"Without pallets, no one can move anything!"

Wirtschaftsforum: Mr. Winter, in recent years your company has made comprehensive investments in the future - what specific steps have you taken? 

Franz Winter: Among other things, we've built a new production hall covering 2,000 m² to significantly increase our daily throughput. In addition, we have set up a wood chip-powered energy center with a total output of 1.6 MW - in addition to the photovoltaic system on the roof, which supplies 1 MW of electricity. This allows us to supply our ten buildings, covering 20 ha, with self-generated energy entirely. With a daily turnover of around 30,000 to 35,000 pallets, repair works now take place on a total of four robot-controlled lines; the construction of a new distribution warehouse is already in the planning stages. 

Wirtschaftsforum: What initiatives have you taken in the meantime on the sustainability front? 

Franz Winter: We have significantly expanded our recycling concept to now be able to take back almost every pallet. These are then completely dismantled so their components can flow into new products – a process that now operates semi-automatically and allows for the incorporation of recycled wood components of about 30%. With the help of robotic systems, we might be able to increase this rate to 50%. However, it remains uncertain to what extent our industrial customers are willing to adequately compensate for the additional effort that will still be required for the production of recycled pallets. 

Wirtschaftsforum: The last few years have been marked by rather bleak overall economic prospects - was this still the right time for extensive investments? 

Franz Winter: In a way, we had some time to reflect and recultivate - and we wanted to use this time. Because we are sure that the starting signal for economic recovery will inevitably come at some point. At that moment, we as a company must also be ready - because without pallets, literally no one can move anything. Even now, it is clearly noticeable in the market that the newly introduced pallets are becoming fewer and the condition of the old used ones is getting worse. So a massive demand for our products is only a matter of time - and had no one invested in the necessary infrastructure for this, it would have been an enormous risk for the entire logistics chains. 

Wirtschaftsforum: In your future investments, you have also clearly focused on extensive automation solutions - does the widespread shortage of skilled workers still play a role for you? 

Franz Winter: When we had not yet employed any robots, about 180 people worked in our company. Today, we rely on comprehensive robotics solutions and employ 240 employees. This clearly shows: If you invest correctly in the future, you end up needing more workforce than before, not less! Therefore, in my view, a tax on robots would be the greatest nonsense, because I use our automation technology precisely for the purpose of making work easier, so that our staff don't have to manually transport heavy objects but can comfortably press a button, and to handle the throughput of our massively increased volume at all. 

Wirtschaftsforum: Based on your comprehensive investments, how do you view the coming years? 

Franz Winter: Although we as a company are structurally very healthy, unfortunately with a great uncertainty: However, I share this uncertainty with almost all other businesses throughout Austria. However, what seems to be overlooked at our company from time to time is the significant role we play in logistics: Our products are sustainable, crisis-relevant products, without which nothing can be transported from A to B. What would happen if, in a new crisis, like about five years ago during the coronavirus pandemic, the borders were suddenly closed? In order to be able to manage such a situation, we need stable production sites in Austria, which in turn rely on predictable economic conditions for their success.

Yet apparently nothing has been learned from the last crises, since the production location Austria is becoming increasingly unattractive for investors due to the tense wage and ancillary cost structures, as well as due to the overwhelming bureaucracy. And I must also frankly admit: Unlike ten years ago, when I could estimate with good conscience how many pallets we would sell, repair, and sort prospectively, today I cannot actually say with sufficient reliability that we will still need each of our newly acquired facilities in a year. The same applies to the operational capability of our soon more than 50 trucks fleet or issues of compensation for our employees, all of whom have been affected by the high inflation of the recent years. Every business here needs clear perspectives - so that we can prepare for the upturn!