New U.S. Customs Rule Addresses Cross-Border Pest Control
IOS invests with plant expansion and new wood treatment unit
El PASO, Texas — International Outsourcing Services (IOS) expanded its manufacturing capabilities with a larger facility and new wood treatment unit to meet a new customs regulation to take effect July 1, 2004.
IOS (iosnet.com) is a global company providing data and contract manufacturing services in compliance with international quality standards and leads its competition with the investment of a new wood treatment unit in one of its 12 Juarez, Mexico, plants.
"In the last 14 months, we went from a 50-person operation to 150 staff in that plant. In January 2004, we expanded from a 20,000-sq.-ft. facility to a 75,000-sq.-ft. facility, and now in May 2004, we just inaugurated the new industrial wood treatment unit," stated Albert Lanza, IOS Vice President.
The company is the largest, and one of only a few providers, to have this system already in place to handle industrial customers within its containers and packaging specialty group of the Contract Manufacturing Division.
The customs regulation referred to as ISPM 15 is designed to protect against cross-border exchange of insects often found in specific types of wood and packing materials such as wood pallets, crating blocks, drums, cases, pallet collars and skids. All wood products will now need to be treated to a specific temperature for a period of time specified in the new law, including fumigation, to ensure that the wood is pest-free. Wood packing materials made entirely of processed manufactured wood such as paper products, plywood, particle board, OSB and veneer are exempt because they have been created using glue, heat and pressure, or a combination of these factors, and therefore deemed safe.
IOS has the largest capacity in the Mexico-El Paso area to supply the maquiladora industry. As the innovator of Laborgistics®, the business model replacing basic outsourcing, IOS continues to be a leader in combining people and technology for a world of business solutions.
IOS is known as "The Laborgistics® CompanySM" because it has developed a new system that is replacing the traditional model of outsourcing. Where outsourcing has been based almost exclusively on rapid cost reduction and short-term tactics, Laborgistics is a long-term, strategic solution for global business. Laborgistics is transformational in nature, allowing companies to strategically focus on the intellectual aspects of production-research, development and marketing-while turning to IOS as a singular resource for a quality-certified global workforce, distribution support and comprehensive supply chain management. IOS was highlighted as the case study for this new management system in a book published last month, "Laborgistics®: A New Strategy for Management," by Dominique Roux. (laborgistics.com)
"This is an example of how IOS integrates different products and services, providing long-range cost reduction and management solutions under one umbrella," said CEO Chris Balsiger. IOS can cut, assemble, treat, package, store and ship wood pallets in its wood treatment facility in Juarez, providing quality, safe materials for companies in the U.S. and Mexico.
Any solid wood packaging must be appropriately treated and marked under an official program developed and overseen by the National Plant Protection Organization in the country of export, which will be enforced in the U.S. starting July 1, 2004. This law is already in effect in Europe and expected to take effect in Mexico in January 2005. IOS is in compliance in anticipation of this new customs regulation, providing 100 percent approved certified process pallets meeting the Universal Marking Requirement. IOS's trailer-sized wood treatment unit has been installed and functioning as of May 2004, allowing for uninterrupted service to its customers. Estimated wood pallet output is 40,000/month at this plant.
Wood pallets, often made of white pine or oak, are the most common packing material used that will be affected by this new customs regulation. These pallets are used for material handling when transporting and distributing many types of products. Manufacturing and shipping companies or anyone involved in the transportation of products will be affected by this regulation.
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About the company: International Outsourcing Services with operating headquarters in El Paso, Texas, corporate headquarters in Bloomington, Indiana, EU operations headquarters in Paris, France, and worldwide operations in Mexico, France, and Slovakia, provides a diverse, cross section of outsourcing services using the seamless process of Laborgistics®. IOS has two divisions: Data Services and Contract Manufacturing. Services include sourcing of raw materials and components, assembly, manufacturing, packaging and distribution, including cross-border transportation and warehousing, and providing outsourcing services in IT such as data capture, and check and remittance processing. IOS serves some of the world's largest retailers, manufacturers, government agencies, educational institutions, banks, and financial firms.
