BoardConverting Serving the North American Corrugated and Folding Carton Industries for 39 years January 22, 2024 VOL. 40, NO. 4
AI, Manufacturing, And The Next Big Step In Operational Efficiency BY GOKUL GOPAKUMAR (This is the first in a series of white papers on artificial intelligence (AI) released by AICC, The Independent Packaging Association.) Less than 80 years ago, producing a single corrugated box required the effort of several individuals and took several minutes. Today, thanks to high speed flexo machines, a printed and slotted box takes less than 200 milliseconds, showcasing a remarkable leap in efficiency and quality.
AICC Sets Super Early Bird Deadline For Spring Meeting AICC, The Independent Packaging Associa- tion, announces the super early bird registra- tion deadline for its 2024 Spring Meeting on April 8-10 in Palm Desert, California. Box plants that register by February 2 re- ceive significant savings. Additionally, the $279 room rate at the JW Marriot Desert Springs Resort is locked in through March 12. To register and book, visit aiccbox.org . In addition to valuable sessions, speakers, essential information and insights into new trends, this year’s meeting marks a significant milestone with AICC’s 50th Anniversary Cel- ebration, featuring a Rat Pack Tribute Band, along with the 10th Annual Independents’ Cup Charity Golf Tournament, and the Emerg- ing Leaders’ 10 Year Reunion. Keynotes include Emmy Award-winning Actor, Producer, Author and Director Henry Winkler and Dr. Pippa Malmgren, an econ- omist, author, tech business founder, and policy advisor who served under President George W. Bush in the White House and on the National Economic Council. Focus session speakers include Derek Mahlburg, co-author of the monthly Paper
Initially, automation focused on streamlining box manufacturing it- self. Now, for the first time, we possess tangible technology capable of automating entire box plant operations. This is the promise of AI: le- veraging existing structures to propel businesses further. It represents the natural evolution in the industry. The power of Artificial Intelligence is harnessed through the electromechanical and software technology already in place. Whether it's the latest converting machines, corru- gators, conveyors, robots, or the software integral in managing oper- ations today, they collectively form the solid foundation on which AI builds and evolves. Is Artificial Intelligence for box plants and corrugated? Yes. The struggles we have today in our industry around labor shortages, skill gaps, supply chains, and global competition are universal. Other indus- tries have more market pressure to become early adopters like auto- motive and financial services, but the solutions they produce will apply to us as well. CONTINUED ON PAGE 24
CONTINUED ON PAGE 3
WHAT’S INSIDE
5 AICC Announces Open Registration For AI XPerience 10 Labor By The Numbers: MI Releases Workforce Report 14 A Year In Review From The Fibre Box Association 18 Vanguard Companies Expands Eastern Market
EVERYTHING CORRUGATED UNDER
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660mm x 1800mm: 450 sheets/min 1000mm x 2500mm: 350 sheets/min
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Latitude Machinery Corp. (LMC) is a world-class manufacturer of Corrugated Converting Equipment, specializing in Flexo Folder Gluers and Rotary Die Cutters. SUN is proud to be the exclusive representative for LMC equipment, parts and service in North and Central America.
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Machinery and Handling for the Corrugated Board Industry
AICC Sets (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.
Trader and Paper Packaging Monitor, who will present an Economic & Industry Outlook. Sarah Meiburg, a seasoned marketing professional and Paper and Packaging Board member, will present “Selling Sustainability: Tools To Sup- port Your Customer Conversations.”
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.
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Jerry Frisch, founder and President of Salt Lake City, Utah based Wasatch Container, will be the featured indus- try speaker. Other events include the AICC Member Milestone pro- gram, recognizing member companies that have been in continual operation for 40 years and longer, and the Inde- pendent Safe Shop Awards. For more information, contact Laura Mihalick at lmihalick@aiccbox.org.
42# Kraft Liner 26#
Semi-Chem Medium
East West
$9 2 0.00 $ 96 5.00
$9 1 0.00 $9 4 5.00
3
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January 22, 2024
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4 January 22, 2024
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AICC Announces Open Registration For AI XPerience In Chicago, IL AICC, The Independent Packaging Association, has an- nounced open registration for the highly anticipated AI XPerience. The AI XPerience Conference, dedicated to understanding artificial intelligence, will take place on May 14-16 in Chicago, Illinois. Co-located with the Chicago TAP- PI trade fair, this conference promises to introduce you to the revolution in the way packaging will be manufactured by integrating Artificial Intelligence (AI), and what you need to do to be prepared.
TAKE BOXMAKING TO THE NEXT LEVEL.
“The AI Xperience will cover intriguing topics such as generative AI, machine learning, and their application in enhancing packaging management strategies. With these innovative tools, we can predict machine maintenance needs, foresee system failures, and extract valuable in- sights from our ERP and shop floor data systems,” said Jeff Putt, Managing Director at Deline Box & Display and Chair of the AICC Artificial Intelligence Sub-committee. “Additionally, the conference will delve into under- standing customer demographics, identifying potential clients, and analyzing our market performance. Don’t miss this opportunity to learn about the latest advancements in generative AI and how they can significantly improve our business operations now and in the future.” Discover how AI can automate repetitive, labor-in- tensive tasks, allowing your workforce to focus on more complex and creative roles. Learn better ways to handle predictive maintenance and gather insights from produc- tion processes and customer orders, identifying trends, cost-saving opportunities, and areas for improvement. Attendees will engage with industry leaders and vision- aries during sessions which include: • What AI Can & Can't Do • Impact of AI on Graphic Design • AI & Machine Learning in Manufacturing • Using Generative AI in Business & Manufacturing
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CONTINUED ON PAGE 6
5
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January 22, 2024
AICC Announces (CONT’D FROM PAGE 5)
Box Shipments ( U.S. Corrugated Product Shipments) Industry Shipments In Billions of Square Feet Month September 2023
“As a manufacturer, you want to know what is happen- ing in the plant. You may want to know the top order, the shipping day, and machine problems. And you want this information without having to create reports manually. AI facilitates a quicker, more accurate rate of knowing what is happening in your plant 24 hours a day. Education and training, office support, and production work is where AI is going to make a difference,” said Greg Tucker, President and CEO, Bay Cities. The AI XPerience will delve into real-world solutions to packaging manufacturing and leveraging Artificial Intelli- gence. Attendees will connect with industry professionals and subject matter experts, share ideas, and build relation- ships that will shape the future of packaging. “Previous AICC Xperiences have informed members on the revolutions brought by digital printing; eCommerce; and emerging brand owner demands,” said Mike D’Ange- lo, AICC President. “AI is going to revolutionize manufac- turing and the AI Xperience is going to explore the advan- tages, savings, improvements, and challenges that AI will bring to box makers.” With limited space available, AICC members are en- couraged to register soon to guarantee your participation. To register, visit aiccxperience.com . For more information, contact Taryn Pyle at tpyle@aic- cbox.org or Chelsea May at cmay@aiccbox.org.
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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AICC Invites Member Companies To Celebrate Milestones Together AICC, The Independent Packaging Association, is inviting its esteemed members to participate in the AICC Member Milestone program, an initiative designed to recognize
if AICC can share its milestone alongside yours this year.” The deadline to submit videos is Friday, February 23. Detailed guidelines and submission instructions can be found at www.AICCbox.org/Meeting . Questions can be directed to Cindy Huber, AICC Director of Conventions & Meetings, at chuber@aiccbox.org or Laura Mihalick, Senior Meeting Manager, at lmihalick@aiccbox.org. Acme Corrugated Box Featured On This Month’s Breaking Down Boxes AICC, The Independent Packaging Association, announc- es the latest episode of Breaking Down Boxes featuring Bob Cohen, President of Acme Corrugated Box. Cohen’s family went from selling rags to selling used boxes to creating an innovative manufacturing company. With humility, Cohen shares his company’s story of growth and how he and his wife chose to give back to the com- munity that supported them. Spurred on by the tight mar- ket in the 1970s, Cohen went from being a distributor to a converter, starting with a used letterpress. Following his instincts, Cohen continued to grow the company and eventually brought his three sons into the family company. Breaking Down Boxes is updated monthly and host- ed by Gene Marino of Akers Packaging and AICC Board Chair, and Joe Morelli, Huston Patterson Printers and AICC Associate Board Chair. Listen at now.aiccbox.org .
and celebrate companies that have demonstrated unwavering commit- ment and longevity in the industry. The AICC Member Milestone program acknowledges member companies that have been in con- tinual operation for substantial periods, starting at 40 years and
increasing in increments of 10 years up to 100 years or more. This prestigious program offers a unique opportuni- ty for companies to showcase their rich history and contri- butions to the industry. Member companies celebrating significant anniver- saries are encouraged to provide a two- to three-minute professionally produced video presentation depicting the company’s evolution, highlighting key milestones, achievements, and growth throughout its history. “AICC is celebrating its 50th Anniversary in 2024,” said AICC President Mike D’Angelo. “I see that achievement as part of a mosaic of the longevity of AICC Member Mile- stone celebrants past and present. How special it will be
Do you need printed sheets? We have your answer.. Introducing Heartland’s ColorCorr. This is “flexo-printing in the round”. On our corrugator we can print up to 109” wide. The advantage is that we can print the equivalent of ½ roll at a time and not be required to keep several rolls of very expensive preprinted paper on the floor. Much less waste and risk. In continual print mode, we use either laser-engraved rubber rolls or solid rubber rolls to print a “flood coat” or a repeating pattern. If we are printing a repeating pattern, we can run a two-color design on the paper. Customers have found that running sheets we print can allow them to run a lighter-grade due to reduced caliper loss, and in some cases eliminate one or more machine passes.
For more information contact: Charlie Freeman | 816-500-8889 | color@heartlandsheets.com
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Manufacturing Institute Releases January Workforce By The Numbers BY CHAD MOUTRAY, JACK TREBTOSKE AND KATIE HARKER The big number: There were 547,000 manufacturing job openings in November, with 8,790,000 nonfarm business job openings. Both remained above pre-pandemic rates. The number of manufacturing quits edged up for the third straight month to 236,000 in November but remained not far from the slowest pace in three years. This is a sign that churn, which has been a major issue for manufactur- ers amid a tight labor market, has continued to ease. Meanwhile, for every 100 job openings in the U.S. econ- omy, there were 71.6 unemployed workers, suggesting a still tight (but cooling) labor market. Manufacturing employment: Firms added 6,000 work-
ers in December. Manufacturing hiring was quite slug- gish in 2023, with the sector adding 12,000 workers on net, following robust gains in 2021 and 2022. On the positive side, manufacturing employment has remained resilient, hovering near 13 million workers all year, with 12,986,000 in December. The average hourly earnings of production and non- supervisory workers in manufacturing jumped 0.9 per- cent to $27.16 in December, with 5.8 percent growth over the past 12 months. That was the strongest year- over-year pace since April 2022, which was a 40-year high. Nonfarm payrolls: Nonfarm employment rose by 216,000 in December. The U.S. economy has added 2,697,000 workers in 2023, a solid pace despite slow- ing from 4,793,000 in 2022. The unemployment rate remained at 3.7 percent, with
the number of unemployed Americans lit- tle changed, inching up from 6,262,000 to 6,268,000. With that said, the labor force partic- ipation rate dropped from 62.8 percent to 62.5 percent, its weakest reading since February, as the number of Ameri- cans who are either employed or actively job-searching decreasing from a record 161,866,000 to 161,183,000. This sug- gests that a sizable number of individuals moved to the sidelines of the labor mar- ket in December-a trend that hopefully reverses in January. Key takeaway: The labor market re- mains robust, providing resilience to the U.S. economy despite a challenging and uncertain environment. Yet, there are also signs that employment growth is easing-a welcome sign for manufacturing leaders who continue to struggle to identify and retain talent. Insights From Manufacturing Job Postings: As manufacturing continues to become more advanced, employers are valuing digital acumen more highly than ever. With that in mind, this month, we are delving into manufacturing job postings that specifically cite “data” or “digital” in their descriptions. Indeed, according to Lightcast nearly 38 percent of all unique manufacturing job postings in 2023 in- cluded one or both of those words, or 300,426 unique postings. In 2023, the median advertised wage for full-time roles meeting these criteria was $46 an hour. The top manufacturing job occupa- tions citing “data” or “digital” year to data
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10 January 22, 2024
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Manufacturing (CONT’D FROM PAGE 10)
included electrical and industrial engineers, maintenance technicians, managers, marketing managers, sales repre- sentatives and managers and software developers, among others. These job postings can be found in a wide range of industries including: computer and electronic products; chemical manufacturing (including pharmaceuticals; trans- portation equipment; machinery; miscellaneous manufac- turing; and food manufacturing. Lastly, among these postings, the top skills identified in- cluded the following: project management; marketing; data analysis; computer science; auditing; new product devel- opment; finance; process improvement; automation; and supply chain. In December, Reps. Virginia Foxx (R-N.C.) and Bob- by Scott (D-Va.), chairwoman and ranking member of the Committee on Education and the Workforce respectively, announced bipartisan legislation to reauthorize the Work- force Innovation and Opportunity Act. The Manufacturing Institute publicly commended the committee on its efforts and is pleased to see many of the policy priorities we iden- tified addressed. In addition to the WIOA bill, the committee also an- nounced a bipartisan agreement that expands Pell grant el- igibility to shorter-term job training and education programs and provides a quality assurance framework for those pro- grams focusing on outcomes. Both of these bills were re- ported favorably out of committee with broad support in December. This bipartisan agreement in the House demonstrates that policymakers are looking for common-sense updates to our nation’s workforce and education policies. The MI looks forward to supporting these bills on the House floor in 2024 and working with the Senate to enact companion legislation. Here are this month’s opportunities to get involved with the MI's workforce initiatives. • The Heroes MAKE America team hosts a bi-monthly Manufacturer Information Session that provides an over- view of the Heroes MAKE America initiative, its training and certification curriculum, the best ways for compa- nies to get involved and connect with veterans and mil- itary spouses and resources to help prepare to recruit, hire, and retain this talent. The next session will take place on January 29. • Do you work with previously incarcerated individuals and organizations that support them, or know someone who does? Invite them to join us for the Deep Dive: How Workforce Boards Can Help Communities Start a Sec- ond Chance Hiring Program on January 30. Attendees will hear how the Manufacturing Institute has identified best practices by working with employers, community partners and experts in the field to help workforce board professionals get started in their own communities. For more information, contact Chad Moutray at the MI Center for Manufacturing Research at CMoutray@nam.org.
12 January 22, 2024
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FBA Notes Team Changes In Productive 2023; Outlines New Agenda For 2024 BOB MCILVAINE Happy New Year from the Fibre Box Association (FBA) team. We hope you had a wonderful holiday season. Before we race off into another year, we’d like to share some highlights from a very produc- tive 2023. A Year of Transition: We successfully managed more staff transition in 2023 than any other year in the asso- ciation’s history. Dennis Colley stepped down as Pres- ident and CEO, Mary Alice Drain retired as Director of Technical Services, Caitlin Salaverria became the Presi- dent of ICPF, Joey Heffernan replaced Caitlin, and I joined in May. That is a lot of change for a small team! A New Website: The newly designed FBA website was researched and designed to enhance data accessibility for members. A public-facing website was developed to consolidate information from three different websites, modernize the interface and make the site device responsive. Aesthetic (look, feel and navigation) updates consistent with the new site were made to the member side of the website ensuring that all work done would not limit future updates or system changes. Benefits of Corrugated Promotion: The Corrugated Industry Promo- tions Program funded by FBA’s supplier partners advances the benefits of corrugated packaging to targeted audiences, primarily box users, through outreach in vertical trade publications. Annual insertion orders were placed in January and content including advertising, content marketing, advertorials, social media, and digital placements happened throughout the year. Results are tracked quarterly through the Advertising and Social Media Impact Report found on our website.
The FBA Annual Meeting/ICCA Global Summit: The Annual Meeting was held in conjunction with the ICCA Global Summit and brought to- gether industry leaders from around the world. All arrangements were completed in tandem recognizing the needs of both organizations and the participation of other organizations including AF&PA and ICPF. Pre- sentations from customers, suppliers and members provide a unique op- portunity to learn about global trends in the corrugated industry. The Industry Average Life Cycle Assessment (LCA): The report, com- pleted in conjunction with our Corrugated Packaging Alliance partners, analyzed the environmental impact of manufacturing corrugated products in 2020. The information demonstrates progress since the first baseline LCA in 2006. Greenhouse gas emissions (GHG) of manufacturing a box CONTINUED ON PAGE 16
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January 22, 2024
Our long-awaited 2023 Packaging Playbook is finally here. We talk through all the challenges present in
our changing world of corrugated packaging and more importantly, how to solve them.
DOWNLOAD NOW bit.ly/packaging-playbook
FBA Year In Review (CONT’D FROM PAGE 14)
and membership. Promote corrugated as the package of choice: We have a great story to tell. The FBA team will work with members to share LCA results with major retailers and CPGs and explain why corrugated is the package of choice when compared to alternatives such as returnable plastic containers. Publish a new edition of the Fibre Box Handbook: The FBA team and member committees are working hard to have the new edition of the Fibre Box Handbook complet- ed by year end. We will be sending out pre-order notices this spring. Highlight safety innovation at member companies : The Safety Committee will start a “Safety Innovation Award” program to recognize and share innovations to enhance safety across the industry. The process and se- lection criteria will be shared soon. Advance residential OCC recovery: We’ll continue our efforts to work with allied associations such as American Forest and Paper Association, Paper and Packaging Board and others to increase the residential recovery of OCC. That objective is even more important given the pending EPR legislation in many states. We will work hard to achieve these objectives and many others this year. We feel privileged to serve you and the corrugated industry. We wish you and the members of your company a very happy, heathy, and prosperous New Year! — Bob McIlvaine is the President of the FBA.
have been reduced by 50 percent per unit. FBA Committees: Active participation made our in- dustry stronger: The Safety & Health committee estab- lished a Safety Innovation Award. The Technical commit- tee completed research on pallet overhang and began revisions to the Fibre Box Handbook. The Environmental committee began developing stormwater discharge man- agement guidelines. Suggestions from the Data Services committee led to the development of a searchable data dashboard for his- torical shipments, inventory and consumption launching in early 2024 and the Cybersecurity committee continued to share best practices for safeguarding individual company information. Looking ahead, we are very excited about our objec- tives for 2024. Here are a few: Launch the data dashboard: Accessible on the web- site and mobile device friendly, the dashboard will provide members with quick access to current and historical data on shipments, consumption, inventory, and weeks of sup- ply. The data in the system will only include the type of in- formation that is currently distributed via email and posted to the fibrebox.org website. The system will not store or display information that is company/plant specific – only aggregated data for the industry. Further metrics will be available over time subject to input from our committees
Our engineers are fluent in automated processes but speak the language of corugated manufacturers. Our robotics feeders offer an intricate solution to simplify your processes so you can safely and accurately operate at your highest potential and return on investment.
16 January 22, 2024
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capacity
and flexible point system, which considers your entire operation and simplifies scheduling tasks, aiming to deliver orders on time, every time. Scan the QR code or visit the link to take a self-guided tour of APB today!
Vanguard Companies Announces Expanded Role Of Richard Dickson Kansas City, Missouri based Vanguard Companies has an- nounced that Richard Dickson, National Sales Representa- tive, will now have an expanded role as an official part of the Sales and Design Team in St. Louis, Missouri. Founded in 1975, Vanguard is a designer and manu- facturer of retail point-of-purchase (POP) displays, retail packaging, industrial packaging, and fulfillment services.
national basis. He will leverage his years of strategic sell- ing experience to generate new opportunities and grow revenue while maintaining a high level of integrity and ac- countability.
PPC Woods Scholar Award Nominations Due By Feb. 9
The Paperboard Packaging Council announced the Feb- ruary 9 deadline to nominate a rising star for the 2024 Woods Scholar Award. Do you have someone in mind at your company who represents the future of our industry? Nominate them and help them jump start their career. The J. Edwards Woods Scholar Award is given annually to a passionate and enthusiastic member of the folding carton industry. The late J. Edward Woods was the Chief Executive Officer of Gulf States Paper Corporation and worked diligently to engage the next generation of paper- board packaging professionals. This award highlights hardworking and innovative new- comers interested in professional longevity in the fold- ing carton industry. The winner will receive a scholarship to attend Folding Carton Boot Camp and be honored at our 2024 Spring Outlook & Strategies Conference April 17-19 in Dallas, Texas. For more information, contact Kyra Slocum, Members & Services Manager, PPC, at kyra@paperbox.org.
Dickson’s experience with national accounts will be leveraged to help the team expand the Eastern re- gional market. “Rick is an expert in the retail industry and has valuable insights and passion. His contributions will help the company drive new op- portunities,” said Jim Beard, CEO
Richard Dickson
of Vanguard Companies. “Rick will collaborate with the creative services, marketing, and Eastern Regional sales team to increase the company’s presence across national and regional channels. He will focus on expanding the cor- rugated merchandising solutions and improving the retail packaging offerings in targeted market segments.” Dickson will be responsible for providing exceptional service and creating value for customers on a local and
18 January 22, 2024
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Mondi Wins Four WorldStar Awards For Innovative Packaging Solutions Vienna, Austria based Mondi Group, a leader in sustain- able packaging and paper solutions, is celebrating receiv- ing top honors in four categories at the WorldStar Global Packaging Awards. Renowned as the ultimate recognition in global packaging excellence, the WorldStar Awards highlighted Mondi’s dedication to sustainable and circu- lar-driven packaging solutions. Mondi’s array of 2024 WorldStar Award-winning prod- ucts include Hug&Hold (Non-Alcoholic Beverages), Pro- tector Bag ExpandForm (Packaging Materials and Compo- nents), Statorfold (Transit) and Mix-Berry (Fresh Fruits and Vegetables). “We are thrilled to see our sustainable and innovative packaging solutions receive global acclaim. Our collab- orative efforts with valued customers drive us to create solutions that not only solve their challenges but also set industry benchmarks. These prestigious awards are a tes- tament to the creativity and hard work of our teams, and we’re excited to bring more groundbreaking ideas to life in the coming year,” says Markus Gärtner, CEO Mondi Cor- rugated Packaging. “Receiving accolades from the WorldStar Awards high- lights Mondi’s commitment to sustainable packaging de- sign. Our award-winning products showcase our dedica-
tion to helping customers achieve their sustainability goals, ensuring packaging becomes part of a circular economy. We look forward to showcasing our packaging innovations on the global stage at the Awards Ceremony in Bangkok,” says Thomas Ott, CEO Mondi Flexible Packaging. The Awards Ceremony and Gala Event for the 2024 WorldStar Packaging Awards will be held in Bangkok in June. Hug&Hold is a paper packaging solution that is de- signed to wrap and transport PET beverage bottles, re- placing plastic shrink wrap. It comprises of two elements
that are 100 percent paper based; the first a sleeve made of kraft pa- per that wraps around the bottles to hold them securely, and the second a corrugated clip which holds the bottles around the neck and offers a comfortable handle for transportation. This sustainable, functional and fully automated alternative to plas- tic shrink wrap means that FMCG
brands and beverage producers can safely switch to the new solution without any risk to their product or logistics. It is recyclable and suitable for existing paper waste streams throughout Europe. The Protector Bag ExpandForm replaces the current CONTINUED ON PAGE 22
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20 January 22, 2024
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ProVantage Powerflute ®
You told us what matters to you, and we listened. By working together, we can make improvements where it counts. • Lighter grammage options and high-performance packaging solutions • Improved sustainability aspects such as reduced waste and an optimised use of raw materials • Reduced packaging weight, using less fibre while ensuring superior strength You challenged us to make high-performance fluting even better. Our New Generation of ProVantage Powerflute ®
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Mondi Wins (CONT’D FROM PAGE 20)
shocks or pressure by allowing them to hang freely with all weight evenly distributed on four solid bulges. A specifically-developed anti-corrosion bag protects it from moisture and corrosion, and acts as a protective layer against dust and scratches. The modular con-
plastic packaging for mattress rollpacking with a flexible and recyclable paper bag solution. Developed in collab-
oration with Megaflex Schaumstoff, a fami- ly-owned manufactur- er for flexible foams, mattresses and sleep- ing products, the in- novative packaging not only helps to re- duce plastic waste but also ensures optimal product protection and handling during the transportation and
struction is delivered flat and is assembled fast and easily without glue or other fasteners. The construction is just as easy to dismantle when it’s time for recycling. Mix-Berry is a sustainable packaging solution designed for the safe transport of groceries, particularly delicate ber- ries. The packaging is easy to install and features a pick-
up-&-go handle, while it can also be trans- ported flat in order to support stacking tabs and maximise ware- house and shipping advantages. Eliminat- ing the need for plastic entirely, Mix-Berry is
storage of rolled mattresses. Its unique design and su- perior strength provide secure packaging that retains its shape and protects the mattresses throughout the trans- port journey. Designed by Mondi Ansbach in conjunction with Swed- ish packaging company, aPak, the Statorfold corrugated solution protects sensitive electric car motor components during transport and storage. The new cardboard design replaces the client’s former plastic packaging and reduc- es material use, weight and volume by 25 percent. The strong and study interior protects the delicate parts from
100 percent recyclable and paper-based. The strong cor- rugated cardboard fully protects the food product inside while also prolonging its shelf life, further supporting the circular economy by not only reducing packaging waste but also food waste.
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AICC White Paper (CONT’D FROM PAGE 1)
chine immediately, without the delay of travel time, shop visits, and sometimes even training. This technology has also led to predictive maintenance on machines. Digital twins help manufacturers speed up training and product development processes. With the high volume of new ma- chine installations in the past few years, these technolo- gies have become standardized and will continue to be part of the future. Currently, there are 2 important categories of AI in Man- ufacturing: Machine Learning and Deep Learning. Machine Learning: Tools That Supplement And Super- charge Current Operations And Talent Machine Learning enables computers to learn from data and make predictions or decisions without explicit programming. Automation like Robotics and newer equip- ment deliver efficiencies, but they also deliver a data source that previously has not been cost effective or use- ful to harness. If you collect and connect this data with the right AI tools you get that first layer of intelligence: Aug- mented Intelligence. The tools used to leverage this data and provide results fall under the technical term machine learning. Machine Learning (ML) focuses on the develop- ment of algorithms and models that enable computers to learn from data and make predictions or decisions without explicit programming. The key parameter is unlike every- thing we have today in the box plant because the algo- rithms are not written out by programmers but are learned. CONTINUED ON PAGE 26
Is now the right time? Yes. For 2 reasons: It will not be cost-prohibitive given the value it offers. What this means is that the combination of investing in IoT (which includes sensors and connectivity options) and AI, as well as the decreasing costs and widespread availability of cloud computing resources, has made it much more feasible and affordable for small to medium-sized businesses to adopt and benefit from these technologies. In simpler terms, it's now easier and more cost-effective for smaller operations to use advanced tech like IoT and AI, thanks to the reduced prices and greater accessibility of cloud services. There was a time when servo technology was expensive and unreliable but now it is on every new ma- chine. The second reason to consider is that investing in AI can be compared to saving for retirement. Just as be- ginning your retirement savings early can lead to signifi- cantly larger gains due to compound interest, starting to implement AI technology sooner rather than later can lead to vastly greater advantages as the benefits accumulate over time. This is because all Artificial intelligence models need good-quality data. It’s no secret that over the past 10 years, Artificial Intel- ligence (AI) has brought many innovations like augmented reality (AR) and virtual reality (VR) solutions to the manu- facturing shop floor. VR headsets or smart glasses help manufacturers work with suppliers to troubleshoot a ma-
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24 January 22, 2024
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AICC White Paper (CONT’D FROM PAGE 24)
Systems like these can significantly improve both pro- ductivity and reliability. For example, an ML system can bring to the attention of maintenance and operations the need to replace specific wear items (predictive main- tenance) and, given authority, even order the part auto- matically so you are not fighting lead times. We all know how critical the feeder transmission is on a traditional ma- chine. With the right sensors and the application of ma- chine learning, a system can predict the transmission fail- ure weeks in advance - giving the operations team ample time to plan downtime and proactively change it. To be fair, there was a time when experienced and skillful mainte- nance techs could do the same based on their knowledge. But that is a hard skill to find today, and machinery has also changed significantly in the past decade making some of that knowledge obsolete. Let’s take the example of machine learning models de- ployed for machine reliability. The power of AI is that it is not making this recommendation based on a set rule but rather from a learned understanding of the typical use of the machine, the type of orders you're running, the actual sensor feedback and historical failures. It’s like having that hard-to-find machine maintenance expert make recom- mendations. True AI learns without the need for added en- gineering as long as it’s given input and enough resources (computing power), it will learn from its mistakes quickly. Similarly, it can suggest (like an experienced operator) how best to run a certain order to maximize output and quality. This is where the augmented portion is truly transforma- tional for box plants. With systems like this there can be a 20 percent or more increase in OEE, 30 percent or more in quality, with 30 percent or so decrease in overall costs. That is the impact this technology has had in early adopt- ers in other industries. (reference, www2.deloitte.com) Box plant general operations is another area where AI tools can have a profound impact. “AI can best be implemented from the inside out. As a manufacturer, you want to know what is happening in the plant. You may want to know the top order, the shipping day, machine problems. And you want this information without having to create reports manually. With the ability to do this all through AI, you can increase work efficiency by as much as 40 percent. Training is more effective by up to 54 percent. You can see what is happening in Design, on the CAD table, and looking at measurements such as ‘how do I get 10 boxes on a tray, and x number of trays in a truck,’ and more. AI facilitates a quicker, more accurate rate of knowing what is happening in your plant 24 hours a day. Education and training, office support, and production work is where AI is really going to help. Start generally, not specifically. If you don’t have the support in place right now, bring in experts to help implement customer service, production, and training. Focus on real world situations,” said Greg Tucker, Chairman and CEO of Bay Cities. CONTINUED ON PAGE 28
AIR CONVEYING CORPORATION is a recognized leader in the industry of Pneumatic Conveying Systems and has been in business since 1968. As an equipment manufacturer rather than simply a sales organization, we have complete control over the quality of material and products which make up your proposed system. Our equipment is found in Printing, Folding Carton and Corrugated plants throughout the country and the world. SPECIALTY FOLDER GLUERS • Operator Training • Rebuilds and Relocations • Reconditioning in Racine • Parts & Machine Reviews • GUARANTEED IMPROVEMENT TOROSIAN TECH SERVICES INC. Training and Reconditioning Center 930 Tenth Street • Racine, WI 53403 (800) 555-5876 (U.S. only) Phone: (262) 633-5133 • Fax: (262) 633-5176
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AICC White Paper (CONT’D FROM PAGE 26)
Deep Learning: Autonomous Intelligence Quite a few of the more exciting and flashy AI tools we have seen this past year are the result of deep learning models. You may have heard of generative AI (creating im- ages, video, and sound that are new and unique based on basic direction. We saw at AICC Louisville how chat- based tools and other commercially available ones can make a huge difference in packaging design both in creativity and time to market. Broadly one could say that these tools will transform the front office first before it hits the production floor and machinery. The biggest players today are OpenAI (Micro- soft backed) and DeepMind (Google backed). Where we can start to see the value in box plants is in sales, marketing, design, and administrative tasks. We are going to have access to AI tools that take good meet- ing minutes and distribute them with insights. Or combine several spreadsheets, analyze, and summarize the data in minutes without being an Excel wiz. The key is autonomous intelligence technology acts independently of human in- put, taking over manual and cognitive tasks that require fast adaptation to new data. Think of this as automation for people’s tasks. It will change our workforce but also give us options to better align with our goals. Our sales teams can engage more freely with customers without laboring over documentation. Our production teams can spend more energy tackling long-term and larger challenges and efficiency without worrying about how to better run the 20 orders in the queue. By and large the big impact here is in eliminating small tasks that are time and labor-intensive. This was the first in a series of white papers released by AICC, The Independent Packaging Association, that will
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explain some of the real-world applications of artificial intelli- gence in box plants. It was au- thored by Gokul Gopakumar, Vice President of Technology and Business Development at SUN Automation Group. Artificial Intelligence is a powerful, emerging technolo- gy that will significantly impact the operations of AICC mem- bers and their customers. To
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educate members on AI, AICC formed the Artificial Intel- ligence Sub-Committee that is comprised of the following members: Jeff Putt, DeLine Box & Display; Greg Tucker, Bay-Cities; Guy Ockerlund, OxBox; and Gopakumar. The AI Primer from AICC is a series of “whitepapers” on artificial intelligence, that have been (and will be) written by AICC members from the AI sub-committee, other AICC members, and subject matter experts. For more information, visit www.AICCbox.org/Papers or contact Taryn Pyle at tpyle@AICCbox.org.
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