Plastic Container Blog

Automating your warehouse will increase speed and accuracy which will impress your customers.  Click here to read about other benefits of automation.

Automating your warehouse will increase speed and accuracy which will impress your customers.  Click here to read about other benefits of automation.

Plastic bins along with most other packaging materials are being affected by the increase in oil prices.  Click here to read more about this.

High oil prices are driving up costs of not only gasoline and everything shipped by truck, but also the plastic bins and cardboard boxes that hold much of what you buy.
Petroleum is an ingredient in the display bins made by TRB Plastics of Lancaster. 
Consumers may not notice the rising costs of store displays and packaging materials because they don’t directly pay for them, but companies say they have risen dramatically.

TRB Plastics, a Lancaster manufacturer of such products as plastic bins for candy and pastries, and display racks for brochures, clothing and shoes, is one of the companies struggling with the problem.

TRB, a division of Merchandising Solutions Inc., has had to raise its prices, but its profits are still down.

Coping with the smaller profits can be painful, but raising prices too quickly can cause demand to slow.
Related Stories
College Row still lini… Following in their fat… Saving gas, money for … Fostering leadership Local companies on lis…

“We have to absorb some of the increase,” TRB President Tom Burns said.

Order sizes had dropped as the cost of raw materials and shipping increased, he said, but they have picked up again as companies made a “mental adjustment” to higher costs.

TRB isn’t alone.

Intertape Polymer Group, a Montreal-based manufacturer of paper and plastic packaging, announced 6 percent and 5 percent increases in masking and duct tape prices in July. It cited rising costs for plastic, paper and petroleum-based resin.
Related Topics
manufacturer (137) local business (73) fuel costs (27) plastic (16) package (7) oil prices (3) petroleum (2)

Intertape’s products include industrial electrical tape and plastic bags filled with air used in protecting boxed products, among other packaging materials.

Oil prices, which hit a record high of $147.27 on the New York Mercantile Exchange July 11 — about 93 percent higher than the price in mid-July 2007 of $76.40 — are the main culprit.

“It’s getting a little rougher out here,” said Dave Husser, a Manheim resident and industrial consultant for Georgia-based Unisource.

Unisource makes a variety of packaging products, from pallets and corrugated boxes to label printers and shrink wrap.

The company sells tape, corner board and stretch film to Intelligencer Printing Co., 330 Eden Road, as well as paper and packaging materials to Acorn Press, 500 E. Oregon Road.

Husser said packaging prices are likely to rise further because of increasing energy and transportation costs and a growing demand in China for boxes.

How much prices will rise will likely vary from mill to mill, he said. Prices usually shift most in September and January, as demand rises in the lead-up to the holiday season and then subsides.

Linerboard manufacturers announced a $55 price increase, to $605 per ton, earlier this month. Linerboard is used to make corrugated cardboard, and the increase would translate to an increase of about 11 percent to 14 percent in the price of finished boxes, beginning this month.

The Fibre Box Association, the corrugated cardboard trade association, said that box shipments dipped 3.5 percent in June, slightly more than the average decline for the year.

Husser said Unisource hadn’t seen a slowdown, but he expected one in the fall.

“They’re really busy right now because everyone’s trying to avoid price increases,” he said. “After a while, you just don’t buy any more.”

Part of that may be due to companies’ attempts to economize.

“The Wal-Marts of the world have kind of made it an edict to try to reduce their packaging costs,” Husser said.

Companies are watching their “carbon trails,” he said. Some nut producers are using plastic bags instead of jars or bottles. More bags than bottles can fit into a delivery truck, reducing fuel costs.

Some companies are also using lighter packaging materials, substituting cardboard for wood so trucks can carry more product, he said.

For companies that produce plastics, however, reducing petroleum consumption isn’t an option because it’s the main ingredient of the product itself.

“We always try to get the best yield out of the materials,” Burns said. “We haven’t been able to cut back on raw materials.”

Some petroleum-based packaging, such as plastic seals on bottles, is being replaced by natural starches.

In addition to being cheaper than petroleum, natural starches biodegrade, making them more environmentally friendly. The problem is that they aren’t as durable as petroleum products.

“Most of the ones that are naturally based material are still in the developing phase,” Burns said.

He added that because most natural plastics are being developed in pellet form, they won’t help his business much. TRB uses sheets of plastic.

The company uses some recycled material, but not for display products.

“If it’s a utility material, that’s one thing,” Burns said.

Recycled plastic doesn’t have the same clarity as new material, he said, so TRB uses it only for opaque products.

Husser said consumers should brace themselves for sticker shock, in spite of companies’ efforts to cut costs.

“Everything that we buy today is going up in price,” he said.

AMS out of Jenison, Michigan combines speedy repair with ergonomic design.  Click here to read more about how this effects the pallets.

Safety With ‘Nailing On The Fly’ System By Diane M. Calabrese
Date Posted: 8/1/2008

LOUISVILLE, Kentucky — Introduced to the pallet repair business while he was still in high school, Kevin Krebs is now the sales and operations manager at Southeast Pallet Recycling in Louisville, Ken. As a young, part-timer, Kevin had the chance to more or less set the pace in the plant. He operated forklifts that kept materials and product moving. “I saw myself as the choreographer,” he said.

Now, Southeast Pallet Recycling, where Kevin has worked full-time for 18 years, sees the tempo set by a Nailing on the Fly System from Automated Machine Systems (AMS), of Jenison, Mich. In service since early 2002, the AMS equipment couples speed in repair with ergonomic design.

AMS Nailing on the Fly Systems can process between 900 to 4,000 pallets per shift depending on the configuration.

Results from the AMS repair line can be measured in many ways, but they fall under the umbrella of big increases in efficiency. Not only do pallets get repaired in a streamlined manner, but in repairing the pallets workers experience conditions that tax their bodies less, an outcome that helps keep employees fit as well as committed.

Kevin said, “Our production has gone up at least 1,000-2,000 pallets per week since adding the AMS line. The biggest advantage it offers is greater consistency. And we are doing it all with fewer people too.”

The assembly line approach used by Nailing on the Fly technology makes everything run smoother. According to Kevin, the learning curve for new workers is nearly zero compared to 1-2 weeks under the old system. This allows Southeast Pallet to efficiently add production capacity or respond to personnel changes. In a time when absentee workers can become a real bottleneck issue, automation makes it much easier to cope.

Kevin said, “The AMS system is variable speed. We have it running at what I like to think is the sweet spot to maximize quality and our production needs.” From destacker to stacked finished product, a pallet may be on the system for only 45-50 seconds.

If more cores were available, Southeast would take them. “We consume everything we can get our hands on,” said Kevin. “About 10,000 pallets per week leave our facility. Sixty percent of our business is 48 by 40.”

Pallets are made with mostly hardwood and a small percentage of softwoods. All repairs are made with mostly reclaimed hardwood components. Combo pallets are made with a mixture of both hardwood and softwood. Kevin humorously refers to this mix as “tree wood” since only price not species matters for combo pallet customers. 

Drop and hook is the primary method of acquiring pallets for repair and dispensing those leaving the line. Seventy trailers coupled with the power of one Sterling tractor and three Volvo tractors support the system. Southeast is always looking for repairable pallets, which the company will take in any quantity from 10 to 10,000.

Switching to automation was a necessary and a deliberate process at Southeast Pallet. Although manual repair had served the company well for 20 years, automation offered advantages that the company needed to keep up with the competition.

Quality control improved by installing the AMS line. Under the old system, each worker was responsible for monitoring their own work. Kevin said, “The AMS line solved one of my biggest concerns by moving the final inspection process to the end of the line.

Kevin likes the steady, continuous movement of pallets along the AMS repair line. Workers do not have to pick up pallets for any reason, so they experience a less strenuous work day.

Kevin said, “The cost of our workman’s compensation coverage has been reduced by using automation. We have far fewer reports of work-related injuries by eliminating manual stacking and handling of pallets.”

To install the AMS line, Southeast Pallet Recycling needed to add more space and had to overcome engineering challenges. The original building at Southeast was a 10,000 sq. ft. structure. Because the core building was once a truck terminal, it was elevated to allow docking. “We added 15,000 square feet at ground level,” said Kevin. And therein was the challenge posed for AMS, one that it was happy to meet by tailoring a lift in the line to the requirements of Southeast.

“It’s a custom installation,” said Kevin. To seamlessly link the repair line across the space in the core building and the addition, ingenuity was required. The line had to traverse a six-ft. drop that marks the juncture between the original building and the add-on.

AMS designed a custom scissor-lift conveying system that allows continuous movement from one height down to the other. That made it possible for Southeast Pallet Recycling to avail itself of AMS technology with a contiguous 25,000 sq. ft. main manufacturing building. On its five-acre site, Southeast Pallet Recycling also has two outbuildings.

The other components at work on the repair line are an AMS/T-Tek Destacker, an AMS Deckmaster prepping station, an AMS Flipper and three AMS/T-Tek Stacking Systems. Repaired pallets are graded at the end of the line and go to one of the three stackers, said Kevin.

From the time a pallet enters the AMS Nailing on the Fly system until the time it enters a stacker, employees do not have to lift it or move it by hand. The Deckmaster removes damaged boards and also tamps down nails. One person can operate the Deckmaster prepping station and make decisions about the boards that ought to be removed.

When the AMS Deckmaster prepping system releases the pallet, it is ready to be repaired. “Once it’s on the line, it’s ready for new components,” said Kevin.

“When a pallet is destacked, it’s inspected or prepped,” said Kevin. If it’s un-repairable, it is rejected at that point and carried by forklift to a separate building for dismantling.

In the dismantling area, two one-man and one two-man Smart Products bandsaws are in service plus a Trace Equipment Trio. An AMS/MSI Trim-Trac saw and a Pallet Repair Systems (PRS) trim saw are used to trim reclaimed boards to size; unsalvageable boards and some whole pallets head to the waste grinder.

Employees that nail boards only need to select the appropriate board and nail. After the top is repaired, the AMS 5 Star Flipper flips the pallet so the bottom can be repaired. The stackers are automated with rakes that eliminate lifting, thus contributing to the ergonomic benefits along the entire AMS line.

A key to the continuous movement along the AMS line is the measured speed. Conveyors move fast enough to be efficient, but not so fast that employees are overreaching or working in haste. There are “six or seven people on the repair line any given day,” said Kevin.

Kris Chayer, the entrepreneur who launched AMS in 1997, said that one of his customers told him that Occupational Safety and Health Administration representatives have commented on the ergonomically friendly nature of the line.

When Kris started AMS, he brought a deep knowledge of machine design and manufacturing in the pallet industry as well as tool and die experience in the automotive industry. His interest in automation is something he has described as a “passion.”

The keenness on being a leader in the industry is something Kris has in common with the two owners of Southeast Pallet Recycling, brothers Leonard Krebs and Kenneth Krebs. Leonard is Kevin’s father.

“My uncle started the business and after a few months, he tapped dad,” said Kevin. Kenneth had been a much-traveled sales representative and was looking for a business that would anchor him near home. The focus of the business became pallet recycling thanks to convergence of some disparate events that ignited Kenneth’s imagination.

“Walter Cronkite was talking to an economist on a radio show and Kenny heard him say something about new pallet orders being an effective economic indicator of future growth or slowdowns,” said Kevin. “Kenny thought about the high timber prices and the lack of recycling of existing used pallets,” 

In addition, Kenneth had a cousin-in-law working in the grocery industry who had given him insight into the heavy use of GMAs. “My dad was in home remodeling and building and was used to swinging hammers,” said Kevin. So in 1981 all the pieces came together when Kenneth and Leonard became the owners of Southeast Pallet Recycling.

Southeast Pallet Recycling does a very minimal business in new plastic pallets and recycled plastic pallets. And the focus of the business has remained the same for 27 years. “The 48 by 40 footprint has been the backbone,” said Kevin.

The philosophy of Southeast has consistently been that everything that comes in as wood fiber should leave as wood fiber. No incoming wood goes to landfills. Instead, it all heads out as part of a repaired pallet, a combo pallet, mulch, biofuel or raw material for pellet-fuel makers.

“Prior to the AMS line, we did everything manually,” said Kevin. Pallets would be hand sorted in the yard and three or four forklifts were used to move them to repair tables.

Forklifts are still essential players. The machines are used to move bins of boards from the dismantling shop to positions along the repair line. They also remove waste. “We use a lot of metal baskets to collect waste,” said Kevin.

The waste heads to a Rotochopper MC266, which effectively processes the fiber and colors it in one pass. “We can take care of our grinding needs in two to three hours per week,” said Kevin. The Rotochopper has been in service since 2004. The Rotochopper is road legal when attached to a tractor. It is sometimes taken on the road to do a job at another site. In the future, Southeast may consider expanding in its remote wood grinding service.  

Mulch is colored in the Rotochopper MC266 with colorants from Colorbiotics (a division of Becker Underwood) and sold bulk to nursery wholesalers. Twenty employees work at Southeast. They are deployed on one shift, sometimes stretching to 10 hours.

Southeast Pallet Recycling relies on Industrial Carbide of Louisville, Ky. for new blades and sharpening. The local company works out well. If customers request heat treating, Southeast contracts for it.

Within the city limits of Louisville, Southeast Pallet Recycling is just five miles west of the international airport in the Ohio River city of one million. Louisville is part of Jefferson County.

Most customers of Southeast Pallet Recycling are within a 75-mile radius of its facility. They use the pallets they buy for shipping manufactured products of all sorts. Although the 48×40 is the mainstay of the operation, only a few of the current customers use the pallets for food products.

Since the overarching goal at Southeast is to reuse wood, new wood is rarely purchased. “I buy very infrequently,” said Kevin. “I’m buying used, reclaimed material from other pallet [companies]. Occasionally, we’ll buy cut stock #2, rarely #1 stock for some stringers. We do combo work for two or three clients that we service – about 1,000 per week.”

A PRS GAP automated machine is used to build combo pallets. It has been in service for 10 years and it was purchased at a Richmond Expo.

Over the years, Southeast has built pallets as small as 2’x2’ and as large as 5’x10’, said Kevin. “The occasional crate” is also in the mix, he explained.

While Kevin handles sales and operations in the pallet segment of business, Kenneth operates the grinding operation and Leonard fills in as needed. Kevin joined Southeast full-time in 1990 when he was 21. Prior to that he attended college and studied computer graphic design.

“We’ve equipped ourselves to be as competitive as [we] can be,” says Kevin. “We’ve equipped ourselves for the long term.” Southeast Pallet Recycling is a member of the National Wooden Pallet and Container Association.

A native of Louisville, Kevin is happy with the career choice he made, deciding on pallets over computer graphics. “I prefer this industry,” he said. “I like working with the people that I come into contact with on a day-to-day basis.”

Looking back at the company’s decision to automate, Kevin believes that he made the right decision. He said, “As far as I am concerned, I would not be in the recycling business without automation. The AMS equipment makes my life as the owner and manager a lot easier. I like knowing the consistency of the output as long as I have the inbound supply to feed the line.”

Not only are cardboard boxes more expensive than used bulk container, but they contribute to landfil waste.
Click here to read more about this benefits of bulk containers along with other reusable packaging products.

Cardboard Boxes More Expensive than Used Bulk Containers

According to David Madden, President of Container Exchanger, “We have facilitated many hundreds of transactions to date and our client list includes Fortune 500 businesses, Automotive Tier 1 manufacturers, consumer product manufacturers, scrap steel businesses, and distribution and freight companies. We work with and empower independent used equipment dealers, used equipment liquidators, and end users by providing value added sales assistance. We handle all customer questions, follow-up sales calls, payment processing, freight delivery, and after-sales support to our customers, and our method of doing business puts buyers and sellers at ease by controlling monetary flow in a manner that ensures full disclosure and delivery of quality product.”

Container Exchanger is an online marketplace that offers manufacturing and distribution businesses an outlet for procuring or selling used returnable packaging. The product offerings include many standard and common reusable packaging solutions, including but not limited to plastic totes, plastic collapsible bulk boxes, metal containers, wire baskets, and plastic pallets. Launched in 2005, ContainerExchanger.com has empowered companies to reduce packaging acquisition costs through access to used returnable packaging inventories and it has enabled companies to maximize return during disposal of their used packaging fleets.

Returnable packaging reduces waste created by every business. The EarthWorks Group estimates that 30% of landfill waste is created by plastic and paper packaging. The use of cardboard products and other one-time-use packaging products contribute to this waste.
Folding bulk containers, industrial totes, and metal storage bins are used over and over again within a facility or between a supplier and a customer. They can be used literally thousands of times. These bulk boxes are much cheaper in the long term when compared to buying cardboard boxes and wood crates every time that product is shipped. Savings can be observed in the per piece packaging cost. While the upfront investment in returnable packaging may cost more, savings can be realized quickly through repeated use (the same bulk containers, metal bins, and totes are used over and over), labor (no more box assembly), material handling (fewer moves from stackable containers), quality (fewer rejects due to damaged packaging), and floor space (plastic and metal containers can stack very high). The per piece packaging costs for used bulk containers and totes can be as low as 5% of the costs for a comparable expendable solution, depending on shipping volumes.
Container Exchanger (www.containerexchanger.com) is dedicated to the sale and resale of reusable packaging and containers. The firm resells folding bulk containers, metal storage bins, plastic industrial totes, plastic pallets, and used gaylord boxes nationwide. When a company is finished using a returnable packaging fleet, Container Exchanger represents the seller and finds a buyer for the used bulk packaging. Sellers enjoy a high sales price for a better return on investment. Buyers save significantly in comparison to new packaging prices.

Container Exchanger
www.containerexchanger.com
David Madden, President
pr@containerexchanger.com
404-551-5599

It appears that there is a world first in regard to plastic pallets which involves a new safety application minimizes slippage and possible accidental dislodgement.  You can read more about the specifics of this here.

Foodtech Packtech ‘vital business tool’
 
2008’s Foodtech Packtech (October 21-23 at Auckland’s ASB Showgrounds ) trade event is on track to showcase the best and latest technology the country has seen, says Irene Smith from event organiser dmgworld media. “We’re confident that this year will have visitors to Foodtech Packtech really fizzing. Trade professionals will be able to come up to speed and right up-to-date with the latest developments in food and packaging technology since the last acclaimed Foodtech Packtech two years ago, and all by investing just a day or two at the show.”
 
With endorsement and support from the Packaging Council, the New Zealand Institute of Food Science and Technology, and continued support from the food technology and packaging industries, Foodtech Packtech grows and evolves with every show.
 
More than 170 exhibitors are already confirmed, more than ten per cent from overseas. Visitors will have an opportunity to mix work and pleasure with the show’s Oktoberfest theme. “After all,” says Irene, “business is even more rewarding when it’s fun too!”
 
Many of the exhibitors will be showing technology and systems that haven’t been seen in New Zealand before, much of it up and running for a unique hands-on experience with on-site access to technical experts.
 
If the earth moves for you during the show it’s the result of one stand not to miss. Pallenz Plastics, New Zealand’s oldest commercial manufacturer of plastic pallets will be – literally – shaking things up.
 
“We’re going to clearly demonstrate how our manufacturing systems and processes can benefit end-users,” says Greg Gibb, Group Marketing Manager of the wholly owned and operated New Zealand manufacturer.
 
“Although we have a significant range of plastic pallets and collapsible bins we also recognise the need to be adaptable to meet the needs of special applications – and that’s where we return to ‘manufacturing systems and processes’. Unlike injection moulding the Pallenz manufacturing system has a much lower tooling cost so small product changes can often be effected without significant expense.”
 
Adapting to meet the needs of the client is a significant strength of Pallenz, and having on-site manufacturing, tooling, and 3D design services complete the offering.
 
Visitors to Foodtech Packtech are encouraged to discuss Pallenz Plastics’ on-going product development with their experts onsite. This reduces production costs, adds functionality, and increases throughput. A recent development was brought upon by a request from a client to provide more safety when using plastic pallets on selective racking. Pallenz listened, studied the market, and modified the Pallenz racking pallet to suit.
 
The new pallet features factory moulded rebates in the racking side of the pallet that correspond with metric selective pallet racking in New Zealand and Australia – and following extensive research it appears to be a world first for plastic pallets. When placed on the rack the pallet is positioned so the small rebate locks the pallet onto the racking – but only enough to minimise slipping and accidental dislodgement.
 
The safety application is not only to minimise dislodgement during earthquakes, but also dislodgement caused by other mechanical or man-made incidents, for instance a fork truck reversing into a pallet rack.
 
“At Pallenz we believe this is a significant advancement in pallet and racking safety and during the show we’ll demonstrate the system with a portable earthquake simulator – basically if you visit the Pallenz stand we’ll make the earth move for you,” exclaims Greg. “You’ll also see how we  utilise a state-of-the-art 3D design package to manufacture pallets in virtual reality prior to committing a project to full production costs.”
 
Another leading business at Foodtech Packtech is construction materials company, BASF Construction Chemicals New Zealand. Scott Lacey, Technical Sales (Performance Flooring) says one demonstration will be of a non-slip version of its unique flooring product, UCRETE.
 
“Marketed as UCRETE DP, the flooring system, already gaining widespread acclaim for its outstanding strength, chemical resistance and non-slip performance characteristics, is touted as one of the most significant advances in occupational health and safety in the food and beverage industries for many years.
 
“Workplace slip hazards are a major concern for many companies - especially throughout the food and beverage processing industries. In the past, when it came to selecting a floor for these difficult
environments, it has often been a matter of ‘trading off’ between long-term durability, ease of cleaning or non-slip finish. Now we are able to offer a floor that meets all criteria.”
 
Also key at this year’s Foodtech Packtech is the focus on professional education.
 
The Future Food Roadshow is an interactive exhibition being showcased at Foodtech Packtech. Using digital touch screens, you can question your attitudes to food, science and the environment. There are also opportunities to explore the wider issues surrounding the food you eat and the food you might eat in the future. Exploring the many meanings of food, the Roadshow is an eye-opening and thought-provoking experience that covers food’s cultural significance, ethical and ecological implications, impact on individual and collective health, and New Zealand ‘s unique position a food primary producer, exporter and innovator.
 
Always popular are the Packaging Council of New Zealand’s series of workshops. The breakfast workshops follow an overarching theme that ties innovation on day one to sustainability (day two) and regulatory changes and the economy on day three, says Executive Director Paul Curtis. “Each day will end with a facilitated workshop, the outputs of which will flow through into the following day, finishing with a ‘where to from here’ on day three”.
 
The well-thought through programme includes Tony Nowell, ex CEO of Griffins Foods and Zespri International and Chair of the Packaging Accord Governing Board, presentations from Scion (Crown Research Institute providing the next generation of biomaterials technology, research and development services), and a facilitated workshop on how to bring industry, government and crown research institutes together to maximise funding and opportunities. And that’s just one day!
 
Day two will feature Alan Emmerson, New Zealand’s Al Gore Ambassador, presenting a shortened version on An Inconvenient Truth, presentations from experts on global trends in sustainability and how it affects industry, and a facilitated workshop on how to build sustainability into your innovation programmes.
 
Dominick Stephens, Research Economist from Westpac, will also be hosting a breakfast session on a range of pertinent topics relating to the industry including a state-of-the nation address with questions and answers. Tickets are available from the show website.
 
Foodtech Packtech is a trade-only event with free entry. Visitors can register online at http://www.foodtechpacktech.co.nz/
 
Foodtech Packtech official publishers are Hayley Media, with the highly-regarded Food Technology magazine the official publication.

The layers of corrugated plastic offer weather and chemical resistant material which is a superior substitue to traditional packaging methods.  Click here to read more about this.

Plastic Corrugated And The Electronics Industry A Shock To The System

Posted in Packaging, Corrugated Plastic | No Comments »