RRD Reduces (CONT’D FROM PAGE 22)
tion’s supply executives in the latest Manufacturing ISM Report On Business. The report was issued by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee: “The Manufacturing PMI registered 49 percent in March, 1.3 percentage points lower compared to the 50.3 percent recorded in February. The overall economy con- tinued in expansion for the 59th month after one month of contraction in April 2020. (A Manufacturing PMI above 42.3 percent, over a period of time, generally indicates an expansion of the overall economy.) “The New Orders Index contracted for the second month in a row following a three-month period of expan- sion; the figure of 45.2 percent is 3.4 percentage points lower than the 48.6 percent recorded in February. The March reading of the Production Index (48.3 percent) is 2.4 percentage points lower than February’s figure of 50.7 percent. The index dropped back into contraction after two months of expansion, with eight months of contraction before that. The Prices Index surged further into expan- sion (or “increasing”) territory, registering 69.4 percent, up 7 percentage points compared to the reading of 62.4 per- cent in February. The Backlog of Orders Index registered 44.5 percent, down 2.3 percentage points compared to the 46.8 percent recorded in February. The Employment Index registered 44.7 percent, down 2.9 percentage points from February’s figure of 47.6 percent. “The Supplier Deliveries Index indicated a continued slowing of deliveries (though at a slightly slower rate of change), registering 53.5 percent, 1 percentage point low- er than the 54.5 percent recorded in February. (Supplier Deliveries is the only ISM Report On Business index that is inversed; a reading of above 50 percent indicates slower deliveries, which is typical as the economy improves and customer demand increases.) The Inventories Index regis- tered 53.4 percent, up 3.5 percentage points compared to February’s reading of 49.9 percent. The index returned to expansion after six months of contraction. “The New Export Orders Index reading of 49.6 percent is 1.8 percentage points lower than the reading of 51.4 percent registered in February. The Imports Index contin- ued in expansion in March, though just barely, registering 50.1 percent, 2.5 percentage points lower than February’s reading of 52.6 percent.” Fiore continues, “In March, U.S. manufacturing activity slipped into contraction after expanding only marginally in February. The expansion in both February and January fol- lowed 26 consecutive months of contraction. Demand and output weakened while input strengthened further, a neg- ative for economic growth. Indications that demand weak- ened include: the New Orders Index falling further into contraction territory, New Export Orders Index dropping into contraction, Backlog of Orders Index contracting at a faster rate, and Customers’ Inventories Index remaining in “too low” territory. Output (measured by the Production CONTINUED ON PAGE 26
transportation and storage. They found their current car- bon footprint to be unacceptable, and desired the lower freight costs that would come with a potential packaging redesign. Ultimately, the brand sought an experienced partner to help source new packaging design ideas and sustainable materials. A longstanding relationship with several RRD business units led the brand to entrust RRD’s packaging experts to overhaul their packaging. RRD worked with internal client teams to develop time-saving, environmentally-friendly solutions for their packaging needs by producing a shirt-
style box—a flat folded box—made with solid unbleached sulfate (SUS) paperboard, which contains fewer chemicals than the SBS stock. The resulting SUS-constructed box is strong, durable, and in adherence with food packaging in- dustry standards. RRD also eliminated the freight concerns of the rigid and taped boxes with a flat-ship box design. Because the boxes ship flat and are now regionally sourced, five few- er trucks are required per order, leading to lower carbon emissions per shipment. The brand’s original fruit box design was too tall and narrow for the updated shirt-box style, so RRD designed a new one-part auto-bottom box with the same advantag- es. This all-in-one style consolidates the box into one SKU, and its effortless pop-up style simplifies assembly. To complement the fiberless SUS stock, the fruit box- es contain water-based glue for enhanced recyclabil- ity. The boxes are made without plastic or tape, making them 100 percent curbside recyclable. They also include environmentally-friendly coated natural kraft paperboard visible to the end-consumer. RRD said its comprehensive packaging solutions provided freight optimization, with 83 percent lower freight costs, and an average of five fewer trucks per order—reducing the required storage space by a factor of six.
Manufacturing PMI Slips To 49 Percent As Economy Expands
Economic activity in the manufacturing sector contracted in March after two consecutive months of expansion pre- ceded by 26 straight months of contraction, say the na-
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April 7, 2025
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