20 WESTERN PALLET
22 WESTERN PALLET
As the COVID-19 pandemic continues, Western Pallet Magazine once again checked in quickly with members across the country as they take the necessary steps to safeguard employees as well as manage the ebbs and flows of demand .
Pallet volumes impacted by industry
“The COVID-19 pandemic has been confusing, to say the least,” reported Ryan Greenwood of WPA Associate Member Crane Point Industrial. The Forest Grove, OR-based fastener and tool provider has warehousing and distribution centers in Oregon, California, Maryland, and Texas.
“We have seen an increase of production in a good portion of pallet manufacturers while others are saying orders come in waves,” he said. Volume differences are dependent upon which industry they are producing pallets for, he added.
(Across North America and Europe, pallet companies have reported some industries such as grocery, beverage, and pharmaceutical gaining in strength, while other sectors have sagged, including restaurant, port, construction, and automotive.)
“Product from our mills seems to be flowing in without too much of a hiccup, maybe 2-3 week delays at worst,” Greenwood continued. “We have however heard that India and the KSA (Saudi Arabia) are shutting factories and borders down for 1-3 weeks until the virus has calmed down a bit.”
Crane Point’s construction-related has seen a bit of a decline due to state regulations regarding social distancing. “Framers, roofers, and any other sort of installers are showing up in different shifts or not at all in order to avoid any risk,” he said. “We are doing our best to respect the guidelines as well and taking more of an “Amazon” approach with taking photos at delivery and staying six feet away from other workers.”
Being selective with new business and watching receivables
In Washington State, WPA-member Associated Products Shipping Solutions (APSS) has seen a sales decline during the pandemic. Gord Herzog of APSS reports that lumber and core supplies are both plentiful.
The Puyallup-based company has instituted COVID-19 safety policies such as boosting its sanitation program and requiring symptomatic employees to stay home. APSS is currently running with all of its staff but has been experiencing around aa 15% absenteeism rate. “We have seen more on the lines of no daycare as the reason for missing work,” he said.
“The only thing we have changed so far is we are being selective in new business and tightening collection of receivables,” Herzog continued. “We run our business model with very little debt and no layoffs. We hope to weather the storm as best as possible.”
Closing offices and handling freight paperwork in the yard
“Our operation has been business as usual so far,” reported Carolyn Beach-Skinner of Westside Pallet, a supplier of new and used pallets. “Sales are steady and we have actually been able to hire a few new employees that lost their jobs recently,” she reported of the WPA-member company based in Newman CA. “And so far getting our lumber and supplies have been normal.”
Westside has currently closed its office to truck drivers and other outside people. “All paper transactions for deliveries happen outside in the yard with social distancing measures in place the best we can,” she said.
After considerable effort, the company was eventually able to source disinfectants and sanitizers. Employees were given a copy of the memo stating that pallets are “essential” in case of being questioned by authorities, but it has not been an issue.
Sanitizing common touchpoints
Meanwhile, WPA-member Ox Box of Addison IL reports that business is holding up but is seeing signs of short term softening. “We’re committed to maintaining our capacity as we’re anticipating a significant uptick in business when everyone returns to full operations,” said Guy Ockerlund, President of Ox Box.
“In the meantime,” he continued, “we’ve implemented a variety of new safety procedures and policies to reduce the risk for our team members. In addition to supplying PPE (personal protective equipment) and disinfecting surfaces, we’re fogging employee break areas, work centers, tools, and machine control panels with antiviral solution daily.”
Hitting the ground running once the economy reopens
Like Ox Box and other WPA-member companies interviewed for this article, Pompano Beach FLA-based Pallet Consultants is readying itself to serve businesses reopening after the crisis.
“Our facilities across the board are increasing their recycled pallet inventory and have been receiving high numbers of cores,” stated the WPA-member company. “Our network is positioning itself to hit the ground running once businesses start to reopen, and have maintained or increased both staffing levels and pallet production.
“Companywide, we are looking to continue hiring and are up 10% in YTD sales. Additionally, customer service and client relations have been a focus for all warehouse managers as we have been regularly assisting current customers and onboarding new ones throughout the pandemic.”
Pallet Consultants facilities are adapting as best they can to their shifting regional economies. Locations near ports are doing a mixture of temporary pivots to alternative market segments, increasing their service area, and streamlining operations for additional efficiency and flexibility. Other locations have maintained their revenue and business by supplying active and essential supply chains with few negative impacts.
Pallets will play an integral role in the shipment of goods as the economy reopens across all sectors. WPA-member companies continue to serve essential industries and are positioning themselves to expand services to other customers as the country gradually reopens for business.
WPA Members Continue to Weather the COVID-19 Storm
from WPA Membsers