Board Converting News, January 10, 2022

Converter Outlook: Part I (CONT’D FROM PAGE 34)

Board Converting NEWS INTERNET DIRECTORY

• Remain a provider of high value at competitive prices with no late or mistakes over ½ of one percent of sales. • Remain sales service champion teams with aid from apps. “At the end of the day, it all depends on how serious are our heath and economic aftershocks. If 2022 is a garden variety recession, or something more severe and long-last- ing, we’ll just have to determine the correction and adjust as we did in 2021. “In spite of expected higher interest rates, we have a guarded optimistic focus on our future cash flow and cour- age to continue to invest in the growth of graphics, 2022 will be another year when Cal Box Group associates run with the foxes and hunt with the hounds.” LAWRENCE PAPER CO. Lawrence, Kansas: Justin Hill reports, “We are not quite sure what 2022 will bring because we can’t recall similar tell us if there is enough paper to meet box demand, but I am unaware of any numbers that tell us how close we are to labor force capacity. If we posit that our industry is currently at the limit of what it can produce with the ex- isting labor force, that might explain why box production numbers appear to be falling off during an economy of shortages. “If this is the case then 2022 could prove to be a very unusual year. We might likely experience adequate sup- plies of paper (especially in the second half of the year with more capacity coming on stream), but with fewer play- ers able to try to gain market share due to lack of labor. While individual plants with adequate labor might be run- ning at capacity, we do not believe there is a converting equipment constraint in place. “The current surge in Covid cases must surely be exac- erbating the industry’s lack of ability to man machines to their capacity. Federal government policies that have paid people to stay home and out of the workforce have greatly impacted the labor supply. We have little confidence that the current administration will pursue policies to fix the la- bor supply issue. Unfortunately we think that a recession will likely be what ultimately fixes the labor problem. While none of us want a recession, we know that one will hap- pen as we recover from all of the excess spending. We are not smart enough to predict when that might happen. In the meantime we expect to remain busy at least into the first half of 2022.” industry conditions. Statistics and pundits say that industry box pro- duction is going the wrong way, yet our plants remain exception- ally busy, especially because we are responding to requests for help from competitors who cannot meet demand due to a shortage of labor. We have lots of numbers to Justin Hill

ARC INTERNATIONAL www.ARCInternational .com

ARC International is a world leader in the manufacturing of roller products for flexography. The latest nano-technology laser engraving in our NC and NV manufacturing facilities ensures superior quality and consistency in anilox rollers.

AMERICAN CORRUGATED MACHINE www.acm-corp.com

For a wide variety of new and used equipment on to- day’s market, visit our website at www.acm-corp.com. BAUMER HHS CORPORATION www.baumerhhs.com hhs is a global leader in advanced gluing, camera verifica- tion and quality assurance systems for the packaging indus- try. Zero-defect quality and elevated production speeds are key parameters in the manufacturing of corrugated boxes; hhs systems ensure efficiency and precision. With hhs Xcam Box Monitoring and non-contact flap gluing of corrugated board, hhs offers every option for quality assurance in the production of corrugated boxes with flexo folder gluers. BLOWER APPLICATION COMPANY (BLOAPCO) www.BloApCo.com BloApCo has served the corrugated industry since 1933 with a variety of scrap handling solutions, including Hori- zontal Floor Shredders, Trim Cutters, and Material Handling Fans and Conveying Systems. BloApCo Shredders allow for continuous shredding and pneumatic removal of sheet waste stacks of all sizes, roll slab, cores, and carton scrap.

CORRUGATED MACHINERY SPECIALISTS www.cmsretrofits.com

Leading manufacturer and installer of quality retrofits, up- grades and replacement parts for S&S and Prime Flexo Folder Gluers. Specialists in reconditioning of S&S Flexo Folder Gluers, including ink, air and electrical systems.

CORRUGATED REPLACEMENTS, INC. www.corrugatedparts.com

Corrugated Replacements, Inc. is a production powerhouse that manufactures high quality machine parts and replace- ment parts for the corrugated and paperboard converting industries. CRI can redesign, engineer, and manufacture any part while providing a rapid turn-around rate, keeping machines running at their peak performance and limiting down time.

36 January 10, 2022

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