Since its inception in 2003, PALLETCO has transformed from a one-man enterprise into a flourishing pallet manufacturer with over 55 employees.
In its early days, PALLETCO operated as a middleman. Founder Ghalib “Gary” Alakoli used the company’s lone truck to acquire pallets from end users and sell them back to a processor, who then remanufactured the pallets and sold them to customers. After working in the business since their teenage years, Gary’s sons, Moe and Sonny, now serve as the CEO and COO of PALLETCO. Under their leadership, the Taylor, Michigan-based company has grown tenfold, becoming a processor and manufacturer rolled into one.
The turning point for PALLETCO came when the Alakoli brothers asked themselves, “What is a pallet?” — a question that drove their decision to add manufacturing as another segment of operations. Today PALLETCO produces new, recycled and custom pallets and offers a variety of pallet management solutions. The company serves more than 150 clients in three states, handling about four million pallets each year from its two facilities, which total about 58,000 square feet.
PALLETCO’s wood products are completely recyclable; when a pallet is no longer effective, it’s ground into mulch, used as a fuel source or sold to farmers in the form of sawdust. Ultimately, upcycling helps PALLETCO operate in a more environmentally friendly manner and reduce its carbon footprint.
However, what really separates PALLETCO from its competitors is dedication to customers. Despite growing rapidly over the past few years, the company’s high level of service remains the same, Moe says.
As PALLETCO continues to expand, Moe and Sonny have turned their attention to crafting a growth strategy. They enrolled in the System for Integrated Growth (SIG), a program hosted by the Edward Lowe Foundation in partnership with Michigan Economic Development Corporation (MEDC). The SIG program gives participants access to a team of experts who provide custom research, best practices and insights on specific business topics.
During their SIG engagement, the brothers found their biggest takeaway was the importance of market segmentation. They looked more closely at the demographics PALLETCO served and how they might be able to maximize a smaller, more specialized customer base.
Since then, the Alakolis have streamlined PALLETCO’s sales process and focused on adding value to the customer experience through intentional follow-ups and building rapport.
Indeed, Moe says the SIG engagement has shifted his mindset. “When I think growth, I no longer think numbers. I think strategy,” he explains. “It’s much easier to think in numbers, but it’s not sustainable.”
As a follow-up to their SIG engagement, Moe and Sonny visited Big Rock Valley, the foundation’s 2,000-acre learning campus in southwest Michigan, where they participated in a Next Steps retreat. Co-hosted by MEDC, this program helps business owners create an action plan to implement SIG deliverables. The retreat also enabled the Alakolis to meet other second-stage entrepreneurs and share business challenges.
From the retreat, Moe gained a sense of camaraderie. “We’re not the only ones who are crazy enough to do this, and we’re not alone,” he explains.
Sonny describes the experience in one word, “clarity.” He now feels more confident in their decision-making process and PALLETCO’s strategy.
This spring PALLETCO was named one of 2025 Michigan 50 Companies to Watch, an honor given to second-stage companies that demonstrate an appetite for growth and make a significant impact in their industries and communities. The award marks another milestone in PALLETCO’s journey — one that has allowed the brothers to see the tangible impact that their business creates.
“It’s been an insane journey,” Moe says. “It’s been rough, and it’s been exciting and way beyond what we imagined we could accomplish.”