SILSBEE, Texas—Wooden Pallets, Ltd. celebrated its 40th anniversary in 2023. Led by Robert Worthey, its second-generation owner and CEO, the company continues to expand and prosper, following the vision of its founder and Robert’s father, Ed Tom Worthey. Its focus is on consistent quality and efficient operations, aided in large measure by its collaboration with Viking and other crucial suppliers.
The company predominantly builds specialty pallets and some GMAs on its seven Viking Turbos. It also fabricates oversized pallets and smaller runs on a hand-nailing line. Wooden Pallets comfortably manufactures 18 to 23 loads per day with the capability of flexing up to 25 loads per day as required to meet customer needs. Another plus is that it keeps ready-to-go loads in inventory as customers require them. Usually, Robert explained, no two customers use the exact same pallet specification, although it sells GMAs through pallet brokers. In particular, it supplies a lot of businesses in the petrochemical sector.
Wooden Pallets serves a wide market. The plant is located in Silsbee, near Beaumont and Port Arthur, less than two hours from Houston. It also moves a lot of loads into the Dallas-Ft. Worth area, utilizing its fleet of 15 trucks, 13 flatbeds and six vans for in-state deliveries. Wooden Pallets also ships as far as Baton Rouge, LA, with its road equipment. Outside carriers make all other out-of-state deliveries.
Reliable quality is a must. “We added another quality manager to our team two years ago, which has improved our quality even more,” Robert stated. “I feel confident if any potential customer may have any questions or concerns about our quality and service to please check with one of our customers.” The company is happy to provide referrals.
The company employs a mix of internal sales and works with some pallet brokers. Wooden Pallet has established some solid relationships over the years with a number of brokers. The company appreciates the orders and the reliable payments. “Pallet brokers get us a lot of business,” Robert acknowledged.
Inbound Sourcing and Processing: A Focus on Maintaining Supplier Relationships
Wooden Pallets Ltd. purchases a range of hardwood cants, KD pine and green pine lumber that it processes to meet its material needs, in addition to buying cut stock. As is the case with many pallet companies, the percentage of hardwood consumption is declining. While it was around 75% back in 1983, today, hardwood accounts for roughly 35-40% of material usage. The green pine component remains fairly stable, but KD pine has grown significantly.
Earlier in his career, Robert directly oversaw mill sourcing. He built strong relationships with hardwood, green pine and cut stock suppliers over the years and actively maintains them. “We work very hard with our hardwood suppliers to keep them in business,” he said. For example, if lumber inventory starts getting too high, Wooden Pallets avoids shutting off supply completely. “They’ve got employees they have to keep, and we completely understand that necessity,” he continued. “So, we limit them instead of cutting them off. I take care of our lumber suppliers.” For example, Robert builds closer connections by inviting them on fishing and hunting trips.
Wooden Pallets processes lumber on eight saw lines. Line #1 features its latest investment, a new Newman PM 1200 planer. Installed in June 2023, the new machine has had an immediate impact. “Our maintenance department had to build a sub-base for it, and we completely installed the machine ourselves,” he explained.
After installation, Newman came out for startup and training for a week and a half. “The planer is running like a top. We have it set at 500 linear feet per minute,” Robert said. The quality of the lumber coming out of the new planer made an immediate impact throughout the entire shop, helping to reduce production time on all of the Viking 505s.”
Michael (Woody) Woodson oversees machinery procurement for Wooden Pallets, joining the company a few years ago with extensive experience in wood products. He was particularly enthusiastic about the Newman machine. “They basically redesigned the Newman to fit our space in our shop,” he said. Another plus, he noted, was an order lead time that was six to eight months sooner than other suppliers. “They have been awesome people to work with,” he said.
In aggregate, the company runs eight trim saw lines set up to handle the range of lumber they purchase. Notable equipment includes eight Newman KM-16 trim saws, six in line with Cornell center split resaws. Trim saw line #4 features an inline Baker sizer bandsaw for cants, while saw line #8 goes to a Cornell gangsaw. Wooden Pallets runs older Cornell gangsaws as well as Pendu gangsaws. Newer Pendu gangsaws were added to process larger material, especially 7x9s. Three Baker machines handle notching requirements. Currently, the company is awaiting the arrival of two more Baker double-head band saws.
Wooden Pallets is also in the process of updating its heat chamber. It has completed control and recording upgrades with the Nyle system and will soon upgrade to a Nyle burner.
Nailing Operations Feature Viking Engineering
Seven Viking Turbos shoulder the pallet nailing load, along with a manual nailing line for oversized pallets and small orders. The company continues to enjoy success with Viking and has chosen to buy more of them as production requirements increase. “The Viking machines just put out pallets so fast, and we don’t have many breakdowns with them,” Robert explained. “And they’re easy to keep maintenance on.
“The service has been excellent,” Woodson added.
The company has had a long relationship with Kenneth Rose, a Viking employee who originally worked as a millwright for another Silsbee pallet company servicing Vikings. “I’ve dealt with Kenneth Rose for 17 or 18 years now,” Woodson noted. “I’ve always had nothing but professional service, and the machines are great. I’ve always had the best luck with them. I just like dealing with the Viking people.”
Woodson tips his hat to the company maintenance staff for keeping the Vikings humming. Attention to regularly scheduled maintenance and ensuring that wear parts are in inventory are critical to preventing downtime. “And if something strange comes up, a breakdown that’s not a regular wear part, then they are able to get it next day to us so we can get right back to going,” he said.
Wooden Pallets, Ltd, – A Growth Mindset from the Beginning
After school, Ed Tom Worthey had been involved in various businesses with Sherman, his older brother, including reupholstery and window installation. Eventually, the brothers started a hardware and lumber business in Silsbee, which led to requests for pallet building. Responding to that demand, the brothers outgrew the back of the lumberyard. Eventually, they launched a pallet business together, but in 1983, Ed Tom decided to start his own company, Wooden Pallets, Ltd.
The business grew quickly, and Ed Tom was passionate about company growth. “He loved expanding more than he did building pallets,” Robert recalled. “He loved pouring concrete.” Robert, still in school, worked at the plant after school and in the summers, except for one summer when he worked at a supermarket. After college, Robert began working fulltime at Wooden Pallets and has been with the company ever since.
For several years, Tonya and Teressa, his twin sisters, also worked in administrative roles at the company, but subsequently sold their ownership positions to Robert.
As the current CEO, Robert is mindful of carrying on his father’s vision of company growth. He feels a sense of responsibility for the 200 employees making a living from the business. “I figure it’s my job and my goal to keep this place afloat. And it’s something I want to do. Not just afloat to get by, but to be doing good – really good.”
Robert characterized his father as a hard worker who arrived at the plant each morning at 5:30 a.m. and who was very much a “hands-on” operator. Now, guiding a much larger company, Robert wisely leans on his leadership team to keep the business on course. Aside from Woodson, Worthey singled out Ramon Llanes as playing an important role in maintaining production.
“I take the approach of letting my managers in the plant, salesmen and CFO, including our office staff, manage themselves,” Robert commented. “We have a written job description for each of our managers. In my opinion this is the very best management and office staff we have had since 1983. With a trustful team, I can go to doctor’s appointments in Houston or my wife’s appointments and not worry about having to get back to work that day if I don’t want to. Also, I can take off some Thursdays or Fridays on hunting trips or a week’s vacation without having to call in every day to make sure that things are running okay.”
His advice for other pallet company owners is not to get in too big of a hurry and find out as much as you can about a manager, office staff or CFO before hiring them. He recommends hiring them for a probationary period to see how they perform – and being sure to discuss the probationary period with them so that if they aren’t what you expected for your team, the termination procedure is a lot easier.
Looking ahead, Robert is following in his father’s spirit with plans for pouring more concrete in the near future to accommodate more trailer and truck parking. He also recently brought on board Patrick Wells as a new sales person. The 35-year-old University of Mississippi graduate came from outside the industry and has injected some fresh ideas about how to update the company’s marketing efforts. “Patrick has brought fresh marketing ideas to the company and recently updated our website,” Robert commented.
“I enjoy this company and the employees,” Robert concluded. I have been here for over thirty years. I plan on working until I am at least seventy.”
For more information, visit www.woodenpalletsltd.com or call (409) 385-1234.
