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K&A Success Story: Fricks Pallet Company
It’s great to see companies succeed following an acquisition. In 2016, K&A represented Casey Prochazka in the sale of Metroplex Wood Products to Fricks Pallet Company. The following article details how Greg Fricks and Brad Fricks have grown the business and expanded operations.
From PalletEnterprise.com:
Fricks Pallet Co. Undergoes Company Transformation
Data-Driven, Solution-Focused: Fricks Pallet Co. Undergoes Company Transformation
Fricks Pallet changes from a 48×40 focus to selling mostly combos and custom-sized pallets. A solution-focused sales approach enables the Texas company to drive down costs and fix problems for customers. Data-driven decisions are guided by real-world numbers from the PalMate ERP system.
New Owners Say Safety Culture Has Paid Off: A major focus of the Fricks was to improve upon the lack of safety at the pallet company they had just bought. They invested in safer equipment, updated the facility with safer docks and added new forklifts.
By Chaille Brindley
FORT WORTH, Texas—The Fricks family has become icons for quality construction in the industrial concrete floor industry. And they hope their experience and focus will translate into success in pallets as the owners of Fricks Pallet Co., formerly Metroplex Wood Products.
Greg and Brad Fricks bought the pallet company in 2016 and instituted a focus on safety, data-driven management, sales growth and improving operational efficiency. Greg Fricks explained how two concrete business leaders jumped into pallets. He said, “The opportunity was presented to us by a broker here in town, and we liked the idea of buying a company that was doing well, and we could make it better. We wanted a company where we could give other people the opportunity to build up a company and mentor them along the way.”
Greg Campbell, the general manager of Fricks Pallet, recalled, “The Fricks knew they wanted to modernize and invest in the pallet business. They felt like they could bring their business acumen and their lean principles to the company. They know how to win and develop a strong organization. They bought about 10 acres, and we moved into this new facility in April 2017.”
Installing a Safety Culture
A major focus of the Fricks was to improve upon the lack of safety at the pallet company they had just bought. Greg Fricks explained, “There was not a safety culture in the business, and there was a lot about the old facility at the old property that wasn’t safe. We moved everyone under one roof to improve safety and operational flow. We focused on and taught safety first, so that everyone goes home every day with all their fingers and toes. Our philosophy is that everything matters, even when you are building or repairing a pallet.”
The Fricks invested in safer equipment, updated the facility with safer docks and added new forklifts. They insisted on proper training and required all employees to wear Personal Protection Equipment (PPE). They instituted weekly safety meetings to discuss how the operation could be improved and communicate any safety concerns that managers saw. In addition, the Fricks Co. employs two full-time safety personnel who have helped the pallet business develop new HR/safety practices and training. The safety culture has paid off because it has created a new mindset for workers and improved morale. Campbell said, “The Fricks Company provides a lot of support to us in terms of safety training and resources and infrastructure.”
Data-Driven Business Management
When the Fricks acquired the company, they brought a focus on data when it comes to making business decisions. Campbell commented, “The Fricks believe in data-driven management. They have helped us understand our numbers and make better strategic decisions. We have installed PalMate Enterprise Resource Planning (ERP) into our systems, which has radically revolutionized everything. This software has helped us better understand and manage our business.”
Data capture takes place based on a self-reporting system that is verified by the supervisor. This information is transmitted to the office administration on a daily basis. How has data changed the company for the better?
Campbell explained, “Having better data enables us to better understand what’s profitable and what’s not profitable. We discovered that some customers who we thought were profitable were actually a big fat loss. This customer was sucking up some components that were critical for more profitable business.”
He added, “We love PalMate. It is an ERP specifically designed for the pallet industry. It provides us with a lot more reporting to help us grow and discover sales opportunities.”
Having made money in the industrial concrete floor and construction sectors, the Fricks were very familiar with warehouses and how to run a successful company. They were focused on growth and scaling up the company. Campbell noted, “We are continuing to scale up. We went from one shift to two. The Fricks are driven to grow and have invested to help us reach our sales goals.”
Changing with the Changing Market
Looking back over the company’s history, the original owner of Metroplex Wood Products was Bill Anderson. He started the company in the late seventies. The company was originally a new pallet producer and eventually became a recycler as the industry changed. Bill passed away suddenly, and his family absorbed the business. They eventually sold the business to Casey Prochazka who hired Greg Campbell in 2012 to sell pallets.
Prochazka’s ownership was impacted by a massive fire, but overall, he brought the company into a new era while maintaining the legacy business. During this period, the company was a small recycler.
Over the past three years, Fricks Pallet has undergone a business model change from 48x40s to primarily specialty and custom-sized pallets. Campbell explained, “Our recycled sales was 64% of our business in 2020, and custom sales was 36%. And if you look at the transition we’ve made, you see what we’ve done in two years. Now, custom is 63% of sales. Repair and recycled is 37%. Prices have gone up too because of industry changes. We have revolutionized what the company does to go after higher-margin business that fits better with our long-term goals.”
Strong Sales Approach
In 2020, the owners and management held a strategic meeting where they painted a picture of what they wanted in a sales professional. And Kyle Hennings, the current director of sales and business development, is the result of that meeting. Campbell stated, “Kyle has delivered results in spades. He has been a major part of our success. So, he’s focused entirely on custom sales, and I handle all the recycled business. Kyle is just killing it for us.”
Hennings, who previously sold insurance, started in August 2020 and quickly learned the basics of the pallet business. He said, “I really spent a lot of time just out in the field, driving around in my truck, dropping off business cards and going to all these warehouses. I was getting a feel for the market, understanding the pockets of the Dallas Fort/Worth area that are heavily populated with warehouses and supply chain operations.”
A new sales approach included updating the company’s website, creating professional brochures and creating a marketing video. Hennings used sales software to identify target customers based on warehouse square footage, sales volume and number of employees. After building up a base of business, now his customer base is 70% inside sales and 30% outside sales.
Greg Campbell said, “We are solutions-oriented and focus on fixing customer problems. From breakage issues to quality control to specialized sizes, we work to find the right pallet for each customer.”
Hennings added, “You’ve got to ask a lot of questions up front. You have to learn a customer’s operations. And there is always something in a potential customer’s operations that you can create a solution for.”
In addition to prospecting customers directly, Hennings networked with packaging companies and created relationships with brokers. Fricks Pallet isn’t just looking for any customer. It wants the right customer to fit its focus on custom sizes and the available material Fricks routinely processes.
Hennings explained, “I always ask, ‘Is this business a good fit or not? I’m constantly looking at the sizes of pallets that they use and the volumes. Will this account be a good fit for what we do well and our facility? Is this going to be a fast build? Is this going to be something that our guys struggle with? Do we have these size boards and components?’”
Plant Layout and Production Flow
All the major processes at Fricks Pallet take place in one production building. The old layout of Metroplex Wood Products involved numerous buildings. Having everything in one building reduces forklift activity between aspects of the operation and makes it easier for management to keep an eye on everything.
Fricks’ facility has eight bay doors. Used loads come in, and the forklift driver makes one of three decisions. The driver moves pallets to a core island in the middle to be taken to repair tables. If it is breakdown material, these pallets are taken to the dismantler area. Crazy mixed loads that require a lot of sorting are taken outside for further processing later.
Core island is where pallets are sorted and then sent to the repair tables. One side of an Automated Machine Systems (AMS) repair line is for sorting and repair. The other is where custom pallets are produced by hand on tables. After a pallet is repaired, it is sent down the line to be automatically stacked on a conveyor.
Campbell explained, “The repair line is the biggest thing in my warehouse. While we used to do a lot of pallet repair, now it is only 37% of our business.”
Fricks Pallet relies on dismantlers from Smart Products. Greg commented, “Ken Hess designed a great system for us. Once a pallet is broken down, all the deck boards go onto a conveyor and are taken to the trim saw.” This system reduces the number of touches and the number of operators required. It is a simple, efficient system that has been used by many recyclers all over the country.
After the sale, support is critical to ensure consistent production. Campbell said, “I would put Ken’s machines up against anyone’s, and he’s got a great reputation in our industry for a reason, but he’s always been there to support our people. When my head of maintenance calls, I can’t tell you how many times he’s actually talked to Ken himself.”
Smart bandsaw dismantlers are safe and easy to use, according to Campbell. Fricks bought a Smart saw in 2017, and it still runs great for processing various odd-sized pallets. Fricks also runs a Smart double-head notcher.
Fricks Pallet plans to add more high-end saws and currently has a Robo Up Cut saw on order from Mona Tracy at Universal Machinery Sales. Fricks acquired this saw to boost its capacity. Currently, it uses a manual chop saw. Campbell said, “I just need just a little bit more speed and volume. Mona’s saw is as simple as a quick little roller, push a button zoom and then let’s go.” Automation can help the saw operator improve recovery and yield.
When it comes to pallet production, Fricks Pallet relies on nailers from Viper Industrial. It uses two Woody nailers to produce custom built pallets. Campbell explained, “Over the last year, we have experienced a lot of growth. And we needed to purchase a machine to scale our growth as we increased the percentage of custom-built pallets.”
The Woody has been the answer. Fricks Pallets gets double the production on the Woody that it achieved with hand nailing custom sizes. One of the big selling points for the Woody was the lead time, which was three to six months at the time he bought his nailers. Campbell added, “Viper stands behind its machines with great service. Tony Grilo, director of automation for Viper Industrial is a fantastic guy. He helps us with any troubleshooting and has been a fantastic partner.”
The Woody is a one-operator machine where boards are placed into a jig on a vertical incline. A nailing gantry with pneumatic nailers automatically moves down the incline to nail the lumber into place. The operator turns over the pallet, places the remaining boards, and the machine completes the nailing process. The Woody also comes with an automatic stacker. Campbell said, “The Woody is like having two guys working instead of one. We achieve 300-400 pallets per shift per worker on these machines. And the 45-degree angle design is easier on an operator’s back allowing for less impact on employees.”
Keeping the shop area clean is a high priority for Fricks Pallet because a clean operation is a safe operation. Conveyors and waste hoppers transfer material outside to keep the inside as clean as possible. Fricks Pallet partners with a third-party service that processes wood fiber on site. Campbell stated, “This market is saturated with wood fiber, and I found it hard to compete. It’s a symbiotic relationship. My third-party partner loves all the material that comes out of this facility. They set up shop here and turn waste into playground material.”
Mentorship
A big reason for the success of Fricks Pallets is the personal investment of the company’s owners. Hennings acknowledged, “We have really strong leadership from our company owners. The Fricks family has mentored Greg and I. They push us to grow and become better.”
Campbell has also developed relationships and worked with others in the industry to grow and learn. He specifically mentioned James Ruder, the former owner of L&R Pallet in Denver. Campbell said, “The kind of culture that James Ruder established at his Denver pallet company was incredible. I was fortunate to be able to visit L&R Pallet for a day via our consultant Jim Doyle. While visiting the operation I was able to witness firsthand their unique culture they have implemented to truly minister and care for their employees. As a former minister, I thought it was wonderful. I learned about their company’s ministry oriented culture and employee care programs, which in turn truly helps their company achieve success.”
Fricks Company has a culture that stresses getting it done right and helping your teammate succeed. Greg Fricks noted, “I encourage the key managers at Fricks Pallets in various ways. Coming from the concrete industry, my business philosophy has always recognized the urgency to get things done in a timely manner and that most people can accomplish more than they realize in a day.”
Speaking about specific managers, Greg Fricks commented, “Greg Campbell has been loyal, dedicated and driven to be better as an individual and as a manager to build up everybody around him. He’s the dream boss because he’s going to bring you in and do everything that he can to help make you better. Kyle is a young guy who’s driven to be successful. He’s everything you want in a salesman. Eduardo runs the facility, and he’s just an asset to the company.”
To find out more about Fricks pallet, visit https://www.frickspallet.com/.
