Board Converting News, September 22, 2025

September 22, 2025

VOL. 41, NO. 38

BoardConverting Serving the North American Corrugated and Folding Carton Industries for 40 years

Workers’ Comp: Preparing For A Tougher Environment BY PHILLIP M. PERRY

SupplyOne Acquires Vital Pack, Expands To SoCal Newtown Square, Pennsylvania based Sup- plyOne, Inc., a leading distributor of custom corrugated and value-added packaging solu- tions in North America, announced that it has acquired the business of Vital Pack, a Signal Hill, California-based packaging distributor with in-house label printing capabilities and a strong presence throughout the state. Vital Pack operates from two adjacent warehouse facilities, serving customers across the United States, with a majority of its sales concentrated in California. Vital Pack distributes a full range of pack- aging and shipping solutions including stretch film, shrink bundling film, flexible packaging, corrugated products, and custom printed labels. Its printing capabilities complement SupplyOne's existing digital printing and con- verting expertise and will enhance its ability to deliver high-impact, custom packaging solu- tions across the region. “Vital Pack was founded on the principles of quality, honest service, and reliability,” said James Luyben, Founder and CEO of Vital Pack. “Joining forces with SupplyOne enables us to continue delivering on that mission

Employers, take a bow. Your efforts to reduce workplace injuries have paid off big time. “The number of reported accidents under the work- er’s compensation system has been falling steadily in recent years,” said James J. Moore, president of J&L Risk Management Consultants. “The reason has been largely due to successful safety programs.”

The healthier workplace environment has attracted a good number of insurance companies to the workers’ compensation market, putting downward pressure on prices. “In general, insurance companies find workers’ compensation to be a profitable line of business,” said Randy Sieberg, president of Workers Compensation Consultants. “As losses have been trending downward, the end result is a really decent claim experience.” Danger Ahead Despite a mostly sunny workers’ compensation environment, em- ployers should be wary of dark clouds gathering on the horizon. Fore- most among them is an increase in expensive catastrophic claims, driv- en largely by advances in medical technology. “While there’s been a soft insurance market for several years, those days might be numbered,” said Matt Morris, Principal at World Insur- ance Associates. “The increasing incidence of million-dollar claims is going to start catching up with carriers.” The mega claims are coming at the same time that more states are adjusting their fee schedules to reflect higher costs. “We’re see- ing many states increase workers’ compensation benefits across the CONTINUED ON PAGE 24

CONTINUED ON PAGE 3

WHAT’S INSIDE

6 x x 8 x x 12 x x 26 x x 8 ICPF Funds New Kongsberg Table At Pittsburg State Univ. 14 AICC Offers Interactive Two- Day Packaging Workshop 18 Koenig & Bauer Identifies Techs For Apprenticeship Program 32 PPC's Emily Leonczyk: SCT Invests In People and Facilities

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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 42# Kraft liner 26# Semi-Chem. Medium $ 900.00-925. 00 $ 825. 00 -$850.00 U.S. Average 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# Semi-Chem Medium East $970.00 $960.00 West $1,015.00 $995.00 REGION SupplyOne Acquires (CONT’D FROM PAGE 1) while expanding the resources and capabilities we offer our customers. We are excited to begin this new chapter with a partner who shares our customer-first values." “The acquisition of Vital Pack strengthens our presence in the Western United States and deepens our capabilities in flexible packaging and custom label production,” said Todd Renehan, CEO and President of SupplyOne. “Vital Pack's talented team and dedication to customer service align perfectly with our mission to deliver value through packaging. We look forward to growing together.” Vital Pack represents the 44th addition to the Supply- One portfolio and its first in the state of California.

Share the story of your company’s success with an ARTICLE in Board Converting News. The corrugated and folding carton industries are waiting! Brand Owners, Converters & Decision-Makers READ BCN Don’t keep it a secret! Articles generate leads for converters and suppliers! Industry Stories (AKA Articles) May be hiding plain view. If spotted in your organization, approach with extreme excitement and report to BCN immediately!

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September 22, 2025

ERS Corrugated Scrap Conveyance System Nears Commissioning Engineered Recycling Systems (ERS) is finalizing the com- missioning of a new corrugated scrap conveyance system built for high-volume trim removal and dust control in a packaging production environment. This installation fea-

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tures ERS’s proven technologies—including the Balancing Fan, LPS Separator, and CCM® Filter—configured for con- tinuous scrap handling, clean discharge, and OSHA/NFPA compliance. • Trim removal from corrugated converting lines • Airflow balancing for reduced energy demand • Filtration system with rotating nozzle cleaning • Dust cyclone and pucker discharge into baler This installation is part of a growing number of ERS sys- tems commissioned across the industry.

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September 22, 2025

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AICC To Host Webinar: Modernize Your Plant Through Automation AICC, The Independent Packaging Association, will host a webinar on Wednesday, September 24, at 2:00 p.m. ET focused on automating manual processes to improve effi- ciency in corrugated packaging plants. Manual processes such as scheduling, data capture, and logistics planning are often hidden bottlenecks that slow production and increase costs. Left unaddressed, they can limit plant throughput and strain already lean teams. The session, presented in partnership with Amtech Software, will outline practical steps to replace these man- ual tasks with automated systems that deliver measurable improvements. The program will focus on three areas where automa-

tion can have the greatest impact: • Scheduling: Automating job sequencing to reduce manual effort and free schedulers to focus on proactive decision-making. • Data capture: Collecting setup, run, and downtime in- formation automatically to improve accuracy and re- duce operator workload. • Logistics: Using intelligent trailer planning to increase load capacity, lower transportation costs, and stream- line routing. The webinar is designed for plant managers, opera- tions leaders, manufacturing directors, and business ex- ecutives exploring modernization and disaster recovery strategies. Organizers emphasize that the session will pro- vide practical takeaways on how automation can improve safety, reduce costs, and position plants for long-term competitiveness. Speakers will include:

• Eric Nolan, SVP of Strategic Develop- ment, Amtech Software. Eric drives prod-

uct strategy, partner alignment, and long- term growth initiatives. With over 30 years of experience in the tech- nology and packaging sectors, Eric has held

leadership roles in software, hardware, and systems integration—most notably serving as President of both Amtech Automation and Futura Mobility. • Josh Wright, Product Manager, Amtech Software. Josh focuses on developing tools that enhance real-time data capture, pro- duction visibility, and plant-floor efficiency. With years of experi- ence in ERP systems for manufacturing, Josh aligns product capabilities with evolv- ing customer needs. • Christian Nelson, Sales Manager, Nelson Container Corp. With 20 years of experi- ence in corrugated box manufacturing,

Christian represents the third generation of leadership at Nelson Container Corp. Chris- tian has comprehen-

sive experience across machine operations, maintenance, shipping, design, customer service, information technology, manage- ment, and sales. To register for this free webinar, visit aiccbox.org .

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September 22, 2025

Turn Trim Waste into Revenue One Size Never Fits All G.F. Puhl Designs Scrap Systems to Meet YOUR Needs

Our customers have various needs for scrap and dust collection systems based on several factors including building layout, available space for the equipment, distance conveyed, local codes for noise and height as well as air permitting and available operating and maintenance staff. Change the game with a custom-designed system by G.F. Puhl. It can make all the difference. When it comes to trim collection systems, there’s virtually no problem we haven’t solved.

Problem: No room for a scrap system inside the building. Solution: If your building footprint won’t support additional trim waste equipment, go outdoors. Exterior systems like an above-roof or ground-level concentrator will boost your capacity. Problem: No way to monitor the system unless you’re on site. Solution: G.F. Puhl leads the pack with proprietary technology that makes it possible to monitor the system from wherever you are. Request PLC touch screen controls with real-time pressure balancing and real-time remote via your smart phone or computer. G.F. Puhl’s expert engineering team has more than 50 years of combined experience designing, fabricating installing, and commissioning trim and dust collection systems of every kind, including outdoor systems with dual compactors, above roof systems with single or multiple cyclones and balers and below roof screen separator systems. If you’re looking for a vendor that can help you solve the scrap collection puzzle once and for all, contact G.F. Puhl today. 615.230.9500 or sales@gfpuhl.com

Problem: No space for a baler room. No budget for baler room staff. Solution: Try outdoor auger compactors requiring minimal operator interaction. Auger compactors achieve higher compaction than conventional ram compactors with less maintenance and no hydraulic fluid. Dual compactor systems allow continuous running while the waste hauler is changing out the container. Problem: No budget for a new system. Solution: Request a custom system with remanufactured equipment. G.F. Puhl sells remanufactured balers, blowers, separators, filters, and more. The savings can be significant and the warranty adds peace of mind. Problem: Your existing system doesn’t meet codes and the inspector has notified you of a problem with the existing system. Solution: G.F. Puhl’s NFPA trained engineering team designs NFPA and OSHA compliant systems that are as safe as they are durable. Problem: Dust is out of control. Solution: G.F. Puhl systems are designed to minimize the hazards created by ambient dust. Dust briquetters, certified explosion isolation valves, flame front diverters, and other safety features maximize safety.

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ICPF Funds New Kongsberg Table At Pittsburg State University

Students in the Graphic Communications program at Pittsburg State Uni- versity are using new equipment this Fall, provided by the Internation- al Corrugated Packaging Foundation (ICPF). The new Kongsberg X24 Edge precision cutting table will be used in required courses for the 131 students that major in Graphic Communications and the additional 70 students minoring within the program.

• Only standard hand tools are required for all maintenance • Direct drive with no chains or sprockets • No tools for media change required » just zip it up » media change out in minutes • Filter is accessible for visual inspection during operation, Significant Advantages Over Conventional Dust Filtration Technology

ICPF President, Caitlin Salaverria said, “ICPF was thrilled to provide placement of this machine at Pittsburg State University. This donation will allow the Graphic Communications program to support and grow their corrugated packaging curricula and expand hands-on learning op- portunities for students to prepare them for future careers in the pack- aging industry.” Dr. Doug Younger, University Professor at Pittsburg State University said, “The addition of this equipment greatly enhances our program’s ability to provide learning experiences that will replicate the real-world environment of the corrugated industry. We appreciate the support of the ICPF in placing this equipment in our lab.”

» no shutdown required • Filter media advantages - high dust collection efficiency

- low pressure loss due to constant deep cleaning of the filter media in minutes - long service life

• No pressure fluctuations within the system • No compressed air required to clean the filter media

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“As an industry sponsored foundation, ICPF has worked for 40 years to advance student and faculty knowledge of the industry and to pro- mote development of a highly trained workforce,” said Salaverria. “We’ve provided over $15 million in donations of equipment and grants to uni- versities through our University Awards Program and look forward to continuing our efforts over the coming years.”

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September 22, 2025

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Domtar Donates To Port Alberni Toy Run, Announces Mill Closure Fort Mill, South Carolina based Domtar has made a do- nation to the 41st annual Port Alberni Toy Run. When Bri- an Fleury first started working at the Port Alberni Domtar paper mill, he learned about the Port Alberni Toy Run — one of western Canada's largest motorcycle rides for children. It didn't take long for him to become involved in the ride, and the company followed suit.

Fleury. “It's a great cause. I was involved in something sim- ilar back east when I lived in Ontario. It's great the history of (this event), 40-plus years. It's just amazing.” Grimes said the annual Domtar donation is appreciat- ed. "The money will go into the pot and from the pot we will decide which kids' programming to sponsor. “Port Alberni is definitely the community with a heart. Between huge corporations like this and the smallest mom and pop shops, everyone's pulling together to make this event what it is.” Grenada Mill To Close Domtar has also announced the upcoming closure of its Grenada mill later this month, affecting over 150 em- ployees. The company said the mill will close indefinitely in mid-September as it makes “ongoing efforts to align its operations with current business conditions.” Domtar is working to connect affected workers with career transition resources and other support programs. The company touted that the facility had “one of the most modern, high-speed and efficient newsprint ma- chines in North America” with a 235,000 metric tons an- nual newsprint production capacity. Domtar’s website shows that the mill had an econom- ic impact of $316 million, and since 2015, it has donated more than $85,000 locally, “thanks to the mill’s safety per- formance.” In the Southeastern U.S., eight mills have shuttered re- cently, where timber is one of its major industries.

On Wednesday, September 10, Fleury and other em- ployees donated $1,000 to Toy Run president Marnie Grimes and other members of the executive committee. Fleury and other motorcycle-riding employees then took to the road for Saturday's annual ride. “I've been doing this since I moved here in 2023,” said

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September 22, 2025

THIS ITALIAN MASTERPIECE IS USHERING IN A CORRUGATED Renasce

A renaissance of sophistication and innovation is upon us with the introduction of Haire’s Encore FD 821 Flexo Folder Gluer . With features like full servo design, set-up-while-run print units, and revolutionary rotary shear glue tab technology, this Italian-designed and -manufactured marvel is bridging world-class design and cutting-edge speed. Experience the rebirth of corrugated production—where timeless craftsmanship meets modern performance.

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Corrugated Market Shows Signs Of Stabilization Amid Capacity Cuts In a recent article on Packaging Dive , analysts suggest- ed that a prolonged down cycle in fiber markets may be nearing an inflection point, thanks to significant contain- erboard capacity reductions and a milder-than-expected tariff environment. Uncommonly large mill closures this year — totaling about 3.9 million tons, or 9.5 percent of North American capacity — could help rebalance supply and demand after years of oversupply. International Paper’s August closure of four Georgia facilities alone accounted for 1 million tons of annual capacity. BofA Securities and Truist Securities both estimate capacity reductions near 10 percent over the past two years. Even so, the recovery is not expected to be quick or dramatic. Respondents to BofA’s September survey fore- cast box shipment growth to dip 0.2 percent over the next two quarters — better than June’s projection of a 1 percent decline but still weak. Green Markets, a Bloomberg com- pany, projects Q3 2025 shipments will fall by as much as 3 percent year over year, with full-year shipments down about 2.5 percent to 3 percent. Containerboard production has dropped steadily, down 5 percent year over year in Q2 and 3 percent for the first half of 2025, according to the American Forest & Paper

Association. Box demand is down nearly 12 percent from its pandemic high, when consumer goods spending briefly lifted volumes, and producers are now reworking capacity to reflect this lower baseline. Analysts note this is part of a broader correction dating back to China’s National Sword policy in 2017 that clamped down on recyclable material imports. Demand and pricing for old corrugated containers also plays into the containerboard dynamic. Container- board producers have said high input costs contribute to the challenging market cycle, particularly for OCC, a key feedstock. Prices for the commodity shot up 245 percent year over year by mid-2024, according to Truist’s Roxland, but reversed course later in the year. Following relative stagnation in early 2025, prices have slid for the last four months. Analysts also highlight that trade outcomes could have been worse. Current 10–15 percent levies are far milder than the 50–60 percent levels once discussed early in the current administration. As trade tensions settle out, so does the trend of companies attempting to pre-buy mate- rials and products to avoid tariffs. Generally, sources believe the downward trajectory for corrugated demand could ease in Q4. But don’t expect a V-shaped or U-shaped recovery, analysts caution. “Recov- ery” might look more like a plateau, at least in the short term, though improving conditions could open the door for a price increase.

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September 22, 2025

Double Your Production with the Twin Box Slitter ®

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AICC Offers Interactive Two-Day Packaging Workshop In Cleveland AICC, The Independent Packaging Association, announc- es its upcoming seminar, Innovate, Design, Deliver – From Concept to Commerce , taking place on November 5–6, 2025, at Graphco in Cleveland, OH. This dynamic, hands-on two-day program is designed to guide packaging professionals through the complete journey of creating impactful, market-ready packaging solutions. From the initial spark of innovation to final de- livery on the retail shelf, participants will gain practical knowledge across every stage—including design strategy, material selection, sustainability, production processes, and go-to-market execution.

The Perfect Combo Get Peak Performance From Your Equipment with Matched Component Sets

Nothing’s more rewarding than a couple made for each other.

That’s why the engineers at ARC International have focused their skills and talents on crafting perfect matches between the components that must work in tandem on your flexo folder gluers and die-cutters: • Anilox Rollers and Ink Chambers • Anilox and Wiper Rollers • Feed and Pull Rollers • Glue and Meter Rollers You can achieve the press speeds and print quality you need to fill your most demanding orders by pairing your team with The ARChitects of Flexo . Contact ARC today to learn how these engineered matches of flexo folder gluer and die-cutter components (new or reconditioned) can help you achieve a more perfect union of production and profits.

Led by seasoned industry experts, attendees will ex- plore the latest trends, proven processes, and cutting-edge technologies shaping the packaging industry. The seminar also includes exclusive tours at Graphco and Tavens Pack- aging, offering participants a behind-the-scenes look at operations that embody excellence in packaging design and production. “This program equips professionals at all levels with the tools and strategies they need to drive innovation and measurable results in their company,” said AICC Education Director Taryn Pyle. “By learning from experienced prac- titioners and engaging directly in a production environ- ment, attendees will leave inspired and prepared to take their packaging solutions to the next level.” This program is an adaptation of the late Dan Malen- ke’s renowned Packaging Seminar at Clemson University. AICC is proud to honor Dan’s enduring legacy by bringing new life to his program. His passion for learning and his unwavering commitment to advancing packaging knowl- edge continue to inspire AICC’s mission of preparing the next generation of leaders. Seats are limited for this high-demand program. Pack- aging professionals are encouraged to secure their spots early to ensure their teams remain ahead in today’s com- petitive marketplace. Learn more and register at www.AICCbox.org/Calen- dar. Questions can be directed to Rebecca Rendon, Sr. Ed- ucation Manager, at rrendon@aiccbox.org or 571.629.7613.

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September 22, 2025

Gluing on Specialty Folder Gluers is Our Specialty

Sustainability initiatives are changing the packaging landscape and Baumer hhs is ready to help you meet those challenges. Our PX1000 cold glue applicator coupled with the new ULT 400 XL are the pair to get it done. The PX1000 runs the widest ranges of non-contact cold glues and the ULT 400 XL verifies the glue dot or bead is in the right place without the aid of UV tracers, no matter the variety of board or thicknesses. Get your corrugated board onboard with Baumer hhs and let us show you how special you are to us.

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Tariffs Push Up Certain Goods Prices In August

Consumer price growth accelerated in August, reflecting the impact of tariffs on a range of goods, while wholesale prices moved lower. The Consumer Price Index (CPI) rose 0.4 percent over the month and 2.9 percent from a year earlier, up from the 2.7 percent annual pace in July. Core CPI, which excludes food and energy, increased 0.3 per- cent for the month and 3.1 percent year-over-year, slightly above the 3.0 percent gain in July. Producer prices told a different story. The Producer Price Index (PPI) for final demand edged down 0.1 percent in August, following a 0.7 percent jump in July, as service costs declined. Over the year, producer prices advanced 2.6 percent, compared with 3.1 percent in July. Excluding

food, energy, and trade services, producer prices rose 0.3 percent for the month and 2.8 percent from August 2024. Rising prices cut into earnings. Real average hourly earnings for all employees fell 0.1 percent in August as a 0.3 percent rise in wages was offset by a 0.4 percent gain in inflation. Over the past year, real average hourly earn-

ings increased 0.7 percent. For production and nonsupervisory workers, real earnings were unchanged in August but up 1.1 per- cent year-over-year. Inflation continues to erode much of the recent wage growth. The NFIB Small Business Optimism In- dex climbed 0.5 points to 100.8 in August, remaining above its 52-year average of 98. Four of the index’s ten components improved, four declined, and two were un- changed. The Uncertainty Index fell four points to 93, its lowest since early 2024, driven by reduced concerns over financing conditions and capital spending. Even so, uncertainty remains well above the 51-year average of 68 and the average since 2016 of 80. Wholesale trade data showed con- tinued strength. Merchant wholesalers’ sales rose 1.4 percent in July and 6.2 per- cent year-over-year. Durable goods sales increased 1.3 percent month-to-month and 8.6 percent from a year earlier, while nondurable goods sales rose 1.6 percent and 4.1 percent, respectively. Inventories edged up 0.1 percent in July and 1.3 per- cent from a year ago, bringing the inven- tories-to-sales ratio down to 1.28 from 1.34 in July 2024. Consumer sentiment declined again in September. The University of Michigan’s preliminary index fell 2.8 points to 55.4, the second consecutive monthly decrease. Buying conditions for durables improved slightly, but expectations for personal fi- nances weakened. Roughly 60 percent of consumers mentioned tariffs unprompted in the survey. Year-ahead inflation expec- tations held at 4.8 percent, while long-run expectations rose to 3.9 percent.

DESIGNS THAT INCREASE PRODUCTION

ASDI offers: • 40 years of experience with separators, cyclones, conveyors and more • Sequential, Zero-Defect and various types of Scrap Systems • Each system is guaranteed to meet customer specifications • T urnkey Systems-handling all grades of paper and paperboard • In ground and overhead return conveyor systems direct to balers • Replace your undersized or aging cyclone over a two or three-day weekend • Representing a complete line of shredders, wet scrubbers and filters • NF PA compliant systems, ISN Network

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September 22, 2025

Koenig & Bauer Identifies Technicians For Its Apprenticeship Program Koenig & Bauer (US/CA) has announced its seventh con- secutive year of its successful apprenticeship program. The program currently has six apprentices enrolled and continues to provide participants with valuable skills and professional development. The company is now accepting applications for its 2026 apprenticeship class. Interested candidates are encour- aged to apply by the deadline of October 15. The program offers a competitive compensation package, comprehen- sive benefits, and opportunities for career advancement and travel. “Our apprenticeship program has been a vital invest- ment in the future of our workforce and our company,” says Chris Talbert, chief operating officer for Koenig & Bauer (US/CA). “It allows us to build strong foundations with talented individuals early in their careers, while also ensuring we maintain the high standards our industry de- mands. What makes our program stand out above the oth- ers is that our trainees are acquiring knowledge on the most technologically advanced printing equipment, while living in Germany, and learning to speak German with their factory counterparts. Our graduates are fulfilling key roles within our company.” Recruiting for the newest class of apprentices has be-

gun under the watchful eye of Ericka Luneau, director of human resources for Koenig & Bauer (US/CA). She and her team will be visiting Texas State Technical College (TSTC) campuses with Employer Spotlight Visits and job fairs speaking to students in various degree programs such as Industrial Systems, Wind Energy Technology, Aviation, and Mechatronics.

“We are open to developing relationships with techni- cal colleges outside of Texas to provide this opportunity to their students and graduates, especially in the Northeast and upper Midwest regions, as our service technicians are based throughout the United States,” says Luneau. “For Kaitlin Sullivan, the apprenticeship program’s first graduate, is currently working as a remote support specialist where she is based at the Dallas headquarters of Koenig & Bauer (US/CA).

CONTINUED ON PAGE 20

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September 22, 2025

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Koenig & Bauer Identifies (CONT’D FROM PAGE 18)

giving me knowledge in all aspects of the printing indus- try, and being able to effectively support our customers,” says Sullivan. “I really enjoy being part of the team effort at Koenig & Bauer and proud to be the next generation of skilled professionals in the printing industry.” Another early graduate was Flavio Tello-Saenz, who currently is one of the firm’s top service technicians/electri- cians. After graduating from the program, he began work- ing as a field electrician technician based out of the Dallas/ Fort Worth area. “The hands-on experience that I gained during the apprenticeship program really helped me out once I started working in the field,” he says. “I was able to gain in-depth knowledge of Koenig & Bauer’s state-of- the-art equipment and technology. While I still work as a field technician, I have been able to build a tremendous knowledge of our customers and their specific needs. In my current role, I handle electrical troubleshooting, parts programming, and updates to system software.” “In today’s competitive environment, programs like this are more important than ever—not just for developing skills, but for fostering long-term commitment and innova- tion,” says Talbert. “Most importantly, it helps us ensure we have the skilled expertise needed to continue delivering excellent support and service to our customers. We see this initia- tive continuing to evolve and grow as a key part of our talent strategy moving forward.” For more information, visit us.koenig-bauer.com .

2026, our focus is on sourcing mechanic apprentices.” Since its inception, the program has adapted to both the apprentices and the company. The program has in- creased from 24 to 28 months. In addition to taking Ger- man language classes in Germany, the apprentices now attend weekly virtual German language classes and a two- week, in-person class with a German language instructor before they leave for Germany. They still live, train, and work in Germany for a period of one-year, generally in two six-month periods. Their time in Germany includes attending classes at the Apprenticeship School at Koenig & Bauer’s factory learn- ing basic skilled trades, attending classes at its world-re- nowned Training Center where they learn about printing on the firm’s popular equipment, and working in the As- sembly Hall from pre-assembly to final assembly. This training in Germany is supplemented with field training in the U.S. with mentors. Graduates of the program praise it for its structured training and hands-on experience. Kaitlin Sullivan, the program’s first graduate, was trained as a service technician/electrician. She worked for nearly five years in the field and was based in Chicago. Earlier this year she accepted a new position as a remote support specialist where she is based at the Dallas headquarters. “My apprenticeship really prepared me for my career,

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Workers’ Comp (CONT’D FROM PAGE 1)

board, adjusting for inflation, higher medical expenses and a rising cost of living,” said Morris. “And ever since COVID we're seeing carriers covering a lot more mental health conditions and PTSD.” Yet another danger emanates from Washington. While workers’ compensation is primarily a state driven phenom- enon, that doesn’t mean actions at the federal level can’t affect employer costs. “We’re concerned about the possi- ble negative effects of U.S. trade policy,” said Dennis Tier- ney, Director of Workers’ Compensation Claims at Marsh, a global insurance broker. “Employers who get impacted by tariffs may start cutting expenses, and that often means getting rid of employees. And reductions in force typically lead to an increase in workers’ compensation claims.” Such increases can often be fed by desperation, noted Tierney. People who lose their jobs often look for another source of income, and may find it in the form of back pain or similar condition that developed over the years and that could be deemed an occupational injury. This temptation to assign workplace culpability comes while many states are passing laws reflecting a more lib- eral presumption—a term referring to the automatic deter- mination that certain injuries are work-related, and thus compensable by the workers’ compensation system. It is up to the employer to prove otherwise. Security cameras can help provide a defense against some of these instances. “Having everything monitored is a best practice and a good way to avoid frivolous claims,” said Morris. “Many times, employees will be joking around and not doing the right things on a work site and then claim a work-related injury when the video shows some- thing else happening.” Tariffs may lead to cost hikes for other reasons—esca- lating drug prices among them. “Raw materials for drugs are a big part of medical spend,” said Tierney. “Duties on imported ingredients may result in bigger bills for end us- ers.” Tariffs can also have a deleterious effect on labor costs. A manufacturing reboot in the U.S.—the ultimate goal of the Trump administration tariff policy—may increase the demand for workers, putting upward pressure on wages. “The administration’s restrictions on immigration could lead to the loss of cheaper labor, and thus affect work- ers’ compensation rates which are figured off wages,” said Moore. Finally, trade policy can lead to more hiring of younger workers to fill the ranks of reshored employers. The re- placement of retiring Boomers poses a particular risk. “In five years, we figure that some 25 percent of employees are going to be Gen Zers,” said human resources consul- tant Rachel Shaw. “We are concerned that we may see more injuries as a result, since there is a question mark as to whether they are coming into the workforce with the same skills and training and experience.”

Follow Board Converting News on LinkedIn and Facebook to get the most current news and information for the corrugated and folding carton industries.

Len Prazych at 518-366-9017 lprazych@nvpublications.com

CONTINUED ON PAGE 26

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Workers’ Comp (CONT’D FROM PAGE 24)

Board Converting NEWS INTERNET DIRECTORY

These upward payroll pressures are coming at a time when the federal government is deregulating workplace safety standards and reducing the number of workplace inspectors, noted Shaw. “Some companies love the idea of deregulation because it can reduce immediate costs,” said Shaw. “But an increase in injuries might well raise costs over the longer term.” The difficulty younger workers face in obtaining afford- able health care may add fuel to the fire. “We may see an increase in claims as people struggle with obtaining and maintaining medical care,” said Shaw. “We have in the past seen people use the workers’ comp system for either per- sonal medical needs or as wage extension.” More Mental Stress The influx of younger workers can increase costs for two other reasons. First, younger workers have a more liberal attitude toward the use of recreational marijuana. “The younger generations see marijuana as more like beer or alcohol,” said Shaw. “We anticipate that as more states legalize recreational marijuana we're going to continue to see some impact, especially in industries that require workers have balance and focus to do their job well and to be safe and not have catastrophic injuries.” The National Institute on Drug Abuse (NIDA) found that workers testing positive for marijuana were involved in 55 percent more industrial accidents, 85 percent more injuries, and experi- enced 75 percent more absenteeism. Additionally, mental health issues have much less stig- ma among members of the younger generations, who are more comfortable than Boomers discussing and claiming work-related stress. They also expect mental health sup- port from their employers. “Mental health claims seem to be the fastest growing segment of the workers’ compensation picture,” said Sie- berg. “While they currently don’t add up to a large per- centage of overall claims, they can cost from two to five times the amount of traditional claims, and run two to five times as long.” Mental health claims are also more likely to be litigated, further escalating costs. Many states are introducing regulations that help fuel the growth of mental health claims. For example, there is an increasing presumption of a work-related nature for reported psychological and stress-related injuries. Fur- thermore, many states are no longer requiring that mental health claims be preceded by physical injuries. It used to be that a worker claiming work-related de- pression would have to show that a preceding event such as a back injury caused mental stress by keeping them from carrying out their normal daily routines. “Today, em- ployees might claim they were abused in the workplace by a coworker or a manager, or they witnessed an event that caused psychological damage,” said Tierney. Reducing Costs Employers are not powerless to navigate the more CONTINUED ON PAGE 28

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