News Photo by Steve Schulwitz Panel Processing employee Dustin Thomas, left, and Senior Account Manager Tim Witucki discuss operations at the production plant on Wednesday. Panel Processing is celebrating its 50th anniversary today. Since it was founded in Alpena in 1971, the company has grown to include facilities in four states.

ALPENA– For the last five decades, Panel Processing has been one of the premier wood product manufacturing companies in Alpena County.

From its humble beginning in 1971, when it was founded by Robert Granum

and a small group of local investors, to its expansion around the county, the company has overcome changes in market trends to become an industry leader.

Today, Panel Processing is celebrating its 50th anniversary. Although there won’t be a large party to celebrate the milestone, administrators and employees are proud of the businesses’ accomplishments, and are focused on continued growth and success in the future.

Over the years, the company has established a tradition of excellence for providing customers quality service, while working closely with customers to identify and develop innovative solutions to meet their needs.

Today, there are Panel Processing operations in four states.

President and CEO Eric Smith said the company was born when Granum envisioned producing customized wood processing services. A local economic development group in Alpena paid to have a manufacturing facility constructed, and the business blossomed from there.

Smith said the primary driver of the growth came when the company was hired to provide construction materials used to build big-box retailers as they sprang up around the country.

“It was an opportune time to create this type of business,” Smith said. “We participated in the building of every Kmart in the country, and then low and behold, there was Walmart beginning to build after that. There was also a little luck involved.”

Smith said that trend has flipped and changes were made in order to compete in today’s market. He said Panel Processing doesn’t depend on the construction of large, brick-and-mortar stores as its main driver for business. He said retail businesses have taken a hit with the rise of internet shopping, and many companies elect not to build from the ground up any more.

Now, Smith said, the company works with smaller retailers, and produces custom displays, cabinets, and furniture. Because of these, Panel Processing has positioned itself for sustained business in the future.

“We expected to continue to move toward higher-end, decorative finishes, with less painting and more complete assembly,” he said.

Smith said overall, the company has about 197 employees, including about 50 in Alpena. He said Panel Processing is 100% owned by the employees, who have contributed to the company’s success for half a century.

“We have a history of having long-term employees, and it’s invaluable to have that dedication and knowledge,” he said. “This company is all about its employees.”