BoardConverting Serving the North American Corrugated and Folding Carton Industries for 37 years November 22, 2021 VOL. 37, NO. 47
Ransomware Readiness And Recovery: 8 Do’s And Don’t’s BY BRYCE AUSTIN There were seven people seated around the table: The CEO, the VP, the CFO, the Special Agent from the FBI, the owner, the forensics tech- nician, and the company’s CISO (Chief Information Security Officer). “Don’t pay” was the CEO’s vote. Same for the VP.
McKinley Packaging To Add New Plant In Lancaster, TX Dallas, Texas based McKinley Packaging, a sustainably operated paper and packaging company, announced the addition of its sev- enth packaging plant. The 500,000 square- foot rail-served building in Lancaster, Texas, will create 100 jobs in total when running at full capacity across three shifts, Monday through Friday. “We started looking at properties back in July 2020 and decided, as a company, that Lancaster is a market we want to grow in,” said Anthony Garcia, McKinley’s Vice Presi- dent of Operations. The Lancaster expansion marks another significant milestone for the Bio Pappel sub- sidiary. Known as the largest manufacturer of paper and corrugated materials in Latin Amer- ica, Bio Pappel launched expansion efforts in the United States seven years ago. Since then, McKinley Packaging has represented the company’s strategic growth success with its now seven plants, two paper mills, and five recycling centers across the U.S. markets. Efforts to locate the ideal market for McKinley’s seventh packaging plant were spearheaded by Global Site Location Indus-
“Pay it” was the owner’s response. The CFO nodded in agreement. “Paying could be a violation of Federal law” stated the FBI repre- sentative. The CISO had a hard time getting words out, as this was the largest ransom that he had dealt with at the time. $1,200,000 was a lot of mon- ey. “I don’t see another option given the status of our backups. Either we pay the ransom or we begin liquidating the assets of the company as soon as possible. Which is the lesser of two evils?” The CISO negotiated the ransom down to $410,000. The Bitcoin took several hours to amass. The cybercriminals delivered a decryp- tion key, but 30 percent of the company’s data was gone forever -- some of their hard drives filled up during the ransomware encryption process, and the encryption software kept running after the drives couldn’t hold any more data. Every file encrypted after that point was irretrievable. The total recovery took three months to ensure that no backdoors were left in the company’s systems, and the lawsuit to get the insurance company to cover the incident lasted almost two years CONTINUED ON PAGE 24 Ransomware readiness and recovery continues to be a hot-button issue of the highest concern for businsess owners and managers.
CONTINUED ON PAGE 4
WHAT’S INSIDE
6 x x 8 x x 12 x x 26 x x Liberty Diversified Acquires Dallas Container Corp. 10 Kruger Packaging Continues Work On KY Packaging Plant Gerrity Corrugated Installs SUN Automation Jumbo RDC 18 How AI And Machine Learning Helps During Labor Shortages
Machinery and Handling for the Corrugated Board Industry
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 E. Coast Midwest Southeast Southwest
42# Kraft liner
26# Semi-Chem. Medium
$1005.00-1010.00 $1020.00-1030.00 $1020.00-1030.00 $1020.00-1030.00 $1050.00-1060.00 $1023.00-1032.00
Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del.
$940.00-990.00 $955.00-975.00 $955.00-975.00 $955.00-975.00 $975.00-995.00 $958.00-978.00
West Coast U.S. Average
SHEET PRICES BY REGION (AVERAGE) Per 1MSF, local delivery included, 50MSF single item order, truckload delivery. Sheets
E. Coast Midwest South-SW S. CA N.CA/WA-OR US Aver.
200# 275#
$62.26
$72.05
$62.69 $82.80
$85.35 119.54
$73.13 101.29
97.32
99.89
90.86
113.65
OYSTER UP-CHARGE 8.34
8.34
8.34
8.34
8.34
8.34
275# DBL-WALL 350# DBL-WALL
107.46 118.45
114.69 129.32
116.54 137.25 117.82 145.56
141.08 148.46
122.76 131.80
P E R F O R M A N C E D E L I V E R E D • HEAVY, DENSE BALES • RELIABLE AUTOMATIC TIER • LOW OPERATING COST PER TON AMERICAN BALER TAKES PERFORMANCE TO NEW HEIGHTS! 800.843.7512 AmericanBaler.com I N T E G R I T Y I Q U A L I T Y I R E L I A B I L I T Y I VA L U E
CANADIAN SHEET PRICES (AVERAGE) In Canadian Dollars, per 1MSF, local delivery included, under 50MSF single item order, truckload delivery. 200# 275# Oyster UC 275#DW 350#DW $78.56 $99.18 $9.00 $96.32 $105.83 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 West
$970.00
$960.00 $995.00
$1,015.00
3
November 22, 2021
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McKinley Packaging To Add (CONT’D FROM PAGE 1 )
Core Competency
tries (GSLI), a Dallas based site selection consultant and economic development marketing agency. “GSLI’s process provided us with the opportunity to truly evaluate multiple markets that had the potential to support our company strategies, helping us identify the right location first,” Garcia adds. “In addition, GSLI was very valuable in helping us review incentive packages and navigating the negotiation process. The team providing insight on how different incentives compared across dif- ferent communities as we determined location.” Driven by its emphasis on sustainable operations and recycled materials, McKinley Packaging continues to aim for zero-discharge water operations upon reaching capac- ity. This is one example of how McKinley Packaging contin- ues the “green” legacy of the company’s history. “Mckinley Packaging has been great to assist in the finalization of their site and incentives,” adds Eric Klein- sorge, GSLI’s CEO and Chairman. “Lancaster wasn’t a “first-thought” choice, but after conducting our Road Show Tour and analysis they were definitely the right choice. Shane Shepard and his Lancaster Team were excellent and responsive when working with the city. This made a big impact for McKinley. We look forward to working with them on future expansions and are excited about the breaking ground of this new facility.” Visit mckinleypackaging.com for more information.
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Liberty Diversified Acquires Dallas Container Corporation
“Our customers will find that Dallas Container Corp. is an excellent fit into our packaging business portfolio in the southern U.S.” Fiterman said Dallas Container Corp. and its brands will become part of LDI’s Liberty Packaging group, South Re- gion. He said existing management will continue to play key roles in the company. Dallas Container owner, Rod Tur- nipseed, will serve in an ambassador role with the compa- ny and his daughter, Tami Cullen, will continue in a key role with Liberty Packaging Dallas. “As part of Liberty Packaging, we will continue to meet our long-term goals of providing customers with superior products and service through caring customer service, on- time delivery and innovation,” said Turnipseed. Added Fiterman, “The addition of Dallas Container is part of our strategy to expand our reach and serve cus- tomers throughout the region. We welcome the talent and capacity this acquisition brings.”
Minneapolis, Minnesota based Liberty Diversified Interna- tional (LDI) has announced its acquisition of Dallas, Texas based Dallas Container Corporation, which also does busi- ness as Amarillo Custom Box Company. The acquisition marks the accelerating growth of the Liberty Packaging business unit in the LDI family of companies. Dallas Container has approximately 100 employees and is a strong player in the corrugated packaging market in Dallas, Amarillo and beyond. The company has manu- factured corrugated boxes, die cuts, displays (POP) and foam packaging since 1977. The Dallas Container and Am- arillo Custom Box employees will become part of the Lib- erty Packaging team. According to Mike Fiterman, LDI’s Chairman and CEO,
Liberty Packaging is a nationally recog- nized designer and manufacturer of corru- gated packaging containers and point-of- purchase displays. As both companies are privately held, purchase price was not disclosed. The Royal Group Names Kevin Miller President Effective Jan. 1, 2022, Kevin Miller will as- sume the role of president for The Royal Group (TRG) based in Cicero, Illinois. Miller, who previously served as General Manager of TRG’s Eastern region, will retain his cur- rent duties and continue to report to TRG’s CEO Bob McIlvaine. “Kevin has proven himself in every role he has held with our company,” said McIl- vaine. “Our future depends on bright young leaders like Kevin to carry on our vision for the future.” Miller began his career with TRG as a sales representative in 2006. After leav- ing TRG to run a consulting firm focused on helping CEO’s and their companies find, train, and develop talent, he rejoined TRG in 2017. Since his return, Miller has held several roles, including Vice President of Business Development, Vice President and Mid-Atlan- tic General Manager and Vice President and Eastern Regional General Manager. “Our family would like to congratulate Kevin,” said John Schwarz, general partner of TRG’s parent company, Schwarz Partners. “We look forward to TRG’s continued suc- cess.” Visit teamtrg.com for more information.
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40 ft of paper travel from preheater to hot plates 3 seconds of heat, glue and bonding 1 chance to get it right! the ZONE
Design & Production
Chicago Electric offers 10 technology solutions to control ‘the Zone’ CORRUGATOR Sectoral preheating plate
Our sectoral preheating plates provide direct heat by means of a double steam circuit, allowing for efficient heating in hard-to-access locations, as well as to act as a steam shower to open the paper’s fibre, making it receptive to absorbing the heat and the glue.
This translates into increased speed and improved quality of the cardboard sheet finish.
The system’s main advantages are as follows:
• The plate may only be used to heat, only to humidify, or both options at the same time. • The plate is sectored, which allows for applying humidity to the sections. • It provides temperature in previously inaccessible locations and near the location needed. • It compensates the loss of temperature dissipated due to distance, speed or limitations of the exiting preheaters. • Quick transferring of heat to the paper. • The combination of the hot plate and steam shower allows for providing heat even to the hardest papers to heat. • Does not dry out the paper. • Possibility of operating as a humidifier and pre-conditioner. • Maintains and improves the fibre’s elasticity. • Acts according to the operator’s needs. • Facilitates the paper’s hygroscopy to absorb the glue and improve rubberising.
CONTROLLABILITY
1. Wrap Arm - Position & Temperature 2. Preheater Direct Drive
DOUBLEBACKER IMPROVEMENT
3. Steam Plate 4. Contact Roll 5. Glue Machine Direct Drive Touch Productivity Issue—Glue Unit Many glue units run with a rider roll or a guiding bar system. The rider roll with paper gap allows a precise glue application, but requires frequent Contact Roll
PRODUCTIVITY
C/ Orfeó Català 13-15 · 08440 Cardedeu (Barcelona) telf: +34 93 846 01 06 · comercial@al-gar.com WWW.AL-GAR.COM
DOUBLEBACKER IMPROVEMENT
calibrations and settings. Bar systems avoid this, but compensate this with the risk of exces- sive glue application. The system contains many wearing parts. Solution The contact roll combines the ad antage of both systems and ensures minimum contact between board and applicator roll. The system uses small pneumatic cylinders in order to achieve a “soft touch.”
6. Gap Control 7. Curved Plate 8. Roller Shoe Press When it comes to a short-term increas of web tension, spring loaded systems with shoes or airpressure activated system have problems in compensating these. The system is lifted for a short time. This may result in de-lamination and in the ‘double kiss’ effect. Solution For a defined and exact bonding point of the web fiv weight rollers will be installed usually over the first flat hotplate of the heating section. The rolls are mounted into a frame, which is actuated by means of two pneumatic cylinders. P oductivity Issu —Double Kiss Bonding
PRODUCTIVITY
PRODUCTIVITY
DOUBLEBACKER IMPROVEMENT
Roller Shoe
DOUBLEBACKER IMPROVEMENT
9. Thin Wall Hot Plates 10. Pressure System Benefits —Exact glue application due to defined contact of applicator roll to web. Web is in contact to less flute tips compared to bar systems. • High precision glue application • Less moisture applied to web —No wear of shoes and springs —No adjustment of shoes or paper gap —Uniform glue application over entire w orking width for all flutes by use of pneumatic cylinders instead of springs — Less contamination by paper dust and glue remains —No jam of board because of web breaks caused by splice joints going through 630-784-0800 Benefits —Rollers secure exact defined first point of contact of liner and single-faced board - No double kiss —Frame design avoids unintended lifting of roller shoe (compared to spring or air loaded systems) - No double kiss —Pressure can be increased or released for special grades or products 490 Tower Blvd., Carol Stream, IL Contact Chicago Electric to GET IT RIGHT 630-784-0800 info@chicagoelectric.com chicagoelectric.com Solution The ProPress system ensures an optimum heat transfer to the board. It offers a wide range of set- tings. The loadi g pressure can be varied, the number of shoes can be lifted in accordance t the line speed. The outer shoes can be lifted in accordance to the paper width. The shoe bars will be delivered pre-assembled for a short installation time. —Liftable for easy paper infeed and for cleaning of the machine —Position adjustable in paper direction to avoid grooves in hotplate Press Productivity Issue—Poor Heat Transfer Rollers are usually limiting the heat transfer, since they often have contact mainly on the edges of the plates due to wear or bent plates. They also cause often loss of caliper and bearing need to be replaced frequently. Airpressure actuated systems can only supply a limited pressure and have com- pared to shoe systems a closed surface. Pressure Shoe
Plate vity Issue—Poor Heat Control l hotplates are slow to react to pressure due to high steam volume and massive y also have high heat radiation and heat profile. Worn plates can damage crease edge crush.
Thin-Wall Hot Plates
t by peripheral drilled hot plates. anufactured out of special wear and nt steel, through which a continuous is drilled, with one inlet and one outlet. ecured by a massive steel frame.
CORR24usa.com
ance from steam to paper surface results in fast heat flow n higher plate surface temperature
Benefits
WestRock Achieves Record Net Sales In FY 2021
Box Shipments ( U.S. Corrugated Product Shipments) Industry Shipments In Billions of Square Feet Month September 2021
Atlanta, Georgia based WestRock Company achieved re- cord net sales for its 2021 fiscal year, which ended Sep- tember 30. According to its latest earnings report, the company achieved net sales of $18.7 billion in 2021, up seven percent compared to $17.6 billion for its 2020 fiscal year. The company achieved net sales of $5.1 billion for Q4, up 14 percent compared to $4.5 billion in the Q4 2020. The company earned net income of $838 million in the 2021 fiscal year compared with a net loss of $691 million in 2020. For Q4, WestRock achieved a net income of $324 million compared to a net loss of $1,156 million in the pri- or-year quarter, which included a $1,314 million goodwill impairment net of tax. WestRock’s adjusted segment EBIT- DA was $3 billion in its 2021 fiscal year compared to $2.8 billion in its 2020 fiscal year, and adjusted segment EBIT- DA was at $878 million in Q4, up 22 percent compared with $721 million in the prior-year quarter. “The WestRock team delivered strong results in fiscal 2021, with record net sales,” said David B. Sewell, CEO of WestRock. “We executed on our capital allocation pri- orities, and I’m pleased to say that we reached our target net leverage ratio in the quarter. In addition, we recently announced another increase to our dividend, which will result in a 25 percent increase since February.”
Year
Actual
Percent Change Avg Week Percent Change
2021 2020
34.261 34.901
-1.8
8.157 8.310
-1.8
Industry Total
Year-to Date
September 2021
Year
Actual
Percent Change Avg Week Percent Change
2021 2020
312.632 300.767
3.9
8.227 7.873
4.5
Industry Total
Containerboard Consumption (Thousands of Tons)
Year
Month
Percent Change Year-to-Date Percent Change
2021 2020
2.7786 2.8459
-2.4
25.4959 24.5672
3.8
Container Board Inventory - Corrugator Plants (Thousands of Tons)
Corrugator Plants Only
Date
Percent Change Weeks of Supply
Percent Change
Sept.
2.312
3.8
3.5 3.4
2.9
Aug
2.2272
Shipping Days
Year
Month
Year-to-Date
2021 2020
21 21
190 191
SOURCE: Fibre Box Association
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Kruger Packaging Continues Work On KY Packaging Plant
“As general manager, I tell people that Kruger Packag- ing is a family. We are a tight-knit group and we want our team members to succeed and advance in their careers with us. I also tell people the really good news that we’re hiring,” added Keith. “The months and years ahead are ex- citing times certainly for Kruger Packaging and the entire region. Hundreds of millions of dollars in investments are flowing into Hardin County, and with it, even greater op- portunities. I’m happy to report that Kruger was one of the first to recognize that untapped potential.” AF&PA Commends President Biden On Infrastructure And Jobs Act AF&PA President and CEO Heidi Brock issued the follow- ing statement in response to the Infrastructure Investment and Jobs Act recently signed into law: “AF&PA commends President Joe Biden and the U.S. Congress for work on the Infrastructure Investment and Jobs Act. This historic effort will modernize our nation’s infrastructure, invest in U.S. manufacturing jobs and build a more sustainable fu- ture for Americans. Our industry is a committed partner in this effort. The paper and wood products industry has been and continues to be a leader in sustainability in the manufacturing sector. We look forward to working with the Administration as we strengthen manufacturing, supply chains and contributions to the broader circular economy.”
Montreal, Canada based Kruger Inc. reported that con- struction is ongoing at its first ever American packaging plant — Kruger Packaging —in Elizabethtown, Kentucky. A family-owned and operated company with more than 117 years of history, Kruger is a North American leader in eco-friendly packaging that strives every day to build bet- ter boxes and deliver smarter solutions. Kruger Packaging’s new $114 million state-of-the-art, cli- mate-controlled facility will be among the most advanced packaging plants in the United States. Once complete, the plant will utilize both robotic and automated technology to build better boxes and deliver smarter solutions for scores of well-known brands such as Little Caesars and Tim Hor- tons, as well as countless medium and small businesses throughout Kentucky. “As our motto makes clear, we work hard to be better than we were the day before,” said John Keith, General Manager of the Elizabethtown plant. With our new pack- aging plant, we continue to build on that mission. Not only will the plant provide us a leg up on the competition, but E’town and the surrounding communities will help us be that much better too. The area has a strong, diverse, tal- ented workforce and is an ideal location to start and grow a business.”
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Kolbus Hycorr understands that quality is a reflection of the great care that takes place throughout the entire manufacturing process. From the time we pour the first casting until the equipment is prepared for shipment, our manufacturing team owns every step to maintain strict quality control. Our customers can rest easy knowing that their equipment has been built with great attention to detail. FOCUS ON QUALITY
KOLBUS America Inc. 216-931-5100 sales@kolbus.com
Gerrity Corrugated Paper Products Installs SUN Automation Group Jumbo RDC In ON Glen Arm, Maryland based SUN Automation Group (SUN), an innovative solution provider to the global corrugated industry, announced that it has placed a Latitude Machinery Corporation (LMC) Jumbo Rotary Die Cutter (RDC) P-Series at Gerrity Corrugated Paper Products Ltd. in Concord, On- tario, Canada.
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Gerrity chose the LMC Jumbo P-Series RDC because of its size, LMC’s reputation for quality and SUN Automation Group’s reputation for service and support. “We needed to replace an older machine of similar size and the LMC Jumbo RDC fits perfectly into our bay and customer mix,” says Chris Mai- sonneuve, Operations Manager of Gerrity. “From delivery, to install and service, everything has gone well and we couldn’t be happier with our experience and the machine’s output.” The machine is integrated with an AG Stacker, an Alliance prefeeder, and C & M conveyor. The machine was sold by Mikah Thorne, SUN Auto- mation Group’s partner in Canada. SUN Automation Group will provide service, parts and technical support for the machine, as it does with all LMC equipment throughout Canada, the US, Mexico, and Central America. LMC is a rapidly growing and world-class manufacturer of Rotary Die Cutters, Flexo Folder Gluers, and other solutions to the corrugated indus- try, with now over 100 machines in the field across North America. SUN entered into an exclusive strategic partnership agreement with LMC in 2019, and since then has been the exclusive North and Central America representative of all LMC machinery and supports its current customers with parts and service. “Gerrity is an excellent partner and we are confident in the success of the LMC Jumbo for their needs,” said Greg Jones, Executive Vice Pres- ident, SUN Automation Group. “We are honored to work with LMC and provide sales, service and support to customers in the North American and Central American Market.” SUN engineers and builds the SUN625® Rotary Die Cutter; provides sales, service, and support in North and Central America for Latitude Ma- chinery Corporation; serves as the North American, United Kingdom, and Ireland sales and service provider for PARA Srl; and serves a North Ameri- can sales provider for Highcon. Visit www.sunautomation.com . LMC’s new Jumbo RDC is integrated with an AG Stacker, an Alliance Prefeeder and C&M Conveyor.
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NAM: Consumer Price Growth Fastest In Three Decades
the record rate in August. The Index of Consumer Sentiment declined from 71.7 in October to 66.8 in November, the lowest level since No- vember 2011, according to preliminary data from the Uni- versity of Michigan and Thomson Reuters. The reduction was largely based on inflationary worries. The concern here is that the sharp reduction in con- sumer confidence since the spring will translate to some hesitance in terms of spending. Yet, the data on U.S. con- sumer credit outstanding would seem to suggest that Americans have stepped up their willingness to take on revolving credit, which should bode well for continued spending growth moving forward. Manufacturing job openings rose from 869,000 in Au- gust to 897,000 in September. These figures are not far from July’s record high (906,000), and job postings remain well above pre-pandemic levels. Job openings rose to an all-time high for durable goods firms and were not far from a record pace for nondurable goods businesses. There were 7,674,000 unemployed Americans in Sep- tember, which translates to 0.74 unemployed workers for every one job opening in the U.S. economy. That number speaks to the tightness of the labor market, with more job openings than people looking for work. Quits in the manufacturing sector increased from 312,000 in August to 337,000 in September, a new all- time high. Likewise, nonfarm payroll quits soared from 4,270,000 to a record 4,434,000.
Consumer prices soared 0.9 percent in October, the fast- est pace since June, which was the fastest pace since June 2008, according the Chad Moutray, Ph.D. and Chief Economist at the National Association of Manufacturers (NAM). Food and energy costs rose 0.9 percent and 4.8 percent, respectively, in October. Excluding food and en- ergy, core consumer prices increased 0.6 percent in Octo- ber, also the biggest increase since June. The cost of used cars and trucks jumped 2.5 percent for the mont The consumer price index has risen 6.2 percent over the past 12 months, up from 5.4 percent in September and the fastest year-over-year pace since December 1990. At the same time, core inflation (which excludes food and en- ergy) increased 4.6 percent year-over-year in October, up from 4.0 percent in the prior release and the biggest in- crease since September 1991. Similarly, producer prices for final demand goods and services rose 0.6 percent in October, continuing to increase steadily year to date. Over the past 12 months, producer prices for final demand goods and services jumped 8.6 percent, the same pace as in September and remaining the largest increase on record. Meanwhile, core producer prices increased 6.3 percent year-over-year in October, up from 6.0 percent in September and matching
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Supply Chain Snarl-Up: The State Of Play For The Paper Industry BY DEAN COROBOLOTTI The current supply chain bottlenecks are among the worst the industry has ever seen. And virtually no business sec-
As we move towards the hectic year-end period and try to navigate the existing supply chain environment, now is the time for the paper and pulp industries to examine the current state of play and what it can do to rectify issues and hopefully expedite a quick recovery. Here are a few considerations that can prove beneficial for shippers throughout the paper and pulp industries. Labor Shortages Impair Shipping Efficiency For all the headlines around containers piling up and back-ups at warehouses, one of the issues flying some- what under the radar during this supply chain crunch is the labor shortage. Simply put, there just isn’t enough labor in the manufacturing process or at third-party warehouse locations to enable the quick manufacturing, loading and unloading of products. In addition to the delays that labor shortages are causing, dock delays are resulting in ship- pers falling afoul of OTD promises, which is leading to de- tention fees and other financial penalties. Retooling Causes Hiccups And Delays
tor has been left untouched -- including in paper and pulp. From sourcing chal- lenges to procurement, the paper and pulp industries have been on the front- lines of the supply chain’s woes since the beginning of the COVID pandemic nearly two years ago. And unfortunate-
Dean Corobolotti
ly, any optimism that may have existed within the space for a timely return to normalcy in time for 2022 has been pegged back as the entire supply chain logjams continue to persist -- and even intensify.
DESIGNS THAT INCREASE PRODUCTION
Due to the ongoing demand, paper ship- pers have been forced to make hard strategic decisions, ranging from altering sustainability targets to outright cancelling orders. Fortu- nately however, many paper companies have been able to offset some challenges they face by retooling existing machinery to help boost productivity. For example, tools that may have been previously allocated to handle advertis- ing and print have now been shifted over to packaging production. While this has helped paper companies address some concerns, it has put additional strains on capital that’s al- ready stretched due to the COVID pandemic. Transportation Remains A Foremost Issue Much like every industry, paper and pulp is also feeling the effects of the transporta- tion crunch. And while trying to find capacity is proving to be incredibly challenging, a lack of available capacity at the right time is re- sulting in some of the highest transportation costs we have ever seen, with prices jumping anywhere between 25 and 50 percent. And given the financial stress that many paper and pulp companies are experiencing, it’s not sur- prising to see that many are beginning to lean more heavily into technology as a way to help them both optimize their procurement opera- tions and uncover hidden value that may exist. November and December 2021 are shap- ing up to be two of the most frenetic months that paper shippers have ever seen. But by continuing to think outside of the box and looking to adopt more innovative solutions, paper shippers can successfully navigate this challenging period and achieve success. Dean Corobolotti is VP of Managed Ser- vices, Sleek Technologies.
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November 22, 2021
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How AI And Machine Learning Helps Operations During Labor Shortages BY MATT MILLER Labor shortages are a major challenge for many industries in the aftermath of the COVID-19 pandemic, and the cor-
Role Of AI And Machine Learning It is a major misconception that AI and Machine Learn- ing is code for replacing human jobs with robots. In the corrugated space, there is a major role for human over- sight and direction, as well as the maintenance and up- keep of the machines. But the AI and Machine Learning role fits into increased efficiency of the operation by op- timizing output, minimizing downtime, and intelligently monitoring the need for routine maintenance. A tailored AI tool for corrugated, is able to monitor the box making process process. While running thousands of kicks worth of throughput daily, each machine generates tens of thousands of data points. In the midst of all of these data points, certain idiosyncrasies, or anomalies, take place. These anomalies can be anything from a strange sound to a jam or a pause. Some of them may mean little to nothing, but others may be early stage indications of an issue in the making. With the help of humans reviewing each of these anom- alies and indicating whether or not they are significant, the AI tool can, over time, begin to predict when a machine is in need of maintenance or at risk of larger-scale failure. This results in effectively stopping problems before they occur. The monitoring tool also provides up-to-date in- sights about performance and the health of the machines in a given operation, which can be accessed and moni- tored remotely and in real-time.
rugated manufacturing industry is no exception. Numerous operations have reported instances of high turnover and challenges of finding qualified techni- cians or individuals ready to be trained on the specialized tasks associated with corrugated machine operations
Matt Miller
and maintenance. This is putting additional and unnec- essary pressure and reliance on the existing workforce, whose individuals were already beginning to phase them- selves out even before the pandemic through the retire- ment trend known as the “silver tsunami.” Although Artificial Intelligence and Machine Learning are not a magic bullet that can instantly solve staffing chal- lenges, when they are deployed properly, they can help keep operations running smoothly, by improving efficien- cy of operations and decreasing reliance on highly spe- cialized staff that are increasingly spread thin and hard to replace. This means more funding and budget to hire the necessary individuals and to retain those central to the success of the operation.
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AI And Machine Learning (CONT’D FROM PAGE 18)
for dozens of specialized on-sight experts to constantly check each component of each machine to make sure it is functioning properly and at proper capacity. Each of these factors leads to an overall increased ef- ficiency of operations and accuracy in maintenance mon- itoring means higher margins and a larger bottom-line. More money and better margins means additional funding that can help offer more competitive compensation and benefits that may be necessary to recruit, train, and retain the highly specialized individuals necessary to a corrugat- ed operation. Matt Miller is Director of Technology, SUN Automation Group . Chicago TAPPI Slated For February, Supplier Members Invited To Present Chicago TAPPI announced that it will hold its annual “What’s New” program on Tuesday, February 1, 2022. Sup- plier members who are interested in presenting their prod- ucts need to fill an information form at www.tappi.org and return it to Mary Fritsch at fritschm@fosber.com no later than Friday, Nov. 19. Presenters will be notified during the week of Dec. 6th. Presenters will also need to purchase a table top (1/2 table $150) for the meeting. For questions re- garding the tabletop, contact Phil Eads at (973) 722-9637 or by email at phillip.eads@bobst.com.
Labor Shortage Implications Access to the data and the insights of an AI platform tai- lored for corrugated, decreases an operation’s dependen- cy on individuals with very specialized institutional knowl- edge, experience, and training. In an operation that is not outfitted with AI, the pressure would fall squarely on the shoulders of experienced technicians to optimize machine throughput and to detect and adjust maintenance-relat- ed issues. With these individuals increasingly harder and harder to find, keep and train, many operations are not performing at the highest level, or are at risk for major malfunction. And even the most highly skilled and experi- enced people in these roles are still not able to detect and predict issues with the degree of accuracy and foresight of AI tools. This means that even if these individuals are able to be found and hired, it is not guaranteeing the maximum throughput, uptime, and efficiency within the operation. With real data to inform replacement of parts and main- tenance, the operation is able to save money by eliminat- ing dependence on recommended maintenance intervals for components. Relying on recommendations instead of data, may be prompting technicians to replace perfectly good components before they wear. It can also lead to operating with parts that need to be replaced prior to the recommended interval. All of this is able to be monitored from anywhere, in real time, meaning once again, no need
Let’s Tell Our Recycling Story
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Rick Van Horne, Director of Creative Marketing srvan614@me.com Corrugated Supplies Corp. LLC
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Unbox new opportunities
Make the move to digital – and unbox your business with the power of just-in-time jobs, fast-cycle proofs and prototypes, and customized campaigns. With the EFI TM Nozomi C18000 Plus digital press for corrugated packaging and POS, you can offer endless creative opportunities with VDP, white ink, and more. And personalize runs from one to infinity at higher margins and with lower costs – all in a single pass. Let’s build your brilliant future. Together. Visit nozomi.efi.com/bcn to learn how corrugated converters and packaging printers are opening up new opportunities.
Two Sides North America Elects New Board Members
The Two Sides North America (TSNA) Board of Directors has announced the election of four new Board members to serve two-year terms beginning January 1, 2022: Va- necia Carr, Domtar Corporation; Edward Jansen, Canon Solutions America, Inc.; Jim Montague, Sylvamo Corpo- ration; and Lindsay Murphy, American Forest and Paper Association “We are pleased to have these four outstanding profes- sionals join the Two Sides Board,” said TSNA Board Chair- man Jeffrey Hester of International Paper. “Their extensive industry experience and leadership combined with their passion for sustainability will be invaluable as we take Two Sides’ efforts to the next level. “As their second Board terms end, we also wish to ex- press our sincere thanks to John Milazo of Domtar and Mark Pitts of the American Forest and Paper Association for their many contributions and leadership to the TSNA Board and to Two Sides continuing success,” Hester add- ed. According to TSNA’s bylaws, Directors may serve only two consecutive two-year terms. In other business, The TSNA Board elected William Rojack, MIDLAND, to succeed Hester as Board Chairman effective January 1. Visit www.twosidesna.org for more information.
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Ransomware (CONT’D FROM PAGE 1 )
keep out the cybercriminals that VPN into your country be- fore attacking you, but it’s surprising how many cybercrim- inals don’t take the time to do that. 7. If you are part of a company with many workstations, use the Microsoft Local Administrator Password Solution (LAPS) to randomize the local administrator password on all PCs. If you have the same initial local admin username/
Stopping ransomware includes three key areas: Cyber- security hygiene of your employees, proper practices by your IT department, and your data backup strategy. Here are 8 ways to prevent a ransomware attack, and 8 ways to recover from an attack if you fall victim to one: Ransomware Defenses to Help Prevent Attacks: 1. Add Multi-Factor Authentication (MFA) on all of your company’s email accounts and on all external access to your network (VPN, TeamViewer, WebEx, etc.). This will help prevent a cybercriminal from taking over an email ac- count using a compromised username/password. 2. If your company uses Windows Active Directory, do NOT log in to computers with Domain Admin accounts. There is an attack called “Pass the Hash” that will steal encrypted (hashed) credentials left behind. If you must log in with a Domain Admin account, change the password. 3. Patch your PCs. Workstations and servers. Every month. No exceptions. That includes conference room PCs, loaner PCs, HVAC computers, etc. 4. Patch your networking gear. Firewalls, switches, UPSs, phone system, etc. 5. Install good antivirus software everywhere. All PCs. All Macs. All servers. Everywhere. 6. Geofilter your Internet traffic and emails. If you don’t do business with a foreign country, block traffic and emails to/from it. It keeps out lazy cybercriminals. No, it won’t
password for every workstation, then if one machine gets compromised, it’s very easy for them to all get compro- mised. 8. If your users have local admin credentials, you may want to rethink that. Today. Right now. If a cybercriminal compromises a computer, they normally inherit the permis- sions of the user for that computer. If that user is a local CONTINUED ON PAGE 26
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Ransomware (CONT’D FROM PAGE 24)
administrator, the bad guys are going to use that access to do more damage. In case you fall victim to ransomware, you need the fol- lowing. Please note that most of these need to be done before the attack takes place: 1. OFFLINE backups. These are backups that are kept off of your network. Cybercriminals try to delete your back- ups. If your backups are not on your network, the bad guys can’t destroy them. 2. Tested restore procedures. If you try to restore your backups only when you need them, you are rolling the dice every time you are in a real bind. 3. Offline restore methodology. Don’t begin a restore with your network still attached to the Internet. Ransom- ware cases often unfold where the cybercriminals still have hooks into a company’s network, and they destroy
the used-to-be-offline backups as soon as the restore pro- cess begins. 4. Workstation reimages. You need a clean workstation image to restore workstations quickly if you suspect they have been compromised. 5. Server rebuilds. You need a clean server image to recreate your servers quickly. 6. Pre-negotiated incident response team contract. Find a cyber incident response company and get a con-
tract in place. That way you will know how to “call in the cavalry” very quickly as opposed to going through contract negotiations in the middle of a crisis. 7. 35 percent free drive space on all net- work drives. Ransomware often bloats the data on the drives it encrypts. As soon as a drive fills up, the process will keep trying to move forward, but every file it encrypts after the drive is full will be unrecoverable. 8. If you have cybersecurity liability insur- ance, call your insurance company ASAP! There are many stories of insurance policies with a clause stating the customer must inform their insurance company of a suspected inci- dent within 24 hours of the initial discovery. If they take a few days to confirm that the inci- dent was real, it can be an expensive mistake. If all companies followed the specific rec- ommendations above, ransomware cyber- criminals would become a thing of the past. With proactive action and a good cybersecu- rity awareness training program for your em- ployees, cybercrime is a solvable problem! Bryce Austin is the CEO of TCE Strategy, an internationally-recognized professional speaker on technology and cybersecurity
issues, and author of the book “Secure Enough? 20 Questions on Cybersecu- rity for Business Owners and Executives.” He is the named Chief Information Security Officer for compa-
Bryce Austin
nies ranging from 40 employees to S&P 500 organizations. Bryce actively advises compa- nies on effective methods to mitigate cyber threats. For more visit www.BryceAustin.com.
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DS Smith Launches New Circular Economy Educational Resource Atlanta, Georgia based DS Smith has launched a down- loadable lesson plan for the next generation as part of its ambition to lead the transition to the circular economy. De- veloped for ages 11 to 14, the “Let’s Go Circular!” lesson plan provides a teachers and anyone working with young people a free resource to introduce them to the concept of the circular economy.
plain the difference between a linear and circular econo- my. It is designed to help the next generation understand the importance of recycling as part of protecting our finite natural resources. The “Let’s Go Circular” lesson plan includes: • A lesson plan to prepare the teacher • A PowerPoint presentation to show the class • A pack of speaker notes to help deliver lessons • Activities to engage the students The “Let’s Go Circular” lesson plan was launched at The New York Times Climate Hub’s Ellen MacArthur Foun- dation Café at COP26. Since 2019, DS Smith has worked closely with the Foundation as a Strategic Partner to build its strategy, operations and packaging solutions around the circular economy. “We want to lead the way by inspiring young people and equipping them with the knowledge and resources they need to both understand what the circular economy is and the role that they can play in helping to protect the world’s natural resources,” said Allison Berg, Sustainability Manager for DS Smith North America. The delivery of school lesson plans and community projects, allied with putting sustainability at the heart of its communication strategy, has already helped DS Smith engage over 1 million people on the circular economy. As part of its “Now and Next” sustainability strategy, the company has pledged to engage five million people on the circular economy by 2030.
Providing a guide on how we can all play a part in pro- tecting the planet’s natural resources, the fun and engag- ing “Let’s Go Circular!” pack is available for download on the company’s website. The lesson plan includes a variety of everyday exam- ples, entertaining activities and engaging videos to ex-
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