FBA: A 2023 Mid-Year Update BY BOB MCILVAINE
It’s hard to believe we’re already in the second half of 2023. In the last six months we’ve witnessed a slowing economy, high interest rates and a Purchasing Managers Index (PMI) below the 50 percent mark. And this isn’t lim- ited to the US. During the FBA Annual Meeting and ICCA/ WCO Global Summit last month, we had an opportunity to interact with packaging association leaders from around the world. The news was very similar – slower economies, difficulty in hiring and retaining employees, and inconsis- tencies in acquiring raw materials. Most industry leaders felt these conditions would persist through 2023 and into the first half of 2024. Manufacturing in the US has fallen to 70 percent of normal production according to the Institute of Supply Management. The PMI has been below 50 percent for six straight months, indicating a recession in the sector. Since corrugated box shipments follow manufacturing output, box shipments experienced a weak first quarter of -8.5 percent growth. It’s important to keep in mind 2023 ship- ments are being compared to record industry shipments in 2020, 2021 and 2022 resulting from pandemic-induced changes in consumer behavior, including increased online purchasing. As a result, current demand should be com- pared to pre-COVID times. Shipments were off less than 1 percent in the first quarter of 2023 when compared to the same period in 2019 on a per day basis. (Second quarter data will be released on Friday, July 28 at 4:30 p.m. ET). To help individual companies benchmark performance against the industry, FBA has published the North Amer- ican Industry Classification System, Occupational Injuries and Illnesses Report, FBA Annual Report, and Key Perfor- mance Indicators Survey and Sheet Plant Operating Ratio Survey to participating companies. In addition, the FBA team planned and executed the FBA Annual Meeting and ICCA/WCO Global Summit held in Alberta, Canada. Bryan Hollenbach, FBA’s new chairman, and ICCA chairman Mike LaFave, led us through three days of excellent presenta- tions and activities. At the meeting, our membership voted to add Joe Palmeri, Jr. (Jamestown Container), Juan Pablo Perez (Smurfit Kappa NA) and Clay Shaw (Batavia Contain- er) to the FBA Board of Directors for the 2023-2026 term. We would like to welcome them to the Board and thank those whose term has ended for their contributions. Two important webinars were conducted on the Eco- nomic Trends and Outlook for Corrugated Products and the Pallet Overhang research project. Both webinars can be found on the FBA website. If you’ve recently viewed the FBA website, you noticed a new look, streamlined navigation and device responsiveness. We welcome your feedback as we continue to improve the website’s value to members. CONTINUED ON PAGE 6
Discover the power of
BX Motion
Modular Machine Concept for the complex demands of corrugated board processing
Grow to meet your market needs with the versatility of the BX Motion.
From E-flute up to AAC-flute Set-up time < 60 seconds Over 50 FEFCO box styles Digital print available Automatic loading and stacking Inline glue strip application Multi-out production
Learn More | kolbusamerica.com
5
www.boardconvertingnews.com
July 24, 2023
Made with FlippingBook interactive PDF creator