May 4, 2026
VOL. 42, NO. 18
BoardConverting Serving the North American Corrugated and Folding Carton Industries Since 1985
AICC Panel Discussion Reveals True Independent Spirit BY GREG KISHBAUGH The spirit of the integrated corrugated converter was on full display during a roundtable session at the recent AICC Spring Meeting in Carls- bad, California. Moderated by Joseph Morelli of The Morelli Group, the panel included Greg Tucker, Chairman and CEO, Bay Cities Packaging; Chad Wagner, CEO and President of Peachtree Packaging & Display, Lawrenceville, Georgia; Larry Grossbard, President, President Con- tainer, Moonachie, New Jersey; and Mike Schaefer, President, Tavens Packaging, Cleveland, Ohio.
Pratt Industries Expands In Mid-Georgia, Adds 180 Jobs Atlanta, Georgia based Pratt Industries has announced an expansion at its corrugated box plant in Warner Robins, a 496,000-square- foot facility that began operating late last year. Approximately 180 jobs are expected to be added across the region as the compa- ny builds out both manufacturing and ware- house capacity. The Warner Robins plant produces boxes from 100 percent recycled containerboard and was positioned at launch to support ag- ricultural packaging demand, particularly for fruit and vegetable producers in the region. State and federal agriculture officials attend- ed the grand opening at the site on Robins International Boulevard, underscoring its role in the area’s supply chain. The 180-job figure was reported April 27 by the Atlanta Business Chronicle, which tied the roles to Pratt’s broader Middle Georgia expansion. Hiring is already underway, with current job openings for the Warner Robins facility posted, including machine operators, maintenance technicians, and quality techs. Pratt’s investment extends beyond the box plant. In Moultrie, local officials approved an
Discussions around volatility in marketplace pricing, the challenges (and importance) of training staff and the necessity of tapping into the indomitable force of the independent converter were all tackled. Morelli: Volatility in market conditions continues to be a topic of conversation in the industry. How should independent corrugators op- erate in these conditions? Grossbard: When it comes to fluctuation in paper pricing, it is some- thing the independents have learned to deal with. The way we look at it is: bring it on. There is nothing bad about volatility. The best time to be in the corrugated market, I believe, is when prices are fluctuating. As an independent buyer, we have a lot of options. We’re not like the integrated companies that must buy from themselves. If pressed, you can find producers in Europe that could save you more than $20 a ton. There are plenty of suppliers domestically where you can find a better price. CONTINUED ON PAGE 20 The panelists, from left: Mike Schaefer, Larry Grossbard, Chad Wagner, and Greg Tucker.
CONTINUED ON PAGE 3
WHAT’S INSIDE Buckeye Installs Essential Equipment At New Reno Facility Diamond Packaging Turns Sustainability Into Action 14 TRG Installs First BHS Digital Preprint Press In U.S. 18 Koenig & Bauer, Rigorous Deliver Postpress Performance 6 x x 8 x x 12 x x 26 x x
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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
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expansion at a company warehouse on Industrial Drive aimed at strengthening service to growers across south- ern Georgia. The project is expected to add additional full- time positions and further integrate packaging supply with regional agriculture. The Warner Robins project itself has been in motion for several years. The Georgia Department of Economic De- velopment previously identified it as a roughly $120 mil- lion investment expected to bring more than 125 jobs to Peach County, part of a broader effort to position the state as a packaging and logistics hub in the Southeast.
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AF&PA Releases Q1 2026 Containerboard Report
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The American Forest & Paper Association (AF&PA) has re- leased the Q1 2026 Containerboard Quarterly report. According to the report, total containerboard produc- tion in Q1 2026 decreased 8 percent compared to the same quarter in 2025 in line with similar reductions in capacity. Operating rates remained essentially flat (-0.1 points) over the same period.
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• Recycled linerboard production reached a record high in March, though lower unbleached kraftliner output drove total liner production down 9 percent for the quarter. • Census-reported export shipments declined 19 percent in Q1 2026 versus the same quarter last year, due in part to evolving trade dynamics. • Mill inventories at the end of Q1 2026 are 3 percent lower than at the end of Q4 2025.
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Buckeye Installs Essential Production Equipment At New Reno Facility Reno, Nevada based Buckeye Corrugated, Inc. (BCI) has announced the installation of essential production equip- ment at its new facility in Reno. This marks a significant step forward for BCI in delivering faster and more efficient packaging solutions to customers across the West Coast. The phased installation includes a conveyor and unitiz- er system, die cutter infrastructure, CAD table, folder gluer, and a multi-color die cutter — each playing a vital role in building a fully integrated, high-performance corrugated manufacturing operation. BCI has already completed installation of its conveyor and unitizer system, which streamlines material flow and
automates the bundling and stacking of finished products. This system improves production efficiency, reduces manual handling, and ensures consistent quality — en- abling faster turnaround times for customers. Infrastructure is in place for the die cutter, with pits pre- pared to support installation ahead of a 3-color die cutter coming online in mid to late May. The system is also being installed with two additional tracks to accommodate future expansion to five-color printing. This advanced equip- ment enables precision structural cutting for custom box designs, retail-ready packaging, and protective solutions, while integrating high-quality printing to deliver visually impactful packaging with faster production speeds and fewer production steps. BCI will soon install its CAD table, a critical component for structural design and prototyping. This technology al-
lows for rapid development and testing of packaging concepts, enabling customers to move from idea to production more quickly while optimizing materials and performance. Installation of the J&L folder gluer will further enhance BCI’s ability to produce complex corrugated designs at scale. This equipment enables high-speed folding and gluing of packaging components, support- ing efficient production of specialty boxes, displays, and high-volume runs with consis- tent quality. Together, these investments position BCI’s Reno facility as a fully integrated man- ufacturing hub designed to meet the evolv- ing needs of West Coast retailers. By bringing design, production, and fin- ishing capabilities closer to key markets, BCI enables customers to: • Reduce lead times and improve speed- to-market. • Lower freight costs and minimize supply chain complexity. • Increase packaging flexibility for product launches and promotions. • Improve packaging performance through engineered, tested solutions. President Enterprise Sales, BCI. “From faster prototyping to high-speed production and integrated printing, this facility is de- signed to help brands move faster, operate more efficiently, and compete more effec- tively in today’s market on the West Coast.” BCI’s Reno expansion reflects BCI’s com- mitment to delivering American Sourced & Made packaging solutions that align with today’s supply chain demands. Buckeye has planned a Grand Opening and Innovation Showcase for Friday, June 12th at the new facility. Those interested in attending must register at bcipkg.com .
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Turn Trim Waste into Revenue One Size Never Fits All G.F. Puhl Designs Scrap Systems to Meet YOUR Needs
Our customers have various needs for scrap and dust collection systems based on several factors including building layout, available space for the equipment, distance conveyed, local codes for noise and height as well as air permitting and available operating and maintenance staff. Change the game with a custom-designed system by G.F. Puhl. It can make all the difference. When it comes to trim collection systems, there’s virtually no problem we haven’t solved.
Problem: No room for a scrap system inside the building. Solution: If your building footprint won’t support additional trim waste equipment, go outdoors. Exterior systems like an above-roof or ground-level concentrator will boost your capacity. Problem: No way to monitor the system unless you’re on site. Solution: G.F. Puhl leads the pack with proprietary technology that makes it possible to monitor the system from wherever you are. Request PLC touch screen controls with real-time pressure balancing and real-time remote via your smart phone or computer. G.F. Puhl’s expert engineering team has more than 50 years of combined experience designing, fabricating installing, and commissioning trim and dust collection systems of every kind, including outdoor systems with dual compactors, above roof systems with single or multiple cyclones and balers and below roof screen separator systems. If you’re looking for a vendor that can help you solve the scrap collection puzzle once and for all, contact G.F. Puhl today. 615.230.9500 or sales@gfpuhl.com
Problem: No space for a baler room. No budget for baler room staff. Solution: Try outdoor auger compactors requiring minimal operator interaction. Auger compactors achieve higher compaction than conventional ram compactors with less maintenance and no hydraulic fluid. Dual compactor systems allow continuous running while the waste hauler is changing out the container. Problem: No budget for a new system. Solution: Request a custom system with remanufactured equipment. G.F. Puhl sells remanufactured balers, blowers, separators, filters, and more. The savings can be significant and the warranty adds peace of mind. Problem: Your existing system doesn’t meet codes and the inspector has notified you of a problem with the existing system. Solution: G.F. Puhl’s NFPA trained engineering team designs NFPA and OSHA compliant systems that are as safe as they are durable. Problem: Dust is out of control. Solution: G.F. Puhl systems are designed to minimize the hazards created by ambient dust. Dust briquetters, certified explosion isolation valves, flame front diverters, and other safety features maximize safety.
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Diamond Packaging Turns Sustainability Into Action BY PAPERBOARD PACKAGING COUNCIL
Sustainability is often framed as a trade-off. Reduce impact but increase cost. Improve recyclability but add complexity. At Diamond Packaging, it’s approached differently: not as a constraint, but as a design challenge. This Earth Day, that distinction matters. For years, Diamond Packaging has embedded sustainability into the design, production, and delivery of packaging. What began as a focus on reducing environmental impact has evolved into something more in- tegrated: a business model where sustainability drives innovation, per- formance, and long-term value. More Than A Commitment: A Way Of Operating At Diamond, sustainability is built into the business’s operations. “Sustainability at Diamond isn’t theoretical. It’s operational, measurable, and directly tied to how we create value for our customers,” said Dennis Bacchetta, Marketing & Sustainability Director.
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That definition is intentional. Diamond views sustainability through a broader lens, one that connects environmental, social, and economic outcomes, which they often describe as delivering “Beauty without com- promise.” That mindset didn’t happen overnight. An early turning point came in 2007, when Diamond committed to 100 percent renewable electricity, becoming one of the first U.S. folding carton suppliers to do so. The move did more than reduce emissions. It fundamentally changed how the company thought about production, shifting the focus from incre- mental improvement to system-wide transformation. That thinking carried forward into initiatives like Zero Waste to Land- fill, where waste was redefined as a resource. By building local partner- ships and redesigning internal processes, Diamond now diverts virtually all manufacturing waste from landfill, with portions of that material return- ing to the supply chain as new products. What ties these efforts together is a clear structure. Diamond’s ap- proach is built around three pillars: designs, materials, and methods, ensuring sustainability is embedded at every stage of the packaging lifecycle. Designing For What Comes Next For Diamond, sustainability begins at the design stage. Packaging is CONTINUED ON PAGE 10
• No pressure fluctuations within the system • No compressed air required to clean the filter media
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SIMPLE DESIGN, SOPHISTICATED TECHNOLOGY & EASE OF MAINTENANCE Engineered Recycling Systems takes decades of engineering experience and integration expertise to provide turnkey solutions. We design, service and install world-class recycling trim removal and dust control systems. By providing our customers with equipment and system designs that deliver unprecedented levels of quality and craftsmanship, our solutions increase efficiency and cut labor costs.
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Diamond Packaging (CONT’D FROM PAGE 8)
Where Execution Gets Challenging Even with a clear strategy, implementation is complex. One of the most persistent challenges is balancing sus- tainability, performance, and cost, particularly in premium packaging, where aesthetics are critical.
engineered to reduce material use while improving recy- clability, ensuring that environmental gains do not come at the expense of performance. Material choices are guided by responsible sourcing, with an emphasis on FSC-certi- fied and recycled inputs, supported by greater transparen- cy across the supply chain. At the same time, production methods continue to evolve through renewable energy, zero-waste operations, and ongoing process improve- ments that lower emissions and increase efficiency. “Sustainability has evolved from a trend to an expec- tation, and now to a legal, financial, and consumer-driven imperative,” Dennis noted. Proving It With Results At Diamond, progress has come from aligning inno- vation, operations, and partnerships around a shared ap- proach. That alignment has led to measurable outcomes, from eliminating market-based Scope 2 emissions through renewable energy to diverting nearly all manufacturing waste from landfill. Structural design improvements con- tinue to reduce material usage, while expanded data col- lection is improving visibility across Scope 1, 2, and 3 emis- sions. What makes these efforts effective is their intercon- nectedness. Each improvement reinforces the next, creat- ing efficiencies that extend beyond sustainability to cost, performance, and resilience.
“Our customers expect high-end decoration, so the question isn’t just ‘Is it sustainable?’ but ‘Can it deliver the same brand impact?’” Dennis explained. Diamond’s response has been to invest in design inno- vation rather than compromise. Early work, such as Green Chic™ packaging, demonstrated that luxury presentation and environmental responsibility can coexist, using ad- vanced in-line decorative technologies without adding un- necessary materials.
CONTINUED ON PAGE 12
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Diamond Packaging (CONT’D FROM PAGE 10)
Other challenges have required a different approach. Improving the accuracy of Scope 3 emissions data has meant working closely with suppliers to move from broad estimates to more precise, product-level insights. Aligning the supply chain has required setting clearer expectations around transparency and collaboration. And navigating evolving regulations, from recyclability standards to glob- al reporting frameworks, has reinforced the importance of flexibility and credible, data-backed claims. Diamond has treated complexity as a catalyst for improvement. Meeting Higher Expectations As sustainability expectations evolve, so do the de- mands placed on packaging. Today’s brands are looking for solutions that are not only recyclable but optimized for recyclability. They expect
reduced material use, improved recovery in real-world systems, and greater transparency across the product’s entire lifecycle. “Customers are looking for partners who can turn sus- tainability into practical, scalable solutions,” Dennis said.
That shift is pushing the industry forward— and raising the bar for what packaging must deliver. Making Sustainability Tangible While much of this work happens behind the scenes, Diamond is equally focused on making sustainability visible and accessible. Through its long-standing Earth Day partnership with the Seneca Park Zoo, now in its 12th year, and its involvement in PPC’s TICCIT program, the company is helping connect sustainability to real-world experi- ences. Each year, these initiatives bring to- gether hundreds of children and families to plant trees, create pollinator habitats, and learn about recycling and renewable ma- terials. Programs like TICCIT make sustain- ability tangible, showing how paperboard packaging fits into a circular system. These efforts help build trust, shift perceptions, and position packaging as part of the solu- tion. Leading The Transition The opportunity for paperboard packag- ing is clear: to lead the transition to a more circular, low-carbon system—one that is scalable and measurable. Reaching that future will require contin- ued progress in design, stronger recovery systems, better data, and active collabora- tion across the value chain. It will also re- quire the industry to stay engaged as regu- lations evolve, ensuring that policies reflect real-world conditions. At Diamond Packaging, that work is al- ready underway. Sustainability is not treat- ed as a separate initiative. It is embedded in how the business operates, innovates, and grows. This Earth Day, that leadership is worth recognizing.
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TRG Installs First BHS Digital Preprint Press In U.S.
The Perfect Combo Get Peak Performance From Your Equipment with Matched Component Sets
Chicago, Illinois based TRG Packaging and Display Solu- tions has installed the BHS Jetliner Xceed digital preprint press, the first of its kind in the U.S. The Xceed is built to serve multiple converting loca- tions. By centralizing digital preprint production, TRG is extending advanced graphics capabilities across all 21 of its plants creating a more efficient and responsive system for customers. “This represents a significant step forward in what’s possible for corrugated packaging,” said Kevin Miller, CEO of TRG Packaging and Display Solutions. “Xceed allows us to deliver high-impact graphics at speeds and volumes that align with modern supply chains and expands those capabilities across our network. When you combine the potential of the Xceed and the new technology, with the dedication and innovation of our employees, we are highly confident our customers are going to experience innova- tion and flexibility that is unmatched.” Customers are demanding more flexibility in their pack- aging supply chain, with faster turnarounds, multi-SKU programs, frequent design refreshes, and the need for ag- ile printing solutions. Xceed’s digital preprint technology delivers variable data, serialized elements, and depend- able color consistency while cutting setup time and reduc- ing material waste compared with traditional plate-based methods. Unlike conventional approaches that require each plant to maintain its own high-graphic print capability, TRG’s model makes digital preprint a shared, centralized resource that supports its wider converting network. Dig- itally printed rolls and sheets can be produced centrally and routed as needed, enabling all facilities to handle high-graphic work. According to TRG, this approach boosts flexibility across the manufacturing system, helps balance work- loads, reduces redundancies, and improves the use of ad- vanced print assets. “This is about giving our customers more options with- out adding complexity at every plant,” Miller said. “We can extend high-graphic capability system-wide while main- taining speed and consistency.” TRG is quick to note that the Xceed is not meant to replace existing print technologies. Instead, the company remains print-agnostic, choosing the best process based on the needs of each job, including quality, speed, cost, and logistics. Beyond the technology, TRG says the real success of the Xceed initiative will come from its people, its opera- tional expertise, and its ability to execute across the net- work. With the right mix of team, strategy, and process, TRG is poised to deliver more than expanded capability; it’s opening the door to greater flexibility, more options for customers, and new opportunities for long-term growth.
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Baumer hhs Appoints Cuata New Head Of Global Sales
German adhesive and quality assurance company Baum- er hhs has appointed Gustavo Cuata as its new Head of Global Sales. Cuata brings 25 years of international experience from the automotive, packaging, and automation industries.
Throughout his career, he has led global sales initiatives, sustainably expanded market presence in var- ious regions, and built high-per- forming teams in dynamic and highly competitive markets. With his deep understanding of international markets and indus-
Gustavo Cuata
try-specific dynamics, Cuata consistently pursues one goal: sustainable profitability and long-term value, for both customers and the company. His focus is on identifying growth potential, implementing customer-centric strate- gies, and ensuring long-term business success. “I am passionate about driving international growth, building sustainable partnerships and achieving measur- able results in an increasingly complex global environ- ment,” said Cuata. Everything Moves In A Box: CCCA Debuts Redesigned Website The Canadian Corrugated and Containerboard Asso- ciation (CCCA) has launched its redesigned website to highlight the role of corrugated packaging across supply chains with the motto, ‘Everything Moves in a Box.’ “Virtually every product from farms or factory floors to stores or front doors passes through a box at some point along its journey,” the association noted. The launch follows last year’s appointment of a new executive director, Serge Desgagnés, along with a new mandate, board chair Adam Pauwels and board members. As the broader pulp and paper sector contributes ap- proximately $25 billion annually to Canada’s GDP and more than 27,000 jobs, 10,000 of those jobs reportedly come from CCCA member companies. Further, Canada’s corrugated packaging system is un- derpinned by a long-established, domestic circular econ- omy, as used boxes are recovered through municipal and commercial collection programs, recycled and remanu- factured, often multiple times. High recovery rates help ensure a steady supply of material while offsetting landfill waste. With that in mind, the new CCCA website connects stakeholders to sustainability information via Canada’s Paper and Paperboard Packaging Environmental Council (PPEC), including data on recycling performance, circulari- ty outcomes and sustainable fibre sourcing.
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Koenig & Bauer, Rigorous Technology Deliver Postpress Performance Koenig & Bauer is taking the lead in introducing automat- ed finishing solutions to encourage speed, efficiency, and reduced labor costs. With the ongoing escalating demand for sophisticated and efficient finishing processes across diverse printing and packaging applications, its preemi- nent line of die cutters and folder gluers display the high- est advances in technology, which lead to more versatile and precise finishing products. To further empower the postpress department, Koenig & Bauer has formed a strategic partnership with Rigorous Technology, a Williston, Vermont based robotics and tech- nology company, to provide its unique RIG palletizer robot for the corrugated and folding carton markets to use in conjunction with Koenig & Bauer’s popular line of folder gluers.
need to get full performance from a folder gluer without requiring decades of specialized experience,” says Diane Abruzzini, chief operating officer at Rigorous Technology. “Our primary product used by Koenig & Bauer custom- ers is the RIG palletizer, which is designed for ease of use and flexibility to support postpress operations. In a matter of minutes, RIG can switch from one folder gluer line to another by moving between lines on a mobile cart that car- ries its entire safety system and uses vision technology to calibrate itself to the new station.” What are the main factors driving automation adoption for postpress equipment? Printers and packaging firms are seeking greater efficiency to reduce bottlenecks, de- crease manual labor costs, minimize waste, and improve speed through faster setups to meet tighter delivery dead- lines. As a leader in developing new integrated automated technology, Koenig & Bauer is pleased to offer a variety of breakthrough solutions for folding carton production for packaging printers, converters, and commercial printers. The CutPRO Q 106 flatbed die-cutter offers many automat- ed features such as the Magic Carpet for non-stop produc- tion. Unlike any system in the market, Magic Carpet saves an impressive 10 to 15 minutes at minimum per makeready. Automation is shifting standalone machines to integrat- ed workflows, which optimize the entire postpress produc- tion chain, says Fitzgerald. Long considered a leading data hub for print production, Koenig & Bauer’s LogoTronic has been elevated to integrate all of a firm’s postpress equip- ment on one platform. Now, folder gluers can receive the same information as a press providing a workflow solution to reduce makeready times and increase run speeds. Preset functions on its glu- ers boosts productivity and relieves operators of routine tasks while significantly reducing waste. Automated guided vehicles (AGVs) are becoming more popular since they offer a solution for optimizing internal logistics. These transport systems are a key asset in a highly automated packaging operation. Since the partnership between the two companies was established a year ago, Rigorous has helped Koenig & Bauer corrugated and folding carton customers become more efficient and stay competitive with advanced, us- er-friendly robotic solutions. The RIG palletizer is giving these manufacturers a fast ROI while automating their pal- letizing process. “As we meet with Koenig & Bauer customers, we find that some have general experience with robotic automa- tion but don’t feel they’ve hit a home run or found a ven- dor who truly understands their business and the types of products in their postpress department,” says Abruzzini. “There is strong interest in moving forward with auto- mation and finding the right partner who understands their goals and meets their specific requirements.” Rigorous Technology will be joining Koenig & Bauer at AICC/TAPPI Corrugated Week 2026 scheduled for Sep- tember 28-30, 2026, in Fort Worth, TX.
“Over the past five years, there has been a significant push within the industry toward increased automation in postpress equipment, driven by customer demand and a shrinking pool of trained employees,” says Tom Fitzgerald, director of postpress and corrugated products at Koenig & Bauer (US). “In the past few years, top operating speeds have more than doubled due to many technological advancements including new servo technology, automated set ups, and inline quality control tools to ensure consistent through- put. However, to achieve these higher speeds, printers and packaging firms must, at a minimum, install automated packing systems on the back end and robotics on the front end such as batch inverter pre-feeders or robotic palletiz- ers with auto packers.” “Like Koenig & Bauer, we focus on automation that boosts speed and consistency, giving teams the tools they Tom Fitzgerald, director of postpress and corrugated products at Koenig & Bauer (US), left, meets with Diane Abruzzini, COO of Rigorous Technology and Colin Riggs, CEO of Rigorous Technology at their facility in Williston, Vermont.
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AICC Roundtable (CONT’D FROM PAGE 1)
it’s about paper consumption. Fundamentally two different approaches to the business, which is fine. But I think with continued consolidation, it opens up opportunity for us to go solve customers’ problems and gain market share ver- sus just consuming paper. Grossbard: This is an excellent time for the indepen- dent. Everybody that’s left in the AICC, we know who we are. The people that cashed out over the years, they’re gone. The people that were weak got absorbed, and the people that are left in this market, in this association right now, are all strong. Some want to specialize on smaller plants, smaller lots. Some want to operate a big plant like we have. Some com- panies specialize in displays. Some want to do marketing. The ones who remain in the fight, we are here as long as we want to be here. And we can take anything that they throw at us because we’re faster, more nimble, quicker to market, and we offer better service. We’re picking the inte- grateds’ pockets because we do a better job at servicing customers. When independents get bought out by these larger companies, they often lose the owner involvement. This affects the service because they don’t have the heart and the drive they had when it was individually owned. So, I think the independents can take anything thrown at us and we’re in great shape, especially everybody in this association, because we know what we are, we know what we can do, and we do it better than the integrateds. Wagner: For us, it’s service and solutions. That’s what we hang our hat on, and that’s what we work on every single day. We have intimate relationships with our cus- tomers, all the way to the owner, and our service and our solutions are what we’re there to do. We’re not a box pric- ing entity. So, solutions, relationships, and value. Tucker: We have an unfair advantage to win in the mar- ketplace because basically we help the consumer buy a product and we help the manufacturer sell a product at retail. And what we have is just a box, it’s got to go seven steps to retail, 18 steps to your door. We got to make it pretty so you can buy it, you understand what it is inside of it. The package is the product, and now the party’s inside of the box when you bring it home. I also see right now, all the graphic people and people putting ink on paper are busy. People that are more in the graphic end are really, really busy right now. Morelli: The integrateds removed capacity. Why hasn’t that translated into stronger pricing? Tucker: I think we’ll see it. We have to recoup a lot of costs coming in the door. Everyone has labor increases, insurance increases, property leasing increases. Transpor- tation costs are up. It’s a highly, highly inflated market out there for producers. Grossbard: That’s why the increases are not a bad thing because we pick up the points, pick up the margins to offset some of these labor costs, transportation costs,
Independents make up five percent of the market, so we do not control the narrative. We react to the market- place. But what we do control is our operations. We con- trol our sales effort. We control our production effort. We control our manufacturing facilities. If we just pay attention to what we can control, we can take the increases and decreases as they come, and we’re going to do great. Schaefer: The story we have to tell as independents is different than the story that the big guys get to tell about a $70 increase. When there are price changes like this, it’s a much eas- ier time to increase your own margins, and you have to control your controllables. But at the same time, the rules are changing, and we don’t have a choice. We’re buying paper, not manufacturing it. We have to take it to the street, or our margin gets decreased. And in many cases, the big guys don’t care if their box plants make money. years of corrugated coming into COVID. We made more boxes than our factories could ever imagine making. And I see us pulling the nose of the aircraft up as we get off the carrier. We’re going to fly to new heights. I’m bullish about this year. I think we have a lot of things going for us. There’s a lot of momentum. I really believe we will go through another replenishment cycle of inventories, which have been drawn down to zero levels. We’re back to lean manufacturing and running just in time. In the United States, consumers are still buying things. And that’s startling to me. If you think about everything that we’ve gone through — including COVID — we have the most resilient consumers on the planet. And last time I checked, we are the largest consuming economy on the planet. And this consumer is a little bit pent up. They are ready to start shopping and buying a whole bunch of stuff. We have the World Cup coming to the United States. We have the Super Bowl coming to Los Angeles, and the Olympics. All these promotional opportunities are happen- ing in retail, and retail drives packaging, and the package is the product. Morelli: What is the state of the independents right now. How do we win as an independent in this market? What is our competitive advantage, and how we can ac- tually win individually? Morelli: Are we in a down cycle or are we fundamentally different in terms of the demand environment? Tucker: I believe we’re coming out of our down cycle. We’ve been in a corrugated recession for more than 2 years. We had the greatest golden Schaefer: The big guys are extracting value from a cus- tomer base, and we solve complex packaging problems. For us, it’s about our customer. Oftentimes for the big guys, Joe Morelli
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AICC Roundtable (CONT’D FROM PAGE 20)
Board Converting NEWS INTERNET DIRECTORY
energy costs. It’s not a bad thing. They took out the capacity to control the market, to control the prices. It is a supplier-driven increase, not a demand. And demand-driven increases are much easier to get through the marketplace. Supplier-driven increases are much more difficult. You’ve got to be much more dili- gent in communicating with your customers. Morelli: There’s a lot of challenge right now going on in terms of the workforce. What are some examples of ways to attract, train and engage employees? Wagner: We’ve done some little creative things. For in- stance, we work less days per week now. We run 4-day shifts and 3-day shifts. People wanted that in the plant, so we provided it. One less day to sit in traffic, put gas in your car, commute. We do a daily production bonus that’s tied to safety, quality, and productivity, so they’re more engaged and they have their hands on the wheel and they get to drive to their destiny every day. And we do a lot of extensive cross-training. If you’re running a load former, you need to learn how to drive a forklift, you need to learn how to run the mainline bander, you need to know how to tend to the baler. And all these little things that they learn when you try to cross-train the people to pick up extra skill, they make more money. So, they’re encouraged to cross-train, and then they get paid more so I have many operators in the plant that can operate almost every machine we own. Schaefer: We’re in an urban market, and we have seen the quality of candidates improve since COVID. But we really had to revamp how we train and develop people. We have a conversation regularly that we’re not in the box business as much as we’re in the people development business, because without them we can’t produce the boxes. We’ve had to really look at our internal training systems and how we’re bringing people along in order to be suc- cessful. And it’s never enough, it’s never fast enough, but we’re certainly head and shoulders above where we were after the end of COVID when our talent pool was rough because of the available labor pool and being too busy to appropriately train people. Morelli: Training employees is oftentimes time-con- suming. How do you balance that versus getting product out the door? How do you weigh that internally in terms of an ROI? Tucker: Not properly training your staff is similar to not doing maintenance. You don’t run to fail, right? If you run to failure, you don’t keep your customer very happy. Well, it’s the same with people. You don’t want to run to fail with people. You want to continue to build and build and build Grossbard: We took two different routes, one for the plant, one for the office. In the plant, we used temp-to-hire to get the people in. In the office, we used job fairs. We
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