BoardConverting Serving the North American Corrugated and Folding Carton Industries for 40 years October 7, 2024 VOL. 40, NO. 41
Strategies And Tactics For Expansion In The Southwest BY JOHN WIDERA It appears bold investors with a new business in new markets have stars in their eyes and eventually those not so bright stars start slowly dying – they suck in and destroy healthy matter from their surrounding creditors before they flicker out for good. These near insolvent “honest burglars,” fueled by unethical solicited offers, will pacify a few of our customers with sweetheart terms and conditions. In our paper-related industry, the windfall allows problem- atic shops or trusting competitors to limp along by consenting to a gen- erous credit line or unrealistically low prices. Yet, when the invoices are
AICC Emerging Leaders Celebrate 10 Years
WHAT’S INSIDE Harry Rohde, Computer System Pioneer, Passes Away At 95 12 PPC Announces Winners Of Paperboard Packaging Contest 18 Peachtree Packaging Wins Big At Box Manufacturing Olympics 24 Chicago TAPPI To Offer Fall Workshops To Corrugators 6 x x 8 x x 12 x x 26 x x 2024 was a celebratory year, not only for AICC, which celebrated its 50th Anniversa- ry, but also for their distinguished Emerging Leaders program as well, which celebrated its 10-year anniversary. Led by a group of nom- inated delegates, including John McQueary, Jordan Dawson, and Evan Clary, the Emerg- ing Leaders program continues growing and expanding its reach and value to the group members, the AICC and the corrugated in- dustry. Many of the corrugated industry’s top professionals credit the EL program for their successful careers that began in the Emerg- ing Leaders program. This year, EL’s from the inaugural class including Jeff Dietz, Ter- ri Lynn Levesque, Casey Shaw, Josh Sobel, and Sahar Mehrabzadeh celebrated the 10- year anniversary with current ELs at a festive reception in Palm Desert at the AICC Spring Meeting. The group of ELs met up this summer in Savannah, Georgia, for their annual EL Work- shop which is hosted by the Vice Chairper- son each year. Gary Brewer was an incredible host for the group this year, taking the ELs on CONTINUED ON PAGE 3
due, their customers on the brink of insolvency do not respond. With them goes a relatively tranquil part of the market, now a graveyard full of promises. In SoCal, over four dozen corrugators and sheet plants (per our records) closed or were bought with M & A from the mid-1970s until today. There are around ten major independent box makers left, and
around 300 brokers and a dozen distributors with warehouses selling packaging products while promoting their own websites. In neighboring Ari- zona, where Phoenix-Mesa is the business mecca, about 20 box plants slowly disappeared over the last 40 years. We should not forget that a few prospects and customers also outsource their logistics with
John Widera
disciplined 3PLs (Third Party Logistics). After signing a contract, they manage shipping-distribution, network analysis, fulfillment – including the purchase and warehousing of boxes, displays, roll stock, with their delivery schedule tactics. So welcome to CalBox Co world, where you substitute “buts” for “guts”! And where profits are the result, not the only objective of our entrepreneurial management. CONTINUED ON PAGE 26
EVERYTHING CORRUGATED UNDER
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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. REGION 42# Kraft liner 26# Semi-Chem. Medium $ 900.00-925. 00 $ 825. 00 -$850.00 U.S. Average 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 $970.00 $960.00 West $1,015.00 $995.00 REGION
AICC Emerging Leaders (CONT’D FROM PAGE 1)
plant tours, showing them historical places in Savannah like Old Fort Jackson and to a Savannah Bananas baseball game. On top of all that, they had a training with Omar Ab- dullah on getting engaged and stepping outside of their comfort zones. TAPPI SuperCorrExpo was an exciting time for the group as they connected with fellow ELs and TAPPI Young Professionals at a reception during the show. They also took part in an in-person training event, taught by Ron Sessions, where these eager young professionals learned about goal setting. During the Changing of the Guard ceremony, AICC
ushered in the new Freshman delegate, Cody Brant. In addition, several Emerging Leaders graduated and were recognized for their contributions to the EL program, in- cluding, Amanda Thorburn, Trent Halsek, Ryan Hughes, Shaban Al-Refai and Rebecca Rendon. “Being a part of the AICC Emerging Leaders program has been an incredible experience,” said Rebecca Ren- don, recent EL Graduate. “The impact that this program has had on my career From left, are Amanda Thorburn, Jordan Dawson and Rebecca Rendon at SuperCorrExpo 2024 in Orlando, Florida.
CONTINUED ON PAGE 4
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AICC Emerging Leaders (CONT’D FROM PAGE 3)
has been profound, and for that, I am so grateful to the AICC for investing in our futures. I recommend this pro- gram to anyone looking to grow their network and further their career.” The fun is not over yet. Still this year, the delegates have planned a Q4 C-Suite webinar that is free of cost to the group members. During these quarterly, remote learning opportunities, the Emerging Leaders are connected with C-level professionals who share their industry knowledge, business advice, personal struggles and life lessons. “The C-Suite webinars are a great way for everyone, especially those who aren’t able to attend in-person, to participate in the program and get involved,” said Jordan Dawson, EL Senior Delegate. “Come learn and engage with us!” The EL program continues to evolve to best serve the members and the industry. As a self-led group, the Emerg- ing Leader Committee and its delegates have grown this program to 145 of the industry’s top emerging profession- als. With each year, the value to the AICC members also grows, as this program paves the way to spot and develop tenacious newcomers to the industry. Those interested in joining or learning more about the Emerging Leaders program may contact Chelsea May (cmay@aiccbox.org) or any of the EL delegates. Visit aiccbox.org/page/leader to submit an application.
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Harry Rohde, Pioneer In Enterprise Computer Systems, Dies At 95 It is with profound sadness that we announce the passing of Harry Rohde, a visionary in the corrugated packaging
later inform his entrepreneurial endeavors. Eventually, he founded his own business, providing consulting services and developing computerized estimating systems specifi- cally for box plants. His pioneering work led to the development of a com- prehensive suite of integrated modules, known as HRMS (Harry Rohde Management Systems). This innovative system allowed small and midsize box plants to access af- fordable computerization previous- ly available only to large integrated manufacturers with mainframe com- puters. HRMS, running on mini-com- puters, quickly gained adoption across many independent box plants, a testament to Har- ry’s vision and dedication to advancing the industry. Outside of his professional achievements, Harry was a Harry Rohde
industry and a cherished family man. Harry passed away peacefully at the age of 95 on September 11, 2024, in Las Vegas, Nevada, surrounded by his family. Born on July 2, 1929, in Greenfield, Massachusetts, Harry was the son of Hyman and Leonora Rohde. After
Harry Rohde
graduating from City College of New York, he started his career, working for several box plants as an engineer and plant manager, gaining invaluable experience that would
devoted husband to Libby and a loving fa- ther to his children, Jan, Andrea, and Lau- rel. He also leaves behind a legacy through his grandchildren and great-grandchildren, who brought immense joy to his life. Harry’s legacy of innovation, devotion, and kindness will forever remain in the hearts and minds of all who were fortunate enough to know him. ICPF, Arden Donate Software To UNI This semester, students in the Graphic Technology program at the University of Northern Iowa (UNI) will receive hands-on learning from new design software. Arden Software has donated 26 Impact Designer Professional seats to the Interna- tional Corrugated Packaging Foundation (ICPF) for use in UNI’s production lab. The Graphic Technology program at UNI is making a concerted effort to shift the program’s emphasis towards the pack- aging industry. This Arden Impact software donation ensures students have access to cutting-edge tools that reflect industry standards. “Arden Software is proud to support ICPF and educational institutions like the University of Northern Iowa,” said Jim Silianoff, President of Arden Software. “We believe that providing students with access to industry-standard tools, such as our Impact software, is crucial in equipping the next generation of packag- ing professionals with the skills they need to succeed. CONTINUED ON PAGE 8
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October 7, 2024
CCM ® OCT Filter STATE-OF-THE-ART, HIGHLY ADVANCED DUST COLLECTION SYSTEM
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ICPF, Arden Donate (CONT’D FROM PAGE 6)
Box Shipments ( U.S. Corrugated Product Shipments) Industry Shipments In Billions of Square Feet Month June 2024
“Our partnership with ICPF allows us to contribute to the development of a highly trained workforce, ensuring a bright future for the packaging industry.” Lee Geisinger, Assistant Professor at UNI said, “Arden Impact is recognized as an industry-standard application that aligns seamlessly with our program’s goals. “Its features and capabilities will complement our ex- isting curriculum, exposing students to advanced tools, enhancing their proficiency in packaging design, and preparing them for careers in the corrugated packaging industry.” Arden also recently donated an Impact Designer Pro- fessional license to ICPF for Pittsburg State University’s Graphic Communications program, significantly advanc- ing students’ ability in corrugated production. “As an industry sponsored foundation, ICPF has worked for almost 40 years to advance student and fac- ulty knowledge of the industry and to promote develop- ment of a highly trained workforce,” said Caitlin Salaver- ria, ICPF President. “We’re grateful for the generous support and commit- ment from ICPF Corporate Partner Arden Software. With their help, we’ve provided over $20 million in design software at educational institutions nationwide and look forward to continuing our efforts over the coming years.” For more information, visit icpfbox.org .
Year
Actual
Percent Change Avg Week Percent Change
2024 2023
30.635 33.080
-7.4
7.659 7.518
1.9
Industry Total
Year-to Date
June 2024
Year
Actual
Percent Change Avg Week Percent Change
2024 2023
189.589 189.478
0.1
7.464 7.459
0.1
Industry Total
Containerboard Consumption (Thousands of Tons)
Year
Month
Percent Change Year-to-Date Percent Change
2024 2023
2.5331 2.7016
-6.2
15.5229 15.5207
0.0
Container Board Inventory - Corrugator Plants (Thousands of Tons)
Corrugator Plants Only
Date
Percent Change Weeks of Supply
Percent Change
June May
2.2316 2.3155
-3.6
3.8 3.5
8.5
Shipping Days
Year
Month
Year-to-Date
2024 2023
20 22
127 127
SOURCE: Fibre Box Association
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HGL RDC 1628/1632
PRECISION AND PERFORMANCE, PERFECTED The Encore HGL 1628/1632 is your new standard for top-tier efficiency and world-class speed. This high-graphic machine delivers up to 200 sheets per minute, maximizing productivity with its innovative setup-while-run capability. With fully automatic anilox roll changes at the touch of a button and streamlined automation, the Encore HGL RDC 1628/1632 is designed to keep you ahead of the curve. Blaze through your production goals with unmatched precision, performance, and reliability.
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AICC Recognizes Finn MacDonald With AICC Champion Award AICC, The Independent Packaging Association, an- nounced that Finn MacDonald of Independent II/Hood Container has been awarded the AICC Champion Award during this year’s SuperCorrExpo. This annual award is presented to an AICC member who has made outstand- ing contributions to advancing the Association’s member- ship efforts. As a long-serving and dedicated Membership Committee Chair, Finn MacDonald has played a pivotal role in recruiting new members, retaining those need- ing support to continue their membership, and fostering greater engagement among AICC member companies. His unwavering commitment and leadership have signifi- cantly contributed to the Association's growth and vitality. The AICC Champion Award recognizes those who go above and beyond to contribute to the success of the As- sociation’s mission by encouraging participation and fos- tering a supportive community. MacDonald said, “I am honored and humbled by this recognition. I’m very proud of the work that both the Mem- bership Committee and the Board as a whole have ac- complished. We created a brand and a mission that have engaged and inspired our industry and we have listened to what our members want and need and responded dy- namically online and in-person. If you love what you do, it
is not work. I have a lot of love for AICC and our general and associate members—their involvement creates our success.”
MacDonald’s efforts have been instrumental in expand- ing AICC’s reach and helping members maximize the ben- efits of their involvement, reflecting the true spirit of what it means to be an AICC Champion. His leadership continues to set an example for the entire membership community. AICC congratulates Finn MacDonald and extends its gratitude for his ongoing dedication to the Association. From left, Matt Davis and Finn MacDonald.
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PPC Announces Winners Of The 2024 North American Paperboard Packaging Competition The Paperboard Packaging Council (PPC) has announced the top win- ners of its monumental 81st annual North American Paperboard Packag- ing Competition. These folding cartons and rigid boxes represent some of the best paperboard packaging manufactured by North American con- verters over the past year. Package of the Year, Diptyque Advent Calendar Holiday 2023, Sub- mitted by Pusterla, US, Inc. : The Diptyque Advent Calendar box is su- perb, sitting at the intersection of luxury, sustainability, and outstanding
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consumer experience. Fulfilling Diptyque’s request for a reusable jewel box, Pusterla sweetened the holidays with this multi-level, structurally complex, and tactical- ly engaging keepsake. Offering elegance and an element of sur- prise, consumers open the upper section to reveal…a whole second level with even more gifts and
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goodies! The beautifully designed piece features multiple compartments nestled within the larger structure, and the magnetic cover allows the box to stand upright when open, adding functionality and yet another element of elegance. Pusterla nailed it, crafting a keepsake that consum- ers will hold onto well beyond the holidays. This reusable advent box is more than packaging—it's a lasting treasure. Folding Carton of the Year, The Masters Prov1 Vintage Family, Cur- tis Packaging : The Masters Prov1 Vintage Family by Curtis Packaging takes luxury paperboard packaging to a new level. These extraordinary
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folding cartons don’t just look like leather—they even feel like it, re- defining what a carton can be. Made to showcase golf products at the Masters Tournament, the cartons needed an innovative yet
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timeless and classic design. Curtis delivered, masterfully replicating the look and feel of two different types of leather. The soft, supple brown “leather” is treated with soft touch coating and finished with debossing, while the black “leather” is treated with grit UV coating. The Curtis team then enhanced the contrast between the dark and light areas by apply- ing grit in the light areas and gloss varnish vignettes and digital coating
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accents in the darker spots. The Masters logo, emblems, and all the metallization were creat- ed digitally. Rigid Box of the Year, Old Emmer Toasted Barrel, TPC Printing & Packaging : Beauty and strength go hand in hand with TPC Printing & Packaging’s rigid box for Old Emmer Toasted Barrel whiskey. With a perfect blend of pro- tective elements and aesthetic appeal, this package offers a premium unboxing experi- ence that reflects the luxury of the whiskey it
holds. The smooth click of four strategically placed magnets snapping shut provides a satisfying closure and demonstrates attention to detail CONTINUED ON PAGE 14
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Save Time and Money with EnCore Informer
Introducing EnCore Informer EnCore Informer enables you to configure events to keep the right people informed about the right things, at the right time — automatically; saving you time and money! Examples include:
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PPC Announces (CONT’D FROM PAGE 12)
The Perfect Combo Get Peak Performance From Your Equipment with Matched Component Sets
and quality craftsmanship. The contrast between the high- shine gold foil and matte, soft-touch laminate enhances the package’s visual appeal, making it stand out on any shelf. The rigid structure offers superior protection and adds to the high-end feel, ensuring the package looks as good as it performs. TPC’s Old Emmer whiskey design is a testament to commitment, quality, and elegance, making it a truly out- standing rigid box. Innovation of the Year Award, PETCollar Shield Plus, Smurfit WestRock : The paperboard packaging indus-
try has worked hard over the last half-decade to create incredible, sustainable alternatives to plastic in the multi-pack beverage segment. While each design contributes pow- erfully to the circular economy, the Judges of PPC’s Competition have never seen one quite like Smurfit Westrock’s PETCollar Shield Plus for
Liberty Coca-Cola Beverages’ PET bottles. The innovative design features an integrated, brick-shaped handle that connects with the bottles at many points, providing stability and easy consumer handling with recessed finger holes. A top-applied clip with inner reinforcement panels holds the bottles, and a top panel with manually locking tabs con- nects the layers and reinforces the structure. Additionally, with five available panels for graphics, the design offers unique, maximized brand visibility. With PETCollar Shield Plus, small nuances in design make a big impact, all com- bining to create an innovative new entry into the beverage market. Sustainability of the Year Award, PETCollar Eco, Smurf- it Westrock : Today, paperboard packaging manufacturers
Nothing’s more rewarding than a couple made for each other.
That’s why the engineers at ARC International have focused their skills and talents on crafting perfect matches between the components that must work in tandem on your flexo folder gluers and die-cutters: • Anilox Rollers and Ink Chambers • Anilox and Wiper Rollers • Feed and Pull Rollers • Glue and Meter Rollers You can achieve the press speeds and print quality you need to fill your most demanding orders by pairing your team with The ARChitects of Flexo . Contact ARC today to learn how these engineered matches of flexo folder gluer and die-cutter components (new or reconditioned) can help you achieve a more perfect union of production and profits.
are helping some of the world’s largest CPGs meet their environmental commit- ments. To advance the lofty goal of using 100 percent recyclable, compostable, biodegradable, or reusable packaging by 2025, Pepsi-
Co tasked Smurfit Westrock with transitioning their eight- pack Gatorade packaging from flexible plastic to recycla- ble paperboard—and they delivered! The PETCollar Eco features two cold-glued layers of CarrierKote paperboard with serious strength for transportation, handling, and con- sumer use. With its unique handle design, consumers can conveniently pick up the pack using only two fingers—while remaining confident in its structural integrity. What’s more, Smurfit Westrock’s design uses significantly less board than a fully enclosed carton while offering a fully printable surface for branding and shelf presence. Strong, function- al, beautifully branded, and sustainable, PETCollar Eco is a stellar example of the paperboard packaging industry’s
The ARChitects of Flexo
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CONTINUED ON PAGE 16
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PPC Announces (CONT’D FROM PAGE 14)
ing all its packaging recyclable or reusable and reducing virgin plastic use by a third, all by 2025. Designed to shake up the confection category at Christmas time with a new, sustainable solution, the car-
unwavering commitment to consumers, our environment, and future generations. Judges’ Award for Wow Factor, Chanel Logo Display Box, Pusterla US, Inc. : The stunning Chanel Logo box from Pusterla US, Inc. had the competition judges asking,
ton features an octagonal structure, which is reminiscent of the original tub, and an innovative fifth panel serving as a tamper-evident clo- sure (one that eliminates the need for plastic wrapping). Another feat, the new packaging maintains its predecessor's packing
“How did they even make that?” Pusterla created a rigid box in the shape of the iconic Chanel logo, perfectly to scale with a large cutout that seemingly defies the laws of physics in its struc- ture. Intended as a point-of-
speed, with the design of the corners offering reinforce- ment to hold up to the rigors of distribution and merchan- dising. The new Quality Street carton is a testament to how packaging can drive meaningful environmental change without sacrificing brand identity or consumer appeal. Judges’ Award for Excellence in Printing, Luxe Pack Box, Autajon Packaging : The Luxe Pack self-promotion
sale display, the package’s matte white finish and beveled edges are clean and beautiful, with complex curves offer- ing an entirely fresh take on a familiar logo. The real mag- ic comes when the box is opened, revealing continuous curves with no supports and luxurious gold foil that per- fectly matches the brand’s aesthetics. Judges’ Award for Positive Change in Packaging, Nestlé Australia : Quality Street, Graphic Packaging In- ternational: A wonderful example of positive change in packaging, Graphic Packaging International helped Nestlé Australia transition their iconic Quality Street tub from plas- tic to 100 percent recyclable paperboard. Ultimately, the beautiful carton contributes to Nestlé’s lofty goal of mak-
box by Autajon Packaging exemplifies a seamless in- tegration between high-end aesthetics and technical precision. The design el-
evates the user experience through thoughtful printing techniques: silk screen UV printing mimics water droplets inside and outside the box. Meanwhile, a rich copper leaf CONTINUED ON PAGE 18
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October 7, 2024
Gluing on Specialty Folder Gluers is Our Specialty
Sustainability initiatives are changing the packaging landscape and Baumer hhs is ready to help you meet those challenges. Our PX1000 cold glue applicator coupled with the new ULT 400 XL are the pair to get it done. The PX1000 runs the widest ranges of non-contact cold glues and the ULT 400 XL verifies the glue dot or bead is in the right place without the aid of UV tracers, no matter the variety of board or thicknesses. Get your corrugated board onboard with Baumer hhs and let us show you how special you are to us.
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PPC Announces (CONT’D FROM PAGE 16)
competition open to all TAPPI and AICC members world- wide who produce corrugated, rigid box and folding car- tons and their suppliers. Judges evaluate entries based on
pattern adds dimension to the soft-touch surface. These details, paired with the frame view tray and book-style opening, create a luxurious and dynamic un- boxing experience. Despite the challenges of maintaining crisp scores and clean finishes on an all-black carton, Au- tajon successfully delivered a package that stands out for its flawless execution and tactile appeal. Not only a display of printing prowess, but the Luxe Pack Box is also a stra- tegic fusion of art, functionality, and brand storytelling that leaves a lasting impression. Visit PPC’s website to see all the winning entries and learn more about the North American Paperboard Packag- ing Competition. Peachtree Packaging Wins Six Box Manufacturing Olympics Awards Lawrenceville, Georgia based Peachtree Packaging & Dis- play announced it won six awards from The Independent Packaging Association’s (AICC) Box Manufacturing Olym- pics during the TAPPI/AICC SuperCorrExpo trade show including the overall award for “Best of the Industry Cor- rugated Structure” for a large display featuring BODYAR- MOR. The Box Manufacturing Olympics (BMO) is a design
numerous factors, including design, quality, graphic excel- lence, technical difficulty and innovative application. The event draws thousands of attendees every year from more than 70 countries to experience the latest in- novations in the corrugated and folding carton industry, while offering educational sessions and networking op- portunities. Peachtree won five other awards: • 1st Place Gold Corrugated Structure Award for BODY- ARMOR Stadium • 2nd Place Silver Corrugated Structure Floor Displays & Standees for Creature Comforts Palm Tree CONTINUED ON PAGE 20
PRINTCHEK REPRESENTS A NEW FRONTIER IN PRINT QUALITY ASSURANCE FOR THE CORRUGATED CARDBOARD INDUSTRY PrintChek uses a series of line scan cameras to capture an image of each sheet across its entire span before being die-cut. Every sheet's size, rotation, and print quality are then compared to your set “golden standard” to identify defects as small as 2mm like skew, spots, hickeys, smears, color deviation, missing print, and more. Using PrintChek in conjunction with MeasurementChek allows you to remotely monitor production and quality statistics which you can then export via Excel for statistical analysis.
PC
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Manufacturing PMI At 47.2 Percent, Economy Contracts In September Economic activity in the manufacturing sector contract- ed in September for the sixth consecutive month and the 22nd time in the last 23 months, say the nation's supply executives in the latest Manufacturing ISM Report On Busi- ness. The report was issued by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee: “The Manufacturing PMI registered 47.2 percent in September, matching the figure recorded in August. The overall economy continued in expansion for the 53rd month after one month of contraction in April 2020. (A Manufacturing PMI above 42.5 percent, over a period of time, generally indicates an expansion of the overall economy.)
Peachtree Packaging (CONT’D FROM PAGE 18)
• 2nd Place Silver Corrugated Structure E-Commerce & Subscriptions Packaging Award for 'Opu Probiotics • 1st Place Gold Corrugated Printing Flexo Print on Com- bined Board Award for Ryobi Mower Box • 3rd Place Bronze Corrugated Printing E-Commerce & Subscription Packaging Award for 'Opu Probiotics “We are beaming with pride for Team Peachtree. What an honor. Thank you to all our designers, engineers, sales- people and support staff who create and deliver such amazing products to our customers,” said Chad Wagner, Peachtree CEO and President.“ Also, thank you, AICC and TAPPI, for incredible events like the SuperCorrExpo. And to all the winners and entries, it’s an honor to be among such an impressive group of industry peers.”
DESIGNS THAT INCREASE PRODUCTION
“The New Orders Index remained in contraction territory, registering 46.1 per- cent, 1.5 percentage points higher than the 44.6 percent recorded in August. The Sep- tember reading of the Production Index (49.8 percent) is 5 percentage points high- er than August's figure of 44.8 percent. The Prices Index went into contraction (or 'decreasing') territory for the first time this year, registering 48.3 percent, down 5.7 percentage points compared to the read- ing of 54 percent in August. “The Backlog of Orders Index regis- tered 44.1 percent, up 0.5 percentage point compared to the 43.6 percent recorded in August. The Employment Index registered 43.9 percent, down 2.1 percentage points from August's figure of 46 percent. “The Supplier Deliveries Index indi- cated slowing deliveries, registering 52.2 percent, 1.7 percentage points higher than the 50.5 percent recorded in August. (Sup- plier Deliveries is the only ISM Report On Business index that is inversed; a reading of above 50 percent indicates slower de- liveries, which is typical as the economy improves and customer demand increas- es.) The Inventories Index registered 43.9 percent, down 6.4 percentage points com- pared to August’s reading of 50.3 percent. “The New Export Orders Index reading of 45.3 percent is 3.3 percentage points lower than the 48.6 percent registered in August. “The Imports Index remained in con- traction territory in September, registering 48.3 percent, 1.3 percentage points lower CONTINUED ON PAGE 22
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October 7, 2024
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Manufacturing PMI (CONT’D FROM PAGE 20)
addressed by the time of this report — and election uncer- tainty. “Production execution stabilized in September. Suppli- ers continue to have capacity, with lead times improving and shortages reappearing. Seventy-seven percent of manufacturing gross domestic product (GDP) contracted in September, up from 65 percent in August. “The share of manufacturing sector GDP registering a composite PMI calculation at or below 45 percent (a good barometer of overall manufacturing weakness) was 41 per- cent in September, an 8-percentage point increase com- pared to the 33 percent reported in August. Only one of the six largest manufacturing industries — Food, Beverage & Tobacco Products — expanded in September, compared to two in August,” says Fiore. The five manufacturing industries reporting growth in September are: Petroleum & Coal Products; Food, Bever- age & Tobacco Products; Textile Mills; Furniture & Related Products; and Miscellaneous Manufacturing. The 13 industries reporting contraction in September — in the following order — are: Printing & Related Support Activities; Plastics & Rubber Products; Wood Products; Ap- parel, Leather & Allied Products; Primary Metals; Transpor- tation Equipment; Nonmetallic Mineral Products; Electrical Equipment, Appliances & Components; Paper Products; Machinery; Chemical Products; Fabricated Metal Products; and Computer & Electronic Products. For more information, visit ismrob.org .
than the 49.6 percent reported in August.” Fiore continues, “U.S. manufacturing activity contract- ed again in September, and at the same rate compared to last month. Demand continues to be weak, output de- clined, and inputs stayed accommodative. “Demand slowing was reflected by the (1) New Orders Index remaining in contraction territory, (2) New Export Orders Index contracting at a faster rate, (3) Backlog of Orders Index staying in strong contraction territory, and (4) Customers’ Inventories Index indicating customers’ inven- tories were “about right.” “Output (measured by the Production and Employ- ment indexes) continued in contraction with mixed results: Employment shrunk at a faster rate while production ap- proached expansion, with levels on par compared to Au- gust. “Panelists cited continuing efforts by their companies to right-size workforces to levels consistent with projected demand. Inputs — defined as supplier deliveries, invento- ries, prices and imports — generally continued to accom- modate future demand growth, with inventories returning to low levels and suppliers showing some difficulty in meeting customer needs. “Demand remains subdued, as companies showed an unwillingness to invest in capital and inventory due to federal monetary policy — which the U.S. Federal Reserve
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Chicago TAPPI To Offer Fall Workshops For Corrugators
The Chicago TAPPI Local Section will be hosting Fall Work- shops for corrugators and converters on November 12 at the Oak Brook Marriott in Oak Brook, Illinois. The work- shops will be from 2:00 p.m. to 4:00 p.m. followed by a tabletop exhibit and reception from 4:00 p.m. to 5:30 p.m. The Converter Workshop’s All About Print session will focus on ink control, plate structure and care, and Anilox followed by a Die Cut session including cutting die mount- ing, repairs/rubbering, the tools needed on the press side, on/off machine care, anvil blankets, and more. The Corru- gator Workshop will feature a Corrugator Process Review session and hands-on assessment and pre-flight process- es for the corrugator followed by the Splicers, Starch and Bonding session, featuring presentations on splicer opera- tion and troubleshooting, starch chemistry, and more. Registration is $25. Managers are invited to take ad- vantage of the Box Plant Manager ticket, which includes five individual tickets to a workshop and the reception for $100. Industry suppliers are invited to attend either work- shop for $75. Exhibitor registration is $100. Tabletop ex- hibits and sponsorship opportunities are also available through the registration portal. For more information, visit tappi.org/chicagotappi or contact Hannah Peterson at hpeterson@tappi.org.
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Strategies And Tactics (CONT’D FROM PAGE 1)
Board Converting NEWS INTERNET DIRECTORY
SoCal has nineteen million people of all nationalities selecting their own popular brands. More imports are arriving from Mexico and LA’s two big ports than we are exporting, but most foreign consumer goods are already prepacked in corrugated paper boxes. Commodity corru- gated boxes for high volume American-grown produce are the domain of vertical integrated paper mills. They have close to 90 percent of containerboard market share. Does that mean they have evolved into such craving monsters that they will suffer the same fate of the dinosaur – too big and unwieldly to survive? Strategies To Beat Competitors If one has to choose between price, quality, and ser- vice, the conglomerated (AKA low-cost producers) will usually choose price. When paper mills raise their roll stock prices, about 80 percent of their sales transactions come from internal transfers strategy. This sets up a com- pletely false pricing metric, especially for the remaining eight percent independent corrugated box converters customers in the U.S. Thus, internal trades between paper companies can spark special predator advantages, especially when a pa- per mill builds a new corrugator plant in another state, as will now happen again in Arizona. Is it any wonder why so many independent corrugated box plants have disap- peared in the southwest? An old strategy to keep mill-owned high-speed cor- rugators running and income statements profitable was – and probably still is – to subsidize the inefficient box plant. The support can be based on tonnage consumed, increased sales, flexible terms, etc. These internal “ad- justments” can kick in management bonuses and permit discretionary pricing so more tonnage can be run on their hungry corrugators and paper machines. A note of cau- tion: antitrust cases of the past in our industry were based on the theory of predatory pricing which can turn into price fixing. (See the Clayton Act.) The ideal would be disciplined box sellers getting a price that reflects the value of the product and a more pre- dictable pattern of board and box price increases. In ad- dition, we need to disassociate ourselves from peer and “past due” customers who are not credit worthy or use very questionable business practices. The Future Of Pricing If both the seller and customer are capable of deal- ing with unique transaction pricing, then several dynam- ic pricing scenarios emerge. Ryan Fox, analyst at Green Markets, a Bloomberg Company, believes, “The future of market pricing may be driven by algorithms that account for input costs and other factors, rather than a survey of a very small group of open-market buyers, as is now.” The upside: For independents, this would make the open market essentially irrelevant to contracts, opening the floodgates to more flexible prices. Since open-market
ADVANTZWARE www.advantzware.com
Advantzware provides a comprehensive system to address the business management needs of the independent box business, as well as the ERP requirements of full scale pack- aging plants and integrated companies. With modules for estimating, scheduling, production, inventory and account- ing, this scalable system supports companies that produce corrugated boxes, folding cartons, point of purchase dis- plays, assembled partitions, and paperboard products. AIR CONVEYING CORPORATION www.accfilter.com Air Conveying Corporation is a leader in the industry of Pneumatic Conveying Systems and has been in business since 1968. As an equipment manufacturer rather than sim- ply a sales organization, we have complete control over the quality of material and products which make up your pro- posed system. Our equipment is found in printing, folding carton and corrugated plants throughout the world. We've been designing, manufacturing and engineering pneumatic conveying systems since 1984. We partner with our customers to ensure they operate efficiently and guar- antee our systems meet or exceed their specifications. ASDI specializes in full pull-through systems trim separators, and NFPA compliant systems with full electronic controls. AMTECH SOFTWARE www.amtechsoftware.com AIR SYSTEMS DESIGN, INC. www.airsystemsdesign.com Amtech offers the industry’s most innovative and com- prehensive corrugated and packaging ERP, integrated scheduling software, and engineered automation technol- ogy. For over 30 years, Amtech has kept our customers competitive in an ever-changing economy with customer digital storefronts and workflows, business intelligence, automated scheduling for corrugators, converting and shipping, proactive roll stock and inventory management. APEX INTERNATIONAL www.apexinternational.com World’s largest Anilox and Glue & Metering roll manufac- turer, providing the widest selection of corrugated engrav- ings and complementary services. Anilox engraving options available from our North American manufacturing facility include elongated 75°, 60°, 45°, plus Apex’s patented GTT technology. Glue rolls are produced with Hardened Stain- less Steel and a max TIR of 10 µ for Single, Double Facers.
ALBANY INTERNATIONAL www.albint.com
Albany International has a corrugator belt for every appli- cation. Our reputation for durable performance is the trade- mark of the most dependable belts in service today.
CONTINUED ON PAGE 28
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