Converter Outlook Part 1 (CONT’D FROM PAGE 34)
Board Converting NEWS INTERNET DIRECTORY
have impact, let alone a major dip, as prognosticators all speculate about recession in 2023. It amuses me to read about the talk of recession for it has been a topic I would say for at least the past year or more. “Deep into the Covid year 2020, recession was on the tip of people’s tongues. Then as things were beginning to look brighter and Covid was subsiding, the elections began to be about the economic uncertainty and a sure recession to come. Meanwhile, the housing market was on fire, there were not enough workers and the packaging industry marked record years for most. Only now with a slowdown in demand can we use real economic data to see potential for a recession to which I would say, we have most likely been in a recession for the past three years. “Recessions, for the most part, historically affect ev- eryone to the negative but there are always some who either do not get hit as hard or who see the reverse effect. Another observation about the past recessions is that no two are ever alike. Their cause is primarily unique to the situation and the effects vary. So, since 2020, there have been mass layoffs, heavily subsidized work forces, mass migration throughout the countryside, mass immigration to contend with and cycles of business that have not been seen in quite some time. The effect of the coming down- turn in demand might simply be the tail of the dog settling down as we wind down the Covid recession that nobody could name because too many were doing okay during it. “What does that mean for our companies and for the next year? Basically, that the landscape has changed and that those of us who are able to navigate it will do so well and others will continue down the acquisition path as has traditionally been the case. Our companies have vigorous- ly pursued getting a balance sheet heavily debt free for the time to come when times get lean. We have contin- ued our pursuit to care for our most valuable asset, our work force, to ensure the labor shortage had little impact on our businesses. We are seeking out new avenues to invest to expand our sales in strategic areas with some of those companies who are ready to hang it up. We have put ourselves in a great position to make capital investments as machinery orders expectantly slow alongside box de- mand. All in all, 2023 will be a year we hunker down for the wind of change to blow over as we look forward to the calming seas ahead. “I think the successful companies in the coming year will have good cash reserves on hand to strike at bargains for machinery and other opportunities. They will have fig- ured out how to manage the new workforce that has been shrinking all around us. But most importantly, they will con- tinue to enjoy the paper converting industry which is filled with such wonderful entrepreneurs. Don’t miss out on sharing a friendship within the industry. My closest friends who can understand the trials, tribulations and joys are my peers. It is through their input, growth, and guidance that I have confidence in all the years to come.”
GARTECH MANUFACTURING COMPANY www.gartechmfg.com
American manufacturers of split heads, patented roll- er-bearing yokes, gang-slot upgrades, custom rebuilds, and glue systems with electronically-geared speed mon- itoring. Visit our website for info, tips and techniques.
THE HAIRE GROUP www.hairegroup.com
Haire Group is the premier provider of new machinery for the corrugated industry. As the exclusive US & Canadian agent for one of the largest machinery manufacturers in the world, Haire Group is able to pair clients with the best machinery solutions for the best value to meet their spe- cific needs. As an operating partner of the US-based DFA Technical Support Center (a joint venture of Haire Group and Dong Fang), Haire Group delivers 24/7 professional, re- liable service and support, maximizing quality and uptime. Haire Group has been the industry’s #1 pre-owned machin- ery broker and plant equipment appraiser since 1976. HarperLove is the leading provider of specialty adhesives, performance additives, and wet-strength resins to corru- gated packaging manufacturers. With the largest and most experienced field service and technical support team posi- tioned throughout the U.S. and Latin America, HarperLove has a long-standing reputation for providing outstanding service and delivering demonstrable performance improve- ments. HarperLove’s renowned services include not only innovative product development and custom product for- mulation, but also machine and process assessments, ad- hesive formula adjustments, machine tuning, detailed ser- vice reporting, and more. HARPERLOVE www.HarperLove.com
KIWIPLAN www.kiwiplan.com
Kiwiplan - premier worldwide software provider of enter- prise-wide, fully automatic solutions specifically for the cor- rugating and packaging industries. Kiwiplan’s Total Solution delivers comprehensive, seamless real-time flow of infor- mation from sales order management to dynamic total plant scheduling and inventory control through shipping.
MAROTECH INC. www.marotech.com
Manufacturer of Marotape®, Marotape®Plus, Marotape® FPT and MaroString™; hot melt coated tapes and strings used for reinforcement and easy-open features for packaging. Ma- rotech also manufactures dispensing and tape placement equipments to optimize the productivity of applying hot melt coated tapes.
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www.boardconvertingnews.com
January 9, 2023
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