BoardConverting Serving the North American Corrugated and Folding Carton Industries for 40 years January 15, 2024 VOL. 40, NO. 3
Converter Outlook, 2024 Part II: Ready For Whatever May Come BY SUSAN RILEY Of all the strengths that many converters possess, their ability to navi- gate their businesses successfully in a world of constant flux is one of the most inspirational. It is a business mindset wrought with agility that no doubt will serve them well in 2024 when uncertainty is the one thing that is certain in a post-pandemic economy. Lessening demand, price increases, lower interest rates, a presidential election, and advance- ments in technology are some of key issues North American business leaders will be following closely this year as they work hard to deliver the most innovative and sustainable packaging solutions in the world. KRUGER PACKAGING Montréal, Quebec: Max Cote reports, “As we already know, predicting outcomes can be very difficult and unforeseen variables can always alter our once ‘almost definite’ models. I think the past three years have emphasized my first comment and the only certainty when looking at
Hood Container Acquires Sumter Packaging Corp. Atlanta, Georgia based Hood Container Cor- poration announced that it has acquired the corrugated packaging business, Sumter Pack- aging Corporation of Sumter, South Carolina. This includes all of Sumter’s design, manu- facturing, assembly and fulfillment operations in Sumter as well as the business manufac- tured and serviced from its Statesville, North Carolina facility. “Our roots in packaging go back over 100 years,” said Benjamin DeSollar, CEO of Sumter Packaging Corporation. “Sumter Packaging was founded by Ed Fienning with traditions of family values, delighting our customers and being a strong community partner. The fantastic team at Sumter Packaging has built on those traditions and expanded on them to deliver world class quality, customer service, design, and graphics. “We are excited to be joining a fami- ly-owned company in Hood with strong val- ues, vision, and the capability to further im- prove on the strengths we already have with its national network and the ability to offer vertical supply chain integration.” Charlie Hodges, President and COO of CONTINUED ON PAGE 3
outlooks is that there will always be unpredictable factors affecting our industry. However, I do be- lieve our industry has a healthy outlook in the long run and we are well positioned for future growth based on population growth, lower interest rates, e-commerce, and paper-based alternatives. “2023 was a volatile year for packaging. The main reasons were due to 1) tough comparables
Max Cote
in 2020, 2021 and first half 2022, 2) increase in containerboard and corrugator supply 3) larger focus on rightsizing, and 4) higher interest rates and tighter consumer spending. The above factors have played a significant role in the packaging industry and have brought about new challenges for our business. In order to accommodate the quickly changing market conditions, we have learned to be agile, flexible and adapt quickly to unforeseen challenges. Although these challenges were difficult, they also presented us with opportunities to improve on our services to customers. These adjustments will remain part of our processes moving forward, and our efficiency will continue to benefit from these improvements. “What can we expect in 2024? Once again, the future is uncertain, however we can make educated guesses based on past outcomes along with future assumptions. Population growth is a great indicator for the packaging industry and the US population is expected to grow at 0.7 percent per year over the next five years. As the population grows, CONTINUED ON PAGE 26
WHAT’S INSIDE ICPF Donates Kongsberg Table To Appalachian State University
6 x x 8 x x 12 x x 26 x x
6 SupplyOne Acquires Crownhill Packaging
AICC Celebrates 50 Years Of Packaging Innovation 36 Allied Printing Invests In Koenig & Bauer, Baldwin Technology
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Hood Container Acquires (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.
Hood Container Corporation, said that Hood Container is very pleased to have acquired Sumter Packaging. “Ben DeSollar and his team have built a company that reflects our cultural aspirations for both our employees and communities, our focus on operational excellence, and the value proposition Hood Container expects to de- liver to our customers and clients. “In addition, Sumter’s location and asset capabilities al- low Hood to continue its reach into both a new market ge- ography and continued expansion into exciting new prod- uct markets as we continue to integrate Hood’s industrial corrugated operations with our mill system.” The Atlanta company also announced in July 2023 the acquisition of Sustainable Printing LLC, a corrugated pack- ging business based in Dalton, Georgia. Hood Container operates locations in 17 states. The company also owns and operates linerboard, medium, and multiwall paper manufacturing operations in New Johnsonville, Tennessee and St. Francisville, Louisiana. Hood Container Corporation is a wholly owned subsidi- ary of Hood Companies, Inc. Hood Companies is a private- ly owned, closely held holding company and is the parent to operating subsidiaries involved in the manufacture and distribution of forest and wood products, building and con- struction materials, and flexible and corrugated packaging products throughout North America.
REGION E. Coast Midwest Southeast Southwest
42# Kraft liner $955.00-960.00 $970.00-980.00 $970.00-980.00 $ 970.00-980.00 $1000.00-1010.00 $973.00-983.00
26# Semi-Chem. Medium
Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del.
$ 890 .00-9 4 0.00 $9 0 5.00-9 2 5.00 $9 0 5.00-9 2 5.00 $9 0 5.00-9 2 5.00 $9 2 5.00-9 4 5.00 $9 0 8.00-9 2 8.00
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.
200# 275#
$62.26
$72.05
$62.69 $82.80
$85.35 119.54
$73.13 101.29
97.32
99.89
90.86
113.65
OYSTER UP-CHARGE 8.34
8.34
8.34
8.34
8.34
8.34
275# DBL-WALL 350# DBL-WALL
107.46 118.45
114.69 129.32
116.54 137.25 117.82 145.56
141.08 148.46
122.76 131.80
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#
Semi-Chem Medium
East West
$9 2 0.00 $ 96 5.00
$9 1 0.00 $9 4 5.00
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January 15, 2024
Greif To Increase Prices For Uncoated Recycled Paperboard Delaware, Ohio based Greif, Inc., a global supplier of in- dustrial packaging products and services, announced it is implementing a $40 to $70 per short ton increase for all grades of uncoated recycled paperboard (URB) and a minimum 6.0 percent increase on all tube and core and protective packaging products. The uncoated recycled paperboard increase is effec- tive with new orders and shipments on and after February 5, 2024. The tube and core and protective packaging in- crease is effective with shipments on and after February 12, 2024. Greif said the URB price increase is in response to in- creased raw material, energy, labor and transportation costs and maintenance expenses as well as increasing demand across the Greif paperboard network. The tube and core and protective packaging products price increase is a consequence of the URB price increase, the primary raw material contained in those products, the company said. Greif also manufactures packaging accessories and provides filling, packaging and other services for a wide range of industries. Additionally, the company manages timber properties in the southeastern US and is strategi- cally positioned in over 35 countries.
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January 15, 2024
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ICPF Funds New Kongsberg Table At Appalachian State University The International Corrugated Packaging Foundation (ICPF) has announced that students in the Graphic Communica- tions Management (GCM) Program at Appalachian State University will be using new equipment this Fall. The new Kongsberg X Edge 24 prototyping table replaces equip- ment previously awarded to GCM by ICPF in 2009, when GCM first developed packaging curricula in the school. “ICPF was thrilled to provide placement of this machine at Appalachian State University,” said ICPF President Caitlin Salaverria. “This donation will allow GCM to sup- port and grow their corrugated packaging curricula and expand hands-on learning opportunities for students to prepare them for future careers in the packaging industry.”
Salaverria acknowledged the partnership between GCM Program Faculty Dr. George Glisan, Professor and Program Coordinator and Mandy Wu, Associate Professor and advisory Board member Bettylyn Krafft of the Phoe- nix Challenge Foundation that helped make the donation happen.
“As an industry sponsored foundation, ICPF has worked for the last 30 years to advance student and faculty knowledge of the industry and to promote develop- ment of a highly trained workforce. We’ve provided over $13 million in donations of equipment and grants to universities and look forward to expanding our efforts over the coming years,” Salaverria said. SupplyOne Inc. Acquires Crownhill Packaging Newtown Square, Pennsylvania, based SupplyOne, Inc., one of the largest inde- pendent suppliers of corrugated and oth- er value-added packaging products in the U.S., announced that it has acquired Crownhill Packaging, a North American packaging distributor headquartered in Toronto, Ontario, Canada. Crownhill Packaging was founded in 1986 and is one of North America’s largest full-service packaging distributors. It has grown to include four locations in Canada and the U.S., including the Chicago area. Crownhill offers a full portfolio of custom- ized packaging solutions to customers and is regarded for its custom packaging capa- bilities, sustainable product offerings and customer-oriented service. Key customer segments serviced by Crownhill include public sector agencies, industrial products, consumer goods and e-commerce. “The acquisition of Crownhill Packag- ing is an exciting step in the execution of our growth strategy,” said Todd Renehan, President and CEO of SupplyOne. “As our CONTINUED ON PAGE 8
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January 15, 2024
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SupplyOne Acquires (CONT’D FROM PAGE 6)
Box Shipments ( U.S. Corrugated Product Shipments) Industry Shipments In Billions of Square Feet Month September 2023
first international acquisition, the company’s go to market strategy offers a significant opportunity to grow and ex- pand in one of the largest metro areas in North America. We are delighted to welcome Crownhill Packaging’s ca- pable employees into the SupplyOne family.” “Our service-oriented approach to customers aligns perfectly with the culture of SupplyOne, and we are de- lighted to be able to expand our product offering and geographic reach as part of the SupplyOne family,” said Rodney Taylor, Vice President of Crownhill Packaging. This acquisition represents the 39th addition to the SupplyOne portfolio in its 25 years in business. With 18 corrugated production facilities and 45 distribution cen- ters across North America, the company offers a national (and now international) footprint of corrugated and pack- aging capabilities under one roof with a dedicated focus on local marketplaces. Each region services its custom- ers directly, offering in-person sales support, inventory management and equipment service. “SupplyOne's service platform delivers personalized support with a robust manufacturing and distribution foundation. We’re enthusiastic about expanding our cus- tomer and vendor relationships, diversifying our prod- uct offerings, and pursuing further growth through ac- quisitions in Canada,” said Ken Wong, Vice President of Crownhill Packaging.
Year
Actual
Percent Change Avg Week Percent Change
2023 2022
3 0.911 3 2.734
-5. 6
7. 728 7. 794
- 0.8
Industry Total
September 2023
Year-to Date
Year
Actual
Percent Change Avg Week Percent Change
2023 2022
285.619 305.519
- 6.5
7. 556 7.998
- 5.5
Industry Total
Containerboard Consumption (Thousands of Tons)
Year
Month
Percent Change Year-to-Date Percent Change
2023 2022
2. 5387 2. 6314
- 3.5
23.3187 24.8978
- 6 .3
Container Board Inventory - Corrugator Plants (Thousands of Tons)
Corrugator Plants Only
Date
Percent Change Weeks of Supply
Percent Change
Sept. Aug.
2.2 15 2 2. 1606
2.5
3. 5 3. 6
- 2.8
Shipping Days
Year
Month
Year-to-Date
2023 2022
2 0 2 1
1 89 1 91
SOURCE: Fibre Box Association
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January 15, 2024
Two Sides North America President Kathi Rowzie To Retire February 1 Two Sides North America (TSNA) today announced that Kathi Rowzie will retire as its president effective February
signed TSNA educational materials to make them more user friendly; and more. “On behalf of TSNA’s members and supporters, we thank Kathi for her leadership and unyielding determina- tion in busting common environmental myths about print and paper products and promoting the paper industry’s ever-improving environmental record,” said TSNA Execu- tive Director Jules Van Sant. “Her efforts to eliminate anti-paper greenwashing claims and to educate businesses and consumers about the environmental benefits of paper products have laid the groundwork to continue our efforts through advocacy and education.” “It has been my great privilege to serve as Two Sides North America president,” Rowzie said. “I am especially grateful to our members whose support has made it pos- sible for Two Sides to con-sistently deliver on our com- mitments to eliminate unsubstantiated and misleading environmental claims about print, paper and paper-based packaging and to tell the great sustainability story of the paper industry and its products. I look forward to seeing Executive Director Jules Van Sant and Director of Oper- ations Jill Crossley take Two Sides North America to new levels of success in 2024 and beyond.” Rowzie will continue to work with paper industry clients and their customers, providing sustainability strategy and communications services through her consulting practice, Rowzie Group Ltd.
1. Over the past four years, Rowzie has led the non-profit membership organization chartered to eliminate unsubstantiated and misleading en- vironmental claims about print, paper and paper-based packaging and to promote the paper industry’s contin- uously improving sustainability perfor-
Kathi Rowzie
mance. Under Rowzie’s leadership, TSNA has persuaded doz- ens of major corporations, government agencies and oth- er organizations to remove unsubstantiated environmental claims about paper from their customer communications, resulting in the elimination of billions of instances of an- ti-paper greenwashing. Since 2020, TSNA has also increased its LinkedIn fol- lowers by 125 percent; initiated and conducted two Trend Tracker research studies which showed incremental im- provement in consumer attitudes toward paper products and the environment; significantly increased engagement with the media on paper-related sustainability issues; in- troduced the “3 Minutes with Two Sides” pod-cast; rede-
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AICC Celebrates 50 Years Of Innovation With Independent Packagers & Suppliers AICC, The Independent Packaging Association, highlighted the celebra- tion of its 50th anniversary this year marking half a century of unwaver- ing commitment to fostering innovation, collab- oration, and excellence for independent paper packaging manufacturers and their suppliers. Founded in 1974, AICC has played a pivotal role in shaping the landscape of independent packaging companies, providing a platform for networking, knowledge-sharing, and advocacy. Over the past five decades, AICC has been at the forefront of providing members with tools, education, and opportunities to enable them to drive advancements in their companies. The 50th anniversary is not just a milestone for AICC but a testament to the enduring spirit and resilience of independent packaging manufac- turers who have faced various challenges and triumphed through inno- vation and adaptability. AICC has consistently demonstrated its dedica- tion to serving the diverse needs of its members, helping them thrive in an ever-evolving business environment.
Throughout its history, AICC has been a catalyst for positive change within the packaging community. The Association has facilitated count- less opportunities for members to connect, learn from one another, and stay ahead of emerging trends. AICC’s educational programs, confer- ences, and workshops have empowered packaging professionals with the knowledge and skills needed to excel in their respective fields. As part of the 50th Anniversary celebration, AICC will carry out a series of special events and projects throughout the year, including a celebration during the Spring Meeting, April 8-10, 2024, at the JW Mar- riott Desert Springs Resort & Spa in Palm Desert, California; a commem- orative book, sponsored by BCM Inks, WestRock, and Domino; and a celebration video, sponsored by BHS Corrugated North America, We- CONTINUED ON PAGE 14 Gene Macchi, President of the Independent Corrugated Container Corp., used a bundle of sticks to show the strength of the independent when they stand together at the first AICC meeting.
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Our long-awaited 2023 Packaging Playbook is finally here. We talk through all the challenges present in
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AICC Celebrates (CONT’D FROM PAGE 12)
stRock, and Domino. AICC’s 50th anniversary year will not only honor the achievements of the past but also provide a platform for members to envision and contribute to the future of the packaging industry. “AICC’s 50th anniversary is a momentous occasion that reflects the strength and resilience of the independent packaging sector,” said Mike D’Angelo, President of AICC. “This Association has proudly spanned generations of membership. As we celebrate this milestone, we also look forward to the next chapter of innovation, collaboration, and growth. Our commitment to serving the Independent, and through them, driving positive change in the industry remains AICC’s mission.” AICC invites members, partners, and industry stake- holders to join in the celebration of its 50th anniversary and looks forward to continued collaboration and success in the years to come. To share your AICC story and wish your Association a happy anniversary, visit www.AICCbox.org/50 . The history and future of AICC will be celebrated throughout the AICC 2024 Spring Meeting & 50th Anni- versary event. Sunday, April 7, features a 50th Late Night Bash. On Monday, April 8, attendees will come together for a mem- orable evening featuring a sit-down dinner, followed by a special tribute to the AICC and its members over the past 50 years. The evening will culminate with a Rat Pack trib- ute show and a Big Band Dance Band. Tuesday, April 9, will offer attendees an outdoor networking reception and the announcement of the 10th Annual Independents Cup Charity Golf Tournament winners. In addition to commemorating the 50th anniversary of AICC, this event will showcase the 10th Annual Indepen- dents’ Cup Charity Golf Tournament, featuring two 18-hole championship courses set against the stunning backdrop of the Santa Rosa Mountains. The Palm and Valley cours- es, designed by the acclaimed Ted Robinson, promise an unparalleled golfing experience. The Emerging Leaders will also mark their 10-year re- union, fostering connections and camaraderie among the industry’s rising talents. Renowned speakers will grace the event, providing valuable insights into geopolitical, economic, and techno- logical trends related to the paper and packaging industry. Keynote and industry speakers include: Henry Winkler, Emmy Award-Winning Actor, Author, Di-
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January 15, 2024
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AICC Celebrates (CONT’D FROM PAGE 14)
manufacturing facilities in Salt Lake City, Utah, spanning over 225,000 square feet. The meeting will feature essential topics, allowing at- tendees to delve into new industry trends, gain insights from experts, and have their technical questions answered by AICC’s skilled Technical Advisors, Ralph Young, Doug Friel, and Tom Weber. Derek Mahlburg, the co-author of the monthly Paper Trader and Paper Packaging Monitor and the lead for Fastmarkets RISI’s North American forecasting and anal- ysis team, will share an economic and industry outlook. Additionally, Sarah Meiburg, Paper and Packaging Board, will discuss “Selling Sustainability: Tools to Support your Customer Conversations.” Participants can also select optional events, including the BMW Driving Experience, Palm Springs Aerial Tram & Lunch at Lulu’s Restaurant, Temecula Winery Tours & Lunch, and a cycling trip with the AICC Recyclers. AICC has exclusively designed the Sales Managers Forum, “Money Doesn’t Grow on Trees, but Value Does,” facilitated by John Ballentine, Sales Program Director and Instructor for Sales and Product Development at the Uni- versity of Arkansas, and Trent Halasek, Sales Manager at Akers Packaging Service Group, to focus on delivering in- sights for Sales Managers in the corrugated industry. AICC will also recognize member companies that have been in continual operation for significant levels of time, CONTINUED ON PAGE 18
Pippa Malmgren, Former Special Assistant to President George W. Bush, Authority on Geopolitical, Economic, and Technological Trends: The Hon. Dr. Malmgren is an econ- omist who makes sense of the world economy by writing books, founding tech businesses, advising policymakers around the world, public speaking and teaching.
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Ron Sasine is the Principal of Hudson Windsor, a bou- tique consultancy focused on packaging strategy, innova- tion, and sustainability. The firm draws on extensive ex- perience in retail merchandising and consumer packaged goods and works with a wide range of packaging manu- facturers, private-equity investors, and independent pack- aging companies. Jerry Frisch, Founder & President, Wasatch Container: Founded in 1995, Wasatch Container has transformed into Utah’s leading custom packaging manufacturer. With a strong passion for bringing customers’ packaging to life, Wasatch Container now operates from three specialized
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January 15, 2024
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AICC Celebrates (CONT’D FROM PAGE 16)
The EPA announced its proposed decision to revise the standard on January 6, 2023, saying that it had reviewed the most recent available scientific evidence and technical information. The American Forest & Paper Association (AF&PA) says the proposed standard threatens manufacturing industries and that ambient air levels have already been trending downward over the past 20 years and that levels of fine particulate matter, generated by sources including wild- fires, road dust, vehicle exhaust, and industrial facilities, will continue to decline due to other requirements that al- ready exist. The AF&PA further states, “Many of our paper mills are located in cleaner, attainment areas under the current standard. This allows modernization projects to receive a permit. Any lowering of the standard will result in more non-attainment areas in the US. This would threaten many manufacturing industries, including the paper industry. “What’s concerning for paper mills is that many would now be the pink area (areas in attainment, but lack permit headroom) and would often not be able to get permits. Lowering the standard would threaten or prevent modern- ization projects and other major improvements. “As our industry modernizes paper mills, we’re improv- ing air quality. Modernization projects help provide lower emissions per ton of production. That includes reductions in particulate matter, greenhouse gases, and other emis- CONTINUED ON PAGE 20
starting at 40 years and increasing in increments of 10 years up to 100 years or more through the Member Mile- stone program. Companies are welcome to submit their Milestone videos through Friday, February 23rd. The early bird deadline for the meeting is February 2. For registration and more information, visit www.AICCbox. org/Meeting . Questions about the meeting can be direct- ed to Cindy Huber, AICC Director of Conventions & Meet- ings, at chuber@aiccbox.org or (703) 836-2422 or Laura Mihalick, Senior Meeting Manager, at lmihalick@aiccbox. org or (703) 836-2422. PPC, Industry Stakeholders Sound Off On Proposed EPA Air Standards The Paperboard Packaging Council (PPC) has highlighted an issue that industry stakeholders are working on — a proposed tightening of the National Ambient Air Quality Standard (NAAQS) for particulate matter. The PPC says that the Environmental Protection Agency's proposed air quality standards are so close to background levels that it would prevent paper mills from getting permits to modernize their facilities and that the challenge to the supply chain would eventually affect car- ton converters.
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Proposed Air Standards (CONT’D FROM PAGE 18)
The Perfect Combo Get Peak Performance From Your Equipment with Matched Component Sets
sions. This standard would also undermine the Biden Ad- ministration’s promise to grow and reshore US manufac- turing jobs. We need to be able to modernize our facilities so we can keep high-paying manufacturing jobs in the US. “Our industry is a leader in sustainability, and we are rooted in sustainable practices. Paper manufacturers work hard to be a good neighbor and environmental steward in communities across our nation. Our facilities have made substantial progress in reducing our emissions. The paper industry has state-of-the-art air pollution controls on their facilities. We are less than 1 percent of the overall PM2.5 emissions. We have decreased our nitrogen oxide emis- sions by about 50 percent and our sulfur dioxide emis- sions by more than 80 percent since 2000. “Some of the larger sources of particulate matter in the air are wildfires, dust and exhaust. The PM NAAQS rule does not address these larger sources. Particulate matter emissions from industrial facilities will continue to go down in the years ahead under current air quality programs. “We sent a letter to the White House outlining our concerns with the proposed PM NAAQS standard. Addi- tionally, along with 70 other manufacturing organizations, we warned of the economic consequences the proposed standard would cause. The EPA needs to develop an im- plementation plan before finalizing this rule so our industry has a clear path to achieve it. Currently, the proposed rule uses unrealistic modeling to determine what ambient air quality levels are. A plan based on sound science needs to rely on realistic modeling that accurately reflects re- al-world conditions. And, by allowing modernization proj- ects to proceed, we can continue to work to decrease our emissions. We welcome the opportunity to work together on an efficient implementation plan.” The National Association of Manufacturers (NAM) is also working the issue, and among other tactics, has intro- duced a grassroots letter for those who wish to advocate. The NAM says it is rallying manufacturers to urge EPA to reconsider its proposal and urging Congress, if given the opportunity, to oppose the tightened regulations. Protect- ing manufacturers’ ability to invest in the development of innovative modern technologies that address air quality, reduce emissions, and protect the environment, while pro- tecting manufacturing jobs and growing the economy is a top priority. According to NAM, under the proposed rule 200 coun- ties could be placed out of attainment with California’s manufacturing sector being the most exposed followed by Michigan and Illinois. Chris Morris, NAM Director of Mem- ber and Board Engagement, Southwest Region, said last year that stricter air quality standards will result in signif- icant portions of our country’s population being in nonat- tainment areas. “Companies investing in new projects in these areas would be required to purchase expensive emission offsets — if offsets are available at all,” he said.
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Environmental Issues PPEC Will Be Watching In 2024 BY RACHEL KAGAN
Evolution of Extended Producer Responsibility Extended Producer Responsibility (EPR) – a policy ap- proach in which a producer is made financially and phys- ically responsible for ensuring their packaging is respon- sibly managed and recycled – will continue to evolve in Canada. In many ways, EPR for residential paper and packag- ing is still in its infancy in Canada. Currently, only British Columbia has a true EPR approach, while other provinces who have had programs in place for years, including On- tario, are transitioning to producer-responsibility models. It is PPEC’s hope that the evolution of EPR will result in improvements to recycling, including: • Harmonization of programs and greater economies of scale, which would see more materials being collected, processed, and ultimately recycled • Improved consumer education, awareness and partic- ipation •Less contamination, cleaner materials, and an improved quality of feedstock
As the Paper and Paperboard Packaging Environmental Council (PPEC) continues its work to represent the envi- ronmental interests of the Canadian paper packaging industry, we will also be closely monitoring a number of en- vironmental issues – from recycling and EPR, to changing food packaging materials, and possibly new guidance on environmental claims – over the coming year. Here is a look ahead to some of the key issues that PPEC will be closely following in 2024. Rachel Kagan
DESIGNS THAT INCREASE PRODUCTION
•More consistent and transparent data from stewardship organizations and pro- ducer responsibility organizations on the amount of obligated materials being col- lected, but most importantly, how much of those materials are actually recycled, by material type, across all legislated provin- cial programs Plastic Reduction Initiatives Continue PPEC expects to see a continued focus on plastics reduction in Canada by govern- ments and businesses this year. On the legislative side, while there may have been some questions raised by the outcome of a recent court ruling on Can- ada’s Single-use Plastics Prohibition Reg- ulations, it should not change the goals of the government’s Zero Plastic Waste Agenda. This year, we can expect to see next steps related to some federal government proposals, including the potential develop- ment of a federal plastics registry, which is currently being consulted on. The government intends to publish a notice of intent under the Canadian Envi- ronmental Protection Act, with respect to reporting of certain plastic products for 2024, 2025 and 2026, before the end of this year. The government is also looking to de- velop recycled content and labelling rules for plastics, with regulations expected to be published for comment this year. We can also expect to see contin- ued initiatives from businesses to reduce
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CONTINUED ON PAGE 24
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PPEC Watching (CONT’D FROM PAGE 22)
an grocers raised concerns about during the consultation. Updated Environmental Claims Guidance There continues to be activity and enforcement around environmental claims and greenwashing, the practice of making false or misleading claims, especially with the growing use of ESG reporting metrics. While Canada archived its Environmental Claims Guide, the U.S. Federal Trade Commission (FTC) is looking to up- date its guidance. The FTC initiated a review of its 2012 “Guides for the Use of Environmental Marketing Claims,” known as the Green Guides, and held a consultation solic- iting input, which ended in the spring of 2023. While we wait for more information from the FTC, it’s been widely suggested that they will update the Green Guides, including the possibility of changing some existing definitions. At the time of its consultation, FTC was seeking comments on different terms, including “recyclable” and “recycled content.” For more than 30 years, the PPEC has promoted the industry's environmental sustainability and has been a strong environmental advocate on behalf of its members. PPEC also works to correct misinformation about the Ca- nadian paper packaging industry and provides ongoing analysis, insight, and research on the industry's environ- mental issues, including sustainable forestry, EPR and re- cycling, greenwashing, landfill bans, and climate change. Rachel Kagan is the Executive Director of the Paper & Paperboard Packaging Environmental Council (PPEC).
plastic packaging, with the Canada Plastics Pact (CPP) spearheading industry efforts – already this year it was announced that Restaurants Canada, The Association of Plastic Recyclers, and McDonald’s Restaurants of Canada Limited have joined CPP, expanding its network of signa- tory partners. Focus On Food-Contact & Takeout Packaging PPEC expects to see more actions related to address- ing the proliferation of food packaging across multiple
channels – whether it’s packag- ing used for prepared foods and pre-packaged produce at grocery stores, or packaging provided at quick service restaurants (QSR), or food delivery and takeout. We may see more initiatives aimed at increasing in-store re- cycling at QSRs, like McDonald’s Canada who recently announced
that they will be introducing a pilot to test the collection of specified fibre food and plastic packaging for potential recycling. We can also expect to hear more from the federal gov- ernment about its proposal that would require Canada’s largest grocery retailers to implement a pollution preven- tion plan for primary food plastic packaging, which Canadi-
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PX 1000 Cold Glue Applicator • Extremely fast and powerful closing force means no drips or tailing so your first box is a good box. • Strong armature activation easily handles viscosity fluctuations and will work with a large variety of adhesives. • Fast action coil means you can now stitch your beads at higher running speeds lowering adhesive consumption up to 70% and improving board output.
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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
CONTINUED ON PAGE 28
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January 15, 2024
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Converter Outlook Park II (CONT’D FROM PAGE 26)
Suppliers: Leverage Our Reach
normalized balance of products and services spending with projected industry growth slightly below historic
norms for the near future. The transi- tion of a significant independent sup- ply of containerboard will continue to ripple through the industry. With no significant surge in demand predicted, now is the time that the best compa- nies will succeed. “Navigating the fluctuating tides of
Greg Theis
demand volatility, both LDI and the industry at large have overcome turbulent market conditions. Despite forecasts indicating a slower growth trajectory, financially prudent companies with strong foundational capabilities and ro- bust market strategies will be positioned to surpass these projections. “At LDI, our commitment to growth manifests through continued M&A activity, recent market recapitalization and investments in enhancing our operational capabilities. Such investments include recent investments in a corru- gator and facility expansion in Texas and converting capi- tal injections in our Minnesota, Illinois, Arizona, California, and Nebraska locations. These investments focused on our core capabilities as well as expanded technology in- vestments in digital printing to position us at the forefront of industry innovation. “LDI is not alone in such investments as our industry commitment to automation and enhanced converting technologies remains necessary to combat a tight labor market and expanded speed and quality demands that re- quire a commitment to elevated operational proficiency. Beyond all the investments in facilities and equipment, it will always be about the people. Building talented teams will be necessary as our industry has continued to age and companies with strong development and succession plans will succeed in the long term. This investment in people, technology, and innovative solutions are what is necessary to deliver success in the future. “As we look to 2024, we will see marginal industry growth, containerboard supply outpacing demand, contin- ued regulatory changes and uncertainty associated with another election year. While we must prepare our busi- ness for potential changes, our primary focus will be on those things which we control by creating best-in-class sales and operational execution processes and teams. Our strategy revolves around leveraging our investments, roots in entrepreneurship, prioritizing service, innovation, and the empowerment of our people. This blueprint has always been successful and much easier to say than to execute. “Thriving in uncertain markets demands a relentless focus on fortifying core capabilities such as meticulous supply chain implementation, precision in procurement, strategic planning, pricing efficacy, product alignment, and
Board Converting News is read by more independent AND integrated decision-makers than any other industry publication.
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Len Prazych at 518-366-9017 lprazych@nvpublications.com
CONTINUED ON PAGE 30
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