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Supplier Market Commentary

Posted By John Lieber, Monday, July 27, 2015
Updated: Monday, July 27, 2015

Custom-engineered tooling provide an opportunity for pallet manufacturers and recyclers to expand their bottom line by increasing machine utilization with alternative tooling. Historically, standardized pallet sizes have been the foundation of the stringer pallet industry, but block pallets and custom pallet opportunities have taken the lead. Pallet usage for custom-sized pallets is already half of the market. As this business segment matures those working in this market are seeing opportunities to not only increase custom pallet sales but also consider products in ancillary markets to increase sales and profits.

Pallet customers that buy tools to be used on their machinery for either manufacturing or repairing pallets have found new markets in industries that may need ‘non-pallet’ wood parts. As a result they use their standard machinery and add custom tooling utilizing their machinery more. Some of these ancillary markets include fruit and vegetable wood box parts, specialty stringers requiring non-standard notches, custom matting for railroad crossing applications, bedding, mailbox posts and assorted stakes.

Profile Technology's business model for supplying custom engineered tooling for our customers to increase sales and profits is evolving. We help our customers make their operations more efficient. Our standard inventory products continue to sell well as we are able to show our customers cost per cut evaluations. Our focus continues to be centered on providing our customers with efficient and practical custom engineered tooling, and that keeps changing with our customer needs to meet new markets or optimize their plant efficiency.

(Comments published for the July-August 2015 edition of PalletCentral magazine.)

Tags:  custom  engineered  technology  tools 

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