May 2026
The Right Tech at the Right Time
Practical technology advice for manufacturers and recyclers
Technology investment has become one of the defining challenges for pallet manufacturers and recyclers. Labor shortages, rising costs, customer expectations, and growing pressure for operational visibility are forcing companies to think carefully about efficiency and modernization.
At the same time, many pallet companies remain cautious about major automation projects. High interest rates, uncertain demand, and tighter margins have created an environment where technology decisions must deliver immediate, practical value.
That caution is not necessarily a weakness. In fact, some of the most effective pallet operations are succeeding not by chasing every new trend, but by making disciplined technology investments that solve specific operational problems. The question is no longer whether technology matters. The real question is which technologies make sense for a particular operation, at a particular time.
Start with the Bottleneck
One of the biggest mistakes companies make is evaluating machinery based on what competitors are buying rather than identifying where their own operation is losing efficiency. For some plants, the problem may be excessive forklift movement. Others struggle with labor fatigue, downtime, poor material flow, difficult changeovers, or inconsistent production visibility. Technology tends to produce the strongest return when it directly addresses one of those constraints.
That reality helps explain why relatively simple technologies often outperform more expensive systems in terms of practical ROI.
Conveyors remain one of the clearest examples. Reducing manual handling and forklift travel can improve throughput while simultaneously lowering fatigue and product damage. Lift tables can help repair operators maintain a more consistent working height throughout the shift, reducing physical strain and improving productivity. Stackers and destackers remove repetitive handling tasks that consume labor without adding value.
These are not flashy investments, but they often generate measurable improvements quickly because they target pain points employees encounter every day.
Millwood’s Apple Creek operation recently highlighted this type of practical efficiency investment through its installation of a Pacific Trail Accu-Cut saw. The automated system allowed operators to stage material and handle additional tasks while the saw continued cutting, significantly reducing labor requirements compared to previous methods.
“We’re getting the same board footage, but with far less labor,” explained Zack Miller of Millwood.
That type of labor-saving improvement increasingly matters in an industry where workforce availability continues to shape operational decisions.
Simplicity, Reliability and Maintainability Still Matter
One of the strongest recurring themes among successful pallet companies is that equipment must remain practical to operate and maintain.
Steve Gallucci, CEO of Palleton Inc., described a straightforward framework his company uses when evaluating machinery investments.
“When I look at any piece of equipment, I ask four questions,” Gallucci explained. “How easy is it to use? How easy is it to repair? Can I source parts locally? And does it actually increase my production efficiency?”
That philosophy reflects the realities facing many pallet operations. Downtime can erase productivity gains very quickly, especially when plants rely on equipment requiring specialized technicians or difficult-to-source parts.
“There are some very high-quality machines out there,” Gallucci acknowledged. “But if it breaks and I have to fly in a technician from another state, and the line is down, that’s a no-go for us.”
This practical mindset also appeared in Pennyrile Pallets’ recent automation upgrades. When the company replaced an aging nailing line with a Titan system from Pallet Machinery Group, the decision focused less on aggressive production growth and more on operational stability, flexibility, and usability.
“We didn’t want something that required three or four months of training,” Kenneth Kauffman explained. “This felt like a natural step forward without reinventing everything.”
That perspective may resonate with many mid-sized pallet operations. The best technology investment is not always the most sophisticated system. Often, it is the one employees can quickly understand, maintain, and integrate into existing workflows.
Lean Thinking Often Creates the Biggest Gains
Technology alone rarely solves operational inefficiencies.
Some pallet companies invest heavily in automation while still struggling with poor layouts, excessive staging, unnecessary handling, or communication gaps between departments. In those situations, technology may simply automate waste instead of eliminating it.
Lean manufacturing principles continue to influence some of the industry’s most efficient operations because they focus on reducing unnecessary motion and improving process flow.
At Gruber Pallets in Minnesota, management built much of its improvement strategy around eliminating wasted movement and empowering employees to identify incremental process improvements.
That philosophy included minimizing stacking and unstacking, reducing forklift movement, and organizing production around smoother material flow.
“We want minimal touches,” Luke Gruber explained in the earlier article. “We want one-piece flow. We want fast switchovers.”
For many operations, the most valuable technology investment may not initially involve major automation at all. It may begin with reorganizing flow, improving visibility, simplifying movement, and reducing operator frustration.
Visibility and Data Are Becoming More Valuable
Another area gaining traction is operational visibility.
Historically, many pallet operations relied heavily on manual counts, handwritten production tracking, or verbal reporting. Increasingly, companies are implementing dashboards, barcode systems, AI vision tools, and telematics to improve accountability and decision-making.
At Gruber Pallets, AI vision systems were introduced to improve production visibility and workstation accountability. Management reported immediate productivity improvements once employees could see accurate, real-time production data.
Neopal in Texas offers a more advanced example of how visibility and automation can support highly engineered manufacturing systems. The company integrates machine monitoring, quality inspection systems, automated material handling, and production dashboards throughout its operation.
Still, Neopal’s approach reinforces an important point. Technology works best when paired with disciplined processes and clearly defined operational objectives.
“We define what we want to accomplish first,” Neopal owner Jeff Krug explained. “Then we find or build equipment to support those objectives.”
That may be one of the most important lessons for pallet companies evaluating future investments.
Avoid Buying Technology Too Early
Technology can create major gains, but timing matters.
Some companies invest in advanced automation before their processes are stable enough to support it. Others underestimate training requirements or fail to assign clear ownership for implementation and maintenance.
Successful adoption usually requires:
organized workflows,
employee buy-in,
reliable maintenance support,
and clear operational goals.
Incremental improvements are often easier to manage and carry less financial risk than oversized all-at-once automation projects.
Pennyrile Pallets demonstrated that approach through a series of measured upgrades rather than a complete operational overhaul. The company improved workflow, material handling, and flexibility while maintaining the culture and operational style that already worked well for its business.
Technology Should Fit the Operation
The pallet industry has always rewarded practical problem-solvers. That reality has not changed.
The best technology investments are often the ones that quietly remove friction from the workday:
a conveyor that reduces unnecessary movement,
a lift table that reduces fatigue,
a stacker that improves flow,
a saw that frees up labor,
or a dashboard that identifies downtime before it becomes a larger issue.
Technology does not need to be flashy to transform an operation.
For pallet manufacturers and recyclers evaluating future investments, the most important question may not be, “What is the newest technology?” but rather, “What problem are we trying to solve?”
Companies that answer that question honestly are often the ones making the smartest long-term technology decisions.