Penn Pallet's success has rested on its hard working people

When Penn Pallet bought its SMETCO pallet cleaning, sorting, and repair system, it did so for solid economic reasons. According to Sales Manager, Doug Cunningham, the company was looking to be more efficient in serving its customers. "If you stand still, you're going to get run over," he says. "We've always been a company that strives to be at the forefront in servicing the customer. We wanted to stay there, so we invested in the SMETCO system. It has done everything we thought it could do."

Along with purchasing SMETCO equipment, the company was given an additional surprise. Because of its investment, it was awarded "Manufacturer of the Year" by the North Central Pennsylvania Regional Planning and Development Commission.

The Commission is a regional development group dedicated to boosting the economy of North Central Pennsylvania through a variety of enterprise development programs. According to Ron Kuleck, the commission's executive director, the Manufacturer of the Year award is given for a company's "commitment to enhancing economic growth in the community, county, and North Central region."

When announcing the award, Kuleck lauded the company saying, "Penn Pallet has demonstrated its dedication to strengthening its market position and to enhancing the area's economic growth. In addition to upgrading the skills of its workforce, Penn Pallet has grown through capital investments in state-ofthe-art equipment and by identifying and pursuing foreign and domestic markets. This company reflects the Commission's philosophy of enhancing economic development by stimulating growth of existing companies and is a benchmark for others who work for success in this region."

 Doug Cunningham, marketing and sales manager for Penn Pallet.

According to Kuleck, Penn Pallet's dedication to improvement has resulted in significant growth over the years. "Penn Pallet originated in 1976 with six employees. The company now employs fifty-four," he said. "Sales growth has increased 20% annually for the past 12 years, with the company enlarging its client bases from eleven customers in a three county area to more than 30 around the continental United States."

This kind of growth, Cunningham says, is says is possible because Penn Pallet is a believer in automation. "We operate in a very competitive marketplace," he says. "It is absolutely necessary that we work continuously to cut the customer's cost, while at the same time, improve the product we're sending out. Automation is a very important part of this effort. We have consistently poured everything back into the company as we've upgraded."

The company had previously invested in automating its new pallet manufacturing processes and it completed a major building expansion that resulted in 127,000 square feet of manufacturing and warehousing space. The new SMETCO system is the centerpiece of Penn Pallets' repair operations, which now represents nearly three-fourths of the company's total pallet production. "We do a lot of work with the food industry," Cunningham says. "Quality is very important to them. We felt we could do more to provide that quality and to enhance our cost effectiveness. So we went ahead and made the investment after carefully looking at what it could do for our manufacturing process."

The system that was finally decided on for Penn Pallet. according to Ken Butler, SMETCO's Sales Manager, was a custom designed high speed single unit combining sorting, cleaning, repairing, and stacking.

Penn Pallet simply places incoming pallets on infeed to SMETCO sorting/repair system.

Pallets come into the plant, Butler says, and are loaded by forklift onto a 30' live roll infeed conveyor, then forwarded to a stack upender onto a sorting table. A sorting person examines the pallet and decides where it needs to go.

SMETCO sorting station. Automation is gaining rapid popularity in pallet recycling.

After passing through the cleaners, the pallets move on to one of five stackers, depending on grade, need for repair, and any other factors deemed important by the company. The destination is determined by the sorter, so each pallet's ultimate stop is preset by push button at the sorting table. The pallets are either forwarded to stackers for removal and resale, or forwarded to one of four repair tables. The feed systems for the tables are indexed so that after an operator takes a pallet and begins work, a new pallet is cycled into position and ready for repair. One stacker can work either as a removal stacker or as an accumulator. It has the ability to store or accept feed back into the system if the repair end is unable to keep up with the demand.

Because Penn Pallet serves the food industry, it treats its pallets using U.S. Borax's Timbor DPT, a non-toxic preservative. The company is also a distributor for the product. SMETCO's system is capable of routing untreated pallets through the treatment system to avoid the potential problems of untreated lumber.

Treatment is a sector of the industry in which Cunningham predicts major expansion. "Every year you see it growing," he says. "I think in the future every customer will require treatment as a routine. I think more pallet manufacturers should be looking seriously at this because it takes away one of the competitive advantages alternative materials have been promoting."

Vortex grinder was praised by Penn Pallet.

How has the automation provided by the SMETCO system worked out for Penn Pallet?

Extremely well, Cunningham says. "It's easy to be put off by the initial cost of a system like this," he comments. "But in reality, a business has to look at more than just today. This kind of automation can pay dividends in a relatively short period of time."

One immediate reward gained by the SMETCO system, Cunningham says, is expanded production capabilities that do not require additional wages. "We were sorting about 2000 pallets in a shift with three men," he says. "With the SMETCO system we're doing 3000 to 3500 per shift with one and one/half men. That's a direct savings."

The fatigue factor is also an important consideration. "We did a quick study and found that by the time a pallet had gone through our old system, our guys had picked up 300 pounds per pallet." Cunningham says. "The SMETCO system has that down to 75 pounds which makes a tremendous difference in the ability of the workers to perform. The old system just wore people out, and when people get tired they are less productive and more prone to injury or accident. The system has greatly increased production per person because each person is producing rather than using all their energy on lifting."

Because the SMETCO line is ergonomically efficient, it has contributed to Workman's Compensation savings. "We haven't really had the line in place long enough to see the full effect, but it is already positively affecting our worker's compensation payments. We expect to see greater savings when we've had it longer." Cunningham says. "The full automation dramatically reduces the chances of injury in the plant."

Too often in the pallet industry, automation such as the SMETCO system is looked at only as an expense item. Manufacturers that plan for the future, like Penn Pallet, know better. Their conclusions are supported by experts from development groups like the North Central commission, who recognize the impact of automation in enhancing competitiveness. "It was quite an investment for us." Cunningham explains in discussing the role automation plays in modern plants. "But it's a necessary investment for companies who want to reduce the cost per pallet while improving service. Frankly, if you don't automate you won't stay competitive. You'll fall behind, and eventually, fall out of the race. Customers need you on their side, constantly doing what you can to improve your product cost. If you aren't on their side, they will find someone who is."

Cunningham says the SMETCO system has allowed Penn Pallet to do a better job for its customers. "They're offering a really nice machine. It's done what we thought it would, so we're confident the payoff will be at, or better than we projected. So far, we're very satisfied with the equipment.

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