BoardConverting Serving the North American Corrugated and Folding Carton Industries for 39 years January 16, 2023 VOL. 39, NO. 3
Converter Outlook, 2023, Part 2: Bracing For A Challenging Year BY LEN PRAZYCH As we begin another year, the nation's converters appear to be bracing for what may be a “bumpy” ride for the first half of 2023. But this isn't their first rodeo — they've experienced these ups and downs before. In the last two years, they've worked through the scourge of Covid-19, supply chain delays and subsequent inflation. Then booming demand, and more recently, shrinking demand and surplus inventories, present- ing obstacles to maximum efficiency and profits. And as always, the agility, business acumen and resiliency of these business leaders allow them keep their eyes on the prize — manufacturing the most effective and sustainable packaging and display solutions in North America. BAY CITIES Pico Rivera, California: Greg Tucker reports, “Happy New Year fellow box makers! This will be a very challenging year for most. Jerry’s ‘Gold- cash) our wonderful lawmakers wanted to go home before Southwest cancelled all of their flights, so they signed the next pork-ladled bud- get which should add over $60 billion dollars of deficit spending so they could get out of town. At least it isn’t another trillion bucks, so we should be in good shape! Hmm, I wonder if this is how inflation is start- ed and, of course, maintained during voting season? “Anyway, we have moved out of the buying stuff era and into the en- joying of services era. Retailers and businesses alike purchased more stuff early in 2022 and filled warehouses everywhere so they wouldn’t miss Christmas due to the clogged supply chains we all got to endure. “Unfortunately, our economy did switch from stuff to services quick- er than anticipated, and we are stuck with an abundance of invento- ry. Not only did we get too much inventory, we got three months of wrong inventory as China went down early in the year, so we have three months of the wrong season in our stores! “I cannot at this time tell you how well we did burning through this stuff, but I would guesstimate we have 3-6 months of stuff left to burn CONTINUED ON PAGE 22 en Years’ have come to a halt, and I don’t think we will see anything like what we saw over the last couple of years with regard to the corrugated bonanza that we all have enjoyed. The free mon- ey is running out. Well, not really, our bone heads in Washington just poured more gas on the fire with their Omnibus Budget Plan. As Chair Powell tries to put the fire out (nine trillion dollars of free Greg Tucker
S. Walter Packaging Group Acquires Pulver Packaging Trevose, Pennsylvania based S. Walter Pack- aging Group (SWPG) announced an agree- ment to acquire Elk Grove, Illinois based Pulver Packaging, a folding carton and paper- board packaging manufacturer. SWPG now has the ability to provide all-in- clusive services to customers looking for fully customizable packaging services, including design, sourcing, printing, fabrication, en- hancement, warehousing, inventory manage- ment, fulfillment and delivery. “We are always looking for opportunities that will provide additional value to our broad base of customers and this acquisition allows us to offer a one-stop shop for turnkey cus- tomized packaging solutions,” said Kurt Kolos- eike, President and CEO of SWPG. “For more than a century, SWPG has been committed to developing and refining packaging solutions for companies and brands of every size in a multitude of industries and verticals. This ac- quisition is a testament to that commitment.” “For more than 65 years, Pulver Packag- ing has been an industry leader with a repu- tation for exceeding our customer demands, and this acquisition means our customers
CONTINUED ON PAGE 4
WHAT’S INSIDE
6 x x 8 x x 12 x x 26 x x 3 Prazych To Succeed Smith 6 Domtar To Celebrate 175th 20 IP Announces Changes To Senior Executive Team 36 LDI Employees Raise $836K In Annual Giving Campaign As President/Publisher Of BCN Anniversary Throughout 2023
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Len Prazych To Succeed Robyn Smith As President Of NV Publications, BCN Jeneane Vilardi, owner of NV Business Publications and its flagship magazine, Board Converting News , has an- nounced that Editor-in-Chief Len Prazych will succeed Robyn Smith as President/Publisher.
Added Prazych, “I look forward to growing the compa- ny and our publication while fulfilling the vision Tom and his father, Ted Vilardi, had for the family-owned business in which they invested so much — to be the best and most reliable source of news and information for the North American corrugated and folding carton industries.” BCN To Adjust Containerboard Prices , Requests Input From Converters With the publication of its January 23, 2023 issue, Board Converting News will be publishing a new Containerboard Pricing chart here on Page 3 to reflect a reduction in con- tainerboard prices converters have reported paying to their suppliers. As always, prices will be calculated as be- ing the average amount PAID by North American convert- ers in specific regions of the U.S. and Canada. As always, Board Converting News is requesting input from converters — who will remain anonymous — in or- der to get to most accurate and current pricing. The prices published are intended for the purpose of reference only. They do not connote any commitment to sell any material at the indicated average. And as always, transactions may be completed at any time at a price agreed upon by a sell- er and buyer. Converters who wish to report their PRICES PAID can contact Len Prazych at lprazych@nvpublications. com or (518) 366-9017.
Prazych has more than 20 years of industry experience, the last 12 with Board Converting News . He will remain Editor-in-Chief. Robyn Smith has more than three decades of corrugated industry experience in advertising sales and business man- agement and will remain with the
Len Prazych
company in the role of Vice President, Sales. “I’m both honored and humbled at this opportunity as I begin the task of leading the company and Board Convert- ing News , now in its 39th year, into the future,” said Pra- zych. “I’ve been fortunate to have had the opportunity to work with and learn from Robyn Smith, who courageously navigated the company through its period of rebuilding af- ter the passing of Tom Vilardi.” “Len and I have worked together to streamline the busi- ness and move it into the electronic era,” said Smith. “I am confident in his ability to continue that mission and to strengthen BCN’s leadership position in the industry.”
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now have more robust, next-level solutions for all their packaging needs,” said Patrick Pulver, President of Pulver Packaging. The Pulver Packaging operations will remain in Elk Grove and will become part of LPI, a Milwaukee, Wiscon- sin based division of SWPG, which provides packaging solutions including custom graphical printing, high-end enhancements and finishes coupled with advanced digital technology capabilities. “LPI has always been a leading provider of new solu- tions for our packaging and graphic finishing customers and this acquisition will allow us to bring more innovative solutions for our clients,” said Mike Draver, Senior Vice President and General Manager of LPI. “We look forward to working with the Pulver Packaging team to expand our manufacturing platform and leveraging our extensive de- sign, graphic printing and graphic finishing solutions to provide limitless possibilities for our clients.” With nearly 120 years of experience and expertise, S. Walter Packaging Group will continue to provide innova- tive custom packaging and logistics solutions to the re- tail, consumer products, industrial, medical and advertis- ing specialty industries, combined with the best-in-class, value-added services, to enhance the brand image of its more than 40,000 customers. For more information, visit swpackaginggroup.com . S. Walter Packaging Acquires (CONT’D FROM PAGE 1)
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Domtar To Celebrate 175th Anniversary Throughout 2023
Fort Mill, South Carolina based Domtar announced that it will be celebrating its 175th anniversary in a variety of ways throughout 2023. “Our company is built on more than a century of an- ticipating what our customers need and what consumers want to buy for everyday living,” the company announced. “Our story is one of successful reinvention, and as we con- tinue to change and grow, we take confidence from our strong legacy. Our next chapter begins now.” The company’s roots trace back to 19th century En- gland when Henry Potter Burt established Burt, Boulton Holdings Ltd. His company specialized in treating lumber and business boomed as the demand for railway ties and wharf pilings grew in Europe and North America.
As the company grew, Burt moved to Canada and founded Dominion Tar and Chemical Company in 1903. It grew along with Canada’s industrialization and diversi- fied over the years, making products including chemicals, consumer products, construction materials, and paper and Above and below, two of the dedicated employees to whom Domtar credits its success.
packaging. Over the years, the company pur- chased other facilities and companies across North America, some of which are integral parts of Domtar today. Today it is a supplier to a diverse set of businesses in pulp, paper and packaging, with its fiber in products people use every day, from bath tissue to book paper. “We provide solutions to ensure a sus- tainable and better future for ourselves, our customers, our communities, and the envi- ronment,” Domtar said. “We are proud of the work we do together as stewards of natural resources, an employer of choice and a sig- nificant community investor.”
Domtar credits its success to its dedicated employees, many of whom have been with the company for decades as well as multiple generations of families. In 2020, Domtar reentered the packag- ing business with the conversion of its mill in Kingsport, Tennessee, to become their first 100 percent-recycled packaging facility. The $350 million project converted the mill from producing uncoated freesheet paper to liner- board and corrugated medium. Visit domtar.com for more information.
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‘Breaking Down Boxes’ Bonus Episode ‘One Week’ Released
can hear how their practical, rather than emotional, choic- es led to a smooth transition and maintained harmony when children are in and out of the company. AICC President Mike D’Angelo said, “David and Rob Callif share a fascinating, and typical for our business, a meandering family tale, of how they got into the ink busi- ness through David’s launch, how they became successful in it through the hard work they’ve both put in, and the
Hosts Gene Marino, Executive Vice President, Akers Pack- aging Service Group, and Joe Morelli, Vice President of Sales & Marketing, Huston Patterson Printers and Lewis- burg Printing Co., speak with Rob and Dave Callif of BCM
Hosts Gene Marino, right, and Joe Morelli, second from right, speak with Dave Callif, left, and his son Rob, second from left, both of BCM Inks, in ‘One Week,’ the latest episode of Breaking Down Boxes.
Inks in “One Week,” the latest episode of Breaking Down Boxes available now on all major podcast platforms. The father/son team share how skills from the fashion industry and P&G translate into corrugated, succession planning, and the challenges of being a start-up. Listeners
succession plan that assured a successful future and a happy family, all while making friends along the way and giving back to AICC. One week can make a difference.” Subscribe to Breaking Down Boxes on all major pod- cast platforms or visit www.AICCbox.org/Boxes .
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TRG Names Chris Rebuck New General Manager At Package Craft Cicero, Illinois based The Royal Group (TRG) introduced Chris Rebuck as the new General Manager at Package Craft. Rebuck replaces Craig Rob- erts, who served as the General Manager of Package Craft for the past 23 years. Roberts will take a sales and advisor role and remain with the company. Meanwhile, Cas- sie Penland of Package Craft has been promoted to Sales and Cus- tomer Service Manager. Penland has been with Package Craft for over 14 years and is a vital part of the team. Rebuck has worked closely with Roberts, Penland, and the Package Craft team the past five months to ensure a smooth transition. Rebuck worked in B2B sales and opera- tions management for the vending and food service indus- try prior to the paper and packaging industry. His longtime career in sales, management, and operations molded him into the ideal candidate for TRG. “I have worked very closely with Chris during his tenure at TRG and am excited to see his passion and leadership shine in North Carolina,” said Kevin Miller, CEO of TRG. “Chris joins a very capable team at Package Craft, and we look forward to continued success in 2023 and beyond.” Chris Rebuck
Box Shipments ( U.S. Corrugated Product Shipments) Industry Shipments In Billions of Square Feet Month September 2022
Year
Actual
Percent Change Avg Week Percent Change
2022 2021
32.705 34.247
-4.5
7.787 8.154
-4.5
Industry Total
Year-to Date
September 2022
Year
Actual
Percent Change Avg Week Percent Change
2022 2021
305.168 312.525
-2.4
7.989 8.224
-2.9
Industry Total
Containerboard Consumption (Thousands of Tons)
Year
Month
Percent Change Year-to-Date Percent Change
2022 2021
2.6327 2.7773
-5.2
24.8959 25.4841
-2.3
Container Board Inventory - Corrugator Plants (Thousands of Tons)
Corrugator Plants Only
Date
Percent Change Weeks of Supply
Percent Change
Sep. Aug
2.5975 2.5867
0.4
4.1 4.2
-2.4
Shipping Days
Year
Month
Year-to-Date
2022 2021
21 21
191 190
SOURCE: Fibre Box Association
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Master Graphic Services To Install New Koenig & Bauer Allpro 110 Folder-Gluer
When Aamir Anwar is asked what sets his business apart from the com- petition, he quickly responds: “Being flexible enough to produce any job that comes through our door, from the simplest print finishing job to the extremely complex.” It’s been this ability to serve a variety of commercial printers and folding carton manufacturers in the Southeast that distin- guishes Master Graphic Services, a 40-year-old Atlanta firm, as it contin- ues to add additional expert post-press services.
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With this in mind, Anwar and his team decided it was prudent to add another folder gluer line to provide one-pass productivity and quali- ty control for the variety of customer jobs. Their choice? A new cus- tom-built Koenig & Bauer Allpro 110 folder gluer operating at 400 meters per minute, which will be delivered in the spring of 2023. Currently, a highly self-contained, climate-controlled, and extra clean room is being prepared for the upcoming installation to provide a special environment especially for the firm’s growing share of the health and beauty segment. “We are poised to handle very small jobs in the hundreds to very large jobs over a million,” says Anwar, the firm’s CEO. “Our goal is to be able to convert any style of cartons and to stay consistently and continuously aligned with our customers’ needs. Over the past four decades we have worked really hard to develop a legion of loyal customers. We’ve gained their confidence, and, in turn, they feel like we are an extension of their own business.” At its 50,000-square-foot complex, where Master Graphic Services displays its production flexibility, the upcoming installation of the Omega Allpro 110 will bolster Master’s capabilities in many ways. While the All- pro’s production speed is impressive with a maximum output of up to 400 m/min, its custom features make it an efficient stand-out, one-of-a-kind model. Fully automatic processes are combined with memory functions to achieve the shortest possible makeready times for Master’s workload. An intuitive, touchscreen-based operating concept will provide its opera- tors with exceptional ease of operation. While Master already has all of the necessary equipment to convert any carton, sometimes the job requires two or three passes. The Allpro will eliminate these extra pass processes and enhance the firm’s abil- From left, Paul Blake, Plant Manager at Master Graphic; Aamir Anwar, CEO; and Denis Grabowski, IT Manager, eagerly await their new cus- tom-built Koenig & Bauer Allpro 110 folder which will be delivered in the spring of 2023.
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CONTINUED ON PAGE 40
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PMMI, Women’s Leadership Network Award $5,000 Fall Scholarship The PMMI Foundation and the Packaging & Processing Women’s Leadership Network (PPWLN) awarded a $5,000
Each year, the PMMI Foundation provides over $200,000 in academic scholarships to students studying packaging, food processing, engineering, and mechatron- ics at over 50 PMMI Education Partner programs through- out the U.S. and Canada. “The PMMI Foundation scholarships are an investment in the future of our industry. We are very proud to sup- port the next generation of leaders and recognize young women pursuing our industry,” said Kate Fiorianti, Director, Workforce Development, PMMI. “These scholarships reflect the students’ dedication to their studies and future career as well as the quality of the programs at PMMI Partner Schools. This is a bright oppor- tunity that opens doors for tomorrow’s workforce, today.” Since its inception in 1998, the PMMI Foundation has given more than $2.6 million to help ensure the future of the industry remains strong. In 2022 alone, through academic scholarships, travel assistance to industry tradeshows, and donation support, the PMMI Foundation impacted nearly 6,000 students. PMMI represents more than 950 North American man- ufacturers and suppliers of equipment, components and materials as well as providers of related equipment and services to the packaging and processing industry. The PMMI Foundation provides financial support for packaging and processing education throughout the U.S. and Canada. For more information on the PMMI Founda- tion, visit pmmi.org/foundation .
2022 educational scholarship to Katherine Bodenschatz from the University of Cincinnati. As an Industrial Design major, Boden- schatz has proven to be a future leader in the packaging and pro- cessing industry. PMMI, The Association for Packaging and Processing Tech- nologies, supports packaging
Katherine Bodenschatz
education at U.S. colleges, universities, and technical schools through the PMMI Foundation. The application for the PPWLN Spring 2023 scholarship is now available, with a deadline of March 31, 2023. View this scholarship and more at pmmi.org . The PPWLN scholarship supports women interested in the packaging and processing industry with the $5,000 award going to a female student pursuing a career in the industry. Applying students must have a 3.0 GPA or higher, demonstrate leadership qualities, and have a career plan in the engineering, packaging, processing, mechatronics, or related field.
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Domtar Acquisition Of Resolute Gains Competion Bureau Approval Richmond, British Columbia, Canada based Paper Excel- lence, through its wholly-owned subsidiary Domtar Corpo- ration, and Resolute Forest Products announced that the Canadian Commissioner of Competition has entered into a consent agreement regarding their business combination. Once finalized, Domtar will acquire all of the outstand- ing shares of Resolute stock for $20.50 per share and one contingent value right tied to potential duty deposit refunds of up to $500 million. The Competition Bureau concluded that the transaction would likely lessen compe- tition substantially in the supply of northern bleached soft- wood kraft (NBSK) pulp in Eastern and Central Canada and in the purchase of wood fibre from private lands in north- western Ontario, according to a release. Domtar agreed, post-transaction, to sell its Dryden pulp mill and Thunder Bay pulp and paper mill to two independent purchasers approved by the Commissioner of Competition. Fort Mill, South Carolina based Domtar was acquired by Paper Ex- cellence in 2021 in a $3.0 billion all-cash transaction. “This acquisition strengthens the Paper Excellence Group’s core pulp and paper business and diversifies their product offering by adding tissue and wood product seg- ments,” said John D. Williams, President and Chief Exec- tive Officer of Domtar.
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Larsen Packaging Names Thomas Its First National Sales Manager St. Charles, Illinois based Larsen Packaging Products, Inc., a custom corrugated manufacturing company and distrib-
Larsen sells a full line of some 30,000 packaging sup- ply items and maintains an on-hand inventory of 5,000 stock and custom products. Of its 95 full-time employees, 25 are devoted to the corrugated production floor, where they oversee an annual output of 180 million square-feet. Visit waybeyondthebox.com for more information. ARC International Appoints Gibson Business Development Director Charlotte, North Carolina based ARC International an- nounced that Michael Gibson has joined the company as its Sales and Business Development Director. “Mike brings a wealth of knowl- edge in the European packaging industry working within the flexo, corrugated and flexible packaging sectors,” said Micheal Foran, ARC’s President and CEO. “We’re certain that he will be an excellent addition to the number one team in our industry.” Gibson will be involved with international business expansion as well as North American growth. He can be reached at mgibson@arcinternational.com. ARC Interna- tional has been a flexo innovation leader for more than 40 years. Visit www.arcinternational.com for more. Michael Gibson
utor of stock packaging boxes and supplies, has named Danny Thomas its first National Sales Manager. Thomas brings experience in sales, marketing, and merchan- dising, on a national level, having served in similar posts for Sears, Whirlpool Corporation, and most re-
Danny Thomas
cently, CSC ServiceWorks. Throughout his 30 years in sales, Thomas has helped his employers grow market share while increasing reve- nue. He believes the key to this success is simple: “Great client relationships can only take place when you listen to your customers and seek to understand their business and the pain points they encounter. I’m excited about this opportunity. The culture here is incredible and the team’s commitment to serving customers is second to none.” “We welcome Danny to lead our growing sales team,” said Bill Larsen, President and CEO. “Danny’s passion for excellence, his experience leading national sales efforts, and his ability to problem solve on behalf of his clients, make him a tremendous addition to our organization.”
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IP Announces Changes To Senior Executive Team
• Tom Hamic has been named Senior Vice President, North American Container and Chief Commercial Offi- cer. Hamic joined the company in 1991 and has served in a variety of sales, marketing and strategy leadership roles, including positions in the company’s container- board and North American container businesses. • Jay Royalty has been named Senior Vice President, Containerboard and Recycling. He will also retain in- terim responsibility for the company’s EMEA Packaging business. Royalty joined the company in 1991 and has served in a variety of converting, sales, marketing and finance leadership roles. He most recently served as Senior Vice President, EMEA Packaging. • Clay Ellis has been named Senior Vice President, Glob- al Cellulose Fibers. Ellis joined the company in 1992 and has served in a variety of manufacturing, engineer- ing, technical and commercial leadership roles, includ- ing positions in the company’s pulp business. Most recently, he served as Senior Vice President, Enterprise Operational Excellence.
Memphis, Tennessee based International Paper (IP) has announced changes to its senior leadership team, includ- ing the retirement of a long-serving executive and organi- zational shifts to enhance agility in serving customers and driving profitable growth. Greg Wanta, Senior Vice President of the company’s North American Container business, will retire after tran- sitioning responsibilities. “I want to thank Greg for his 31 years of service and wish him well in his retirement. Greg led the North American Container business since 2016 and his contributions to the company are foundational to our growth plans,” said Mark Sutton, Chairman and Chief Executive Officer. The following moves are effective immediately:
DESIGNS THAT INCREASE PRODUCTION
“These moves reflect our leadership bench strength,” said Sutton. “Each of these business leaders have demonstrated strategic agility and drive in achieving industry-leading re- sults.” The International Paper Board of Directors has elected two new executives to Sutton’s leadership team. Aimee Gregg has been elected Senior Vice President, Supply Chain and Information Tech- nology. Gregg joined the company in 2002 and has served in a variety of sales, operations and business leadership roles in the compa- ny’s North American Industrial Packaging busi- ness. She most recently served as Vice Pres- ident and General Manager, Containerboard and Recycling. Allison Magness has been elected Senior Vice President, Manufacturing and Environ- ment, Health and Safety. Magness joined the company in 2000 and has served in a variety of engineering, manufacturing, and business leadership roles. She most recently served as Vice President, South Area, North American Container. “These functional roles have an increas- ingly important impact in differentiating the company’s performance and in improving the customer experience,” said Sutton. “Aimee and Allison bring capabilities and perspective that will be key in accelerating initiatives that support business strategies. I’m excited about what’s next for our company with the diverse talent and perspective of our senior leaders guiding plans to Build a Better IP.” For more information on the company and its initiatives, visit internationalpaper.com .
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Converter Outlook, Part 2 (CONT’D FROM PAGE 1)
integrated brothers have worked very hard to close mills and take downtime to balance supply and demand and now a few weak links are caving. “Most likely, the weak in this new era will fold as they will get to enjoy all that equipment they ordered coming in six months or even a year with no business to support it because they never built their own professional sales team or a professional well-fortified company. The folks that were farming business out to them are reeling that business back in and too bad, so sad! “Now that we are doing what the box business does so well — chop prices — I think there will be great opportuni- ties for those who got prepared for Jerry’s ‘Golden Years’ to end. There are fantastic opportunities in this market. There will be some choppiness (no pun intended) to the economy in the next six months yet as we balance out the inventory bloat, we should return to yet again, new normal. Something like a 1-2 percent growth in the second half is what I see in the second half of 2023. “Of course, we could get a new ‘Double Inflation Bill’ passed or Boy Putin figures out a way to mess up a free lunch, yet barring any more stupidity in the political land- scape and in the geopolitical landscape, we should be turning our 'Box Recession' around in the second half of the year. This is when produce season starts again and the buildup for holiday begins. “Our U.S. consumer is beat up a bit but not down. Cred-
through. So, Mr. Transitory Powell woke up and realized inflation created by free money created a buying frenzy and raised interest rates to cool down the fire. This was too much too fast and it has caused the effect he wanted, which is a slowed economy. “The box business (something that predicts the econ- omy) was slowing way back in March, but he missed that barometer and waited a bit more and started throwing wa- ter on the fire as fast as he could. This truly effected the economy as did the switch from stuff to services and what we have now is a drop in demand for boxes. So, what I see is a very bumpy first six months of next year. “I was counting on a reduction in containerboard prices in the first quarter, but it seems we have panic in box land and the weak unprepared companies that did not build their balance sheets, improve their people’s skill sets, sup- plied others’ their boxes and balance their investments in capital equipment purchases are doing what very weak and anemic companies do — chop prices. Oh, am I al- lowed to say that? Oops, I did. So here we are! “What is wild to me is that this reaction is not that of the large integrated companies but more so the indepen- dent companies that mooched off the big guys because they have no sales acumen and now have to feed their machines with their own business, as most of what was there yesterday is gone today and will be tomorrow. Our
CONTINUED ON PAGE 24
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Truck. Loads. More.
Corrugated printing has gone from basic to beautiful in 10 years. With the explosion of packaging demands and shorter print runs, speed has become the #1 capacity driver.
One of our customers tells us automated complete plate cleaning in < 4 minutes adds 25% capacity in a working week with FlexoCleanerBrush™
He calls it ‘Truckloads More Capacity’. You can do your own math.
Converter Outlook, Part 2 (CONT’D FROM PAGE 22)
“With that being said, we in the U.S. will see a reshoring of manufacturing here. That means boxes, and a bunch of them, as we move from them to us. “The Infrastructure Bill, The CHIPS Act, and the Inflation Reduction Act will add fuel to the economy for the next five years if the government can get out of its own way and allow some of the planning to execute through the sewer of regulation. This means more boxes. “E-commerce will have continued growth as Smithers predicts a growth of corrugated of over 10 percent through 2027. “Wow, how is that going to get done in a slowing econ- omy? Easy. We are the most sustainable solution for pack- aging and as an industry, we are in demand and now, very sexy. Yep, we no longer have to hide at a party when someone asks what we do. We provide the world with the best sustainable solution for getting products moved through logistics, sold in retail and e-tail, and we provide an unboxing experience that no plastic bottle can provide. “So, what should we be doing in our box plants? First of all, we need to build our workforce and train and cross train them so we can become extremely efficient. Certain- ly, all of that fancy equipment coming in will help, but it takes people to make things work well. “Certainly, we can eliminate them with a conveyor or load former or whatever, but who is going to work with our clients? Bots? CONTINUED ON PAGE 26
it defaults are not rising too much and there still is a good amount in the balance sheet at home. We just have to get through six months of a choppy economy and we will be- gin to turn. “Remember, the box business precludes and predicts an economy and thus, like the stock market, we will come out of the slowdown sooner than the regular economy. We have to understand inflation is going to be here for a while and I think the Fed is going to have to look at a basis of four percent inflation moving ever so slowly to two per- cent. Why? Then explain to me just how labor rates will come down. “Looks like we have a way to go but we will get there. Globally, we will be in a mess. Europe has taken a hit. South America is getting beat up, and there really is nowhere to dump our containerboard, so we will have to balance it domestically until the world can settle. We do get to pick up Putin’s containerboard sales as hopefully nobody will buy his trash in other parts of the world. “China is a super wildcard. If they can get through the next Xi experiment with humans and they get to the other side with some kind of vibrant population that can be pro- ductive, they can light up their economy and the worlds too. I really cannot figure them out and I'm certain they have to be working on some kind of a plan to get their economy started and balanced.
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.
For more information contact: Charlie Freeman | 816-500-8889 | cfreeman@heartlandsheets.com Tim Kramer | 816-841-8317 | color@heartlandsheets.com
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January 16, 2023
- Litho Labelers - Roller Conveyor - Bundle Conveyor - Stable Stack Conveyor - Active Ball Transfer - Robotics
We are proud to offer the products, services and partnerships needed to grow our customers’ business. Inspire Automation specializes in providing the highest quality material handling, converting and aftermarket products to corrugated converters.
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Converter Outlook, Part 2 (CONT’D FROM PAGE 24)
J&L
Mark 5
“It is time to develop a customer service attitude in ev- ery part of our business. I think that is the most important thing we can do. Protect those that we have served for years. Remember the price choppers? They are coming for our clients and we have better have a better solution than a low price. We have to add value. “I recall that when I was peeing on trees as a salesper- son, every client I landed with a low price I lost with a low price. I believe strongly that it is not the price of a box, but more so the cost of using it that reduces the bottom line of our clients. Think about that for just a minute. “Another thing to consider and work diligently on is building software automation in the office. This is the key to success with a shrinking workforce. We can replace keystrokes with automation in the office and even in the plant, thus becoming better, faster and more efficient. This is an important and growing area in many industries and should be in your company. “What we also have to do is document the living hell out of everything we do. The greying of America is hap- pening more now than ever as our elders are moving on and the tribal knowledge in our box plants is moving on with them. They are valuable resources and a protected class in California, so much so that we have best take no- tice of this exodus and document their knowledge. “Remember, we make fancy trash and we cannot let this asset walk out without downloading all that knowledge and experience. When times like these come around, get involved in industry organizations like the FBA and the AICC. They hold the keys to data, advocacy for our prod- ucts and training programs that can help us win. “Lastly, as always, invest in the ICPF as this foundation is there to brainwash the minds of young people and get them in your industry. We have a new sheriff in town there, and I think she will light up the world with the ICPF’s of- ferings for that youth we so desperately need. So, get off your butt and write a check. “Remember, happiness is a quality box, and everything comes in one. We are so fortunate as an industry to design and create the world’s most sustainable vehicle to trans- port and sell products in. Let’s go.” OX BOX Addison, Illinois: Guy Ockerland reports, “As we anticipat- ed, heavy duty industrial demand cooled off dramatically in the beginning of November for us. “We were surprised that it kept a brisk pace as long as it did. I get the sense from our customer comments that industrial production was serv- ing backlogged orders with new de- mand tapering long before we felt it. “Based on order volume the last couple months, we’ve forecasted a decline in existing cus- Guy Ockerland
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CONTINUED ON PAGE 28
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It’s time to revolutionize The new CorruCUT rotary die-cutter pushes what is possible
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Converter Outlook, Part 2 (CONT’D FROM PAGE 26)
Quality & Consistency
tomer sales for 2023. We would like to be proven wrong, but it seems unlikely that the industrial market will experi- ence growth, given the headwinds that it’s facing.” ROYAL CONTAINERS Toronto, Ontario, Canada: Kim Nelson reports, “Royal Con- tainers recently gathered to ring in the holiday season. About 250 employees attended the afternoon event. It
was momentous to have everyone from Royal’s two facilities together in the same space after two years being distanced by the pandemic. I was thrilled to again engage with our entire staff at once. “As a back drop, I used a visual explosion of the past year, in photo-
Kim Nelson
graphs and videos. The purpose was to communicate in a town hall manner the results from our previous year and to share our plans for the upcoming year. “We have followed a strategic planning process for years now, so it is by design that we have successfully ac- complished our goals year after year. With communication being a cornerstone of our culture, any opportunity to re- port past achievements and future goals is important. “When I consider the forecast for 2023, I immediately take a step back and look at the big picture. The long-term future of the industry, based on FBA statistics and other economic drivers, such as e-commerce trends and Cana- dian bans on certain plastics, we see continued growth and expansion. “These indicators give every cause for optimism. How- ever, when looking at the upcoming year, we do see a slow-down. We anticipate a decline in our sales by 10 per- cent and a larger decline in our volume. “Applying a broader approach means that our focus moves towards cost control and operational effectiveness. Adhering to budgets this year will be important. Remaining nimble and agile will be important. “Strong customer partnerships are critical in years when the cycle is on a downward trend. Our mission statement at Royal, 'Building Partnerships in Packaging,' becomes particularly relevant in challenging conditions. Leadership is needed to articulate the vision and continue to develop our most important asset, our people. “The year 2022 was a record-breaking one. It felt like we were driving down the Autobahn at top speed, only this year we've exited off the highway and are still driving, but at a reduced speed. We won't take our foot off the gas, we will continue to invest in our future, in the next genera- tion, through investment in technology and expansion. “We have been in the industry long enough to know that there are cycles. Since 2019, we have stayed our course on some challenging roads; we have survived, thrived, and will continue to do so.”
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CONTINUED ON PAGE 30
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