BoardConverting Serving the North American Corrugated and Folding Carton Industries for 37 years October 18, 2021 VOL. 37, NO. 42
New 2022 Economic Forecast: ‘Clearing Skies, Chance Of Rain’
Opus Packaging Acquires Palmetto Packaging In SC Grand Rapids, Michigan based Opus Packag- ing Group has announced that it has acquired the assets of Palmetto Packaging Corporation in Florence, South Carolina, effective October 1, 2021. Founded in 1978, Palmetto Packaging has a reputation for delivering high quality cus- tomer service. Its owners, David Searcy and John Taylor, have grown the business into what it is today with a mindset and culture that aligns with that of Opus. Palmetto oper- ates with 40 employees out of facility in Flor- ence and serves customers in South Carolina, North Carolina and Georgia. The addition of Palmetto is the 7th man- ufacturing facility for Opus, which is com- prised of Opus Packaging – New Bremen (New Bremen, OH; Loudon, TN), Opus Pack- aging – Grand Rapids (Grand Rapids, MI), Opus Packaging – Jackson (Jackson, MI), Opus Packaging – Indianapolis (Indianapolis, IN), Opus Packaging – Wabash (Mt Carmel, IL), Opus Packaging – Kalamazoo, LLC (d/b/a Mall City Containers, Kalamazoo, MI) and now Opus Packaging – Florence, LLC (d/b/a Pal- metto Packaging, Florence, SC).
BY PHILLIP M. PERRY
The economic forecast for 2022 promises a largely favorable operat- ing environment for businesses of all sizes as the nation benefits from steady growth in goods and services. Tail winds include a decline in unemployment numbers, rising wages, a booming housing sector, fat corporate profits, aggressive capital investment, and generally easy capital sourcing.
“We are in the midst of an early economic recovery after the body blow of COVID-19,” says Bernard Yaros Jr., Assistant Director and Econ- omist at Moody’s Analytics ( economy.com ). “Though growth will decel- erate in 2022 due to fading effects from business re-openings and past fiscal stimulus, the economy will remain robust.” The numbers tell the tale. Moody’s Analytics expects Real GDP (Gross Domestic Product) to grow at a healthy 4.3 percent in 2022. While that is a bit less aggressive than the six percent of the past 12 months, it remains decidedly sunnier than the 3.4 percent pandem- ic-fueled decline of 2020. (GDP, the total of the nation’s goods and ser- vices, is the most commonly accepted measure of economic growth. “Real” GDP adjusts for inflation.) Profits Grow Businesses tend to benefit from a healthy economy, and Moody’s Analytics expects corporate profits to increase by some four percent in 2022. While that figure might seem unremarkable in isolation, it rep- CONTINUED ON PAGE 22
CONTINUED ON PAGE 3
WHAT’S INSIDE 5 Colbert Packaging Relocates HQ To Kenosha, Wisconsin 10 Delmarva Corrugated To Get 10-Year Property Tax Abatement 14 Tyoga Container Breaks Ground On $20M Expansion In PA 34 AICC Webinars: What Your HR Professionals Need To Know
2 October 18, 2021
Machinery and Handling for the Corrugated Board Industry
Opus Packaging (CONT’D FROM PAGE 1 )
AVERAGE CONTAINERBOARD PRICES The average prices reported are tabulated from prices PAID by various sources throughout the United States the week previous to issue. Prices in some areas of the country may be higher or lower than the tabulated average. The prices tabulated here are intended only for purposes of reference. They do not connote any commitment to sell any material at the indicated average. Transactions may be completed at any time at a price agreed upon by seller and purchaser.
“The acquisition of Palmetto strengthens Opus’ foot- print into the southeast U.S. providing the same customer service and culture that the Opus Packaging Group has been known for since 1984,” said Kevin Manor, co-own- er of Opus Packaging Group. “Our vision of becoming a world-class provider in packaging solutions will be greatly enhanced by the acquisition of Palmetto. We are excited to welcome Palmetto associates to the Opus team.” Greif Announces $60/Ton Price Increase On All URB Grades Delaware, Ohio based Greif, Inc. announced last week that it is implementing a $60 per ton price increase for all grades of uncoated recycled paperboard (URB) and a minimum 7.0 percent increase on all tube and core and protective packaging products. The uncoated recycled paperboard increase is effective with new orders and ship- ments on and after November 8, 2021. The tube and core and protective packaging products increase is effective with shipments on and after November 22, 2021. These price increases are in addition to previously announced in- creases and are in response to strong demand across the Greif paperboard and converting network and increasing energy, transportation, labor and other input costs.
REGION E. Coast Midwest Southeast Southwest
42# Kraft liner
26# Semi-Chem. Medium
$1005.00-1010.00 $1020.00-1030.00 $1020.00-1030.00 $1020.00-1030.00 $1050.00-1060.00 $1023.00-1032.00
Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del.
$940.00-990.00 $955.00-975.00 $955.00-975.00 $955.00-975.00 $975.00-995.00 $958.00-978.00
West Coast U.S. Average
SHEET PRICES BY REGION (AVERAGE) Per 1MSF, local delivery included, 50MSF single item order, truckload delivery. Sheets
E. Coast Midwest South-SW S. CA N.CA/WA-OR US Aver.
OYSTER UP-CHARGE 8.34
275# DBL-WALL 350# DBL-WALL
116.54 137.25 117.82 145.56
CANADIAN SHEET PRICES (AVERAGE) In Canadian Dollars, per 1MSF, local delivery included, under 50MSF single item order, truckload delivery. 200# 275# Oyster UC 275#DW 350#DW $78.56 $99.18 $9.00 $96.32 $105.83 CANADIAN LINERBOARD & MEDIUM The average prices reported are tabulated from prices PAID by various sources throughout Canada. Prices may be higher or lower in various areas of the country. The prices tabulated here are intended only for purposes of reference. They do not connote any commitment to sell any material at the indicated average. Transactions may be completed at any time at a price agreed upon by seller and purchaser. Prices are Canadian $ and per metric ton.
42# Kraft Liner 26#
October 18, 2021
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4 October 18, 2021
Colbert Packaging Relocates HQ From Illinois To Kenosha, Wisconsin Colbert Packaging Corporation, a paperboard packaging manufacturer serving the pharmaceutical and consum- er goods industries, has announced the relocation of its corporate offices to Kenosha, Wisconsin. This move is in alignment with Colbert’s strategic plan to streamline oper- ations and position itself for growth. “Over the past few years, investments in new, more ef- ficient equipment paved the way toward consolidating our flagship Lake Forest manufacturing operations into our Elkhart, Indiana and Kenosha, Wisconsin plants,” says Col- bert Packaging President and COO, John Lackner. “After that, it just made sense for home office operations to relo- cate. Now, with greater proximity to our Kenosha manufac- turing operations, we’re more streamlined, plus the Keno- sha location has ample room to build out as we grow.”
The new home office includes a “Memory Garden” ded- icated in memory of past employees. As a family-owned business, the decision to “relocate” the Lake Forest mem- ory garden was a priority for CEO and founding daughter, Nancy McDougall. “We wouldn’t be here today without so many individuals who put their hearts and souls into each day’s work,” she said. “It’s important to recognize and re- member their contributions to Colbert’s success.” In response to escalating customer demand, equip- ment acquisitions have increased manufacturing capacity in both locations (Kenosha and Elkhart), along with quality assurance. Colbert recently announced having 100 per- cent vision inspection capabilities, enabling defect de- tection without affecting the production run, an important distinction for pharmaceutical and consumer paperboard packaging customers. Colbert Packaging Corporation is a family-owned busi- ness with extensive R&D capabilities and a solid reputa- tion for excellence. Founded in 1959, Colbert Packaging has grown its repertoire of paperboard packaging solu- tions into one of the most comprehensive, diverse and in- ventive portfolios in the industry. Visit www.colbertpkg.com .
October 18, 2021
Graphic Packaging Announces Receipt Of Acquisition Approvals Atlanta, Georgia based Graphic Packaging Holding Com- pany last week announced that all required regulatory ap- provals to complete the proposed acquisition of AR Pack- aging Group AB have now been received. The transaction is expected to be completed in early November 2021, sub- ject to the satisfaction of the remaining customary closing conditions set forth in the acquisition agreement. Graphic Packaging announced its intent to acquire AR Packaging Group AB on May 14, 2021. IP Announces $2 Billion Share Repurchase Program Memphis, Tennessee based International Paper (IP) last week announced its board of directors has authorized a share repurchase program to acquire up to $2 billion of the company’s common stock. The new authorization is in addition to $1.3 billion remaining as of the end of the third quarter from a previous repurchase authorization. During the third quarter the company repurchased approximately $212 million in common stock at an average price of $59.13 per share. The company intends to continue repurchasing such shares in open market transactions.
Box Shipments ( U.S. Corrugated Product Shipments) Industry Shipments In Billions of Square Feet Month June 2021
Percent Change Avg Week Percent Change
Percent Change Avg Week Percent Change
Containerboard Consumption (Thousands of Tons)
Percent Change Year-to-Date Percent Change
Container Board Inventory - Corrugator Plants (Thousands of Tons)
Corrugator Plants Only
Percent Change Weeks of Supply
SOURCE: Fibre Box Association
October 18, 2021
40 ft of paper travel from preheater to hot plates 3 seconds of heat, glue and bonding 1 chance to get it right! the ZONE
Design & Production
Chicago Electric offers 10 technology solutions to control ‘the Zone’ CORRUGATOR Sectoral preheating plate
Our sectoral preheating plates provide direct heat by means of a double steam circuit, allowing for efficient heating in hard-to-access locations, as well as to act as a steam shower to open the paper’s fibre, making it receptive to absorbing the heat and the glue.
This translates into increased speed and improved quality of the cardboard sheet finish.
The system’s main advantages are as follows:
• The plate may only be used to heat, only to humidify, or both options at the same time. • The plate is sectored, which allows for applying humidity to the sections. • It provides temperature in previously inaccessible locations and near the location needed. • It compensates the loss of temperature dissipated due to distance, speed or limitations of the exiting preheaters. • Quick transferring of heat to the paper. • The combination of the hot plate and steam shower allows for providing heat even to the hardest papers to heat. • Does not dry out the paper. • Possibility of operating as a humidifier and pre-conditioner. • Maintains and improves the fibre’s elasticity. • Acts according to the operator’s needs. • Facilitates the paper’s hygroscopy to absorb the glue and improve rubberising.
1. Wrap Arm - Position & Temperature 2. Preheater Direct Drive
3. Steam Plate 4. Contact Roll 5. Glue Machine Direct Drive Touch Productivity Issue—Glue Unit Many glue units run with a rider roll or a guiding bar system. The rider roll with paper gap allows a precise glue application, but requires frequent Contact Roll
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calibrations and settings. Bar systems avoid this, but compensate this with the risk of exces- sive glue application. The system contains many wearing parts. Solution The contact roll combines the ad antage of both systems and ensures minimum contact between board and applicator roll. The system uses small pneumatic cylinders in order to achieve a “soft touch.”
6. Gap Control 7. Curved Plate 8. Roller Shoe Press When it comes to a short-term increas of web tension, spring loaded systems with shoes or airpressure activated system have problems in compensating these. The system is lifted for a short time. This may result in de-lamination and in the ‘double kiss’ effect. Solution For a defined and exact bonding point of the web fiv weight rollers will be installed usually over the first flat hotplate of the heating section. The rolls are mounted into a frame, which is actuated by means of two pneumatic cylinders. P oductivity Issu —Double Kiss Bonding
9. Thin Wall Hot Plates 10. Pressure System Benefits —Exact glue application due to defined contact of applicator roll to web. Web is in contact to less flute tips compared to bar systems. • High precision glue application • Less moisture applied to web —No wear of shoes and springs —No adjustment of shoes or paper gap —Uniform glue application over entire w orking width for all flutes by use of pneumatic cylinders instead of springs — Less contamination by paper dust and glue remains —No jam of board because of web breaks caused by splice joints going through 630-784-0800 Benefits —Rollers secure exact defined first point of contact of liner and single-faced board - No double kiss —Frame design avoids unintended lifting of roller shoe (compared to spring or air loaded systems) - No double kiss —Pressure can be increased or released for special grades or products 490 Tower Blvd., Carol Stream, IL Contact Chicago Electric to GET IT RIGHT 630-784-0800 firstname.lastname@example.org chicagoelectric.com Solution The ProPress system ensures an optimum heat transfer to the board. It offers a wide range of set- tings. The loadi g pressure can be varied, the number of shoes can be lifted in accordance t the line speed. The outer shoes can be lifted in accordance to the paper width. The shoe bars will be delivered pre-assembled for a short installation time. —Liftable for easy paper infeed and for cleaning of the machine —Position adjustable in paper direction to avoid grooves in hotplate Press Productivity Issue—Poor Heat Transfer Rollers are usually limiting the heat transfer, since they often have contact mainly on the edges of the plates due to wear or bent plates. They also cause often loss of caliper and bearing need to be replaced frequently. Airpressure actuated systems can only supply a limited pressure and have com- pared to shoe systems a closed surface. Pressure Shoe
Plate vity Issue—Poor Heat Control l hotplates are slow to react to pressure due to high steam volume and massive y also have high heat radiation and heat profile. Worn plates can damage crease edge crush.
Thin-Wall Hot Plates
t by peripheral drilled hot plates. anufactured out of special wear and nt steel, through which a continuous is drilled, with one inlet and one outlet. ecured by a massive steel frame.
ance from steam to paper surface results in fast heat flow
AICC Joins 2021 Digital Packaging Summit As An Association Partner AICC, the Independent Packaging Association, reported that it is a sponsoring partner in the 7th Annual Digital Packaging Summit, which will host 90 to 100 executives at the award-winning Ponte Vedra Inn & Club in Ponte Vedra Beach, Florida, from November 8 -10. If you are researching and considering digital solutions or expanding existing capabilities, as an AICC member you should consider attending the event. Qualified ex- ecutives attend the event at no cost. This includes travel, hotel accommodations and meals, all of which ensures a cost-effective experience. The event, organized by Packaging Impressions Maga- zine /NAPCO Media, is an invitation-only, hosted event de- signed for senior managers and business executives who want to understand how current and future digital produc- tion printing technology, software and solutions will impact their business and investment decisions. The Digital Packaging Summit has helped numerous corrugated and folding carton converters acquire the in- formation they need to assess digital technology options and trends in the market. Industry visionaries Kevin Karst- edt, CEO, Karstedt Partners, LLC, and Marco Boer, Vice President, IT Strategies, along with a team of key advisory board members and speakers, will drive the agenda.
Some of the topics to be covered through keynotes, panels, and breakouts include: • State of the Industry, Trends & New Developments to watch as we exit COVID • How are brand owners/packaging buyers utilizing the capabilities of digital • Packaging Leading the Way: Analyzing the Industry’s Success and Digital Printing’s Evolving Role • How can you take your digital advantage to your cus- tomers - Leverage your investment • Looking back and forward at rapid innovation in the digital package printing equipment business • Small, Medium, and Large Brand Owner/Retailer Per- spectives Panel • M&A implications for packaging converters • Deep Dives on Label Printing, Flexible Packaging, Fold- ing Cartons, & Corrugated • Breakout sessions and small group real-life user case study presentations • Networking receptions, dinners, casino night, golf tour- nament, awards and entertainment If you are Interested in being a hosted attendee, fill out an attendee interest form at https://www.digitalpackag- ingsummit.com/attend/ If you have any questions, email Brian Ludwick, Pub- lisher at Packaging Impressions, at email@example.com or call him at (719) 686-9009 or David Pesko, Event Direc- tor at firstname.lastname@example.org.
8 October 18, 2021
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Delmarva Corrugated To Receive 10-Year Property Tax Abatement According to local media reports, officials in the city of Dover, Delaware have granted Delmarva Corrugated a 10-year property tax rebate in addition to similar county incentives. Under the city code, Delmarva Corrugated will receive full tax relief on the 497,000-square-foot building in the first full year after construction. Each following year for the following decade, the allowance decreases by 10 percent per year until it reaches the floor of 10 percent in the ninth year. Dover City Council unanimously approved the abatement on September 27. Dover officials estimate that by 2022, the company will pay $16,331.50 in property taxes and cut $64,592 in taxes. By the end of the decade, the company will pay approxi- mately $80,927.49 in property taxes.
This incentive is reserved for companies that invest a minimum of $3 million in a new or expanded facility in manufacturing areas and hire at least 15 employees. Del- marva Corrugated raised the value of the land to $3.93 million and the building is valued at $15.5 million, accord- ing to Dover officials.
BALEMASTER: 75 YEARS STRONG — 1946 - 2021 —
Fulfilling the other abatement require- ment, Delmarva Corrugated has hired or made job offers to 53 people, as of Sep- tember 27. Of that total, 22 were hired, 15 employees are from sister companies, and 16 offers were still pending. . “I would like to thank the team from Do- ver, Kent County and the State of Delaware who worked very closely and profession- ally with us on this project,” said Andreas Akaras, a lawyer who represents Delmarva Corrugated. “If you walk past this building, it’s beautiful and purpose-built for the light industrial manufacturing that will take place there and create good jobs. We can’t wait to be part of the community. Delmarva Corrugated plans to hire 145 employees in total, including 90 hourly em- ployees. Last week, the company launched a smooth start to operations, as most of the work inside the building was completed and the installation of the equipment was going smoothly. The Dover property tax cut is the latest in a series of incentives Delmarva Corrugat- ed and its parent company US Corrugated have received for building the $91 million plant in the heart of the First State. From day one, the company is also said to have made gains as the 40-acre plot sits in an op- portunity zone, a designation that prompts investors to put money into funds for long periods of time to benefit from tax breaks. Staying in an Opportunity Zone fund for at least five years could see 10 percent of the gain excluded from taxes, while 10 years translate to tax exempt gains.
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CONTINUED ON PAGE 12
10 October 18, 2021
Delmarva Corrugated (CONT’D FROM PAGE 10)
The State Council for Development Finance provided $3.1 million in incentives to the project, including a $2.73 million capital expenditure grant and a $450,000 grant for job creation. The Kent County Levy Court provided a simi- lar 10-year property tax rebate as well as a $ 75,000 grant from its lesser-known Strategic Fund. The company also received a grant of $600,000 from the Delaware Trans- portation Infrastructure Investment Fund. As hiring efforts continue, there have been difficul- ties meeting one of the key initiatives of U.S. Corrugated founder and board chairman Dennis Mehiel for the Dover “super factory”: hire veterans. Mehiel’s father served in the US Army Air Corps in World War II and is a veteran him- self. The facility’s proximity to Dover Air Base has created a new opportunity to open jobs to those leaving the ser- vice. Delmarva Corrugated is currently working with Poly- tech Adult Education to continue their recruitment efforts, Akaras said. “Some positions will be, I believe, entry level, more related to warehousing, trucking and storage. But some positions will require a higher level of training for the spe- cialized equipment used, ”he said. This factory is fully au- tomated and relies on system information and engineering processes. Delmarva Corrugated plans to have two teams in full production by December.
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Tyoga Container Breaks Ground On $20 Million Expansion In PA
Tioga, Pennsylvania based Tyoga Container announced that it has bro- ken ground on the the largest expansion in the company’s storied 51- year history. “What we’ve done over the last 50 years has really set us up for a revolutionary change at Tyoga Container,” said the company’s President, Charlie Frysinger, at a groundbreaking ceremony on Wednes- day October 6. “The growth in the box business has been tremendous.”
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Chris Morral, Tyoga Container’s Executive Vice President, said the day marked the largest of 12 expansions in the company’s history. The $20 million project will add 14,000-square-feet of office space and 70,000-square-feet of manufacturing space with new shipping and re- ceiving docks and state-of-the-art equipment. The project will also add about 40 new jobs to its current 120 employee-base, putting the compa- ny at nearly $10 million in payroll per year, said Morral. “To say we’re excited for this day is really an understatement. It’s been a long time coming,” said Morral. “Overall, plant space limitations, aging equipment combined with the need for increased efficiency and overall plant flow really limited our ability to reach our operational goals.” Frysinger said while expansion plans have been in the works for a while, the COVID-19 pandemic only increased the need for the com- pany’s corrugated cardboard containers. “Very shortly after the start of the pandemic, we started seeing an uptick. What happened was, every- body’s sitting at home, pushing that Amazon button,” he said. “I guar- antee at your house, every one of you is saying ‘How many boxes are showing up at my house that didn’t show up four or five years ago?’” Frysinger said due to the growth of online shopping, “There isn’t a box plant in the country that is not over capacity. We are literally turning business down every single day, just because we don’t have the capaci- ty to run. So, this is a great project and a great problem to have.” Through 51 years and 12 expansions, the company founders and leadership never swayed from staying in Tioga borough, said Frysinger. “It’s honestly through community partnerships that really make this pos- sible,” he said. “It starts at the borough level and the tremendous amount of support that we get here locally. Then it moves to the county-level.” County Commissioner Erick Coolidge agreed that partnerships are what’s led to Tyoga Container’s success, something he said the county is proud to support. “This is an investment in not just the business, but in the community,” said Coolidge. “When I heard the passion and commit- ment to a company by someone who works here, that speaks volumes.” Company managers and local public officials at the groundbreaking of Tyoga Container’s $20 million expansion in Tioga, Pennsylvania.
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October 18, 2021
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AICC Webinars To Help Members Increase Sales, Earn Tax Credits AICC, The Independent Packaging Association, has many virtual training options for members during October. Created with the support of AICC member, alliantgroup, the webinar “Employee Retention Credit,” scheduled for Tuesday, October 19, will walk attendees through the Em- ployee Retention Credit, why it applies to members, the latest changes to the tax code from the IRS, and how mem- bers can qualify for these critical credits and incentives. To date, alliantgroup has helped AICC members uncover over $15 million in credits and cash refunds. On Wednesday, October 20, members will come to- gether to work on “Building Trust in New or Evolving Roles” with a new AICC speaker, Milton Corsey, Director of Human Capital Solutions, AchieveNEXT. Many people have changed roles in the last few months. This webinar will help attendees understand the importance of being trustworthy, rate their trustworthiness, and ensure that competence, consistency, caring are all in place to suc- ceed in a new role. Created with the support of AICC member Guide- wheel, “Operations Leaders: Get More From Your Ma- chines Through Benchmarking,” on Tuesday, October 26, will help attendees learn to boost throughput and margins with benchmarking. Attendees will get more from existing
machines and see the financial impact benchmarking can have on operations. Attendees will learn “What Every Process Improvement Professional Needs to Know,” on Thursday, October 28, with instructor Scott Ellis, EdD. The webinar will provide an overview of the mindset, methods, and tools required to effectively lead a company’s efforts to improve quality and productivity to become a learning organization. Visit www.AICCbox.org/Calendar to register for any of the webinars, which are several of the 50 webinars that are part of the All Access Pass, which for one payment of $1,695, gives participating companies a code that all em- ployees can use to register for every webinar scheduled through July 2022. To learn more and get the pass, visit www.AICCbox.org/Pass .
New Indy Containerboard Emission Issue Continues
Despite a recent motion against New Indy Container- board, there appears to be no easy solution for the Cataw- ba, South Carolina mill and its emission issue. According to a report in The Lancaster News (SC) a group of about 15 local individuals filed a motion at the end of September asking a federal court to stop air emissions coming from the plant in Catawba, South Carolina, which the has been CONTINUED ON PAGE 18
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New Indy Emissions (CONT’D FROM PAGE 16)
AIR CONVEYING CORPORATION is a recognized leader in the industry of Pneumatic Conveying Systems and has been in business since 1968. As an equipment manufacturer rather than simply a sales organization, we have complete control over the quality of material and products which make up your proposed system. Our equipment is found in Printing, Folding Carton and Corrugated plants throughout the country and the world.
the subject of more than 20,000 complaints. Those filing the motion have claimed the plant’s emissions are making them sick. S.C. Sen. Michael Johnson (R-16) said he is on board with anything that can get the issue resolved, but he is also stressing that it has to be handled the right way. “Anybody that can move this along and help get this fixed, I’m on board with that,” Johnson said. “I don’t know that if you shut down the plant that fixes the problem.” The group is not asking that the mill be shut down com- pletely, just that it ends its emissions, a main source of which has to do with the moving the foul condensate from the plant through the mill’s wastewater treatment plant and into aerated stabilization basins. Claims from the motion state the wastewater treat- ment system for the mill is inadequate and that despite this, New Indy “continues to discharge as much or more than 500,000 gallons of foul condensate to the inade- quate wastewater treatment system. The system remains in such poor state of operation that it cannot treat the total reduced sulfur, which continues to be released to the am- bient air and the surrounding communities.” Tommy Pope, local attorney for the plaintiffs, said the latest motion was more to tell the mill it needs to comply with what is being asked of them by the EPA and the S.C. Department of Health and Environmental Control.
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EFI ProGraphics XA High-Adhesion Ink Now Available For EFI Printers EFI ProGraphics XA high-adhesion ink – a versatile UV LED display graphics inkjet ink from Electronics For Im- aging, Inc. suitable for a wide range of rigid and flexible media – is now available for EFI Wide Format flatbed and hybrid roll/flatbed printers. ProGraphics XA ink delivers su- perior results on corrugated plastics and other substrates with adhesion challenges. EFI customer Kurt Kahmnke, owner of Fenton, Missou- ri-based Payler Signs & Graphics, has gained greater ad- hesion and durability on rigid substrate prints he produc- es on his company’s new EFI Pro 30h hybrid wide-format printer. The ink gives Payler Signs superior results com- pared to the UV inks the company uses on a flatbed inkjet printer. “We’ve tested prints produced with the ProGraphics XA ink in our EFI Pro 30h printer in a variety of modes on Coroplast, acrylic, aluminum composites and other chal- lenging materials by spraying them with water, leaving them outside in the heat, and stacking them ink side to ink side,” said Kahmnke. “We are very pleased with the ink’s adhesion, quality, and performance.” The ProGraphics XA ink does not chip during cutting when used on standard acrylic, corrugated plastic or other fluted polypropylene media. Plus, ProGraphics XA ink is flexible enough for 180-degree heat forming applications. Bringing this advanced ink to the EFI Pro 24f, Pro 30f, Pro 16h and Pro 30h wide-format printers gives sign and dis- play graphics operations more capabilities in the range of applications they offer to customers. “We are pleased to bring this exceptional high-adhe- sion ink to our Wide Format printer owners,” said Ken Ha- nulec, EFI’s VP of Worldwide Marketing. “We continually strive to increase the value of EFI investments, and now customers will have the benefit of ProGraphics XA ink’s versatility, durability and flexibility to extend the range of substrates and surfaces they can print on.” When purchasing an EFI Wide Format printer, custom- ers can choose the ProGraphics Series UV LED ink set that best meets their application needs. Other ProGraphics inks include: • EFI 3M ProGraphics UV LED ink for flexible applications, including those that need to be stretched or heated or require the 3M MCS Warranty • EFI ProGraphics UV LED POP ink for rigid board and flexible media printing of indoor and outdoor applica- tions • EFI ProGraphics UV LED Rigid ink provides the best surface mar resistance and is ideal for printing on spe- cialty rigid media, such as lenticular lenses, steel, alu- minum, and wood • EFI ProGraphics UV LED Ultra ink for a highly diverse range of flexible and rigid media applications Visit www.efi.com for more information.
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2022 Economic Forecast (CONT’D FROM PAGE 1 )
business,” says Tom Palisin, Executive Director of The Manufacturers’ Association, a York, Pennsylvania, based regional employers’ group with more than 370 member companies ( mascpa.org ). “Many have actually gone into hiring mode.” With its diverse membership in food processing, de- fense, fabrication, and machinery building, Palisin’s as- sociation is something of a proxy for American industry. “Our members are optimistic and expect current levels of demand to continue well into 2022,” says Palisin. “They’re expecting to continue to hire, as well. Our annual wage and salary survey usually projects between 400 and 500 job openings for the coming 12 months. Now, though, the number is more than a thousand. So we’re looking at a doubling of the usual hiring activity.” Aggressive hiring is improving the nation’s employ- ment level, a key driver of the consumer sentiment so vital to the nation’s overall business health. “Unemployment has been declining pretty steadily,” says Scott Hoyt, Senior Director of Consumer Economics for Moody’s Analytics ( economy.com ). “Jobs are being added at a rate that prior to the pandemic would be viewed as astoundingly good.” Unemployment is expected to be as low as 4.5 percent- when 2021 figures are finally tallied, and should decline to 3.4 percent by the end of 2022, a level not far from the “full employment” conditions of the pre-pandemic econ- omy.
resents a hefty advance over the difficult comparisons of 2021, when profits spiked 35 percent. Clearly, business owners are glad to bid adieu to the pandemic-battered 2020, when their profits declined three percent. Headwinds, of course, are inevitable. And 2022 will have its own troubling mix: The peekaboo pandemic. La- bor shortages. Crippled supply chains. China tariffs. Na- scent inflation. An unsettled consumer. Yet economists do not expect negatives to prevail. “While the Delta variant is continuing to do some damage, we expect this wave of the pandemic to soon subside and for any future waves to be successively less disruptive,” says Yaros. “Labor and goods shortages will ease as the domestic and global economies increasingly learn how to live in a new pan- demic normal.” Furthermore, heftier earnings should help companies weather the coming year’s array of challenges. “Corpo- rate profit margins have been running somewhat above their five-year average of 11.1 percent,” notes Yaros. “That should provide some ability to absorb price pressures that have developed from rising commodity prices and global supply chain issues.” Sales Recover Business owners tend to confirm the economists’ sunny reports. “Most of our members have seen a healthy return of revenues and are doing about 90% of their pre-COVID
CONTINUED ON PAGE 24
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2022 Economic Forecast (CONT’D FROM PAGE 22)
Wage Hikes Any tight labor market is likely to spark wage hikes— yet another driver of positive consumer sentiment. Today’s economy is no exception. “We have seen a significant in- crease in wages over the past year--as high as 20 percent to 25 percent for lower hourly entry-level employees or machine operators,” says Palisin. Nationwide, increases are running lower, due to normalization of wages in some industries. “In 2022 we’re looking at 2.6 percent growth in the employment cost index, compared with 2.9% percent for 2021 and 2.6 percent in 2020,” says Hoyt. (Economists consider the “employment cost index” as the best mea- sure of actual wage rates). Hoyt adds that “any risks to the accuracy of those numbers is probably on the upside.” Wage rates aren’t the only component of an employer’s labor cost. Toss into the mix a greater number of people employed, a greater number of job positions filled, an in- creased number of hours worked, and the total comes to what economists dub “wage and salary income,” And it’s
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clear that employers nationwide will be shelling out more of that in the coming 12 months. “In 2022 we’re looking at about 4.6 percent growth in wage and salary income, coming off a seven percent increase in 2021, which was up from the 1.3 percent of 2020,” says Hoyt. All that additional income should encourage greater consumer spending, a key driver of a healthy economy. And signs are that people have saved up considerable sums of cash that are ready to be spent. Throughout 2020 and early 2021, after-tax income rose much faster than had been anticipated prior to the pandemic. The reason was massive fiscal stimulus in terms of federal economic impact checks and expanded unemployment insurance payments. At the same time, consumer spending ran low- er than anticipated. “People now have a huge amount of savings,” says Hoyt. “Furthermore, consumer credit card borrowing has been weak, leaving consumers more flex- ibility to borrow money going forward if they choose to.” Construction Activity Given healthy corporate growth, it’s little wonder busi- ness investment remains robust. “Our members in general
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2022 Economic Forecast (CONT’D FROM PAGE 24)
or do new projects,” he says. “So what we see going on now are projects that were planned pre-pandemic or with short lead times.” Fueling the trend: Ready money. “For the most part our companies are able to access funds for hard capital in- vestments and lines of credit,” says Palisin. “Financing has
BCN(US)202109(o)(出血5mm).pdf 1 2021/9/7 下午 03:50:46 The economy should also benefit from more spend- ing on commercial structures. “We’re going to see more non-residential construction next year,” says Bill Conerly, Principal of his own consulting firm in Lake Oswego, Ore- gon ( conerlyconsulting.com ). “It will be strongest proba- bly in warehouses and light industrial, but also suburban offices. Early indicators, like the Architectural Billings In- dex, are looking positive.” This will be a welcome change over recent flat activity, which Conerly attributes to the long lead times characteristic of such projects, and a scar- city of new initiatives in the early days of the pandemic. “Early in 2020 nobody was signing papers to acquire land are expanding, building new warehouses and manufactur- ing facilities and buying new equipment,” says Palisin. “We are seeing a special uptick in the automation category be- cause of the labor supply issue.” Nationwide, the picture is the same. Moody’s Analyt- ics expects capital investment to increase 8.2 percent for both 2021 and 2022, another welcome rebound from the 5.4 percent decline of 2020. Companies are giving a lot of attention to bolstering their intellectual property infrastruc- ture. “Investments in information processing equipment and software is well above its pre-pandemic level as busi- nesses have boosted their IT budgets,” says Yaros. Higher energy prices have also fueled aggressive investments in mining exploration, shafts and well structures.
loosened up since a year ago when everybody was in a high state of uncertainty.” On the residential side, housing starts have been run- ning about 20 percent higher than pre-pandemic levels, according to Moody’s Analytics. The prediction is for full steam ahead. “Annual growth in housing starts will remain
CONTINUED ON PAGE 28
26 October 18, 2021
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