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38 Pallet C e nt ral • No vem be r-D e cem be r 2 0 25 TECH TALK A cross industries, AI is already turning raw data into measurable improvements. Farmers pair moisture sensors and satellite imaging with AI to predict yields and adjust in real time. at means fewer surprises at harvest and better returns from every acre. Lumber mills apply the same idea, using AI to plan the best cut before a log reaches the saw. e result is less waste and more value squeezed from every log. e lesson is simple: better data creates leaner processes and stronger margins. e pallet industry faces the same opportunity. AI identifies unnecessary repairs, removes defective pallets before they consume more materials, and detects early signs of equipment wear, giving operators an edge they've never had before. Every scan, every measurement, every detail becomes an opportunity to cut waste and protect margin. Should you repair or leave it alone? Keep a pallet in circulation or pull it aside? Catch a trend in production before it becomes a costly problem? With AI, these decisions shift from guesswork to data. In pallet operations, inconsistency is the real enemy. The Economics Of A Few Cents Operators working at speed often miss cracks, overestimate damage, or approve pallets that should be rejected. Piece- rate repair techs usually tear out boards that don't need replacing to move faster, or worse, let flaws slip through to the customer. e result is wasted materials, wasted effort, and pallets that still fail in the field. A single mistake looks small, but repeated across thousands of pallets, it compounds into a major loss. Lean thinking shows that small process changes lead to big savings. Facilities that adopt lean methods often see margins improve by two to five percent. Even a few cents gained on each pallet can reshape the bottom line. Add a nickel from fewer unnecessary repairs, a few pennies from using fewer boards and nails, and more from avoiding fines or rejected loads. Added together, those nickels and pennies quickly become meaningful profit. ese savings are not abstract. ey come from using fewer boards, fewer nails, fewer saw blades, and fewer hours spent on unnecessary repairs. ey also come from reducing the wear on equipment and keeping labor focused on the jobs that matter. e breakdown below shows where those pennies come from: repairs, materials, labor, and customer costs. On a per-pallet basis, the gains look small, but multiplied across your volume, the impact is massive. THE BOTTOM LINE ON AI BY CLAY WELLS

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