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20 Pallet C e nt ral May -Ju ne 2 0 24 Similar automation tools can be used to sort multi-sized pallets. One of the most common sizes for wooden pallets is 48x40, but there are many different types and sizes depending on what the pallet users need. For pallet manufacturers, separating oddball-sized pallets creates a lot of "sort and lift" type of work that can be taxing on the body and is sure to eat away at the time in the day, but it is simple enough that robots can be trained to take on the task. "We've got to be clear that production robots have a lot of pressure on them. If a palletizing robot gets something wrong, that's one thing, but for manufacturing companies, the production process is everything," shared Kevan. "It's the heartbeat of what you do, so in order for automation to work in this space, leaders have to understand exactly why they want to use it, what its capabilities are, and take potential challenges into consideration." The Industry's Labor Challenges Labor shortages in highly manual fields, just like wooden pallet manufacturing, have been a top issue for leaders all over the world. "If you think about the manual pallet repair process or manufacturing process, there is a very small set of humans that can actually do the labor for these tasks. We're all working with a slim labor pool, but if we add robotics into the tasks with redundant motions and heav y lifting, we can expand the labor pool exponentially," Brian explained. Brian has seen this work in action. He's working with a client who is proactively investing in automation due to labor challenges, and the payoffs are already coming to fruition. Because of where this client's plant is located, sourcing experienced staff who can withstand the demands of the job is getting harder and harder. And not only that, but with an aging workforce, the future of the company is dependent on automation. In this industry, many roles have a shorter life cycle, so if manufacturing leaders aren't planning now to supplement with automation, they're going to fall behind very quickly. "No matter whom you're hiring, when they're picking up heav y items and stacking them 10 –20 high, it's not only dangerous but also rough on the body. Automation isn't just a business priority anymore; it's a safety priority," admitted Brian. The Holistic View: Costs And ROI When considering automation, manufacturing leaders are often put off by the costs associated with bringing robots into the manufacturing process. is viewpoint is understandable because the costs go beyond investing in a new tool or unveiling a new cobot on the production floor. Aside from the price of robots and related technologies, it's important to consider: • Training Costs • Maintenance Costs • Process Change Costs • Potential Downtime during Transition On the flip side, most manufacturing leaders fail to take many, many aspects of the ROI into account. If you're only looking at production capacity, you might not see the wins you're aiming for. But, if you start to consider a holistic ROI, you' ll see the impact more clearly. Factor in: • Employee Retention • Lower Insurance Premiums • Better Quality • Injury Reduction • Higher Morale on the Floor "From my perspective, there's a very limited understanding of what automation can do for businesses. e industry has limited visibility on all the ROIs associated with automation— labor costs, improved morale, insurance costs, and more—and without that perspective, it's hard to see why you should move to automation," said Brian. Common Pitfalls When Investing In Automation Bringing automation tools and robots into any business is going to take some work. Redefining processes, changing production steps, and training employees on how to use these tools create a lot of barriers to entry. From Brian and Kevan's perspective, some of the biggest pitfalls they see from the most well-meaning manufacturing leaders are poor planning, limited capital investments, haphazard visions about what the future should look like, and fragmented solutions. Ask The Experts: Tips For Successful Implementations To avoid the pitfalls when investing in automation, take some advice from Kevan and Brian. Here are their top four tips for successful automation implementation for wooden pallet manufacturers: • Measure twice, cut once. Get the planning right: if you're going to overhaul plant processes, make a plan, take time to find the right partners, and invest in the right tools. • Leverage the automation partners that you have. ere are resources that live, eat, and breathe this stuff. Tap into their knowledge. • Have a clear understanding of what you're aiming for in the short term and in the long term. ese outcomes will be different from one another, so what are your non- negotiables now and in the future? • Ensure access to capital. Most pallet manufacturers are small businesses, so a lack of capital can be prohibitive. While the costs associated with automation are high, so are the payoffs.

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