Board Converting News, July 29, 2024

BoardConverting Serving the North American Corrugated and Folding Carton Industries for 40 years July 29, 2024 VOL. 40, NO. 31

Northwest Paper Box: Integrity. Service. Quality. BY STEVE YOUNG

WHAT’S INSIDE 6 x x 8 x x 12 x x 26 x x 4 FBA Data Services Director Peggy Lacy To Retire 10 Amtech Software Partners With Opus Packaging Legendary Independent Leader Neil MacDonald Passes Away 16 P+PB Releases New Episode Of Pack It! Design Challenge At 172,344-square-feet, Bay Cities said the expanded and extensive space will enable in- creased productivity and capacity. With more dock doors, they will be able to handle larger volumes of inbound and outbound deliveries to help meet customer demands. Additionally, the new location will help uni- fy the campus by bringing Premier Packout in close proximity to the Material Production Center, Design Center, Structural Design Cen- ter, and ISTA Testing Center. The company said that having all segments of the operation together under one roof en- hances operational efficiency, enabling them to deliver faster and more reliable services to its customers. Melissa Crosby, who, as Bay Cities’ Busi- ness Development Director Packout/Fulfill- CONTINUED ON PAGE 3 Bay Cities Relocates Premier Packaging To Main Campus Bay Cities announced it is moving its Pre- mier Packaging operation, previously located in nearby Santa Fe Springs, California, to its main campus in Pico Rivera, California. The new facility is part of a larger campus that brings together various facets of the op- eration designed to enhance efficiency and collaboration.

There’s a thoughtful, determined ethic in Brad Van Allen’s way of do- ing business: “We’re a good, family company. We’ve been around 70 years. We treat our people right, and we want to make sure our cus- tomers win.” Van Allen is CEO of Northwest Paper Box (NWPB) in Camas, Wash- ington, a small community across the Columbia River from the Portland, Oregon, metro area. The company was founded in Portland in 1953 by Marvin “Van” Van Allen and his wife, Betty, and William “Bud” Van Allen and his wife, Elsie. As Brad tells the story, his father and uncle worked at the time for Grigsby Paper Box, a setup box company.

“My dad and my uncle and aunt all worked for Grigsby,” he recalls, “and at some point, the owner promised my dad and my uncle a bonus at the end of the year. He didn’t have any profits to give them a bonus, but my dad and my uncle and aunt were counting on it. So, they said, ‘Maybe we can do it ourselves.’” The seed thus planted, Van married, moved to Baltimore, and, while he was there, began buying up used setup box equipment. Meanwhile, back in Portland, his brother, Bud, got wind of the bankruptcy of an- other setup box company, Simpson Paper Box. The company and its assets were up for auction, and after rushing back to Portland with his CONTINUED ON PAGE 22 From left, Brad Van Allen and brothers, Rod Van Allen, and John Van Allen.

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eries, and excellent production rates that they’ve grown accustomed to,” says Melissa. Premier Packaging and Assembly is a contract packag- ing solutions company. After being family-run for 30 years, the family at Premier Packaging retired in Spring 2023, after which they were purchased by their friends at Bay Cities Packaging and Design.

AVERAGE CONTAINERBOARD PRICES The average prices reported are tabulated from prices PAID by various sources throughout the United States the week previous to issue. Prices in some areas of the country may be higher or lower than the tabulated average. The prices tabulated here are intended only for purposes of reference. They do not connote any commitment to sell any material at the indicated average. Transactions may be completed at any time at a price agreed upon by seller and purchaser. REGION 42# Kraft liner 26# Semi-Chem. Medium $ 900.00-925. 00 $ 825. 00 -$850.00 U.S. Average CANADIAN LINERBOARD & MEDIUM The average prices reported are tabulated from prices PAID by various sources throughout Canada. Prices may be higher or lower in various areas of the country. The prices tabulated here are intended only for purposes of reference. They do not connote any commitment to sell any material at the indicated average. Transactions may be completed at any time at a price agreed upon by seller and purchaser. Prices are Canadian $ and per metric ton. 42# Kraft Liner 26# Semi-Chem Medium East $970.00 $960.00 West $1,015.00 $995.00 REGION

Bay Cities (CONT’D FROM PAGE 1)

ment heads up the Premier Packaging operation, shared her excitement about the move. “Consolidating our operations into a single, modern campus enables us to streamline processes, further en- hancing the unparalleled customer service we are known for,” she said. A 15-year veteran of the packout/fulfillment industry, Melissa is a subject matter expert familiar with the retailers that brands are working with and shipping to. “Our Premier Packaging clients can expect the same exemplary service, on-time inbound and outbound deliv-

The relationship between Bay Cities and Premier Pack- aging goes back decades which made the new ownership an easy decision. Due to Premier Packaging’s family lega- cy and history, the name has not changed and instead is a DBA (Doing Business As) Bay Cities. In addition, Bay Cities is a 100 percent employee-owned company (ESOP) and welcome the existing Premier Pack- aging employees as part of the ESOP with open arms. For more information, visit bay-cities.com .

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July 29, 2024

FBA Data Services Director Peggy Lacy To Retire

Core Competency

The Fibre Box Association announced that Peggy Lacy, long-time Director of Data Services and Administration, will retire from the association by December 31. In her 38 years with the association, Peggy has contributed significantly to FBA’s success. She was there when FBA purchased its first

desktop computer in 1986 and was in- strumental in the development of the current data warehouse and member management system along with the organization’s first website. She has led the Data Services Committee and the generation of many new and up- dated data reports over the years in- cluding the introduction of the Key

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Performance Indicators (KPI) report in 1992, still today one of the association’s most highly valued reports. She has continued to innovate, launching the creation of the Data Dashboard this year. “I always listened to what FBA members and staff had to say, with the ultimate goal of making FBA programs bet- ter,” said Lacy. “I feel grateful to have been part of so many changes and upgrades over the years and appreciate the feeling that I helped to make a difference.”

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July 29, 2024

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Peggy Lacy (CONT’D FROM PAGE 4)

Ken and Doug) was our accountant, friend and advisor for as long as Volk Packaging has been in business. We will miss him greatly. ‘The Rog’ was a one of a kind and will be missed dearly,” Volk said on LinkedIn. Roger L. Volk, 81, of Swampscott, Massachusetts, and Boca Raton, Florida, passed away peacefully on July 11, 2024, while surrounded by his loved ones after a brave battle with, Myelodysplastic syndrome (MDS), a rare form of blood cancer. Roger launched his career as an accountant at KPMG in Boston before opening his own practice, Roger L. Volk & Company, in Lynn in 1965 where it remains today. As a Certified Public Accountant, he proudly served the sur- rounding community and specialized in personal income taxes for almost 60 years where his personal client inter- action/connection was of utmost importance. In addition to his work in the tax field, he hosted a

Lacy will finish the year with FBA, transitioning her role over the next several months. “Peggy is one of the most dedicated and hardworking people I’ve had the privilege of working with,” said Bob McIlvaine, FBA’s President and CEO. “She is going to be greatly missed by the FBA staff and the industry she has served so well for almost 40 years.” Roger Volk, Longtime Accountant, Passes Away At 81 Derek Volk, CEO of Volk Packaging Corporation, an- nounced the passing of Roger Volk at 81. “Although he never joined Volk Packaging, Roger (the brother between

weekly radio program, “Financial Survival with Roger Volk,” on WRKO and WEEI for more than 20 years, provided “Tax Tips” on local WCVB Boston broadcast TV news. In addition, he has been the keynote speaker at numerous seminars conducted by the Internal Revenue Service for more than 30 years. Funeral services were held at Temple Emanu-El in Marblehead, Mas- sachusetts on July 15, 2024. NAM Hosts Roundtable On Pass-Through Deduction The National Association of Manufacturers announced the latest news on the 2017 tax reforms that are set to expire at the end of the year. Earlier this month, as part of its 2025 tax campaign, “Manufacturing Wins,” the NAM hosted Noelle Britton, Deputy Chief of Staff for Rep. Lloyd Smucker (R- PA), and Caroline Oakum, tax counsel for Sen. Steve Daines (R-MT), in a virtual roundtable to discuss what’s being done in Congress to maintain the Section 199A pass-through deduction. The 20 percent deduction, created by the Tax Cuts and Jobs Act to help small and medium-sized businesses, is among sev- eral tax provisions scheduled to expire at the end of 2025. (Pass-throughs are com- panies whose profits are “passed through” to the owners, who then pay taxes on the entities’ incomes on their personal tax returns.) The legislation would make the pass-through deduction permanent, which NAM says small and medium-sized manu- facturers rely on to increase investments and job creation.

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July 29, 2024

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WSA-USA Appoints Marc Przybylo As New Sales Executive Mason, Ohio based WSA-USA, LLC announced that Marc

Box Shipments ( U.S. Corrugated Product Shipments) Industry Shipments In Billions of Square Feet Month December 2023

Year

Actual

Percent Change Avg Week Percent Change

Przybylo has joined its team as a Sales Executive. With more than 10 years of sales experience, Marc will assist customers with material handling equipment needs. WSA-USA was es- tablished in 1990 to manufacture inno- vative material handling solutions for the global corrugated industry.

2023 2022

29.711 30.124

-1.4

7.819 7.927

-1.4

Industry Total

Year-to Date

December 2023

Year

Actual

Percent Change Avg Week Percent Change

2023 2022

380.555 400.520

-5.0

7.611 7.979

-4.6

Industry Total

Marc Przybylo

Containerboard Consumption (Thousands of Tons)

Year

Month

Percent Change Year-to-Date Percent Change

GBP Taps Jeff Edman As Sales Manager For Wisconsin Sheet Plants Green Bay, Wisconsin based Green Bay Packaging has

2023 2022

2.4080 2.4260

-0.7

30.9333 32.5461

-5.0

Container Board Inventory - Corrugator Plants (Thousands of Tons)

Corrugator Plants Only

Date

Percent Change Weeks of Supply

Percent Change

welcomed Jeff Edman as the new Sales Manager for Wisconsin Sheet Plants, providing support to the Mid- land, Great Lakes, and Wisconsin Packaging Divisions. The company says that Jeff is well- equipped to drive success with his ex- tensive sales management experience

Dec. Nov.

2.1892 2.1071

3.9

3.5 3.5

6.1

Shipping Days

Year

Month

Year-to-Date

2023 2022

19 19

250 251

SOURCE: Fibre Box Association

Jeff Edman

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July 29, 2024

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Amtech Software Announces Partnership With Opus Packaging Fort Washington, Pennsylvania based Amtech Software, an ERP provider for the corrugated packaging industry, an- nounced its partnership with Opus Packaging, a supplier of packaging and distribution solutions. This partnership will upgrade operations at five of Opus Packaging’s man- ufacturing facilities, helping elevate operating efficiencies and productivity.

At the core of the upgrade is Amtech Software’s lead- ing EnCore ERP software, specifically designed for the corrugated packaging industry to streamline operations, increase productivity, and drive operational excellence. With the EnCore platform, Opus Packaging now has cloud-based flexibility that allows remote access to the database. Along with the cloud-based flexibility, Opus has access to Amtech’s world-class support. “We are delighted to partner with Opus Packaging,” said Chuck Schneider, CEO of Amtech Software. “Our mis- sion at Amtech is to empower businesses with state-of- the-art software solutions, and this partnership represents a significant step towards that goal. We’re excited to see the transformational change Amtech’s EnCore ERP will bring to Opus Packaging’s operations.” Louie Sicilia, Chief Financial Officer, Opus Packaging, echoed these sentiments. “Our aim has always been to en- hance our operational efficiencies and deliver high-quality packaging solutions to our clients. With Amtech’s upgrad- ed technology, we are confident we can achieve these goals and create an even more agile, responsive, and cus- tomer-centric organization.” This collaboration aligns with Opus Packaging’s com- mitment to continuous improvement and operational ex- cellence. The move will bring an advanced level of auto- mation and digitalization to their manufacturing process, further enhancing their commitment to quality, innovation, and customer service.

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July 29, 2024

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Neil MacDonald — A Legacy Continues As A Leader Passes

Neil MacDonald — Founder and CEO of Independent Container and In- dependent II —accomplished his vision of building and selling his com- pany successfully to Hood Container earlier this month. He entered the box making world in 1969. On July 16, 2024, MacDonald fought his way out of life — passing in peace with family at his side. For the 55 years in between MacDonald was many things: entrepre- neur, relationship seller, innovator, father and leader, generous and hu- morous, very sharp and always formidable. Finn MacDonald, outgoing President of Independent II, says that “My father loved the box business. He thrived on the challenge of building businesses. He created lifelong relationships with customers, sheet sup-

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pliers, and peers to propel his companies. And over many decades he created a bond with all he worked with. Our employees were really an ex- tended family of his own — no one worked for the boss. Ev- eryone worked with a guy they loved and respected. We call this the Independent Way.” Finn MacDonald found an early reference to the “Inde- pendent Way” in a 1967 letter to shareholders that his grand- father, Philip Miller, CEO of Independent Boxmakers Inc.,

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wrote. The letter reported that IBI had a successful year in sales and in controlling expenses. Miller then said why he believed the company performed well —he credited all employees for working together to take care of customers and each other — describing this spirit as the “Inde- pendent Way.” Neil used this guiding philosophy to build fast-growth, service first, best-in-class sheet plants dedicated to serving the southern Indiana, northern and central Kentucky, and Lexington and Louisville markets. His mottos were “get the customer what they want—when they want it. You cannot improve business that you do not have. It takes as much energy and time to make a mess or a bad box as it does to make a good box and have a clean Plant...so do the right thing.” The combination of these statements fueled many achievements. Independent Container Inc. opened in 1981 in Louisville, Kentucky. The company was recognized as the 14th fastest growing company in the country in the 1986 edition of the Inc. 500 List. ICI would expand to Erlanger, Kentucky, Ferdinand, Indiana, and Jasper, Indiana. In 1995, Greif Bros. Corporation purchased Independent Container and MacDon- ald oversaw the construction of a new 240,000-square-foot facility. Deja vu. In 2006, MacDonald started Independent II. Former employ- ees joined him quickly and the group immediately picked up where they left off. Many loyal customers came back too. Rapid growth followed and the company was again an Inc. 500/5000 honoree (#55 in Manufactur- ing) and recipient of seven LBJ “Fast-50” awards. CONTINUED ON PAGE 14

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July 29, 2024

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Neil MacDonald (CONT’D FROM PAGE 12)

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Rapid growth created challenges and opportunities and the Sr. MacDonald approached his son Finn to dis- cuss getting involved in the family business. Both found each other at the right time. Finn joined the company in December 2010 and became one of several multi-gener- ational employees. Dad’s first advice to his son was — get involved with the AICC. This advice proved invaluable over the years to come. Neil MacDonald joined the AICC in the early ‘80s and became active as a Regional Board Member and as one of many rowdy participants at annual meetings. Boxboard Containers featured Neil and the company in 1992 to rec- ognize 10 years in business. Steve Young — EVP AICC — wrote a letter stating “I am impressed with your philosophy about training employees. As you know, the sophistication of our technology requires a more sophisticated workforce. The article should be re- quired reading for every independent plant.” In 2012, Neil joined an AICC-CEO group that created a new generation of friendships and shared experiences. While a lot of the real work got done late at night around the bar exchanging jabs with each other, friends from this group have said that Neil brought a lot of wisdom to each meeting and that he was not afraid to speak his mind. Relationships and innovation kept MacDonald ahead of the competition. One midwestern sheet plant opera- tor said that “Neil was LinkedIn before it existed.” He en- joyed conversation and storytelling — he enjoyed having a good time — and he always made the person across from him feel engaged. Innovation also was a key to success — MacDonald purchased high-end converting machinery over the years, was an early Amtech customer, and was not afraid to invest in ThatBox, Solarco Boxmatics or the Domino x630i because they solved unique needs in the market. The relationships fostered with sheet suppliers, equipment manufacturers, and fellow box makers made his life richer and his companies more successful. The last major projects that Neil MacDonald oversaw were the relocation and construction of Independent II’s new 340,000-square-foot facility in 2022 and the process of evaluating and selecting a buyer for the company in 2024. In a conversation with Finn recently, he said, “that the best years for our customers and for our company lie ahead.” For so many of his longtime employees and peers — the best years were the years enjoyed with Neil Mac- Donald. Neil is survived by his adoring wife Jane (57 years of marriage), his son Finn and family, his daughter Era and family, and many other friends and family members. In lieu of flowers, please consider a tax-deductible con- tribution to the AICC Foundation for Packaging Education (packaginged.org/). The MacDonald family believes that the AICC and the FPE are the best resources to support entrepreneurship and business growth in the years ahead. Together — let’s create the next great Independent.

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July 29, 2024

P+PB Announces New Episode In Pack It! Packaging Design Challenge The Paper and Packaging Board (P+PB) Innovation an- nounced the latest episode of Pack It! Packaging Design Challenge featuring host Cassie Stephens enlisting the help of former contestants Emma Dayton and Zachary Weston to solve a unique packaging dilemma involving her cats using all paper-based materials that can be re- cycled.

recently competing to create the best produce delivery box for Miami Fruit. Now professional packaging design- ers, Emma and Zachary face off once more, this time tasked with designing recyclable packaging that can ef- fectively ship a delicate catnip plant and double as a cat scratch pad for Cassie’s beloved felines. The challenge emphasizes sustainability, requiring contestants to use only eco-friendly, paper-based materi- als that can be recycled up to seven times. Throughout the episode series, Emma and Zachary showcase their unique creative processes, from initial brainstorming and sketching to final assembly. Both con- testants tackle unexpected challenges and tight dead- lines, all while aiming to impress Cassie — and her cats, of course — to win the competition. The 4-part episode culminates in Cassie judging the final designs based on innovation, recyclability, and functionality, with a fun twist: her three cats Tika, Johnny and Max also put the designs to the test. By choosing paper packaging, viewers can support renewable resources. “Innovative paper and cardboard packaging solutions are in high demand, driven by sus- tainability advocates and conscious consumers,” says Mary Anne Hansan, President of the Paper and Packaging Board. According to recent research, the preference for paper-based product packaging is at an all-time high. Tune in to see who wins the challenge on the How Life Unfolds TikTok, Instagram and paperandpackaging.org .

Evolving alongside today’s digital age, the show has updated its format this season by optimizing the 4-part, bite-sized episode series for consumption across social media platforms. The two talented designers have a history of friendly but intense rivalry dating back to their student days, most Packaging design rivals Zachary Weston and Emma Dayton go head-to-head to create sustainable and functional cat-friendly packaging.

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July 29, 2024

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Make a stronger, lighter and more sustainable corrugated blank using less glue by implementing a “brick” style pattern developed by Baumer hhs. This pattern creates a stronger bond using less glue. Our new all-electric PX 1000 applicators with over a billion cycle life can easily apply the pattern with clean cutoff and accurate placement. The PGD 1000 sensor is there to show your customer that every box was properly glued so you’ll never end up on some gag reel. You can be the star with The CorrBox solution from Baumer hhs.

PX 1000 Cold Glue Applicator • Extremely fast and powerful closing force means no drips or tailing so your first box is a good box. • Strong armature activation easily handles viscosity fluctuations and will work with a large variety of adhesives. • Fast action coil means you can now stitch your beads at higher running speeds lowering adhesive consumption up to 70% and improving board output.

PGD 1000 Monitoring Sensor • Measure the glue proximity to the edge of the tab and avoid squeeze-out so you deliver an accurately glued box every time. • The printing on the carton does not effect the hybrid sensor’s ability to read the bead. Black, white, plaid or polka dot, the sensor is not bothered, so neither are you. • No UV additives needed for detection saves you money, time and effort.

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TAPPI/AICC SuperCorrExpo Early Bird Discounts End August 9 TAPPI and AICC, The Independent Packaging Foundation, are reminding members to register by August 9 to take ad- vantage of early bird discounts to attend the TAPPI/AICC SuperCorr Expo SuperCorrExpo September 8-12 in Orlan- do, Florida. Member registration before the early bird date is $1,395 and $1,595 after. Four-day “Expo Only” passes are also now available. Prices are $250 for box plants and $400 for non-box plants. Courses offered include the AICC Production Forum: Artificial Intelligence on the Production Floor from 8:00 a.m. to 12:00 p.m. September 10-11. Attendees will delve into the transformative realm of Artificial Intelligence (AI) and its applications within the paper-based packaging manufacturing industry. Participants can expect to gain insights into how AI technologies like machine learning and predictive analytics are reshaping processes such as quality control, predictive maintenance, supply chain opti- mization, and production efficiency. The potential of AI to drive innovation, enhance decision-making, and optimize systems in your manufacturing operation will be explored. Leading the AI training will be Gokul Gopakumar and Da- vid Wiens.

Gopakumar is a highly experienced professional in the field of industrial automation and electrical engineering. He holds a Master’s degree in Electrical Engineering. Cur- rently, he serves as the Vice President of Technology and

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mation, including Director of Electrical Engineering, where he provided technical direction and spearheaded product enhancements. Furthermore, his passion for AI in manu- facturing has been a driving force behind his work, making his tenure as a Product Owner for Helios IIoT particularly exciting. Wiens, Founder & CEO of BPS AI Software and General Manager of Budget Box Company, combines deep psychology insights with cutting-edge AI and machine learning to drive stra- tegic growth in multiple industries. At BPS AI Software, he pioneers custom AI solutions, leading the charge in soft- ware innovation and technology integration since 2017. CONTINUED ON PAGE 20 David Wiens

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July 29, 2024

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Mesirow Currency Management Expands Global Trading Team Chicago, Illinois based Mesirow, an independent employ- ee-owned financial services firm, announced that Alex Foreman has joined Mesirow Currency Management’s trading team from Russell Investments. Foreman brings

SuperCorrExpo (CONT’D FROM PAGE 18)

BCN(US)202308(QS1025)(o)(出血5mm).pdf 1 2023/8/28 下午 01:53:57 The Corrugated Classic Golf Tournament on Septem- ber 8 will span two courses: Hawk’s Landing Golf Course and Disney’s Lake Buena Vista Golf Course. Courses will be assigned based on random selection for a challenging, fun-filled day amidst beautiful scenery. Register at supercorrexpo.com . Concurrently, as General Manager at Budget Box since 2017, David has spearheaded process improvements and AI integration, significantly enhancing operational efficien- cy and profitability. His career highlights include roles as Vice President of Franchise Development at Care Hotel Group and Regional Business Manager at Sonoco, demon- strating a diverse expertise in leadership and process op- timization. David’s academic foundation in Clinical Psy- chology from The University of North Texas, coupled with certifications in AI, Prompt Engineering, and White Hat Hacking, positions him at the forefront of AI application and cybersecurity. A published author, his works include “ChatGPT Decoded” and “Advanced Prompt Engineering Techniques,” underscoring his commitment to advancing AI knowledge and application. Other highlights include the keynote speakers: New York Times Bestselling Author Shawn DuBravac, Jake Hall, aka The Manufacturing Millennial, and Pro Football Hall of Famer and broadcaster Cris Carter. The special event will be the Rock Star Experience at the House of Blues.

12 years of strategy and execution ex- pertise and joins a skilled trading team that averages over 20 years of experi- ence and serves a global institutional client base on a 24-hour basis. “We’re excited to have Alex join the team,” said Joe Hoffman, CFA, CEO of Mesirow Currency Management. “Last

Alex Foreman

year our trading volume exceeded $715 billion and our AUM has continued to increase every year for the past ten years. Our commitment to our clients is our top priority, and we’ve been happy to be able to add new team mem- bers to the group as our client offerings have expanded and our long-term partnerships with institutions around the world have grown.” Before joining Mesirow, Alex spent over a decade at Russell Investments as a currency portfolio manager and FX trader. In his roles, he specialized in customizing solu- tions for clients and identifying ways to minimize transac- tion costs.

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Rethinking Conveyor Solutions

Northwest Paper Box (CONT’D FROM PAGE 1)

for heavier industrial parts, the triple-slide box consisted of three overlapping boxboard sleeves that essentially locked in the product. “Portland was a hub for Warn In- dustrial winches, and triple-slides were designed to car- ry heavy things,” he explains, adding that this style of box was common before die cutters became standard equip- ment in paperboard converting operations. “Most people have gone to die cuts now; the triple-slide was a really good package, but it was far more labor-intensive than a die cut.” From the get-go, the new company was a family affair: Van, Betty, Bud, and Elsie ran the business, and when Van and Betty’s sons and their daughter, Debbie, were old enough, they worked, too. “All of the family worked there at different times, begin- ning when we were pretty young,” says Brad of his broth- ers Rod and John and sister, Debbie Guzie. “Sometimes

truck filled with equipment, Van and Bud submitted a suc- cessful bid. “They found out how much the competition was offering,” Brad says. “So, they bid $1 more, and the next day, they started.” The Van Allens named their company “Northwest Pa- per Box,” a tribute to their geography and their way of differentiating themselves from their competitors, Pacific Paper Box and Grigsby. It was also a sign to the market of the new company’s reach. The rich and diverse industrial base of the Pacific Northwest drove the company’s early growth. From its early location in Portland, NWPB served several industries, from food to metal stampings to com- mercial printing. NWPB’s early success was founded in setup box spe- cialty boxes and corrugated “triple-slide” boxes. Designed

my dad would bring home piecework for the whole family to do while watching TV— you know, jewelry boxes that get a piece of cotton in them or special inserts. He’d have this whole little setup for us.” Brad and his brothers all came into the business at different times. Brad, the eldest, joined in 1981. After getting his en- gineering degree from Oregon State Uni- versity, he went on to Indiana University for his MBA in finance. From there, he joined White Motors in Cleveland, Ohio, and Farmington Hills, Michigan. “I learned a lot during that time,” he says, adding, “I moved back because my dad started having health problems. I was 27 at the time.” Rod, now a vice president, was the next brother to join the business in 1983. He re- ceived his industrial engineering degree from Oregon State University and spent two years working for Kraft Foods in Bue- na Park, California. “I was doing efficiency studies, layouts, and modifying work stations,” he says. “I joined Northwest Paper Box in 1983 after my father passed away.” John, also now a vice president, is the youngest of the three brothers. He attend- ed Santa Clara University in California, where he earned a business degree. He joined the company in 1987, after a brief career in the commodities business in San Francisco; now, his focus at Northwest Pa- per Box is sales and marketing. “Being the best looking of the brothers, it became apparent that they had faces for accounting and production, but not to be out amongst customers,” John recalls.

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CONTINUED ON PAGE 24

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SINCE 1955

Northwest Paper Box (CONT’D FROM PAGE 22)

“I was not thrilled with the high-pressure sales arena of the commodities trade, and I was looking for a slow- er-paced living environment.” In the late 1980s, the three brothers decided to expand their footprint beyond setup boxes. “At the time, the rig- id box business was not a growth business,” John says. “We brothers wanted to continue to work together, and we chose corrugated as a logical expansion.” It was not an auspicious beginning, according to Brad. “So, we opened up a plant to do corrugated and promptly lost our shirts. We had no idea what we were doing.” The Van Allens began their bumpy ride into corrugat- ed in a separate 20,000-square-foot building with a few pieces of rudimentary equipment: a 50″ two-color printer slotter, a laminator, and a die cutter. Once the kinks were worked out, says Brad, things began looking up. “We thought we knew what we were doing at the start, but you know, there’s a learning process,” he concedes. “After we got our stuff together about how to price things, how to run things, we started making a little bit of money.” That early profitability prompted the Van Allens to look for additional converting capacity in better equipment and, if the opportunity arose, to look for companies that may be interested in selling. Brad found both. “We found another company called Taylor-Made Pack- aging that did corrugated boxes,” he says. “They had a

jumbo. We didn’t. They’d been in business a long time and were profitable, but the majority owner wanted to get out of the business.” After the acquisition of Taylor-Made in 1993, the Van Allens consolidated their corrugated and their setup box businesses in one location in the Swan Island Basin indus- trial area northeast of downtown Portland—a location they occupied until April 2023. It was during the 30 years at what Brad calls simply “the Basin” plant that the company Northwest Paper Box Euro Dong Fang crew, from left, Jeffery Dunn, Supervisor Daniel Raya, and Jacob Farrell.

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continued to acquire equipment for both sides of their operations. “We were limping along with our printer-slot- ters and hand gluers, and we went to an AICC meeting and met Gene Wicks [former owner of Boxes Inc. in St. Louis]. He had bought a Langston Saturn III flexo fold- er-gluer, and he said, ‘We can run the hell out of this thing and swiftly change from one order to the next.’” Brad credits NWPB’s membership in AICC for help- ing the brothers make prudent capital equipment invest- ments. He recalls meeting Jim DeLine and Jim Davis of DeLine Box and Kevin Hartney of Peoples Capital at a meeting in Chicago. “My brother, John, and I went to the meeting, and those guys kind of double-teamed us,” Brad says. “We weren’t married then; we were just a couple of single guys trying to figure out what the hell’s going on. They took us in and made sure we got to meet everyone. Kev- in Hartney was a great advisor who helped us make the decision to purchase a new Saturn flexo folder-gluer from Langston’s Ken Normann.” NWPB’s growth from that point required additional investment in converting capacity in its corrugated and setup box divisions. Initially, says Brad, the choice was used. “We bought other used equipment,” he says, “but we felt like it was all going to be a problem going forward, so [we] started buying new.” Rod looks after the equipment side of the business. CONTINUED ON PAGE 26

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July 29, 2024 25

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Northwest Paper Box (CONT’D FROM PAGE 25)

Board Converting NEWS INTERNET DIRECTORY

“Rod is an engineer,” says Brad. “Anytime we do any kind of machinery or moving things around, he gets involved.” The company’s machinery acquisition philosophy is multifaceted, as Rod explains. “There are a number of things we look at when considering capital expenditures,” he says. “First, we want to know if there will be gains in production efficiency, quality, and safety. Then we ask, ‘What sort of ROI can we expect?’ Or perhaps we can fill a niche where there is market demand and we could bet- ter serve that demand. Finally, we look at the availability of replacement parts and ongoing technical support via in-person visit or remote troubleshooting.” With these criteria employed, NWPB has built up a re- spectable arsenal of converting firepower: On the corru- gated sheet plant side, an Apstar 6-color rotary die cutter; a Langston Saturn III 3-color and an EDF Europe Encore 4-color flexo folder-gluer; a Bobst specialty folder-gluer; an Eterna die cutter; and a Universal 74″ printer-slotter. On the setup box side of the business, NWPB has five Emmeci setup box machines, multiple Crathern & Smith HNS setup box-wrapper lines, and ancillary equipment such as shrink wrappers. Growing the setup box business in a static market chal- lenged the company to look for viable acquisition targets in the Pacific Northwest. Brad credits his AICC connec- tions with the guidance they needed at the time for val- uations and structuring the deals. “We had a really good banker we were working with, and then we also had Mitch Klingher of Klingher Nadler LLP to talk to. We were talking about how to structure a deal, and over time, I learned some of these things,” he says. “Now, having bought four companies in the last 40 years, they have been important for our growth.” The chronology of the acquisitions goes like this: In 1995, NWPB bought the setup box assets of Grigsby Pa- per Box. In 1998, NWPB acquired the setup box assets of Pacific Paper Box. Then, in 2016, NWPB acquired the as- sets of Universal Paper Box in Seattle, a move that opened up the larger Seattle-Tacoma market, where Brad says there’s “way more business.” “With these acquisitions, we have basically consolidat- ed the setup box business in the Northwest,” he adds. The growth in volume eventually caught up with NWPB at its longtime location in the Basin industrial area in Port- land. “Eventually, we felt like we had to do something to get more room to manage this volume,” Brad says. “At one time, we had 20 truckloads of material outside for most of the summer because we could not process it fast enough through our plant. We moved our hand-fed die cutters around the building 14 different times to squeeze things in there and add new equipment, but in the end, it just was not an efficient plant. This, combined with our expiring lease and an increasingly unfavorable business climate, property tax structure, and crime near our facility, made us

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