BoardConverting Serving the North American Corrugated and Folding Carton Industries for 38 years May 2, 2022 VOL. 38. NO. 18
Inflation Busters: Protecting Profits As Costs Keep Rising BY PHILLIP M. PERRY Inflation has taken root. Businesses everywhere are dealing with an- nualized cost increases of nearly seven percent--the fastest pace in 40 years and significantly higher than the 1.8 percent average of the past decade. The resulting upticks in operating costs can cause seri- ous damage to the bottom line.
WHAT’S INSIDE 5 NAM: Activity Strengthens In April, Despite Challeneges 10 Baysek Machines Introduces New Model C-190 Die Cutter 14 President Container Supports Ukranian Relief With Corrugated 16 Corrugated Classic Golf Tourney Tees Off At Corr Week In TX As for the next phases of the school’s strategic plan, Daum said the second phase will focus on making the “program the most diverse pool of talented faculty and students ready for industry”, and the third will create “new financial partnerships between industry and university”. “This first strategic initiative is all about in- vesting in a facility that represents the thought leadership of our students and alumni, creates a gathering place for the best and brightest and packaging and inspires students, faculty and staff toward a brighter future,” Daum said. Planned improvements to the building include a new office wing, sustainability lab, atrium and classrooms. The project was fund- ed primarily through donors, with donations equaling more than $10 million. MSU School Of Packaging Breaks Ground, Begins Reno Michigan State University’s (MSU) School of Packaging recently held a groundbreaking ceremony to commemorate the start of reno- vations to the school’s main building. Hosting the event was School of Packag- ing Director Matthew Daum, who has pushed for change throughout the school, with the renovations being the first of three phases to initiate that change.
“We’re in a very unfortunate situation now,” said Bill Conerly, Prin- cipal of his own consulting firm in Lake Oswego, Oregon ( conerlycon- sulting.com ). “Businesses that have always devoted their efforts to serving customers and being productive must also start worrying about covering their costs in the most effective way. That means they need to shift some of their focus to coping with inflation.” The challenge is all the greater for its unfamiliarity: It’s been 30 years since inflation was much of a player in company planning. Experts don’t see relief any time soon. They point to a number of root causes, one of which is energy. “With the cost of oil baked into so many things, it seems we are going to see more significant inflation in the months ahead,” said John McQuaig, Managing Partner of McQuaig & Welk, the Wenatchee, Washington based management consulting firm ( mcqw.com ). He points to a continuing global disruption in the de- livery of goods and services as yet another cause. “Supply chain issues tend to create opportunities to raise prices because of the effect of supply and demand. When the former is crunched, prices go up by the nature of the market.” And there’s yet a third driver of higher costs: a CONTINUED ON PAGE 24
2 May 2, 2022
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.
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
The Price is Right
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
More box makers and brokers are relying on the containerboard pricing in Board Converting News to negotiate their contracts with end users.
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.
SEE THE CURRENT PRICES IN PRINT OR ONLINE AT WWW.BOARDCONVERTINGNEWS.COM.
Len Prazych at 518-366-9017 email@example.com
42# Kraft Liner 26#
May 2, 2022
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4 May 2, 2022
DeWitt Packaging Adds Second Kolbus Autobox
Grand Rapids, Michigan based DeWitt Packaging Corpora- tion recently installed its second Kolbus AutoBox machine to increase throughput and expand their product offering. DeWitt purchased its first AutoBox machine, equipped with the DL300 digital ink jet printing module, in 2018. DeWitt realized great success with their first AutoBox ma- chine, which eventually led to the purchase of their second AutoBox machine in November of 2021: the ultra-compact AutoBox Boxer. “Adding the Boxer just made sense,” said Jim Baker, Owner of DeWitt Packaging Corporation. It fits our niche well, as we run a lot of low volume assembled kits, which include trays, covers, HSCs, five panel folders. The Box- er handles it all with ease and is already being used at nearly full capacity. It’s an extremely versatile machine and we like that it can do OPFs (one panel folders) in a single pass.” The purchase was made with the goal of moving jobs to the Boxer from existing converting equipment and main- taining short lead times, due to customers’ growing de- mand for custom, short-run packaging solutions. The Auto- Box Boxer was installed in January 2022 and is equipped with optional upgrades including the DL200 digital print module and TF200 Table Feed for auto-feeding and a stacking unit. The AutoBox Boxer requires no previous boxmaking experience and has the capability to produce up to 400 pieces per minute, while handling a variety of board sizes and thicknesses. The Boxer is equipped with ¼ inch slot- ting blades for high quality boxes that will rival those that are made on a die cutter. A fan fold option is now available for both the AB 300 and BX 200 machine. “Interest in the AutoBox product line has grown tre- mendously in the corrugated industry as sheet plants and converters are faced with the challenge of finding skilled machine operators. The one-minute set-up, simple con- trols, and the built-in safety features are attracting more people to add these machines to their plants,” said Art Crawley, Sales Manager, Kolbus America.
NAM: Activity Strengthens In April, Despite Challenges
According to Chad Moutray, Ph.D. and Chief Economist at the National Association of Manufacturers (NAM), the S&P Global Flash U.S. Manufacturing PMI rose to 59.7 in April, the best reading since September, with key mea- sures strengthening, proving that manufacturing activity remained resilient despite numerous challenges. Still, the index for future output eased to a six-month low, even as it continued to point to optimism about production growth. CONTINUED ON PAGE 6
May 2, 2022
NAM: Activity Strenghtens (CONT’D FROM PAGE 5)
Box Shipments ( U.S. Corrugated Product Shipments) Industry Shipments In Billions of Square Feet Month December 2021
Manufacturers continued to cite supply chain bottle- necks and workforce shortages as significant challenges to growth, and inflation remained highly elevated, with output prices soaring to a new all-time high and input costs not far from November’s record high. Meanwhile, the S&P Global Flash Eurozone Manufac- turing PMI decreased from 56.5 in March to 55.3 in April, the weakest reading since January 2021. The Russian in- vasion of Ukraine negatively impacted activity, with new orders and output expanding at the slowest pace since June 2020 and exports contracting for the second straight month. The Philadelphia Federal Reserve Bank’s composite index declined from 27.4 in March to 17.6 in April but con- tinued to signal expanding growth in the manufacturing sector in the district. Hiring grew at the fastest pace in the survey’s history, which dates to May 1968. Raw material costs also picked up solidly in April, expanding at a pace not seen since June 1979. Yet, respondents to the Philly Fed’s survey felt less optimistic in their outlook and orders, with the forward-looking composite index dropping to the lowest reading since December 2008. The average fixed-rate 30-year mortgage was 5.11% this week, up from 3.11% at the end of 2021 and the highest since Thursday, April 8, 2010, according to Freddie Mac. Visit www.nam.org for more information.
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
May 2, 2022
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 email@example.com 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
Still Time To Register For AICC Southeast Summit
This fast-paced webinar offers attendees immediate actionable advice to transform contacts into high-perform- ing relationships. Attendees will learn to apply Relational Capital Concepts, display worthy intent, identify the goals and struggles of every business contact, and more. Wallace has been facilitating seminars and workshops for AICC since 2015. He speaks to corporations and orga- nizations around the world with a client list that is a Who’s Who of Fortune 500 companies. He has published four books on relational capital: “Fares to Friends,” “Creating Relational Capital,” “Business Relationships That Last,” and the #1 best-selling “The Relationship Engine.” He is a mem- ber of the executive education faculty of Drexel’s LeBow College of Business and Villanova University’s Human Re- sources Master’s program. Visit www.AICCbox.org/Calendar to register.
AICC, The Independent Packaging Association, is holding its annual Southeast Summit Tuesday, May 10-Thursday, May 12 in Alpharetta, Georgia. The Summit will feature a tour of Peachtree Packaging; a discussion on “Produc- ing for Profitability;” a presentation from Richard Boyd, Co-Founder & CEO of Tanjo, Inc. about Artificial Intel- ligence and How it Relates to the Box Industry; and the opportunity to enjoy a Braves vs Red Sox baseball game. A single registration is $325. Group registration rates are available for box makers bringing multiple people. Tickets for the baseball suite are $150 for adults and $50 for children. Event sponsors currently include CST Sys- tems/Renova, JB Machinery, and Pamarco. Additional sponsorship opportunities are available. Register for the Southeast Summit at www.AICCbox.org/Calendar . New AICC Webinar To Focus On Accelerating Business Relationships AICC is bringing back highly rated speaker Ed Wallace, Managing Director of AchieveNEXT Relational Capital, to offer a new webinar, Accelerate Business Relationships, on Wednesday, May 4.
IP Shareholder Sells 4.132 Million Shares
International Paper major shareholder Paper Co/New/In- ternational sold 4,132,000 shares of IP stock in a transac- tion on Thursday, April 21st. The shares were sold at an av- erage price of $34.75, for a total value of $143,587,000.00. Following the transaction, the insider now owns 4,614,358 shares of the company’s stock, valued at $160,348,940.50. The sale was disclosed in a document filed with the SEC.
8 May 2, 2022
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Baysek Machines Introduces New Model C-190 Die Cutter
Nelsonville, Wisconsin based Baysek Machines Inc. has introduced its new Model C-190 die cutter. The “big broth- er” of the Baysek’s flagship model C-170 die cutter, the C-190 die cutter has been successfully field tested for three years. The Nick-Free multiple-out one operator die cutter offers the same great features as the predictable and profitable C-170 with an 8-inch by x 55-inch (203mm x 1400mm) or 440-square-inches (11176mm2) increase in sheet size capacity, maintaining the same speed of 1800 sheets per hour, and the same relatively small floor foot- print in comparison to many traditional die cutters. Renowned for reducing manual labor while increasing quality and production, the single operator “flat-die rota- ry anvil die cutter” has been a popular choice around the
globe for its versatile nature and straightforward opera- tion. Simple to complicated jobs of various materials are accomplished with ease, without the need for ancillary stripping equipment or additional manual hand stripping and restacking. The entire Baysek die cutting process is
accomplished with one operator via a new and improved computerized touch screen, with remote machine diagnostics capability and job recall feature. The vacuum assisted Baysek die cutting method provides a highly innovative and labor-reducing solution for all corrugated converting facilities, especially those fac- ing all-too-common skilled labor shortag- es. The method begins with a sheet being picked and placed via suction cup feed assemblies onto the reciprocating flat die. Registration suction cups on the lead edge of the die secure the sheet to the die for a (+/-) 1/16-inch (1.5mm) cut to sheet margin. The reciprocating flat die is compressed between two rotary anvils, the top anvil pro- tected with a semi-soft anvil sleeve. Suction cups within each die form hold 100 percent
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perimeter cut “nick-free” finished pieces in the die while scrap is simultaneously pneu- matically extracted up the waste hood and directed to recycling as the die travels from the load side to the unload side of the ma- chine. Suction cup unload assemblies pick accurately counted finished pieces from the
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CONTINUED ON PAGE 12
10 May 2, 2022
Baysek Machines (CONT’D FROM PAGE 10)
al manager of four operations for Cascades. A rising star in the industry, he was attracted to the potential of both TRG Mid-Atlantic and the overall growth strategy of TRG. He will report to TRG President Kevin Miller and help build on the foundation created by the team at Mid-Atlantic. “Bryan is a passionate leader and fantastic commu- nicator,” said Miller. “His emphasis on relationships and team building combined with his wide-ranging experience makes him the ideal fit for TRG. We’re excited to see what the future holds for both Bryan and our company.”
die and stack them into neat and clean units, immediately ready for shipping preparation upon exiting the machine. Servo driven with optional 2,500 lb. lift table capabili- ty, the Baysek C-190 handles F Flute through Double Wall corrugated, solid/thin/chip board, PET foil/foam/glossy/ printed laminates, coated board, single/open face cor- rugated (*via optional component), recycled and warped board, and more. Simple to complex large one-out shapes or up to 60-out small pieces are converted each cycle with no nicks/tags, angel hair or paper dust. Since testing completion, additional Baysek C-190 die cutters have entered the field and more C-190 orders have been taken for 2022 delivery. 24-Hour worldwide custom- er support is provided by Baysek’s talented and educat- ed service technician team. Call (715) 824-5300 or email firstname.lastname@example.org. The Royal Group Names Bryan Fagan General Manager Of TRG Mid-Atlantic The Royal Group has announced the appointment of Bryan Fagan as General Manager of TRG Mid-Atlantic. Fagan has held many roles throughout his 15 years in the corrugated industry, including design, inside sales, sales, sales man- ager, general manager, and most recently, regional gener-
2022 Amtech User Conference Slated For October In Orlando
Registration is currently in progress for Amtech Software’s 2022 live and in-person User Conference, taking place Oc- tober 23-26 in Orlando, Florida. During this event Amtech users and customers will have access to over 80 training sessions organized by tracks covering Customer Service, Accounting, Production, Scheduling, IT/Administration, and much more. “We are excited that our customers are leveraging this extensive training event to educate their team members and ensure they are operating according to best practices with their Amtech Systems,” said Tracy Rowland, VP of Business Development. For more information on how you can register your team, contact Tracy at email@example.com.
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12 May 2, 2022
President Container Supports Ukranian Relief Efforts With Corrugated Boxes Via ‘PCG Cares’ Middletown, New York based President Container Group has provided thousands of corrugated containers to three Ukrainian relief organiza- tions, as well as medical supplies to a fourth group via the company’s “PCG Cares” initiative. More than 4.3 million residents of Ukraine have fled their country due to the Russian invasion, making the exodus the largest European refugee
Cosmo DeNicola Chairman, Amtech Software
Packaging ERP Algorithmic Scheduling Web-Based Access Online Customer Portals
crisis since World War II. Ukrainian relief organizations contacted President Container Group’s PCG Cares initiative, requesting corrugated containers to package supplies to benefit Ukrainian refugee families. The corrugated boxes donated by PCG Cares were filled with food, hygiene products, pet food and backpacks. Medical supplies were sent to Poland, where the goal is to transport them across the border into Ukraine to assist those in need. PCG volunteers help package relief supplies and boxes for Ukranian refugees.
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“Our goal is to help each other, one box at a time,” said President Container Group Vice President Larry Grossbard. “We are all responsible for doing our part to serve the communities around us. By providing corru- gated containers, we will provide one more necessary item to help aid the Ukrainian refugee crisis, or food pantries, shelters and other such organizations, helping them stretch their resources further and help more people in need.” “These humanitarian groups are provid- ing crucial resources, assistance and sup-
600 + Plants 60,000 Users North America Latin America
port during what is an international crisis. If other organizations are still in need, we would love to help in any way that we can,” said Grossbard. To date, donations have been sent to: • Baranova 27, a Ukrainian Relief Fund, Fort Lee, N.J. • Ukrainian relief via Royal Albert’s Palace, Edison, NJ • Plast Ukrainian Scouting Organization, New York City branch • Holy Trinity Ukrainian Catholic Church Relief Effort, Kerhonkson, NY President Container Group’s generosity has been graciously acknowl- edged. “Plast Ukrainian Scouting Organization New York City branch grate-
CONTINUED ON PAGE 16
May 2, 2022
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Corrugated Classic Golf Tourney Tees Off At TAPPI/AICC Corrugated Week Corrugated Week 2022 tees off this year at the Henry B. González Convention Center in San Antonio, TX, with the
President Container (CONT’D FROM PAGE 14)
fully acknowledges your contribution of 130 cartons for our Ukraine fundraiser,” said organization representative Na- talie Danysh. PCG is one of the largest manufacturers of corrugated containers in North America, producing more than two bil- lion square feet of corrugated products every year. PCG Cares reflects the company’s deep concern for its commu- nities and the greater good, also demonstrated by its sus- tainable practices. The company fabricates its corrugated containers with renewable and recycled source materials when possible, which are manufactured, transported and recycled using renewable energy. To request corrugated containers to aid Ukrainian relief efforts or inquire about the PCG Cares Initiative, email pc- email@example.com, call (201) 933-7500, ext. 263 or visit presidentcontainergroup.com .
Grand Hyatt serving as the official host hotel. Hosted joint- ly by TAPPI and AICC, the conference features the pop-
ular Corrugated Classic Golf Tournament on Monday, September 19. with a shotgun start at The Quarry Golf Course in San An- tonio, Texas. This year’s conference offers multiple events along with the Corrugated Classic to make your Corrugated Week ex- perience a standout, including the festive Welcome Reception on Monday night and a private rodeo for Tuesday Evening offsite entertainment. The authentic rodeo is a true Texas experience with professional bull rid- ing, barrel racing, roping and line dancing along with dinner and a full bar. These exciting events are specifically designed to provide attendees with a Tex- as-sized cultural and lifestyle experience. With the hotel and Convention Center steps away from San Antonio’s famed River Walk, there is a lot to do off conference hours. Corrugated Week 2022 brings together one of the largest groups of industry deci- sion makers — providing you with direct ac- cess through exclusive networking events and one of the largest gatherings of indus- try vendors under one roof. This will be your best chance this year to further grow your business, explore cutting-edge products available and take your corrugated vision to the next level. Corrugated Week 2022 takes place September 19-21, at the Henry B. González Convention Center. Exclusive show days are September 20-21, with special rates to attend just the exhibit. Early bird pricing and box plant rates as well as program and top- ics details will be unveiled soon. Lock in the best hotel block rate now. Visit corrugatedweek.org for hotel, trav- el information and more.
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FBA: When It Comes To Packaging, Invest In A Truly Renewable Resource BY CHASE KAMMERER This year’s theme for Earth Day is “Invest in Our Planet.” Making sustainable decisions in life has always mattered,
and lower emissions during manufacturing processes. And it also means less waste going to landfills. Wood fiber, used for paper-based packaging, is a re- newable resource, unlike mined metals or natural gas pro- cessing and crude-oil refining used in the raw materials/ feedstock for plastics production. All these are non-renew- able resources, and 40 percent of plastics are made to be used one time. Over 90 percent of harvested trees come from tree farms, most family-owned. Seedlings repeatedly replace the harvested trees. It’s an economically and environmen- tally robust method of keeping land valuable but marginal- ly developed and still a carbon sink. One ton of recycled fiber saves 7,000 gallons of water during the manufacturing process. Wood fibers can be re- cycled many times, increasing the rate of carbon seques- tration and reducing greenhouse gas concentrations. The spent fiber can then be turned into municipal compost be- cause it is 100 percent biodegradable. We need to turn the tide of plastic pollution invading our oceans, beaches, backyards, and bodies by using wood fi- ber-based packaging and moving away from plastic pack- aging. Plastics pollution is at the bottoms of our deepest oceans and the summits of our highest mountains. Plastics turn up in the human circulatory system and deep inside our lungs. The World Health Organization (WHO) says that microplastics are ubiquitous, detected in freshwater,
and it is up to us all to make mea- sured decisions about what we buy - how we influence what we put into our world and our bodies. We should practice the change we want to see in the world. In the United States, packaging waste – the products that wrap and
protect our goods, accounts for over 82 million tons of mu- nicipal solid waste (MSW) annually. The amount of packag- ing in our garbage and recycling bins increases year over year. There are some positive trends, but not all packaging is created equal, nor is it all recyclable. Only 53 percent of packaging is ultimately recycled. Wood fiber-based packaging is a 100 percent recycla- ble material. Paper, paperboard, and corrugated packag- ing get recycled at a higher rate than any other packaging material, at over 80 percent. In contrast, around 13 percent of plastic packaging and containers get recycled annually. The need to reclaim old corrugated containers (OCC) is vital to a circular economy. Recycling leads to job creation
CONTINUED ON PAGE 20
18 May 2, 2022
FBA: Packaging (CONT’D FROM PAGE 18)
Bob Landaal, Landaal Packaging Systems; and President Dennis Colley, along with Senior VP Rachel Kenyon. New or re-elected Board members approved by vote of all members include Greg Arvanigian, Arvco Container; Pete Durette, WestRock; Jack Fiterman, Liberty Diversified International; Lisa Hirsh, Accurate Box; Charles Malo, Cas- cades; and Kim Nelson, Royal Containers. Paper + Packaging Board Seeks Nominations For 2023 Seats The Paper and Packaging Board (P+PB) is seeking nomi- nees for three open board seats in the following regions: two from the South for a three-year term and one from the rest of the U.S. for a one-year term. The board term begins on January 1, 2023. The ideal candidate is an experienced industry executive from the containerboard, kraft, paper- board or paper sectors whose company produces more than 100,000 short tons a year. Nominations started April 20, 2022, and will run through May 20, 2022. All nominations are submitted to USDA and the Secretary of Agriculture appoints new board members by the end of 2022. For more information or to receive a nomination form, contact Sarah Meiburg at (703) 935- 8862 or email email@example.com or con- tact Steven Kauffman, USDA Marketing Specialist, at (863) 307-3286 or email firstname.lastname@example.org.
wastewater, food, air, bottled water, tap water, etc. The av- erage infant consumes more than 1.5 million microplastic particles per day. Another potential concern is around the ingestion of much-smaller nano plastics. Once in the gut, these extra tiny plastic particles can make their way into the bloodstream and be transported throughout the body. This Earth Day, I pledge to look at the types of packaging and products I purchase and make a conscious effort to pick recyclable, sustainable, and renewable packaging for the planet and for my family’s health. Chase Kammerer is the Technical Services Manager at FBA. If you have technical questions about the corrugated industry, reach him at email@example.com. FBA Announces New, Re-Elected Board Members At Spring Meeting The Fibre Box Association (FBA) Board of Directors elect- ed Doug Bosnik, President & Chief Executive Officer of BCI, Buckeye Corrugated Inc., as the Association’s 2022- 2023 Chairman during their Board of Directors Meeting held April 10, 2022, in Laguna Beach, California. Additional officer elections include First Vice Chairman Bryan Hollenbach, Green Bay Packaging Inc.; Second Vice Chairman Tim Bergwall, Greif; Immediate Past Chairman
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AICC Tech Advisors Young, Weber To Offer Expert Advice On Testing AICC’s Technical Advisors Ralph Young and Tom Weber will share their expertise in “What Testing and Require- ments are Best Suited in the Packaging Industry,” a new webinar on Wednesday, May 11. Improving the bottom line of member companies is an ongoing goal of AICC. Since many plants have reported the savings in process improvement and supplier account- ability more than offset the initial cost and yearly employ- ee costs for testing, this webinar is critical for any company considering or curious about creating an in-house lab. Young and Weber will discuss the essential equipment, testing, and costs for establishing an in-house testing lab. Tom Weber, AICC Folding Carton Technical Advisor, has 39 years of diverse packaging experience. He is rec- ognized by industry peers as knowledgeable and well-in- formed in all sales, marketing, and production processes. Ralph Young serves as the AICC Corrugated Technical Advisor. He spent his entire corporate career in the forest products industry investing the last 35 years in the paper and corrugated packaging segment. Register for the webinar at www.AICCbox.org/Calen- dar . This webinar is also included in the All Access Pass. Direct questions to Taryn Pyle, Director of Education & Leadership Development at email@example.com.
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Inflation Busters (CONT’D FROM PAGE 1 )
curate, will the expected timeframe be met?” What deter- mines cash on hand is not sales but collections, and his- tory shows that during inflationary times customers start paying slower as a result of their own cash squeezes. Planning must reflect the reality of cashflow uncertain- ty. “Growing accounts receivable can put serious strain on smaller businesses that may not have the cash reserves to absorb delays in receipts,” said Beaver. “For most compa- nies cashflow forecasts are less than 75 percent accurate.” One approach to anticipating likely variables is to look at historical performance. What percentage of receivables is usually collected during slower seasons? That figure can be applied to open receivables to help estimate the likely Historic data, of course, may provide a less than reliable foundation for future forecasts. Whatever the estimates for what lies ahead, businesses can obviate cash squeezes by accelerating accounts receivable and stretching accounts payable. For the former, experts advise running regular ag- ing reports. How much do customers owe in increments of two weeks, 30 days and 60 Days? Any growth in the numbers over time might indicate a steady deterioration of cashflow. Keeping in close touch with customers can also help accelerate receipts by providing opportunities to request timely payments and helping spot nascent issues that may pace of receipts. Faster Receipts
wage spiral resulting from the pandemic’s softening effect on the labor supply. Forecasting Cashflow Of all the steps businesses can take to mitigate the bot- tom-line effects of inflation, the most important is better management of cashflow. Inflation tends to accelerate the drain of money from company coffers, and throttle the flow that comes in. If left unaddressed, these battling trends can gut profits and threaten business survival. Experts advise looking at the coming months with an eye toward estimating what will happen to cash balances. “Proactively managing cashflow is critical right now,” said Lisa Anderson, president of LMA Consulting Group, Clare- mont, CA ( lma-consultinggroup.com ). This can be done by running periodic forecasts. “What I would recommend is looking at your demand side and asking, ‘What are we really going to need here?’ And then looking at your sup- ply side and asking, ‘What will I have to make?’ And then determining what the answers mean for cashflow. If it’s go- ing to be negative, you better borrow some money.” Such analysis, of course, involves estimates of future revenues—a practice tainted by uncertainty. “Having a sales forecast is great, but that doesn’t mean you will col- lect all the money you think you will,” said Scott Beaver, Senior Product Marketing Manager at Oracle NetSuite “And even if your sales forecast is a hundred percent ac-
CONTINUED ON PAGE 26
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Inflation Busters (CONT’D FROM PAGE 24)
management on the buy side has always stretched out payables,” said Cespedes. “This is particularly so in an in- flationary environment where businesses must pay a lot more attention to the payment cycle.” Stretching payables can, of course, backfire. For start- ers, it can mean the loss of the five percent or 10 percent discounts many companies offer customers that pay be- fore their due dates. It can also result in higher prices for goods and services. “Extending too far makes you more of a risk,” said Beaver. “And suppliers tend to give better prices to customers that are less risky.” And there’s also dependability of deliveries to consider: Ongoing supply chain disruptions will cause vendors to favor deliveries to customers that pay on time or early. The cost of not having essential materials can be greater than the interest cost required to borrow money to bridge cash gaps. Mitigating Costs In an inflationary environment, suppliers of goods and services tend to raise their prices. And higher rates of infla- tion tend to make the increases bigger. “When inflation is two percent everything tends to increase by that amount, plus or minus a little bit,” said Conerly. “But at seven per- cent inflation, say, prices tend to increase by that amount plus or minus a lot.” Businesses should try to get readings on anticipated future increases and shortages. This can be done by main- taining close contacts with vendors. “Work closely with CONTINUED ON PAGE 28
grow into future roadblocks. “Maintain a good handle on what customers are doing,” said Anderson. “What are their future sales activities? Are they encountering problems that may affect operations?” Not all customers are of equal importance, and it’s smart to concentrate efforts on the most profitable. Account re- views can identify which customers should receive the most attention. “So much of the important information re- quired to monitor cashflow is tied to a selling cycle which varies by customer,” said Frank Cespedes, Senior Lecturer at Harvard Business School. “Some buyers say ‘yes’ or ‘no’ when you make a call; others require multiple iterations of proposals. Some buy what you have in inventory; others require customized items. Those things affect the time to receive cash and the cost to fulfill orders. Good account reviews unearth that information.” Companies might also explore requiring bigger depos- its from customers, said McQuaig. Sweeten the increase by emphasizing customer benefits. Maybe you already have some needed pipe in inventory, that the customer can actually come and see. Or offer free early delivery so the customer can maintain the pipe on site. Emphasize that earlier payment helps the customer avoid higher pric- es later. As for the outward flow of cash, a tried-and-true tactic is delaying the payment of monies owed. “Good financial
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