16 WESTERN PALLET
A Fire That Changed Everything
The fire broke out on a Sunday night. A newly installed conveyor stacker malfunctioned and sparked next to combustible raw material — a key error Villasenor now calls “a fatal mistake.” He explained, “We had the mulch too close to the equipment. Once it caught, it was game over.”
Within minutes, flames engulfed thousands of yards of mulch and 40,000 pallets, along with the operation’s building and heat treatment equipment. The blaze took a week to extinguish and involved over 60 fire departments. The financial toll was staggering, but thanks to comprehensive insurance coverage, the company avoided financial ruin.
“In hindsight, it was the greatest thing we ever paid for,” Erickson said. “We had business interruption and extra expense coverage, lost wages coverage, all our equipment was insured. That made all the difference.”
Still, the recovery was grueling. With the plant gone, Villasenor oversaw operational shifts and staff transfers to the company’s other facilities. Erickson handled insurance coordination. The owner, Rafael Gutierrez, spearheaded the rebuild. Their teamwork and business continuity planning helped minimize customer disruption. By the Monday morning following the fire, a message had already gone out to customers assuring them that operations would resume within 72 hours.
Erickson noted, “The fire was out, but the hard part was just beginning. We had to turn our own crew into firefighters. For a week, they manned hoses and rented water trucks to fully extinguish what the fire department couldn’t.”
Don't Count on the Fire Department Alone
The Oak Creek story served as a cautionary tale for others. As Sean Briscoe, Vice President of Loss Control at Pennsylvania Lumbermens Mutual (PLM), explained, relying solely on local fire departments, many of which are volunteer-run, is risky.
“They may contain a fire to prevent spread, but they’re not necessarily going to put it out,” he said. “That’s why pre-planning with your fire department is so important. Let them walk your yard once a year.”
This sentiment was echoed by Bea Vasquez of Oxnard Pallet Company, who emphasized the need for adequate water availability. “Southern California had major issues with water access during recent pallet fires,” Vasquez said. “If there’s no hydrant nearby, you could be in big trouble.”
Oak Creek was fortunate to access water from a nearby city supply, but not every company will have that option. As Erickson noted, their on-site wetlands were depleted in ten minutes.
Insurance, Documentation, and the Paper Trail
A recurring theme was the importance of documentation. Maintenance records, inventories, backup documents, and pre-completed business income worksheets all help speed up insurance claims. Such preparation is critical. Payroll and bills don’t pause for disaster.
Vasquez added her experience with check fraud to the discussion, urging companies to move to ACH payments and commercial bank accounts that require approval for every transaction. “It’s a hassle,” she said, “but worth it to stop fraudulent payments before they happen.”
Oak Creek experienced similar financial breaches — including phishing emails and paper checks that were intercepted and altered — forcing them to close and reopen bank accounts. Both Vasquez and Erickson emphasized that the technology exists to prevent this but needs to be actively implemented and monitored.
Infrared Scans: Finding Fire Before It Starts
In one of the session’s most practical takeaways, Justin Hegsted shared his company’s experience with a third-party inspection that used infrared scanners to detect hot spots in motors, panels, and wiring before they develop into full-blown fires. “They went around our facility and found areas needing extra maintenance,” Hegsted said. “I’d recommend this to everyone.”
Briscoe agreed. “Annual infrared scanning should be a must. It’s a simple, effective way to spot trouble early — especially with older or high-use equipment.”
He also recommended retrofitting fire suppression systems over major machinery. After its fire, Oak Creek did just that, retrofitting critical machinery with fire suppression systems and turning over mulch regularly to prevent heat buildup — another proactive step they’ve taken post-fire.
Communication is Everything
When disaster hits, silence can sow panic. Oak Creek’s transparency in the hours following their fire helped maintain customer trust. “The fire was newsworthy,” Villasenor said. “People were anxious. We sent out a customer-wide email first thing Monday morning.”
Employees were also personally contacted, reassured about job security, and in some cases assigned to help with the cleanup effort. “We had to get creative,” Erickson said. “We couldn’t afford to wait for the insurance money. So we kept everyone working — just in a different role.”
Training and Leadership Continuity
Another under-discussed topic was leadership succession. What happens if a business owner or key executive is suddenly incapacitated?
Meeks and Briscoe stressed the importance of documenting roles, signing authority, and emergency leadership plans. Family-run businesses are especially vulnerable to confusion and power struggles.
“Hope is not a strategy,” Villasenor said at the end of the session. “Plan ahead. Pray it never happens — but be ready for it if it does.”
“Preparation is key,” added Briscoe. “You don’t want to be planning during a crisis. You want to be executing a plan you already made.”
For members who couldn’t attend, WPA will distribute the session recording, disaster planning guide, and 14-point checklist via the Member Hub. The resource library will also include fire safety tools, emergency communication tips, and external links such as PLM’s Loss Control Resources.