Nevada Recycler Finds
Success with AMS Repair Line

While Nevada is known for its gambling and risk-taking, the Stephan brothers look for trustworthy partners when it comes to selecting the right automation for their facilities. What used to be a major hurdle for Pallet Broker LLC has become a strategic advantage thanks to equipment solutions from Automated Machine Systems (AMS) and other suppliers.

Over the past eight years, the company has invested in automation solutions to support rapid growth in its Las Vegas and Sparks, Nevada facilities. The company produces 75% recycled or combo pallets, with about a quarter of its production being new pallets manufactured on Viking Champions.

The Automation Journey Begins in Sparks

Pallet Broker started its automation journey in its Sparks location in 2017 with a used repair line. Matt Stephan explained, "We had worked with Kris Chayer of AMS for a long time, and we felt comfortable with their equipment and service. Knowing Kris made this an easy decision."

At the Sparks plant, Pallet Broker also installed a Robotic Pallet Dismantler and Urban Sawmill line from Alliance Automation. The big driver was the difficulty finding labor during the COVID pandemic. Matt recalled, "You couldn't get labor, and you couldn't get supplies, so the only way to reduce the cost was to produce combos."

The Urban Sawmill has enhanced yield for each board. Matt commented, "Now we're recycling all of our 2x4s — before it was very hard for us to keep up. We're getting better yield and losing less usable lumber in our trim saw operations." The Sparks facility produces 100 tons of mulch per week from a Rotochopper grinder processing waste material.

The Las Vegas AMS Repair Line (2024)

Most recently, the company installed a new AMS repair line in 2024 at its Las Vegas facility. Matt noted, "We opted for a new line because it is more reliable and less likely to break down. The new AMS line has enabled us to significantly boost production while making the jobs safer."

Before the AMS line, pallet handling and stacking at the Las Vegas repair facility was done entirely by hand. The old system involved manual sorting and inspection at each pallet repair station.

How the New System Works

The new Las Vegas system starts with a destacker infeed that efficiently dispenses individual pallets into a manual inspection station. The destacker operator can thoroughly inspect each pallet before directing them to a streamlined three-tier repair line:

• Bottom tier: Feeds pallets directly to the stacking system (no repairs needed)
• Middle tier: Dedicated to pallets requiring repairs at six strategically positioned repair stations
• Top tier: Conveyor for waste materials — trash goes directly to a dumpster bin, eliminating a bin at every repair station

Once inspected and sorted, barcoded pallets are conveyed to six high-speed stackers, each tailored for specific pallet grades, ensuring precise handling and organization per Pallet Broker's specifications.

The Results: From 3,500 to 4,400+ Pallets Per Day

The numbers tell the story clearly. When the process was being done by hand, the Las Vegas facility processed 3,500 pallets per day. After the AMS installation:

Automation also allowed the company to cut from 6-day, 10-hour shifts to standard hours with no overtime. Matt stated, "Automation is key to making our Las Vegas location work well. We have been able to cut the number of employees from 24 to 18."

Labor: From Problem to Strategic Advantage

Nate Stephan, VP of Operations & Co-Owner, noted: "We are able to hire from a much larger pool of workers now thanks to the automation. Removing much of the strain of the jobs keeps workers fresh longer and reduces workplace injuries. We are a CHEP sort and storage facility. The AMS de-stacker has helped us process CHEP pallets while reducing the physical strain of handling the weight of those pallets."

The company has built a strong referral pipeline: "We have employees who are bringing their kids and family members down here to work with us. We're seeing a ton of applications now," Matt shared. Creating a better working environment has turned labor from the company's biggest challenge into a recruitment advantage.

Better Data Through PalMate Integration

The new AMS repair line allows the Las Vegas facility to track the entire process on a per-pallet basis. Pallets are tagged and tracked from sorting to repair to stacking. Barcode data feeds into PalMate ERP software, replacing hand counting with accurate automated tracking.

Nate explained: "As a pallet goes down the line, we know the core supplier, who repaired it, and what grade it is. This allows us to know the true grading from each supplier. The PalMate ERP tracks inventory so we can login and see the numbers even if we are at the other location."

The Stephan Family: A Nevada Pallet Dynasty

Mark Stephan started the company in 2002 in Reno, NV. His twin sons Matt and Nate both entered the business — Matt after college, Nate after serving in the military. After 30 years in the pallet business, Mark retired and the twins bought him out to take full ownership.

Working together has been a lifelong dream fulfilled. Matt said, "We talked about this when we were kids — that we were going to live by each other and work with each other. Now, we're grown adults, and that's what we do." Nate agreed, "Working with Matt has been fun. It is rewarding to grow the business together."

A key differentiator is direct owner access. All customer service calls go directly to Nate or Matt, not an answering service. Matt stated, "I think our approach goes a long way to providing top-shelf customer service because we can fix any problem or make a decision right there in the moment."