Converter Outlook Park II (CONT’D FROM PAGE 1)
change, so must our product offerings. The push to reduce plastic packaging is back to being a top priority and the fiber-based industry must develop new alternative to com- pete and replace existing materials. Consumer demands and government legislation will force the paper industry to bring about new products to fulfill the demand. Along with new paper alternatives comes new forms of technology to process these products. Clean, efficient, and high-tech machines will continue to be more common in plants and will revolutionize our industry into a more attractive place of work for new generations of employees. “It is an exciting time to be a part of the paper industry and our future is filled with potential. I look forward to cel- ebrating AICC’s 50th anniversary this upcoming April and to share ideas with all my peers.” LIBERTY DIVERSIFIED INTERNATIONAL Minneapolis, Minnesota: Greg Theis reports, “As the corru- gated industry embarks on the journey into 2024, we must be ready to navigate the evolving landscape. “Reflecting on recent years, it’s evident that our indus- try is returning to pre-pandemic volumes after the roller coaster surge in product spending closely followed by post-pandemic services spending and inventory de-stock- ing that took 12+ months to level out. The latest data sug- gests an improving economic outlook, with the odds of a “soft landing” more likely each day. We will see a more
there is a greater need for packaged goods which is a di- rect benefit to our industry. End users have also become more aware and vocal regarding over packaged products and developing products such as Kruger’s lightweight XTR line is a great alternative to reduce fiber content without compromising strength. “Interest rates will play a key role in 2024, as consumer spending has been greatly affected by the higher rates in 2023. Many mortgages will be up for renewal in 2024 and a 3-4 percent increase on rates will impact discretionary spending, which directly correlates to packaging. I don’t foresee much change in the first half of 2024 and predict a slight easing on interest rates towards the second half of 2024 to alleviate pressure on consumers and stimu- late the economy. I still don’t believe inflation is fully un- der control and unless unemployment begins to climb, we will continue to see elevated prices and consumers being tight on spending. “I would be remiss if I didn’t mention e-commerce in my outlook. E-commerce exploded in 2020 and has con- tinued to remain a strong growth segment for packaging. Many consumers who were against ordering online have now been charmed by the ease and convenience of shop- ping from their couch. E-E-commerce is here to stay, and the packaging industry will continue to benefit from it. “As technology and consumer demands develop and
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January 15, 2024
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