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
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