When the Encore Boston Harbor project came along a few years ago, it turned out to be a lucky win for a nearby pallet recycler. The glamorous $2.6 billion resort and casino destination drove up real estate prices in the immediate vicinity, including the longtime home of Ruma’s Pallet World. Jim Ruma, who founded the company over 30 years ago, received an attractive offer for his property. It was too attractive to refuse.
New Ownership Team – Selling to Key Employees
The timing was perfect for Ruma, who was looking to retire. With the money he made from the transaction, he was able to offer the company at an extremely fair price to key employees, including Luis “Enrique” Minnig, Hector Martinez, and Queri “Eric” Aguilar. Minnig is now president of the company. Martinez is vice president of operations and Aguilar is vice president of transportation.
It was a deal that made perfect sense for Ruma. “These guys had been working for us for 20 years, and their good performance was the reason that we were successful,” he stressed.
Minnig started working at the company after arriving from Colombia over two decades ago. The company already employed his mother, and he arrived, not speaking any English at all. One of his first assignments was to paint the outside of the building, which he accomplished on his own. In the ensuing years, he went on to learn all facets of the pallet recycling business, honing his English skills along the way.
“He’s been an outstanding employee,” Ruma continued. “He took charge of everything. He was the supervisor. He looked after the drivers, the warehouse, you name it, he did everything.”
The feeling is mutual. “Jim has done a lot for me in the 20+ years I worked for and with him,” Minnig said. “It’s exciting to keep going and grow from all I’ve learned from him. It feels good to be able to keep the company in good standing.”
Taking over the company made sense to Minnig. “I didn’t want to work for a new owner or start all over somewhere else,” he explained. Likewise, he did not wish to see co-workers faced with the possibility of losing their jobs. When Ruma presented his key employees with the opportunity to buy the company, they were confident that it would be successful. “We knew that with the operations we already had in place, our team could keep going.”
From Jim Ruma’s perspective, the new owners hit the ground running. It was a seamless handoff of the business to highly motivated and experienced employees. “He’s a very smart fellow,” Ruma explained, “and he has been a jack of all trades for so many years. So, he sort of just slid into the ownership role. He is able to adapt to whatever situation he finds himself in.”
While it might have seemed like smooth sailing from the viewpoint of others, Minnig recalls the transition slightly differently. “In the beginning, I was nervous. Everything was new,” he said. “I had experience as a supervisor but not much administrative experience. Every day I learned more. Also, English is my second language, and most of what I have learned I have learned on the job.” The new leadership team has benefited from the support of the local Chamber of Commerce as well as the SCORE business mentoring program, an initiative sponsored by the U.S. Small Business Administration. Additionally, Jim Ruma still acts as a mentor and consultant.
Minnig characterized his experience with the business transition when he said, “We want people to look at our story and see that loyalty, honesty and hard work pays off. This opportunity is a reflection of a reward of that and an example to never give up even when things get hard, or you are tempted by an easier road.”
Central Location in the Boston Area
With a staff of 25 employees, the company focuses mainly on refurbished 48x40s, although it found itself making more combo pallets during the extreme pallet shortage early in the COVID-19 pandemic. It also offers refurbished 48x48s as well as custom sizes. It regularly utilizes an outside provider to heat treat pallets as needed to fill orders.
Minnig describes the company’s location as “the best location in Boston.” It is close to the produce market, lots of small distribution centers, and other industries. Keeping it in the area also allows it to continue to serve long-standing local customers.
“Chelsea is a gateway to Boston with three different main arteries leading to the heavy and consistent presence of trucks and delivery drivers,” he said. “There is always a reason to pass through Chelsea and get rid of pallets.”
After the old Ruma site was sold, the company temporarily moved to an inexpensive two-story structure that proved to be impractical for its operations. Its current space, a 30,000-square-foot facility in Chelsea, is a much better fit. Impressively, Minnig notes that the company fully maintained production and its delivery schedule through both moves.
The current building not only protects pallets from the weather, but the open floor plan and six dock doors have allowed it to efficiently run its recycling operation. Incoming pallets are presorted and then moved by pallet jack or forklift to repair tables or to the two-man Smart Products dismantler. “It works great – durable and has lasted a long time,” Minnig said. The company has been using Smart Products equipment for many years. Repaired pallets are inspected by a supervisor and stored inside the building until shipment.
Focus on Customer Service and Growth
The company has made a conscious decision to focus on growing its core supply through improvements to its transport fleet and work with transport contractors rather than invest in production automation at this time.
The rationale is simple. By increasing its core volume, it will be in a better position to make a business case for an investment in automation. As it works to increase its core supply, the company has started attending industry functions to network with others as well as research more automation opportunities.
“We are trying to learn and explore options on how we can realistically adjust and become more automated,” Minnig said.
The company recently purchased another new tractor and now has over 40 trailers. Ruma’s now has six drivers to provide speedy delivery. Beefing up its freight capacity is critical to the reliable delivery of pallets and empty trailers, and ultimately to growing its core supply, Minnig explained. The company prides itself on flexibility and prompt service.
“We have a unique approach to customer care and service as we are fully invested in the whole process from top to bottom as owners and employees,” he said. “We value our relationships and are committed to working hard in order to meet our customers’ needs.”
Minnig stated that the owners have a “very down to earth and honest approach” when quoting and try to provide competitive pricing while prioritizing service. “We are proud to service a number of other small businesses and do our best to support in any way we can.”
Minnig stated that Ruma’s Pallet World is also interested in developing more relationships with national brokers and service providers. To find out more, they can be reached by email at pallets@rumas.com, by phone at 617-389-8090, or by visiting the website at www.rumaspalletworld.com.
