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A modular rack-based pallet handling system is ideal for companies wishing to enter the growing paver industry. The system meets the needs of a growing company whose production power increases as sales grow. Manufacturers can start with a basic system and expand capacity as demand increases. Components for such a system include: a single-layer machine, pallet feeder, telescoping conveyor, welded steel racks, and a forklift. Expansions can implement such niceties as automatic loading equipment, automated packaging stations, and an automatic rack transport system.