14 WESTERN PALLET
WPA Master Learning Group Talks Automation
WPA’s online event for April featured a master learning group focused on automation. Glenn Meeks, the host of the event, framed the discussion by starting with a definition, describing automation as “the technology and or the machinery that would help a business automate repetitive tasks or introduce new workflows or build processes that are much more efficient.” Automation enables businesses to free up people to focus on other priorities such as sales or revenue generation, as well as to increase throughput and profits.
At this MLG there were four invited speakers, including Brad Kirkaldy, Wood-Mizer, Doug Wenniger, Alliance Automation, Craig Bezuidenhout, Pallet Connect, and Nick Korn, Rotochopper.
Delivery delays due to material and part availability
Current delivery timelines have been stretching out due to material supply constraints. According to Wenniger, average project timelines have stretched from 18 to 20 weeks to 34 to 36 weeks. And, he noted, it is strictly based on material sourcing challenges. For example, conveyor lead times went from an average of six to eight weeks up to 28 to 30 weeks. Now, fortunately, it has receded to 16 to 19 weeks.
Another challenge is that it is not uncommon for a pallet company to take up to six months to decide on a piece of equipment, which can be an issue in inflationary times. They may need to figure out financing or plan various parts of the project, for example. By the time a customer is ready to place the order, the price might look substantially different.
“There have been situations where we quote something in April of last year, they order it in October, and our material prices have doubled,” Wenniger said. “And then there's all that time and planning and financing they have to go back and redo everything. And one of the things that we've learned is we've just had to stay on top of our material pricing.“
For its part, Wood-Mizer has faced similar challenges in keeping the necessary inventory of electronic components, motors, starters, and gas engines. “Our lead times on especially the larger hydraulic sawmills have ballooned to 16 months,” he said.
Even for basic pallet equipment such as dismantlers and trim saws, the expected delivery has increased to the 16-24 week range. “It’s hard to provide an exact date,” he said.