The pallet industry has been a work in progress throughout its existence. Over the last 30 years, the industry has seen a shift from a manufacturing emphasis to one of recycling. And more recently, the industry has embraced pallet-related services. While the heart of the business is still about selling pallets, it is now taking a further step towards an eclectic mix of customer-centric solutions involving pallet management, dock sweeps, multi-material recycling programs and more.
One of the exciting aspects of this evolution is the impending extinction of the “cookie cutter” approach to doing business. Increasingly, providers are piecing together unique, creative solutions specific to their customer base and local opportunities. While more and more recyclers will help alleviate their clients of old cardboard or shrink wrap, reports from the field suggest some surprising approaches to revenue generation as companies take on services ranging from the decommissioning of old refrigerators to the recycling of polystyrene foam, to the warehousing and repair of reusable shipping crates.
One company at the forefront of this trend is Green Star Pallet and Recycling based in Dunkirk, New York. “Opportunities emerge from our customer dialogue,” explained Matt Swank, co-owner of the enterprise. “We ask how we can wrap our solution around their needs.”
“We want to be more than just a supplier to our customers,” adds co-owner Brooks Curtis. “We want to be a trusted advisor to them as it relates to their supply chain needs. If we can’t provide a solution to them, we will leverage our national network of service providers to assist them.”
The core business of the company is pallet services, including recycling, new custom pallets, brokerage and pallet management, although Swank prefers not to use the term “broker” – a label more closely associated with a transactional relationship than one that is solution-centric. As a part of this mindset, the company has embraced the recycling of other materials, as well as taking on a facility in North Carolina where it provides a range of services to the owner of a reusable plastic packaging pool.
Green Star Pallet started out small. “We began operating in a two-car garage, repairing around 100 pallets a week,” commented Curtis. “We quickly grew into leasing 10,000 and then 15,000 square feet and processing 3,000 to 4,000 pallets a week. At the end of 2015, we were fortunate to be able to buy our own four-story 120,000 square foot building. We are currently processing around 6,000 to 7,000 a week there. The multiple floors allow us to divide the different segments of our business and operate more efficiently.” Pallets are moved between floors by forklift.
Swank stated that Green Star’s business plan has been to focus on providing service to custom pallet niches. As a result, the company to date has not invested in automated assembly equipment. Their machinery includes bandsaw dismantlers, compressors, saws and pneumatic nailing tools.
The company’s original intent was to start a second pallet operation in Charlotte until they received a better offer. “We had every intention of just operating a pallet recycling business,” Swank said. When they were asked to perform depot services for a reusable packaging fleet, however, they switched gears and accepted.
Although the company’s first emphasis is pallets, the recycling of various materials has evolved from the company’s commitment to customer service. “We listen to our customers, identify their needs and goals and determine a solution accordingly,” Swank stated.” If we can’t offer the solution, we want to be the resource that can connect them with who can.”
Green Star relieves customers of scrap wood and lumber, cardboard, scrap metal, and a range of plastics as part of its commitment to meeting customer needs. Swank described their current plastic recovery as roughly 40% HDPE, 30% PP, with much of the balance being compression-type plastic. The company can help businesses generate more revenue for their scrap plastic by consolidating their material with scrap from other operations. “We can combine scrap from Company A with Company B and with Company C. This allows us to drive a higher price than they would get on their own when they aren’t a big fish in terms of volume.”
A particular challenge for scrap material recycling over the past few years, however, has been the global collapse of prices that has put considerable stress on the recycling industry as well as municipal recycling programs.
“The market certainly took a pounding,” Swank commented. “When markets are high, things are easier. Customers are willing to accept a variety of material and are more flexible. When the market is tight, you need to find out exactly what customers want.” Quality assurance is becoming increasingly important in scrap markets.
In support of their scrap recycling business, Green Star also buys and sells used corrugated gaylords, which are commonly used for shipping scrap.
Curtis noted that Aaron Nolan has been critical to the successful launch in Charlotte. “Aaron helped get our New York facility off the ground and then moved to North Carolina to open our processing and recycling facility there,” he said. “He currently manages the day-to-day operations of both facilities out of the New York plant. We are looking to expand his role in the future and hopefully open a couple more service centers.”
The Charlotte business is operated out of an 18,000 square foot facility and has two components. One involves the storage and relocation of wooden pods, including disassembly and assembly. The other aspect involves depot service work for a range of reusable packaging, with products ranging from handheld crates to bulk bins. Services include sorting, cleaning, replacement of damaged components, plastic welding and storage. All assets are RFID-equipped and are tracked as they move through the facility.
The young company has benefited greatly from friends within the pallet industry. “We can’t mention enough the benefit we received from that support team (of business colleagues) who repartnered with us and as a result, allowed us to grow more quickly,” Swank emphasized.
“We were both very fortunate to work for Steve Curci at RPL,” stated Curtis. “He really gave us the opportunity to spread our wings and build relationships across the country. He taught us the importance of treating not only our customers with respect but people at all levels within an organization. You never know where someone is going to end up working.”
Matt Swank also singled out Chuck Hoppe at Avid Pallet as an inspirational partner to Green Star. “He not only provides years of experience but has gone out of his way to educate, coach and mentor our growth,” he stated. “So many people have impacted our growth, and we appreciate and take the opportunity to learn from everyone.”a
