Board Converting News, January 8, 2024

finance themselves with very high interest rates. Many of their clients are in the same boat depending on what in- dustry they may be in. “Secondarily to that, is the explosion of industrial real estate. We have seven buildings under our umbrella and a couple of those leases are coming due. We are look- ing at huge rent increases that would scare the wart off a witch’s face. Some undercapitalized businesses will get that shave and it will hurt. Thus, this next year may just be a banner year for people dumping their businesses or falling by the wayside. “I could continue on with the doom and gloom but that isn’t very much like me. I just want all of you reading this mess to understand what ground our economy is on and realize is not very firm. There are still some very good things going on for our Industry. Did I say we are in an election year? We all know Uncle Sam opens up the sad- dle bags and repositions the optics of our shaky terra firma to look like a beautiful green pasture with a meandering river cutting right through it. That will be great for us box makers. “What else is taking place is that our binging from covid and mass buildup of inventory is finally getting balanced. I don’t have the final figures for this Christmas spending season, but I think we spent like drunken pirates and may have balanced a bunch of the inventory that has been sit- ting in warehouses. This means we will begin to see the need for packaging restore itself to a steady level starting anywhere from June to August. “Also, coming from LA LA land, the writer’s strike is over and movies along with the billions of dollars spent on li- censed goods will fire up again thus we will need to build packaging for that segment. Our industry will come around and the next new normal of steadiness will occur in those few months. The chop will drop, and the industry will have some forward guidance through the rest of the year. “I also think what our integrated brothers are doing right now is brilliant. First of all, they are defying Mad Mag- azine and completely reducing the legitimacy of that rag’s reporting to rubble. The idea that Alfred E. Newman can come out and write a definitive piece on paper dropping is simply amazing. Let’s review that one. Just a few bad players who made terrible timed investments in mills in the USA with no demand and no ability to sell their wares are now the ‘market leaders’ and Alfred proposes that our market has been driven down by these imposters is as- tounding to me. Just how much of the total market do they control? I am making things up here because I really don’t know, but maybe if the wind is to their back and they are running downhill, 2-3 percent of the market? “Mad Magazine seems to think more than 90 percent. Thus, again Alfred E. Newman set the market up with a drop and every ding dong came out of the woods look- ing for a decrease in our wares. The groupie followers of Converter Outlook: Part I (CONT’D FROM PAGE 24)

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January 8, 2024

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