Tribute to Jeff McBee (September 2, 1956 October 15, 2015) Pallet industry loses friend and respected voice for the market.

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2 Tribute to Jeff McBee (September 2, 1956 October 15, 2015) Pallet industry loses friend and respected voice for the market.

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4 A company that competes to win the loyalty of customers. A culture that looks to eliminate wasted motion, resources and finds ways to get better every day. Management that empowers employees to act to solve customer issues and make the company indispensable for customers. Innovators who aren t afraid to take risks knowing that they will lose some rounds to land the ultimate knockout punch. People who question the process and champion change.

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6 No Backup Plan Customer Shifts/Changing Demographics Failing to Innovate or Keep Up with Technology Supply Problems Where s the Beef? Trying to Grow Too Fast The Debt Bubble/Financing Forgetting What Made You Successful in the First Place It s Just Not Fun Any More Losing Your Passion

7 Oakland Pallet uses mobile technology to connect with customers. Offers a mobile app to allow customers to manage accounts, place orders, etc. Give Your Customers More Ways to Order from You!!! = More Sales $$$

8 What areas of your plant/process are lagging behind the rest? Can you solve this problem with a new machine, more automation or redesigning the flow of material? What processes make you say, No not that again!!!

9 R&E pallets added new cant processing line. Now can produce own lumber and is less dependent on the market. Eliminated production bottlenecks Can cut various material depending on the market. How versatile is your plant? Salvador Gomez and Cesar Granillo of R&E Pallets in Michigan City, Indiana

10 Most pallet plants have wasted motion. Ask yourself, Why are we touching this? Why are we moving this? Can we do this without using people or eliminate this activity altogether?

11 Way too many companies in this industry are inefficient. They do everything two and three times. And are driving too far with stuff. Excess handling impacts productivity. Bill Hildenbrand, the owner of Pallet Express in Easton, Pennsylvania

12 Kamps Pallets Midwest Region Eliminating waste and inefficiency is so important for Kamps Pallets that it is has a full time person on staff tasked with leading its lean management initiatives. First step is to look at P&L statement to identify areas where a facility is struggling and not meeting KPIs, such as labor rates, plant costs, on time delivery, safety, quality issues, etc

13 Kamps Pallets Midwest Region Do roll playing exercises, basically games to get people thinking about how to do things more efficiently. Look online for resources, for example of free lean games.html Solutions: Redesign facilities to improve flow of material, added extra docks, knocked down walls, move work stations around, etc.

14 Valley Box Company Inc. of San Diego, California Specializes in custom boxes and crating for the high end manufacturing market in Southern California. Valley Box can design customized solutions manufactured to meet almost any design requirement and can be constructed from wood, steel, corrugated, and plastic materials.

15 Valley Box Company Inc. of San Diego, California Packaging consultants will go to the customer s location and take measurements and pictures of the products that require packaging. Then Valley Box engineers will work with AutoCAD and SolidWorks to develop a design that best fits each unique product being shipped. Look for details in the June 2015 issue of Pallet Enterprise.

16 Have you mined your used pallet stacks for usable pallet lumber or whole pallets? There is pallet gold out there to be found. Everybody knows it, few do much about it.

17 The New igps: Plastic Pallet Pooler Claims to Be More Deliberate, Focused...and Profitable The New igps: CEO Jeff Liebesman explains how igps has risen from the depths of bankruptcy and millions of lost pallets to become a profitable pallet rental company with sustainable growth and a bright future. igps is currently developing a next generation pallet design suitable for automated warehousing environments.

18 The New igps Liebesman reported this business is now profitable. The new pallet design is fire rated and uses approved non brominated flame retardants. New design no longer has the thermoformed plastic top deck. It is 100% recyclable, and is cradle to grave from a sustainability point of view, he said. It is a huge plus and compatible with the sustainability objectives of customers.

19 CHEP USA launched a portfolio of new service offerings this year designed to integrate the company with more of a customer s supply chain.

20 Some major recyclers are currently in a showdown with PECO Pallet about return fees. PECO has sued Northwest Pallets and is taking a strong stance for limited compensation with others. PECO claims pallets in question are part of its network and should be returned for free or limited compensation. Recyclers claim are out of network and should be compensated the full asset recovery fee.

21 New legal showdown over bailment law. What happens in these cases can impact asset recovery fees for everyone else. So far CHEP has been standing back and watching.

22 Recyclers don t have to return proprietary pallets unless required by a written contract. All they have to do is make them available for pickup. Recyclers can negotiate a fair recovery fee and don t have to just take what the pallet owner gives. Recyclers can request mutually agreed upon pickup schedules to reduce operational burdens. You can charge interest and other collection fees if necessary. The only people who are being paid what the service is truly worth are those who have stood up and fought for their rights.

23 WORLD Pallet America Program designed to develop quality standards that can used in the USA and for export shipments. Led by established industry leader in Europe. Strong potential for those wanting an alternative to EUR Euro pallets. Minimal cost to participate. Easier compliance than EUR Euro pallets. Get in on ground floor and help develop new standards.

24 One of the top producers in Europe, one facility with 2.5 workers produce more than 8,000 Europallets per 8 hour shift. Develop own pallet program because EUR Europallet was too expensive. No robotics but highly automated using various technologies to unstack, position in place and nail wood components. Every aspect of the operation is planned to reduce the number of manual touches.

25 Two stage system with inventory stacked in between. All runner joints are nailed at once in one motion instead of three. Forklift driver uses double loading for every task. Large conveyors to store stacks of finished pallets.

26 The GT Pallet: A modular plastic pallet designed to be 100% repairable. I call it the Lego pallet because it has sections that connect allowing for easy repair. The design can rack more than 2,800 lbs. and does not use steel reinforcement. Full bottom and top deck coverage Weighs less than igps pallet according to the manufacturer. Produced by Mexican company that is looking for U.S. sales partners.

27 Congress makes permanent Section 179 deductions used by businesses to deduct the full purchase price of qualifying equipment/machinery and software bought or financed during the tax year. Given the lack of business investment in recent years, Congress hopes this will spur more business spending in physical equipment and software.

28 Section 179 will be permanent at the $500,000 deduction cap level and the additional 50% bonus depreciation will be extended through Businesses exceeding a total of $2 million of purchases in qualifying equipment will have the Section 179 deduction phase out dollar fordollar and completely eliminated above $2.5 million. A 50% bonus depreciation will be extended through Businesses of all sizes will be able to depreciate 50% of the cost of equipment acquired and put in service during 2015, 2016 and 2017.

29 Uncle Sam Wants to Help You! 2015 Section 179 Tax Deduction Calculator General Information on 179 Deduction IRS 179 Deduction Information

30 Fill out form at your chair and hand it to me. Return 1 2 per month survey that we send you. Encourage other business partners to participate. Let us know when you see something that concerns you that we might miss.

31 If you want more pallet industry and market information, consider subscribing to the Pallet Profile or Recycle Record.