Converter Outlook: Part I (CONT’D FROM PAGE 22)
fore the pandemic, we contemplated a growth strategy based on the near capacity issues we faced. We have al- ready begun installing a new 110-inch Fosber corrugator and a racking system for WIP that will hold up to 10-million- square-feet of product. The project is immense and more difficult than a “greenfield” start-up due to the integration of our existing operation with the expanded space. Our plan has always been to continue operation as we move to the new machinery. We will actually be running the old 98-inch corrugator as we ramp up the new one. In fact, we will be running sheets under the old machine as we dismantle it. A challenge to be sure, but the planning has been extraordinary. “A shout out to our vendors - Fosber America, WSA, Harmax, Warak, Esnova, Kober Conseveyo and to my son, Jeremy Cohen and to our Project Manager, Ryan Stash- ko. So far, given all the supply chain obstacles, they have done an admirable job. While wary of market changes, I do
“I do think that since our pricing model only increas- es or decreases with paper prices, that auxiliary costs may not be recaptured if prices eventually go down. That should be a real concern for everyone reading this article. With inflation affecting everything from wages to energy costs, we know that the lowering of paper prices may also hinder us in our efforts to recover inflationary input costs. That is why I am an advocate for changing the method of price movement. No business can absorb the inflated costs of ancillary material without inflicting harm on their margins. It should be something we all consider as the market changes -- as it surely will. “The year 2022 will be a year of transformation for Acme Corrugated Box Co., Inc. In November of 2020, we commenced an expansion of our facility and the purchase of a strategic set of new operational equipment. Even be-
have faith in our operation and our people. So, whatever 2022 has instore for us, we will be prepared.” BAY CITIES Pico Rivera, California: Greg Tucker reports, “Coming off one of the most spectacular
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and way out-of-con- trol years, 2022 will be yet again a very promising one for business. I am cer- tain records were set with regard to bottom-line perfor-
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mance in the box business. Mills ran hard, and converters ran even harder to keep up with an imbalance of supply due to weather, labor, transportation, demand, inflation and of course, that pesky virus. “We did a great job of passing on higher costs to our clients as we continued to miss deliveries which were beyond our control. What is remarkable about our industry is that we can move prices up where other in- dustries couldn’t do so and are fighting to gain price control. We still hold ourselves accountable to a publication that allows price fluctuations up or down when it gets around to publishing linerboard transacted prices. This last year many converters put a dent in the strength of our Mad Magazine of the paper industry and learned to raise prices according to market fluctuations in things other than just paper. This dent will continue to spread into 2022 and beyond. Someday our Mad Magazine will no lon- ger have much relevance in setting prices
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24 January 10, 2022
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