Converter Outlook (CONT’D FROM PAGE 1)
through our facility. We are quite proud of our operation as it stands. Our future plans include several major chang- es. We have on order two entirely automated flexo lines for delivery in late 2026 and early 2027. Orders are in for a complete makeover of our finishing lines including new unitizers and a new conveyance system. “We will be exploring the use of AI to further enhance our ability to service our clients and run our internal opera- tions more efficiently. The focus will remain on the custom- er and the ever-changing requirements that commerce im- plies. We will search globally for the best paper available. We continue to look at box structure and ways to increase the value proposition we make available to our clients. We will continue to be a counter point to our larger competi- tors in both responsiveness and service. “The differentiator remains who the client can depend on. Our clients’ success hinges on fulfilling their obliga- tions to their clients. It sounds basic, but believe me, our success has been sustained by having the passion oth- ers lack. While we are smaller than the competitors men- tioned, we don’t lack resources. If allowed, we use a ho- listic approach in resolving clients’ supply issues. We are looking for ways to improve on what our clients are doing at present. Being a resource separates us from the way others approach the market. Being innovative and creative often gives us a second look. In a highly competitive prod- uct, you need to use all the business wisdom that you have CONTINUED ON PAGE 22
million tons of containerboard capacity (almost 10 percent of North American capacity). Healthy industries do not shrink themselves. So, the question becomes, what are
the five major producers thinking? What is their strategy? Do they tru- ly believe that raising prices will in some way halt the obvious decline? “Hasn’t it been pointed out in the Bloomberg publication that as pric- es rise there is a concomitant loss of industry volume? Maybe some
Bob Cohen
soul searching regarding ‘bigness” should be in order? Clearly the pricing power and the synergies hoped for in the merger frenzy have not materialized. Instead, rational- ization of assets continues unabated. With rare exception, I wouldn’t wish to be on the Wall Street ‘hot seat,’ which is where many of these companies are headed. In the search for cost reduction, greater reach and greater efficiency, they don’t appear to be gaining what was hoped for. As an independent, we don’t have industry pricing power--inde- pendents have less than 10 percent of the total market--so all we can do is watch the fiasco unfold. In the end the industry dysfunction, while worrisome, is not a disadvan- tage for us. “For the years 2026 (and 2027), we will continue our efforts to become more efficient in processing work
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20 January 5, 2026
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