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in need of a big lift: n.j. pallet company\'s slow sales are a sign of the times

by:Kenwei      2019-09-15
The wooden plank is a simple rectangle of hard planks and nails that keeps the state\'s economy going.
Large tray-
Box retailers, drug companies, grocery stores, car dealers and major office campuses, move, stack and store large quantities of goods.
\"Without pallets, nothing will move,\" said Peter Comon, general manager of manufacturer and recycler Tony topop, who has worked in Newark for 30 years.
\"The tray keeps the whole world moving.
\"That\'s why the 40 employees of Tony topop, named after the late founder, are worried.
Hardwood floors are a good barometer of the state\'s economy, and the decline in the pallet business suggests that the recession in New Jersey could become a serious problem.
Orders for their new pallets and recycled pallets-priced from $7.
According to the size and type of wood, $50 to $100-
Oil prices have fallen by 10% since April, when the initial surge in wholesale oil prices caused petrol prices at gas stations to soar to $4 a gallon.
\"We didn\'t lose any customers, but orders are slowing down,\" the company\'s chief executive, Vera Russo, said in the spin of the table saw and the crack of the nail gun.
\"We will have to take some measures if the economy keeps up.
\"The high fuel price adds $2,000 per month to Tony Topper\'s transportation costs.
2 million pallets per year.
In addition, this year\'s tariffs on steel imports from China and India have led to a 40% spike in nail prices.
Tony pallet uses 760,000 nails per month.
The economic downturn in New Jersey is manifested in New York and New Jersey ports, where the number of goods shipped to Newark has been declining since the end of last year at Elizabeth and other docks in New York Harbor.
Thousands of containers will land in New Jersey warehouses that rely on pallets to process goods.
Tony topop, a big player in the logistics market in northern New Jersey, feels cash strapped because of his family profits --
The operation of ownership is split. thin.
The company faces competition from all over the world.
Manufacturers and regional operations in New Jersey and Amish
Have business in Pa Lancaster County.
More importantly, higher energy costs put pressure on hard wood sawmill, which has already had a meager profit margin swallowed up by transportation costs.
700-President Bruce skornik said that this led to a potential shortage of materials for future use in the manufacture of pallets
Member of the National Association of wooden pallets and containers.
\"Raw materials are a problem,\" he said in a telephone interview . \".
\"The price of the DingTalk, the price of the gas, if you don\'t make a new tray, you don\'t have a lot of things to repair and reuse.
\"The Oak skin is the most durable and ideal for easily damaged goods.
Cork trays are more suitable for lighter goods such as tissue boxes.
The wood used to build the pallet is a mixed bag, from low level scrap to board, from rough building to heat
Treatment of wood diseases and insect infections.
At Tony pallets, most of the sales were recycled pallets, and the staff inserted the old slides into a machine to separate them, while the other staff cut each board and stored them in huge
At another workstation, used boards were nailed together to make recycled pallets, with Tony pallets shipping 75% of the pallets to customers.
Companies from all walks of life are creating fuel surcharges and other expenses to generate revenue.
Like the baggage-charged aviation industry, businesses say they are being squeezed by rising oil prices and must pass on the cost of survival.
For the first time, Mr. Russo said Tony Pallet\'s paid $2007.
5 million, the delivery fee began this year.
Its customers are in a New Jersey area west of Flanders, and south of Cranbury, where dozens of large warehouses have appeared on former farmland over the past 15 years.
\"If you keep raising the price of pallets because of fuel, how many more times can you increase the price,\" Russo said . \".
\"You just pass it on to the next guy and it will go round.
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