Board Converting News, January 9, 2023

Converter Outlook Part 1 (CONT’D FROM PAGE 30)

Board Converting NEWS INTERNET DIRECTORY

checks from the government and their free time at home to purchase things online. Over the next year or so, we tried to manage the chaos of the incredible increase in orders coming our way, along with trying to manage the supply chain challenges, and to top it off we received mul- tiple price increases along the way. “But all in all, we have been blessed through it. We have grown the businesses, added new customers and helped our existing customers with their growth. However, as we close out this year of 2022, we are starting to see demand soften, a little bit closer to pre-pandemic demand levels. This is probably due to our customers building up inven- tory during the supply chain challenges and then, add to that, the slowing down of consumer purchases. “I believe that in 2023, we will continue to see demand to be lighter than what we have seen the last few years. Inflation and the fear of global recession is not going to help consumer confidence. Containerboard has moved down twice this year. Will it move down again in 2023? We will see. “I was discussing this with a co-worker and his opinion was that it probably will not drop early in 2023, but he would not be totally shocked if we saw another at some point, and I tend to agree with him on that. Our supply chain issues have calmed down. There is no longer a shortage of paper nor are we having issues with other miscellaneous supplies like pallets, glue, strapping, etc. So hopefully in 2023 that will remain the case. “We are back to a point where customers feel they have more ability to negotiate price, where before if they wanted a box, there was not any negotiation to be had. On the same note, we are now able to challenge our board vendors for some margin here and there, which was not even a consideration during the last few years. All in all, we had started to get comfortable with record-breaking years back-to-back, now going back to pre-pandemic lev- els is a little hard to swallow. However, I believe it will still be a good year. “In the North Texas market, we are growing at great rates and I think our customer pipeline is healthy. The North Texas market includes Dallas, Fort Worth, Arlington and their surrounding suburbs. Just to give you an idea about our market, here are a few fun facts just published by the North Texas Commission: • North Texas grows by one person every 3.3 minutes • North Texas is the 4th largest region in the U.S. behind NY/NJ, LA area and Chicago • If North Texas were its own state, it would be ranked 13th in GDP amongst other U.S. states • We are centrally located, a 4-hour flight from either coast, “America’s Sweet Spot” • North Texas ranks among the top 3 U.S. metro areas for business expansion, relocations and employment growth

ARC INTERNATIONAL www.ARCInternational.com

ARC International is a world leader in the manufacturing of roller products for flexography. The latest nano-technology laser engraving in our NC and NV manufacturing facilities ensures superior quality and consistency in anilox rollers.

AES (ADVANCED EQUIPMENT SALES) www.aesales.net

AES is a leading full-service provider of integrated convey- ance systems specializing in scrap, trim, and dust. AES en- gineers custom scrap systems and works as a partner in process improvement to help businesses achieve greater profitability, productivity, and sustainability. Products include balers, shredders/hoggers, core shredders, filters, fans, and specialized dust control and collection systems. AES is the ex- clusive distributor for the AirShark Rotary Material Separator.

AMERICAN CORRUGATED MACHINE www.acm-corp.com

For a wide variety of new and used equipment on to- day’s market, visit our website at www.acm-corp.com.

BAUMER HHS CORPORATION www.baumerhhs.com

hhs is a global leader in advanced gluing, camera verifica- tion and quality assurance systems for the packaging indus- try. Zero-defect quality and elevated production speeds are key parameters in the manufacturing of corrugated boxes. With hhs Xcam Box Monitoring and non-contact flap gluing of corrugated board, hhs offers every option for quality as- surance in the production of boxes with flexo folder gluers. BLOWER APPLICATION COMPANY (BLOAPCO) www.BloApCo.com BloApCo has served the corrugated industry since 1933 with a variety of scrap handling solutions, including Hori- zontal Floor Shredders, Trim Cutters, and Material Handling Fans and Conveying Systems. BloApCo Shredders allow for continuous shredding and pneumatic removal of sheet waste stacks of all sizes, roll slab, cores, and carton scrap.

CORRUGATED MACHINERY SPECIALISTS www.cmsretrofits.com

Leading manufacturer and installer of quality retrofits, up- grades and replacement parts for S&S and Prime Flexo Folder Gluers. Specialists in reconditioning of S&S Flexo Folder Gluers, including ink, air and electrical systems.

CORRUGATOR BELT SERVICE LLC www.corrugator.com

Serving the corrugated box industry since 1991, Chicago- based Corrugator Belt Service LLC maintains corru- gator belts for peak board quality and performance.

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32 January 9, 2023

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