BoardConverting Serving the North American Corrugated and Folding Carton Industries for 36 years November 9, 2020 VOL. 36, NO. 45
Return To Normalcy: Economy Continues Recovery Post-COVID BY PHILIP PERRY Relief is in sight. Battered by the pandemic and scrambling to shore up finances, businesses can look forward to an easing of the pain over the next 12 months. Economists anticipate a gradual but noticeable recov- ery fueled by a surge in corporate profits, a strong housing market, and the successful roll out of a vaccine.
SupplyOne Acquires Riverside Paper Co.
Newtown Square, Pennsylvania based Sup- plyOne, Inc., a consolidator of specialty pack- aging manufacturers, packaging equipment and supply distributors, announced that it has acquired Riverside Paper Co., Inc., a privately held business in Miami, Florida. Founded in 1973, Riverside Paper Co. Inc. is a family-owned corrugated manufacturer and packaging distributor that has earned distinction as a premier industrial packaging manufacturer, converter, and distributor in South Florida. In addition to custom corrugat- ed and die-cut corrugated products, the com- pany provides a comprehensive selection of shipping, packaging, warehouse, and mainte- nance products to its customers with next-day delivery and shipping from Distribution Cen- ters in Miami, Tampa, and Orlando. Riverside also sells and services packaging equipment throughout the state of Florida. SupplyOne entered the Florida market- place in 2012 with the acquisition of Melco, Inc., in Tampa, and has increased its footprint within the state. The acquisition of Riverside Paper is SupplyOne’s second in Miami. The company acquired GTI Industries, Inc. in 2019.
“The COVID-19 recession is over, and the economy is currently in an early-cycle expansion,” says Sophia Koropeckyj, Managing Director of Industry Economics at Moody’s Analytics, a research firm based in West Chester, Pennsylvania. ( economy.com ). The healthier the economy, the better for business profits. And Moody’s expects the nation’s Gross Domestic Product (GDP) to increase at a four percent clip for 2021. That’s a welcome rebound from the pre- vious year’s decline, expected to come in at four percent when figures are finally tallied. (The GDP, the total of the nation’s goods and services, is the most commonly accepted measure of economic growth.) Faster economic growth, says Moody’s, should in turn help boost corporate profits by an expected 17.1 percent in 2021--a dramatic turn- around from the 13.8 percent decline of the past 12 months, and reason for optimism about a return to the aggressive capital expenditures so critical to an economic rebound. Slow And Steady For most businesses, the return to normal should be gradual. During The economy is currently in an early-cycle expansion, according to the Man- aging Director of Industry Economics at Moody’s Analytics.
CONTINUED ON PAGE 4
6 x x 8 x x 12 x x 26 x x Golden West Acquires Two California Produce Packagers 10 ND Paper To ‘Transform’ ME Mill, Expand Packaging Grades Unicorr Packaging Group Opens New Design Center In CT 18 ISM: Manufacturing Expands Again In October
CONTINUED ON PAGE 22
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 indi- cated average. Transactions may be completed at any time at a price agreed upon by seller and purchaser.
REGION E. Coast Midwest Southeast Southwest
42# Kraft liner $885.00-890.00 $900.00-910.00 $900.00-910.00 $900.00-910.00 $930.00-940.00 $903.00-912.00
26# Semi-Chem. Medium
Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del.
$820.00-850.00 $835.00-855.00 $835.00-855.00 $835.00-855.00 $865.00-875.00 $838.00-858.00
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.
OYSTER UP-CHARGE 8.34
275# DBL-WALL 350# DBL-WALL
116.54 137.25 117.82 145.56
CANADIAN SHEET PRICES (AVERAGE) In Canadian Dollars, per 1MSF, local delivery included, under 50MSF single item order, truckload delivery. 200# 275# Oyster UC 275#DW 350#DW $78.56 $99.18 $9.00 $96.32 $105.83 CANADIAN LINERBOARD & MEDIUM The average prices reported are tabulated from prices PAID by various sources throughout Canada. Prices may be higher or lower in various areas of the country. The prices tabulated here are intended only for purposes of reference. They do not connote any commitment to sell any material at the indicated average. Transactions may be completed at any time at a price agreed upon by seller and purchaser. Prices are Canadian $ and per metric ton.
42# Kraft Liner 26#
AVERAGE CONTAINERBOARD PRICES.indd 1
3/7/19 2:04 PM
Peachtree Packaging & Display for being named a 50 P.O.P. Company by CREATIVE Magazine Top
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November 9, 2020
Supply One Acquires (CONT’D FROM PAGE 1 )
“Riverside’s strong customer focus mirrors our own,” explains William Leith, CEO, and President of SupplyOne. “Throughout their history, the exceptional team at River- side has earned their customers’ trust by providing the highest levels of service, quality products, and innovative solutions designed to enhance their customers’ profitabil- ity. We look forward to welcoming their outstanding em- ployees to our team.” SupplyOne is one of the largest independent packag- ing companies in the United States and has made custom- er service central to everything it does. Since 1998, Sup- plyOne’s operating model has been built around providing custom packaging solutions to midsized manufacturers, food processors, and distributors. Their unique business model includes custom corrugated manufacturing, plastic thermoforming, packaging equipment and supplies, and services from a single point of contact. Visit www.supplyone.com for more information. CORRECTION: Arkansas, NOT Arizona The right column article on page 1 in the November 2 issue of Board Converting News , The BoxMaker To Acquire Tan- go Press In Arizona, was incorrect. Tango Press is located in Springdale, Arkansas. We apologize for the error.
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Golden West Packaging Acquires Two Produce Packagers In CA Golden West Packaging Group, a West Coast special- ty packaging business, announced it has acquired Berry Pack and Progressive Packaging Group, two independent, California based fresh produce packaging and distribution providers with operations in California, Arizona and north- ern Mexico. Berry Pack, based in Salinas, California, provides branded, hand-fold, custom-design, field-ready packaging systems including primary, secondary, and tertiary pack- aging. The business converts 350-million-square-feet of corrugated sheets annually through WestCorr, its facility in Oxnard, California. In addition, Berry Pack operates four assembly and distribution operations, with two located in Oxnard and one each in Santa Maria, California, and Wat-
sonville, California. Distribution operations include plan- ning, warehousing, inventory management, logistics and execution. Progressive Packaging Group, also based in Salinas, provides corrugated packaging, flexible packaging, ties and bands. In addition, the business operates four assem- bly and distribution operations located in Salinas, Oxnard, Santa Maria, California, and Yuma, Arizona. Services in- clude item forecast and usage management, research and development, project management, direct shipment track- ing, real-time inventory management, customized report- ing, on-time delivery, short haul deliveries, end-of-season transfers, and storage. Commenting on the acquisition, Golden West Presi- dent Brad Jordan said, “Golden West focuses on acquiring well-established packaging businesses and further devel- oping them into high-performing partners to their custom- ers. Berry Pack and Progressive Packaging Group are ex- cellent examples of this strategy.”
Berry Pack and Progressive Packaging Group founder Barry Johnston said, “This is an exciting development for our customers and employees. Joining Golden West will enable Berry Pack and Progressive Packag- ing Group to invest in, enhance, and accel- erate our customer experience.” Progressive Packaging Group co-found- er Eli Riddle added, “Our customers have come to expect that we listen, understand, and respond to their unique needs. Golden West understands this and has their own track record of investing in and further de- veloping great customer service systems and teams. This is a very positive develop- ment for our customers.” This is Golden West’s fourth acquisition, following its February 2017 acquisition of five northern California-based packaging providers (Capital Corrugated, Heritage Solutions, Packaging Innovators, Package One, and Cal Sheets), its February 2018 ac- quisition of southern California based Fleet- wood-Fibre Packaging & Graphics, and its March 2019 acquisition of Washington State-based Allpak Container. Golden West was founded in 2017 by Lindsay Goldberg in partnership with Ste- ven Klinger, Steve Strickland, and Craig Hunt, who have worked together for more than three decades building high-perfor- mance packaging businesses. The execu- tives are also involved with Lindsay Gold- berg’s investments in Crown Paper Group and specialty papers manufacturer Pixelle Specialty Solutions, and were previously senior executives with Smurfit Stone Con- tainer, Georgia-Pacific, and Unisource.
November 9, 2020
40 ft of paper travel from preheater to hot plates 3 seconds of heat, glue and bonding 1 chance to get it right! the ZONE
Design & Production
Chicago Electric offers 10 technology solutions to control ‘the Zone’ CORRUGATOR Sectoral preheating plate
Our sectoral preheating plates provide direct heat by means of a double steam circuit, allowing for efficient heating in hard-to-access locations, as well as to act as a steam shower to open the paper’s fibre, making it receptive to absorbing the heat and the glue.
This translates into increased speed and improved quality of the cardboard sheet finish.
The system’s main advantages are as follows:
• The plate may only be used to heat, only to humidify, or both options at the same time. • The plate is sectored, which allows for applying humidity to the sections. • It provides temperature in previously inaccessible locations and near the location needed. • It compensates the loss of temperature dissipated due to distance, speed or limitations of the exiting preheaters. • Quick transferring of heat to the paper. • The combination of the hot plate and steam shower allows for providing heat even to the hardest papers to heat. • Does not dry out the paper. • Possibility of operating as a humidifier and pre-conditioner. • Maintains and improves the fibre’s elasticity. • Acts according to the operator’s needs. • Facilitates the paper’s hygroscopy to absorb the glue and improve rubberising.
1. Wrap Arm - Position & Temperature 2. Preheater Direct Drive
3. Steam Plate 4. Contact Roll 5. Glue Machine Direct Drive Touch Productivity Issue—Glue Unit Many glue units run with a rider roll or a guiding bar system. The rider roll with paper gap allows a precise glue application, but requires frequent Contact Roll
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calibrations and settings. Bar systems avoid this, but compensate this with the risk of exces- sive glue application. The system contains many wearing parts. Solution The contact roll combines the ad antage of both systems and ensures minimum contact between board and applicator roll. The system uses small pneumatic cylinders in order to achieve a “soft touch.”
6. Gap Control 7. Curved Plate 8. Roller Shoe Press When it comes to a short-term increas of web tension, spring loaded systems with shoes or airpressure activated system have problems in compensating these. The system is lifted for a short time. This may result in de-lamination and in the ‘double kiss’ effect. Solution For a defined and exact bonding point of the web fiv weight rollers will be installed usually over the first flat hotplate of the heating section. The rolls are mounted into a frame, which is actuated by means of two pneumatic cylinders. P oductivity Issu —Double Kiss Bonding
9. Thin Wall Hot Plates 10. Pressure System Benefits —Exact glue application due to defined contact of applicator roll to web. Web is in contact to less flute tips compared to bar systems. • High precision glue application • Less moisture applied to web —No wear of shoes and springs —No adjustment of shoes or paper gap —Uniform glue application over entire working width for all flutes by use of pneumatic cylinders instead of springs — Less contamination by paper dust and glue remains —No jam of board because of web breaks caused by splice joints going through 630-784-0800 Benefits —Rollers secure exact defined first point of contact of liner and single-faced board - No double kiss —Frame design avoids unintended lifting of roller shoe (compared to spring or air loaded systems) - No double kiss —Pressure can be increased or released for special grades or products 490 Tower Blvd., Carol Stream, IL Contact Chicago Electric to GET IT RIGHT 630-784-0800 firstname.lastname@example.org chicagoelectric.com Solution The ProPress system ensures an optimum heat transfer to the board. It offers a wide range of set- tings. The loadi g pressure can be varied, the number of shoes can be lifted in accordance t the line speed. The outer shoes can be lifted in accordance to the paper width. The shoe bars will be delivered pre-assembled for a short installation time. —Liftable for easy paper infeed and for cleaning of the machine —Position adjustable in paper direction to avoid grooves in hotplate Press Productivity Issue—Poor Heat Transfer Rollers are usually limiting the heat transfer, since they often have contact mainly on the edges of the plates due to wear or bent plates. They also cause often loss of caliper and bearing need to be replaced frequently. Airpressure actuated systems can only supply a limited pressure and have com- pared to shoe systems a closed surface. Pressure Shoe
Plate vity Issue—Poor Heat Control l hotplates are slow to react to pressure due to high steam volume and massive y also have high heat radiation and heat profile. Worn plates can damage crease edge crush.
Thin-Wall Hot Plates
t by peripheral drilled hot plates. anufactured out of special wear and nt steel, through which a continuous is drilled, with one inlet and one outlet. ecured by a massive steel frame.
ance from steam to paper surface results in fast heat flow n higher plate surface temperature
TAPPI: Last Call For 2020 ‘What’s New: Tech Talks’
Box Shipments ( U.S. Corrugated Product Shipments) Industry Shipments In Billions of Square Feet Month September 2020
Join some of the industry’s top leaders for the next, and final, installments of the virtual series “What’s New: Tech Talks” on Tuesday, November 10, and Thursday, Novem- ber 12. This innovative series showcases some of the lat- est and most innovative products being brought to the market today and has become an industry favorite. This free, virtual learning series is part of 2021 Super- CorrExpo (SCE), the industry’s most powerful corrugated event in the western hemisphere hosted jointly by TAPPI and AICC. Tech Talks features solution-focused talks for seven-minutes each, followed by live question and answer sessions. This interactive format offers participants a one- on-one way to engage with exhibitors, and one another, in a chat format. Exhibitors on Tuesday, November 10, are: Lewisburg Printing Company, Metsä Board Americas Corporation, Mid America Paper Recycling, OM Partners and Tilia Labs. Exhibitors on Thursday, November 12, are: Teufelberger Ges.m.b.H, The JM FRY Company, Lenze Americas, Two10 Technologies and National Steel Rule Co. Both sessions begin at 10:00 a.m. EST. For more infor- mation, contact Kristi Ledbetter at email@example.com or (404) 271-6780, or Cindy Huber at firstname.lastname@example.org or call (877)836-2422.
Percent Change Avg Week Percent Change
Percent Change Avg Week Percent Change
Containerboard Consumption (Thousands of Tons)
Percent Change Year-to-Date Percent Change
Container Board Inventory - Corrugator Plants (Thousands of Tons)
Corrugator Plants Only
Percent Change Weeks of Supply
SOURCE: Fibre Box Association
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ND Paper To ‘Transform’ ME Mill, Expand Packaging Grades Oakbrook Terrace, Illinois based ND Paper reported that it is implementing a series of transformations at its Rumford Division in Maine to further expand into packaging grades. In its current configuration, the fully integrated Rumford Division operates three paper production lines, kraft and mechanical pulping assets, and a pulp dryer; its product mix is heavily weighted toward bleached grades serving printing and writing (P&W) markets. With the COVID-19 pandemic battering economic activity across the world, demand for P&W papers has plummeted; coated wood- free and coated mechanical papers – primary Rumford grades – are expected to decline 23.5 percent and 30.3 percent year-over-year, respectively, equivalent to over 1.4 million tons of output. To ensure a viable, profitable future for the Rumford Di- vision, ND Paper will be transforming the mill to increase its product flexibility and shift further into packaging grades: • Commissioning of an unbleached recycled pulp line to provide fiber flexibility to the R12 and R15 paper ma- chines • Conversion of its R15 paper machine from P&W papers into lightweight, high strength kraft linerboard products • Expansion of R12 paper machine capability to include unbleached recycled bag and converting papers, in
addition to its current offering of bleached and un- bleached papers • Continued operation of the R9 pulp dryer, including expansion into unbleached softwood kraft market pulp • Permanent curtailment of mechanical pulping opera- tions and R15 coating and supercalender assets The newly rebuilt R10 paper machine will continue to deliver high-quality P&W and Specialty products for ND Paper’s base of existing customers. Oxford C1S, Orion, Vi- sion, Escanaba, and Dependoweb grades currently pro- duced on R15 will be transitioned to the R10 and Biron B26 assets, minimizing disruption to loyal customers. Addition- ally, the R12 machine, with both bleached and unbleached capability, will manufacture Rumford Offset, as well as re- cycled and kraft papers for multi-wall bags, retail bags, and converting applications. “The onset of this unprecedented demand decline happened much more quickly than could possibly be an- ticipated,” said Group Deputy Chairman & Chief Executive Officer Ken Liu. “However, while other mills have exited the market and closed their doors, ND Paper is repurpos- ing the Rumford Division for a competitive future. Moving our largest Rumford machine into packaging grades helps to balance the deteriorating P&W market in North America, while simultaneously positioning us into bigger and more stable packaging paper markets.” ND Paper expects the transformation to be completed by the end of 2020.
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November 9, 2020
Unicorr Packaging Group Opens New Design Center In North Haven, CT
In an ongoing effort to develop successful solutions for clients’ brands and messaging, Unicorr Packaging Group has opened a comprehensive, state-of-the-art design center in North Haven, Connecticut. This new facil- ity enhances packaging development capabilities and merges structural and graphic designers into a collaborative and dedicated environment serving all of Unicorr’s corrugated production plants.
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According to Gary Lenkeit, Corporate Creative Director of the Design Center, Unicorr focuses on creativity and innovative thinking while utilizing the latest CAD and graphics software systems to accommodate a wide range of client needs. “The future of corrugated products has just begun,” Lenkeit said. “With a rapidly expanding e-commerce frontier, combined with the growing im- portance of environmentally acceptable packaging, Unicorr is committed to ‘reinventing the box.’ This includes using Unicorr’s complete range of manufacturing capabilities to produce cost-effective solutions for e-com- merce, retail and retail-ready packaging that captivates consumers, pro- tects the product, is environmentally friendly, and reduces labor costs and packaging waste. We can develop several virtual solutions in less time than a single physical sample. After rendering approval, we will create a prototype to ensure production results.” Before joining Unicorr, Lenkeit worked in New York City and Chicago creating innovative, multi-media packaging for a number of Fortune 500 companies and was Global Design Director for Graphic Packaging’s Con- sumer Products Division (CPD) in the Midwest. His notable awards include a Grammy for Best Recording Package of a Bruce Springsteen music col- lection. Beyond corrugated packaging and displays, Unicorr’s team works with many materials such as wood, foam, and plastic corrugated for a variety of applications and end uses. The design team also collaborates with tech- nology providers to enable our customers to utilize new trends in connect- ed packaging such as embedded QR codes, VR applications, and the use of specialty inks to take packaging to the next level. Unicorr continually pushes the envelope by creating features that make packaging tamper- Unicorr Packaging Group focuses on creativity and innovative thinking while utilizing the latest CAD and graphics software systems.
CONTINUED ON PAGE 14
November 9, 2020
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Unicorr Packaging Group (CONT’D FROM PAGE 12)
evident, easier to open, and easier to reseal. Similarly, through innovative work with graphics, the company is expanding its capabilities to produce litho-like quality on its own direct print presses. “Whether for traditional retail outlets or e-commerce, our work is an essential continuation of our clients’ market- ing efforts,” Lenkeit said. “With every project, our goal is to deliver the brand promise of the product, while enhancing the consumer experience through ease of opening, dis- posal, and product protection that are especially essential for e-commerce.” Bernie Baszak, a Unicorr sales manager, added, “Our design team gives small and medium-sized businesses without internal design resources access to world-class level packaging previously only available through sup- pliers with larger minimum quantities than needed. This capability also allows us to aid startups in bringing prod- ucts into the marketplace more efficiently and economical- ly while helping more established businesses scale their production with custom designs and purchase directly from the manufacturer. Unicorr also has achieved certifi- cation as an Amazon APASS provider, qualified to design, test, and manufacture packaging that meets Amazon’s stringent guidelines.” For more information on Unicorr Packaging Group, visit unicorr.com .
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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.
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November 9, 2020
ISM: Manufacturing Grows Again In October
“The New Orders Index registered 67.9 percent, an in- crease of 7.7 percentage points from the September read- ing of 60.2 percent. The Production Index registered 63 percent, an increase of two percentage points compared to the September reading of 61 percent. The Backlog of Orders Index registered 55.7 percent, 0.5 percentage point higher compared to the September reading of 55.2 percent. The Employment Index registered 53.2 percent, an increase of 3.6 percentage points from the September reading of 49.6 percent. The Supplier Deliveries Index registered 60.5 percent, up 1.5 percentage points from the September figure of 59 percent. “The Inventories Index registered 51.9 percent; 4.8 per- centage points higher than the September reading of 47.1 percent. The Prices Index registered 65.5 percent, up 2.7 percentage points compared to the September reading of 62.8 percent. The New Export Orders Index registered 55.7 percent; an increase of 1.4 percentage points com-
Economic activity in the manufacturing sector grew in Oc- tober, with the overall economy notching a sixth consecu- tive month of growth, say the nation’s supply executives in the latest Manufacturing ISM Report On Business. The report was issued last week by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Manage- ment (ISM) Manufacturing Business Survey Committee. “The October Manufacturing PMI registered 59.3 per- cent, up 3.9 percentage points from the September read- ing of 55.4 percent and the highest since September 2018 (59.3 percent). This figure indicates expansion in the over- all economy for the sixth month in a row after a contraction in April, which ended a period of 131 consecutive months of growth.
pared to the September reading of 54.3 per- cent. The Imports Index registered 58.1 per- cent, a 4.1 percentage point increase from the September reading of 54 percent. “The manufacturing economy continued its recovery in October. Survey Committee members reported that their companies and suppliers continue to operate in reconfig- ured factories; with every month, they are becoming more proficient at expanding out- put. Panel sentiment was optimistic (two pos- itive comments for every cautious comment), a slight decrease compared to September. Demand expanded, with the (1) New Orders Index growing at strong levels, supported by the New Export Orders Index expanding moderately, (2) Customers’ Inventories Index at its lowest figure since June 2010 (35.8 per- cent), a level considered a positive for future production, and the (3) Backlog of Orders In- dex expanding at a slightly faster rate com- pared to the prior three months. “Consumption (measured by the Produc- tion and Employment indexes) contributed positively (a combined 5.6 percentage point increase) to the Manufacturing PMI calcula- tion, with five of the top six industries con- tinuing to expand output strongly. “The Employment Index broke into expan- sion territory for the first time since July 2019. Inputs — expressed as supplier deliveries, inventories and imports — continued to in- dicate input-driven constraints to production expansion, but at slower rates compared to September, due to a return to growth in in- ventory levels. Inputs improved compared to September and contributed positively to the Manufacturing PMI calculation, with a
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AICC Opens Registration To Webinar: Maintenance Budget Metrics AICC, The Independent Packaging Association, has opened registration for Maintenance Budget Metrics, a new webinar presented by Craig Gast, on Tuesday, No- vember 17, at 2:00 p.m. EST. Gast, who is also the presenter for the free online course Implementing a Scheduled Maintenance Process, is returning to offer his knowledge during this live webinar. He has served as the plant engineer for both independent and integrated packaging manufacturers. He has more than 30 years in the industry and will share his first-hand experience to allow attendees to gain information and knowledge that can be immediately implemented. This webinar will help attendees understand what the maintenance department spends, develop a maintenance budget, and set annual goals and yearly expectations that align with the facility’s production and financial goals. The webinar will also delve into essential budget metrics, how to monitor and interpret them, and then leverage these metrics to inform decisions. Registration for Maintenance Budget Metrics is $250 for members. This webinar is part of the All Access Pass. Pass holders can use their promo code to register at no additional cost. Register for Maintenance Budget Metrics at www.AICCbox.org/Calendar .
ISM: Manufacturing Grows (CONT’D FROM PAGE 16)
combined 6.3-percentage point increase. (The Supplier Deliveries and Inventories indexes directly factor into the Manufacturing PMI; the Imports Index does not.) Prices continued to expand at higher rates, reflecting a continued shift to seller pricing power. “Among the six biggest manufacturing industries, five (Fabricated Metal Products; Food, Beverage & Tobacco Products; Chemical Products; Computer & Electronic Prod- ucts; and Transportation Equipment) registered strong growth. “Manufacturing performed well for the third straight month, with demand, consumption and inputs registering growth indicative of a normal expansion cycle. While cer- tain industry sectors are experiencing difficulties that will continue in the near term, the overall manufacturing com- munity continues to exceed expectations,” says Fiore. Of the 18 manufacturing industries, 15 reported growth in October, among them Apparel, Leather & Allied Prod- ucts; Nonmetallic Mineral Products; Food, Beverage & To- bacco Products; Machinery; Furniture & Related Products; Paper Products; Wood Products; Chemical Products; Pri- mary Metals; Computer & Electronic Products; Transporta- tion Equipment; Electrical Equipment, Appliances & Com- ponents; and Miscellaneous Manufacturing. The two industries reporting contraction in October are: Textile Mills; and Printing & Related Support Activities
November 9, 2020
TAPPI Academy Announces Additions Of Web & Winding Courses Online TAPPI Academy announced that it is offering two new web and winding eLearning courses targeted toward the technical personnel responsible for most any type of web machines. The courses, Web Handling and Converting, and Web Winding: Machines, Mechanics and Measurements, utilize comprehensive videos and figure based visuals. They are presented by subject matter expert Dr. David Roisum of Finishing Technologies, a well-known authority in web handling and converting. An accomplished author, profes- sional speaker and instructor, Roisum is noted for his skill in translating highly technical information into a common sense, practical reference. By completing Web Handling and Converting, attend- ees will: • Learn to eliminate wrinkles, baggy webs and apply ef- fective spreading. • Learn to eliminate winding defects and troubleshoot a variety of web, web handling and converting issues. • Be able to design and maintain web machinery, con- trol systems for tension, nip, guiding and design pro- cesses for more reliable manufacturing. • Understand why the web world does what it does Visiti www.tappi.org/webhandling for more
The second course, Web Winding: Machines, Mechan- ics and Measurements, builds on the foundation estab- lished in the first course. The learning outcomes include: • Eliminate winding defects • Know whether your defect is manufacturing or wind- ing related or both • Select and use the proper type of winder and settings for your product • Design and maintain winding machinery • Design and maintain winder control systems for ten- sion, nip and torque • Design and manufacture webs for more reliable wind- ing • Troubleshoot a variety of web, winding and operation- al issues To find out more and register for the course, visit www. tappi.org/winding . Each course is less than nine hours long, broken into modules that range from 14 minutes to an hour long, so you can learn at your pace, on your schedule. The cours- es are available for Individual and Company Licensing. For more information about obtaining a Company Li- cense, contact firstname.lastname@example.org. TAPPI Academy provides you the opportunity to grow your individual or company knowledge base, achieve your personal or organizational goal of continuous im- provement, and succeed in building a solid foundation for your individual or company’s future.
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Return To Normalcy (CONT’D FROM PAGE 1 )
org ). “Maybe they’re being overly confident, but our mem- bers seem to feel that in six months’ time things will have turned around significantly.” With its diverse membership in food processing, de- fense, fabrication, and machinery building, the Pennsylva- nia trade group can be viewed as a proxy for American industry. The organization’s members are reporting results that seem to position the tail end of 2020 as something of a springboard for future months. “Conditions for our mem- bers have improved, with increasing revenues, since the April and May timeframe,” reports Palisin. Springboard or not, it’s a sure bet that few business- es will regret seeing 2020 in their rear-view mirrors. “It’s been a rough year for many manufacturers,” says Palisin. “We’re looking at pretty significant revenue declines of 30 percent to 40 percent through much of the year for many of our members, who have had to do furloughs to maintain operations while dealing with supply chain problems.” Palisin acknowledges that for many operations the road ahead will be rocky. That’s especially true for those with limited resources. “Smaller companies aren’t as well equipped as far as financing and cash flows to weather an economic downturn,” says Palisin. “Things have been significantly tougher for them.” Housing Surges An important driver for the economy at large, residen- tial construction is doing extremely well and promises
the first half of 2021 households will continue to self-quar- antine as a wave of bankruptcies boosts the number of permanent job losses. By summer, says Koropeckyj, things should look different. “The economy will regain its stride in the second half of the year, when a vaccine or treatment is assumed to be widely available.”
Business owners seem to share Moody’s optimistic mindset. “Even though there’s still a lot of uncertainty out there, many companies have a positive outlook,” says Tom Palisin, Executive Director of The Manufacturers’ Asso- ciation, a York, Pennsylvania based regional employers’ group with more than 370 member companies ( mascpa.
CONTINUED ON PAGE 24
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Return To Normalcy (CONT’D FROM PAGE 22)
figures are finally tallied, which would surpass the five per- cent increase of the previous year. One key reason: tight supply. “Housing has been a seller’s market with low in- ventory levels as homeowners have been reluctant to of- fer their residences up for sale for fear of contracting the coronavirus,” says Koropeckyj. The industry itself has engaged in practices that have contributed to its success. “Real estate professionals have done a great job adapting to social distancing, and en- abling the buying and selling of homes, appraisals, title in- surance policies and closings at the same pace as before the pandemic,” says Bill Conerly, Principal of his own con- sulting firm in Lake Oswego, Oregon ( conerlyconsulting. com ). “With the shift to suburban living, more new homes will be built.” Despite its recent success, the housing industry faces its own headwinds. “We expect prices to fall by 0.3 per- cent in 2021 as foreclosures mount due to an unwinding of forbearance measures by the federal government and private lenders,” says Koropeckyj. “According to the latest Senior Loan Officer Opinion Survey, banks have tightened standards across all sorts of mortgage products.” And the housing sector faces other issues that will sound familiar to anyone who has watched the industry over the past several years. “Construction costs are rising quickly, and builders are still grumbling about the inability to find buildable lots and skilled labor,” says Koropeckyj.
more good news in 2021. “Housing demand has bounced back thanks to very low mortgage rates and the release of pent-up demand,” says Koropeckyj, who points to healthy builder confidence as the nation enters the new year. The road ahead looks sunny indeed: “We forecast housing starts will surge by 16.8 percent in 2021, after
slowing to 2.9 percent in 2020 from 3.8 percent in 2019 due to the initial impact lockdown orders had on construc- tion,” says Koropeckyj. Median prices for existing homes are also increasing at a healthy rate, expected to top 7.6 percent when 2020
CONTINUED ON PAGE 26
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Return To Normalcy (CONT’D FROM PAGE 24)
people’s hesitancy to travel, to go to entertainment facil- ities, and to do things with other people, to a certain de- gree they’re replacing such activities with buying goods.” The positive retail reports will come as a surprise to anyone who has encountered the long rows of shuttered storefronts in America’s cities and towns. Two reasons ac- count for the disparity. The first is the increasing purchase of merchandise through digital channels—a long-term trend that has only been exacerbated by the stay-at-home nature of the pandemic. The second is that consumers have become highly selective, abandoning many mer- chandise categories in favor of a select few that are ei- ther essential to living, or which enhance the enjoyment of pandemic-enforced leisure time. Both trends have merged to create a retail environment that favors some sectors and decimates others. Capital Investment Despite the strength of housing and retailing, the econ- omy will face headwinds in 2021. Not least among them is the sluggish state of capital investment. Corporate de- cision-makers, faced with uncertainty, are reacting in a predictable way: keeping their powder dry. By the end of 2020 total real fixed investment had fallen by 27 percent annualized, according to Moody’s Analytics. “In uncertain times, investors hold onto cash and delay investments,” says John Manzella, a consultant on global business and economic trends, Amherst, NY ( JohnManzella.com ).
As for construction of non-residential buildings, the bag is equally mixed. “Although office and retail construction will be soft in the near future, they account for less than one-fourth of private nonresidential construction,” says Conerly. “The big categories of power production, man- ufacturing, health care and warehouses should do fine in the transition to post-Covid business.” Strong Retailers Retailing tends to reflect and invigorate the nation’s economy, and this is a sector that has registered notable gains that promise to continue. “Our current 2021 forecast is for 6.2 percent growth in core retail sales,” says Scott Hoyt, Senior Director of Consumer Economics for Moody’s Analytics. That forecast represents a substantial improve- ment over 2020, when the 2.1% increase expected when numbers are finalized represented a deceleration from the 3.9 percent growth clocked in 2019. (Core retail sales ex- clude the volatile auto and gasoline segments.) The positive growth rate for retailers in 2020 has come about as consumers have rechanneled their purchasing away from services and toward merchandise. “While con- sumer spending has been hammered pretty badly, retail- ers have not been hit nearly as hard as service business- es,” says Hoyt. Moody’s forecasts a decline of 5.2 percent in services spending when 2020 numbers are in--a stark reversal from the 4.3 percent gain in 2019. “Because of
CONTINUED ON PAGE 28
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