Wednesday, October 23, 2013

How Do I Choose a Stretch Wrap Machine?

How do I know if I need a stretch wrap machine?
There are two ways to apply stretch wrap - by hand and with a machine.  While there are many variables to consider when determining if you need a stretch wrap machine, here are the primary considerations:
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  • How many pallets per day (or per hour) do we typically wrap?
    If you wrap more than four loads per hour, or over 30 per day, then a stretch wrap machine would be a good investment.  A stretch wrap machine can be cost-effective even if you wrap as few as 10-15 loads per day.  The more loads you wrap per day, or per hour, the more sense it makes to invest in a stretch wrap machine.
  • How much prestretch is required to effectively secure your load?
    The average person using hand wrap can attain a consistent prestretch of maybe ten percent.  Stretch wrap can attain a prestretch of over 250 percent, depending upon the type of film and the machine being used.  The higher the amount of prestretch, the more the film is stretched, the more tightly the load is secured, and the more loads you can wrap with one roll of film.
  • How much time is being spent wrapping by hand?
    This is a subjective variable, but a stretch wrap machine can literally enable your worker to press a button and let the machine finish the job while they tend to other tasks.
  • Safety
    By eliminating the need to hand wrap, a stretch wrap machine can dramatically increase employee safety.  There is no need to walk multiple times around a load, most of that time being spent bent at the waist holding a roll of stretch wrap.  One stretch wrap machine can certainly be more cost effective than one worker's comp claim - both in terms of time and money.
How much does a stretch wrap machine cost?
If your business manufactures or fabricates products you might have purchased equipment in the past such as an hoist, or a workstation jib crane so you might be familiar with the process of procuring capital equipment. If you've only and always used hand wrap, the cost of a stretch wrap machine (usually starting at around $6,000) can be intimidating.  But the purchase of a stretch wrap machine can be most accurately be looked at as an investment, rather than simply an expense.  A stretch wrap machine can offer you significant savings in the following ways:
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  • Film Savings
    As mentioned above, the average worker using hand wrap can typically achieve no more than 10% prestretch.  A stretch wrap machine, however, can achieve over 250% prestretch, depending upon the film and the machine.  Prestretch simply refers to how much the film is stretched.  The greater the film is stretched, the less film you are using, and the more loads you can wrap with one roll of film. (see table below)
  • Time Savings
    Depending upon the size of the load, it can take one employee as much as three or more minutes to wrap one load.  If they're wrapping 20 loads per day, for example, that's 60 minutes - or one hour - spent wrapping.  With a semi-automatic stretch wrap machine, that time can be spent doing other things rather than walking in circles around a pallet.
  • Safety
    As noted above, the cost of one stretch wrap machine can be significantly less than the monetary and time expense of one worker's comp claim filed due to back or other injuries sustained by using hand wrap.
The chart below illustrates the potential savings of using a stretch wrap machine versus standard hand wrap.  The comparison is made using true 80ga film. 



As you can see, for a machine that lists at $5995, you can pay off your investment in anywhere between 6 months and 4 years, depending upon your volume.  With a higher grade machine, listing at $8995, it can be paid off in as soon as 8 months.  And with either scenario, you're using far less film and therefore spending less money -  you can wrap almost 70 pallets with one roll on a stretch wrap machine while only 9 with one roll of hand wrap (or 36 with a 4-roll case) due to the ability of the machine to achieve far greater and consistent stretch from the film.

Another way of looking at it is that with one pallet of 80ga 20" machine film (40 rolls) you can wrap approx  2750 loads (assuming 150% stretch).  With one pallet of 80ga 18" hand wrap (192 rolls, or 48 cases) you could wrap only 1690 loads.  No matter how you look at it, using a stretch wrap machine will save you money and time in the long run.

If the cost is still a problem for your budget, consider using the Section 179 tax deduction when you file your taxes.  This can help cut your end cost by close to forty percent.

How Do I Select a Stretch Wrap Machine?
You will need to know the following information in order to determine what stretch wrap machine will work best for your packaging needs:
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Rotary Arm Wrapper
  • Minimum, average, and maximum load weights
  • Maximum load height
  • Maximum load width/depth 
  • The average number of loads per day, or per hour, you typically wrap
  • The nature of the product(s) being wrapped
  • The width film do you intend to use
  • If you will be loading the machine with a forklift only or a pallet jack as well
  • If you need an integrated scale
  • The color stretch wrap you use (this can affect the photo-sensor eye)





 

Friday, October 18, 2013

Printed Stretch Film and Alternatives

Generally, there are four reasons why a company may be interested in printed stretch film (or stretch wrap):
  • To minimize the possibility of pallets being broken in transit
  • Security/Theft deterrence
  • Warehouse/Internal identification
  • Brand exposure
Essentially, printed stretch film is the same as regular stretch film, but with your logo or the text of your choice printed on the roll.  In light of the reasons noted above, it can be a very useful option.  It can also present its own potential negatives:
  • Neck-down - distortion of the logo/text caused when the film is stretched
  • Overlap rendering the logo/text illegible or unidentifiable
  • Direction - with a logo, or more particularly with text, the wrap must be applied in a certain direction or it goes on backwards, rendering it illegible
  • Cost - printed stretch wrap can be 2-3 times more expensive than standard stretch wrap
  • Waste - once stretch wrap is used, it cannot be reused
  • Redundancy of effort - often, the printed stretch wrap is not the primary wrap and is applied in only one or two layers after the primary wrap has been applied.
Additionally, if printed stretch wrap is not applied correctly, it may actually do your company more harm than good.

There are, however, alternatives to printed stretch wrap that can still meet all or most of the above specified advantages to printed stretch wrap:

Colored Stretch Wrap
This is one of the most cost-effective alternatives.  Any printed material will require a custom-run of that product and will also entail artwork and plate charges.  Many stretch wrap distributors stock colored stretch wrap, whether it be in the form of bundling film (2" - 6"), hand wrap (10" - 30") or machine wrap (20"+).  Colored stretch wrap can offer security by obscuring the view of the contents of the pallet; can provide internal identification so that personnel know, for example, which skids are returns and which are new; and can minimize the possibility of pallets being broken down because most freight carriers do not use colored film.  If you ship with orange film and your customer receives the pallet wrapped in something other than orange, you will know that the load has been tampered with and you can deal with that accordingly with your customer and freight carrier.  Like any stretch wrap, colored stretch wrap cannot be reused.  While more expensive than standard stretch wrap, colored stretch wrap is still less expensive than printed stretch wrap and is typically available in smaller minimum quantities and can be used as a simple over-wrap rather than as a primary wrap, or can be used as the primary wrap as well.

Colored stretch wrap can also be combined with custom printed labels in order to get your brand name on the pallet and generate awareness of your company.  This combination can achieve all of the goals related to using printed stretch wrap and is much more flexible and cost-effective.

Printed Pallet Covers
This is one of the more cost-effective options that will accomplish brand exposure along with security and identification.  One advantage printed pallet covers offer that is unique is that there is the possibility they may be re-used, particularly if utilized internally.  They may be used under clear stretch wrap or over any wrapped load.  The print will not be susceptible to distortion (or neck-down) or overlap as would printed stretch wrap.  Printed pallet covers are available in a variety of sizes, colors and in different mil thicknesses, depending upon your needs.  A guide to know how to measure for a pallet cover can be found here.

Colored pallet covers, printed or unprinted, may also help you accomplish your goals.  As opposed to colored stretch wrap, which is very thin and requires several overlapping wraps to achieve any significant degree of opacity (solid color, lacking transparency), colored pallet covers are already thick enough to provide the level of opacity needed for security and/or identification purposes. Samples of stock pallet covers are available at no charge to help you most accurately determine what size and thickness work best for your needs before you make any special printed and/or colored order.

Printed Tape
Printed tape is another cost-effective alternative to printed stretch wrap.  An advantage to this option is that there are stock prints available for security purposes or to discourage the load from being broken down in transit.  Custom printing is available as well.  Printed tape can also be used for other applications - such as on boxes, drums, or any other container or packaging option.  Printed tape can provide brand exposure, internal identification, and can discourage your pallets from being broken.

Given the relatively high cost and other limitations of printed stretch wrap, it is not a viable option for most users, though it may look attractive in concept.

Tuesday, October 8, 2013

Stretch Wrap Dispensers and Wrapping Safety

Stretch wrap is thin poly plastic used to contain a load on a pallet and keep it from shifting and being damaged in transit.  It comes in three basic forms - bundling film (less than 10" wide), hand wrap (10" to 30" wide) and machine film (20" wide and up).  This post will focus on how to safely and efficiently use hand wrap.

3" Core Hand Wrap w/no Dispenser
Hazards of Using Hand Wrap
The average pallet is 40" x 48" and can range in height anywhere from a 24" up to 72" or more.  The general rule for wrapping an average pallet is at least three wraps around the bottom, three around the top, and two around the middle.  This means a lot of walking and bending at the waist to wrap one pallet.

Last, many users of hand wrap walk backwards when applying the wrap to their product.  This means that your employees are bending at the waist, reaching over their shoulders, and walking backwards many times during the day.  Not only is this inefficient - it is hazardous.

The Cost of Back Injuries
According to the Bureau of Labor and Statistics, back injuries account for over 20% of all workplace injuries.  Back injuries account for more than one-third of every worker's compensation dollars.  The US Department of Labor says that back injuries account for more than 187 million lost work days per year.  OSHA's manual on back disorders and injuries cites the following activities as contributing to the problem:
Extended Core Hand Wrap
  • Reaching while lifting
  • Poor posture
  • Repetitive lifting
  • Twisting while lifting
  • Bending while lifting
  • Maintaining bent postures
  • Fatigue
All of these can be found in the typical hand wrap application of stretch wrap.

Stretch Wrap Dispensers and Options
If your demand is not sufficient to warrant a stretch wrap machine, there are options that can make the hand wrapping process much safer and efficient.

Pole Dispensers
These are perhaps the best, most efficient and most ergonomic option available for hand wrap applications, but are also the more expensive.  Pole dispensers range from approx 48" to 60" long and most can accommodate film ranging from 10" wide up to 20".  They typically also have an integrated hand brake that allows the user to apply more stretch as needed.  Pole dispensers allow the user to apply a tight wrap around both the top and bottom of a pallet, all without having to bend at the waist.  They also allow the user to wrap over the top of a product with ease.  And the pole dispenser can allow the user to achieve a tight, secure wrap without having to walk backwards around the pallet, bend at the waist (even for the bottom of the skid) or reach over their shoulder.  They cost between $120 and $160, so are among the more expensive options, but are also the most reliable, flexible and most popular choice of high volume hand wrap users such as distribution centers or logistics centers.

Here are some sample videos of one of the more popular pole dispensers that illustrate how they work, the flexibility they offer, and the improvement in efficiency and ergonomics they provide.  Follow these links for more information on the three leading pole dispensers - Nelson Wrap Dispenser (pictured above), Danahe WrapStik, and the Highlight Pole Wrapper.
 
Hand Wrap Dispensers
These are a more cost-effective option, but still require the user to bend at the waist and perhaps walk backwards.  Their main advantage is that they allow a greater ability to apply a tight stretch to the load as opposed to using no dispenser.  These range in price from approximately $70 to $120 each.

Hand Saver Dispensers
These are by far the least expensive option, but still require bending at the waist and awkward walking.  These dispensers inset in to each end of the 3" core of your hand wrap and allow you to use your fingers to hold the inner ring while the outer ring rotates with the film.  These run as low as $8 - $10 per pair.

Extended Core Hand Wrap
Most hand wrap comes with a 3" core that extends only slightly past the edges of the film.  Extended
core hand wrap comes on a 1" core that extends approximately 5" out each end of the film (like a scroll or a rolling pin), creating built-in handles.  Some extended core products ship with rubber grips that fit over the ends of the extended cores, allowing you to hold the grips while the core rotates inside.  But like the others, this still requires bending at the waist and awkward walking.  Extended core hand wrap film typically comes in 20" and 30" widths and typical maximum length of 1000' (as opposed to 1500' for most 3" core hand wrap).  These vary in cost based upon gauge, film type, and width.

Tuesday, October 1, 2013

Section 179 - Tax Deductions for Business Equipment and Improvement

With the end of the year rapidly approaching, it's unfortunately time to start thinking about taxes.  But with taxes come deductions.  Many business owners are not aware of Section 179, do not think about it until it is too late or are not aware of how comprehensive and beneficial it is.

What is Section 179?
In short, Section 179 allows a business to deduct any equipment that counts as a business improvement.  In the aspect of packaging supplies, this can include stretch wrap machines and dispensers, tape machines/case sealers, and strapping machines and tools.

The primary requirement is that the equipment be purchased in the calendar year for which you will be filing - in this case, by the end of 2013.  As with all tax questions, there are many other details, but this one is pretty simple - as long as it is equipment that helps improve your business, it's eligible, all the way up to $560,000 in total deductions for that calendar year (with single item purchases of up to $139,000).  Section 179 includes both new and used/refurbished equipment.  There is no minimum on the amount of purchase.

What Qualifies for the Section 179 Deduction?
The equipment listed below qualifies for the Section 179 deduction as long as it is purchased and put into use within the calendar year it is claimed as a deduction:
  • Equipment (machines, etc) purchased for business use 
  • Property attached to your building that is not a structural component of the building (i.e.: a stretch wrap machine, case sealer, large manufacturing tools and equipment)
  • Tangible personal property used in business
  • Business Vehicles with a gross vehicle weight in excess of 6,000 lbs
  • Computers
  • Computer "Off-the-Shelf" Software
  • Office Furniture
  • Office Equipment
  • Partial Business Use (equipment that is purchased for business use and personal use: generally, your deduction will be based on the percentage of time you use the equipment for business purposes). 
What Packaging Equipment Qualifies for Section 179?
Following is a general list of what packaging supply equipment would qualify for the Section 179 deduction:
    • Stretch Wrap Machines ($3600 and up)
    • Case Sealers/Tape Machines ($3000 and up) - Contact Us
    • Water-Activated (Gummed) Tape Dispensers ($350 and up)
    • Strapping Machines ($800 and up)
      • Semi-Automatic
      • Automatic
    • Stretch Wrap Dispensers ($30 and up)
    • Impulse Sealers/Poly Bag Heat Sealers ($75 and up)
    • Pneumatic Strapping Tools ($900 and up)
      • for Steel
      • for Poly
    • Battery Operated Strapping Tools ($1800 and up)
    • Manual Strapping Tools

We at Packaging Supply Answers can help you with any of these purchases through links to our web sites to the right or the above-noted direct links to the products that are listed on our web sites.  For pricing or quotes on any of these items you can contact us directly or visit our web sites.  We also have another post that tells you more about how to choose a stretch wrap machine and how it can help you and your company.

What Kind of Savings Can Section 179 Offer Me?
The amount you save obviously relates to the amount you spend, but in terms of items referenced above, this is an idea of the amount of savings you can expect from the Section 179 deduction:


Please note that though this chart begins at $150 and ends at $20,000, you can claim deductions for purchases with no minimum and well over $20,000.  More specific calculations can be made by using this free Section 179 calculator.

More Information
You can find more information on Section 179 here (this site is not related to and has no connection to Packaging Supply Answers or any of our eCommerce web sites).  Once you understand how it works, let us know how we can help you improve your business and maximize your investment.  However small or large, we will be happy to assist you.