Pros and Cons of Pallet Production Automation

Technology is your friend – until it is not. Most small to mid-sized pallet production businesses have to find ways to cut costs, and pallet production automation might be the right step. What are the benefits and challenges of automating pallet production processes? Most importantly, why do so many insiders say you have little choice if you want to stay competitive? Your questions – answered!

Automation Lets You Produce More Pallets for Less Money and More Quickly

It is true. Automation can do the processes your workers currently do much faster, cheaper, and more effectively. The pros are easy to sum up.

1. Reduced labor cost. When automation does the heavy lifting and the assembly, you do not need as many people doing the jobs. Sure, there always needs to be someone on hand to oversee the machine, but it is unlikely that you need the day-to-day pallet makers. Automation cuts labor costs and all the taxes associated with hiring employees.
2. Fewer workplace injuries. Fewer workers at your pallet production company translate into fewer workplace injuries. You save money on workers' compensation insurance.
3. Less product damage. Eliminate human error; machines are far less likely to damage pallets during manufacturing. After inputting the specs, the machine performs the same every single time.
   

Additional benefits and challenges of automating pallet production processes include the possibility of increasing production. When needed, you can run the machines around the clock. When you are looking to find new customers for your pallet manufacturing business, having the ability to guarantee your spot in the supply chain is critical.

Automation Brings Challenges to Your Business

For starters, it gets rid of jobs. Some of these workers may have been with you since the start of the business. It is unlikely that the increase in production will create additional jobs for those employees. Also, remember that skilled pallet makers are not easy to replace. If you have to go back to manual processes temporarily, you will have to start from scratch with new employees.

Additionally, automation is a costly undertaking. At the onset, you are looking at a capital expenditure that may take your budget and upend it. Granted, you will see a quick return on investment, but can you manage the in-between time? And, if you need lender assistance, do you have a bank you are working with?

Finally, remember that automation means bringing in machines you have to program, update, and maintain. If a key component fails, your production line stops. If you cannot fix the problem or getting a replacement part takes a while, you are dead in the water. Do you have enough stock to make it through this time? Will it cost you customers?

Why Would You Need to Increase Pallet Production Anyway? Three Words: Automated Palletizing Systems

That is correct, and your customers are automating their pallet use processes. Palletizing refers to using artificial intelligence and automation to maximize organized product stacking on pallets. Why does this matter to you, the pallet manufacturer? Easy!

Automation of the stacking process means faster product handling. Your customers are shipping their products faster than before. They need the right number of pallets now – not next week. Since they are working with automation, they need pallets that support this process. This means that your pallets must meet their specs consistently. Automation on your end ensures that the pallets leaving your manufacturing line are identical and suitable for use with the customer's automated palletizer system. 

Plenty of industries already rely on this automation level during their packing processes. Examples include the food and beverage market, as well as the retail and pharmaceutical industries. Therefore, no matter who your current customer demographic is, automated palletizing solutions will find their way into your warehouses, too.

Is There a Happy Middle Ground?

We have discussed the benefits and challenges of automating pallet production processes and examined the industry's future. The advantages of automated pallet building are clear. However, many smaller businesses cannot afford to invest in a fully automatic system.

When you want to meet your customers' palletized solutions but cannot fully eliminate manual labor, it is best to adopt a long-term approach. 

1. Understand what robotic palletizers need to operate. Your customers will move away from manual palletizing because it reduces labor costs, allows real-time tracking, and improves safety. When your customers are looking for particular specs to support their automation, implement them in your pallet operations.
2. Add automation gradually. Increasing the automation of your pallet process can be gradual. You do not have to make changes to your entire production overnight. You might be looking for ways to increase efficiency rather than automating every step of the process. Although it means going in a different automation direction, it can keep you in step with customers and let you be competitive with others in the industry.
3. Involve employees in the process. Being brutally honest about where the industry is heading may lead to employee-driven innovations. It may also lead to areas where automation can make your business much more productive. This automation may be stackable, and you can add to it as your budget allows.

Let’s Up Your Working Capital

If you add more customers to your list, more funds will come in, and some of this money can be earmarked for automation. In this scenario, you can avoid taking out loans to afford the machines you would add for full automation. When you want to avoid making an all-or-nothing decision, go this route. 

To get your company's name in front of as many prospective customers as possible, excellent pallet marketing, such as website design, social media marketing, and search engine optimization, is required. If this is not your forte, do not worry—we have your back. Call us today!