BoardConverting Serving the North American Corrugated and Folding Carton Industries for 38 years December 5, 2022 VOL. 38, NO. 49
Arvco: The Swiss Army Knife Of The Corrugated Industry BY STEVE YOUNG George B. Arvanigian founded Arvco Container Corp. in Kalamazoo Michigan, in 1967. But his journey was not a typical entrepreneur’s path into the corrugated box business. “My dad was kind of a unicorn in the industry,” says Greg Arvanigian, president and CEO. “He’s one of the few production guys that started his own business.”
Holiday E-Commerce Boon Thwarted By Early Discounts The latest forecast for e-commerce growth may put the bah humbug into this year’s holi- day earnings. But that may be because many consumers have already made their purchas- es prior to Thanksgiving and Black Friday. “The shape of the holiday season will look different this year, with early discounting in October pulling up spending that would have occurred around Cyber Week,” said Patrick Brown, Vice President of Growth Marketing and Insights at Adobe. “Even though we ex- pect to see single-digit growth online this sea- son, it is notable that consumers have already spent over $590 billion online this year at 8.9 percent growth (January-August, 2022), highlighting the resiliency of e-commerce de- mand.” Adobe predicts e-commerce holiday sales in the U.S. will increase by only 2.5 percent in 2022. This represents a dramatic change from the 8.6 percent growth in 2021 and the dramatic, pandemic-fueled 33 percent growth in 2020 as noted in insiderintelligence.com . But even before COVID-19, ecommerce holiday sales growth was 13 percent in 2019 and 17 percent in 2018.
‘He Wanted His Own Thing’ George’s career path in the production side of the business began in the early 1960s in Worcester, Massachusetts, with Dowd Box. From there, he was recruited by Inland Container to run its Philadelphia plant. He eventually caught the attention of International Paper (IP), which was rapidly expanding its corrugated box operations in the 1960s in the South and Midwest. He was offered the position of production manager at IP’s Howell, Michigan, plant, eventually joining one of his sheet customers, Grand Rapids Packaging, and its subsidiary Wolver- ine Packaging in Schoolcraft, Michigan, as Vice President and General Manager. Like many in the box industry at that time, the elder Arvani- gian recognized the growing volume of available corrugated business signaled a great opportunity. “He was at Wolverine [Packaging] about three years and got tight with a couple of sales guys and met a local banker,” Greg recalls. “He CONTINUED ON PAGE 24 Greg Arvanigian, President and CEO of Arvco Container Corp. in Kalama- zoo, Michigan, owns one of the nation's leading independent corrugated converting companies.
CONTINUED ON PAGE 4
WHAT’S INSIDE
6 x x 8 x x 12 x x 26 x x TAPPI To Offer Next Leaders $60,000 In Scholarships 12 Registration Opens For 2023 AICC Spring Meeting In FL 16 Over 200 Members Go To AICC Mexico Meeting, Trade Fair 38 FEFCO Announces Launch Of Climate Neutrality Roadmap
EVERYTHING CORRUGATED UNDER
From the employee owners at SUN, Happy Holidays and a very Merry Christmas
Sending you gifts of joy and gratitude. Looking forward to shining with you in 2023.
sunautomation.com
1-410-472-2900
SUN IS THE OFFICIAL REPRESENTATIVE FOR TAIWAN-BASED LATITUDE MACHINERY CORPORATION, ITALY-BASED PARA, AND ISRAEL-BASED HIGHCON
EVERYTHING CORRUGATED UNDER
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
More box makers, brokers and end users are relying on the containerboard pricing in Board Converting News to negotiate their contracts than ever before.
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
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.
See the current prices every week right here on Page 3.
Len Prazych at 518-366-9017 lprazych@nvpublications.com
42# Kraft Liner 26#
Semi-Chem Medium
East West
$970.00
$960.00 $995.00
$1,015.00
3
December 5, 2022
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Holiday E-Commerce (CONT’D FROM PAGE 1)
Core Competency
According to a Digital Commerce 360 Retail News analysis of U.S. Department of Commerce reports, e-com- merce finally went back to double-digit growth of nearly 11 percent in Q3 this year even as more consumers were re- turning to stores. An estimated 20.6 percent of all dollars spent represented online orders. Q3’s performance was attributed largely by the collec- tive performance of Amazon, Walmart and Target and par- ticularly by Amazon moving its Prime Day sale to July this year, in addition to a second Prime Day on October 11-12. Inflated offline costs for food, housing and gas, and ris- ing costs to borrow money will also impact holiday e-com- merce sales this year, Adobe said. Meanwhile, Smithers.com estimates global demand for corrugated packaging is likely to increase by four percent each year through 2027. The highest growth is forecast in the processed foods and electronic industries with e-com- merce driven by internet shopping during the pandemic being one of the key drivers of that growth into the future. Smithers further identifies four trends that will impact the future of packaging: • Economic/Demographic Growth • Packaging Technology driven by sustainability • Online purchases • Brand owner trends driven by the need to protect against fake or counterfeit goods
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TAPPI To Offer Next Generation Leaders $60,000 In Scholarships Each year, TAPPI is proud to offer multiple scholarship opportunities to graduate and undergraduate students in corrugated and packaging related programs. There are several Technical Division scholarships totaling nearly $60,000 available for academic year 2023-2024. Applica- tions are due February 15, 2023. TAPPI Corrugated Packaging Division scholarships are: • $10,000 from the Terry S. Paulson Memorial Fund will provide two $5,000 scholarships for students pursuing careers in maintenance or engineering for the corru- gated industry • $5,000 from the Joe Dieffenbacher Memorial Fund will grant one $5,000 scholarship to a student pursuing a career in engineering for the corrugated industry
• Additional $1,000 scholarships will also be present- ed and are sponsored by the Bobst Group, Mitsubishi Heavy Industries, and WestRock In addition to Technical Division scholarships, TAP- PI offers the William L. Cullison Memorial Scholarship in amounts of up to $4,000, for undergraduate students ma- joring in pulp and paper science. There’s also a new $1,000 TAPPI Diversity, Equity, and Inclusion Scholarship that was established in support of underrepresented populations which include, but are not limited to African American, Native American, Hispanic, Latinx, Asian Pacific Islander, LGBTQ+, and People with Disabilities. There are three $1,000 scholarships available this year. The deadline to submit applications for academic year 2023-2024 is February 15, 2023. TAPPI encourages stu- dents to apply for all of the scholarships for which they may qualify. To access scholarship applications and divi-
sion specific guidelines visit tappi.org/schol- arships or contact the Awards Department at awards@tappi.org. AICC To Offer Two Webinars For Packaging Pros AICC, The Independent Packaging Associ- ation, has two upcoming webinars for pack- aging professionals to hone their skills. On Wednesday, December 7, “Recession Proof Your Revenue,” provides steps to make a business recession-proof with Mark Roberts, sales consultant and trainer of OTB Solutions. Without question, unboxing videos are a cultural phenomenon, with billions viewed every year. As a design strategist and pack- aging designer, Vicki Strull has studied the user experience of packaging design for 25- plus years. In “Unboxing the Secrets of Trea- sured Packaging,” on Wednesday, December 14, she will share examples from her curat- ed collection to explain the secrets behind how to make your packaging endure, dazzle, and even be immortalized in the unboxing metaverse. AICC members can also learn how to set more qualified appointments in less time with Wendy Weiss during Salesology® Do-It-Your- self, a 12-module online program for profes- sional salespeople. The various modules will help attendees get past the gatekeepers, create a winning value proposition, respond to objections, and much more. Register for these trainings at AICCbox. org/Calendar . Questions can be directed to Taryn Pyle at tpyle@aiccbox.org, or Chelsea May at cmay@aiccbox.org or (703) 836-2422.
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Registration Open For FBA Meeting, ICCA/WCO Global Summit In Canada Registration is now open for the International Corrugat- ed Case Association/World Containerboard Organisation (ICCA/WCO) 2023 Global Summit and Fibre Box Associa- tion (FBA) Annual Meeting, to be held June 18-22, 2023, at the Fairmont Banff Springs in Alberta, Canada. The Summit and the Annual Meeting will bring together corrugated industry leaders for meetings, insightful speak- ers, recreation and plenty of networking time. Attendees will enjoy a welcome reception on Monday evening, fol- lowed by three general sessions on Tuesday and Wednes- day, a casual reception on Tuesday evening, and a recep- tion and gala dinner on Wednesday evening. On Tuesday afternoon, attendees will be encouraged to get outside by participating in some optional outdoor activities. Registration for these add-on outdoor activities will open as the meetings get closer. The event will also host the ICCA Board of Directors' Meeting, WCO Board of Directors' Meeting, the FBA Board of Directors' Meeting and other meetings to be held while industry leaders are together. Register before January 15, 2023, to receive an ear- ly-bird discount on your registration. Contact ICCA/FBA at (847)364-9600 or csalaverria@fibrebox.org for more infor- mation and with questions.
Box Shipments ( U.S. Corrugated Product Shipments) Industry Shipments In Billions of Square Feet Month September 2022
Year
Actual
Percent Change Avg Week Percent Change
2022 2021
32.705 34.247
-4.5
7.787 8.154
-4.5
Industry Total
Year-to Date
September 2022
Year
Actual
Percent Change Avg Week Percent Change
2022 2021
305.168 312.525
-2.4
7.989 8.224
-2.9
Industry Total
Containerboard Consumption (Thousands of Tons)
Year
Month
Percent Change Year-to-Date Percent Change
2022 2021
2.6327 2.7773
-5.2
24.8959 25.4841
-2.3
Container Board Inventory - Corrugator Plants (Thousands of Tons)
Corrugator Plants Only
Date
Percent Change Weeks of Supply
Percent Change
Sep. Aug
2.5975 2.5867
0.4
4.1 4.2
-2.4
Shipping Days
Year
Month
Year-to-Date
2022 2021
21 21
191 190
SOURCE: Fibre Box Association
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Federal Court Approves Fine Against New-Indy Plant In SC
U.S. attorney for the district of South Carolina. “We are thankful for the great work of the EPA and our state part- ners and remain committed to protecting our communities through tough enforcement of the nation’s environmental laws.” EPA regional administrator Daniel Blackman said the enforcement action “ensures that protection will be extended long-term.’’ New-Indy has not exceeded health standards for hydrogen sulfide releases since September 2021 because of “EPA’s swift action,’’ he said. Hydrogen sulfide produces rotten egg odor The court’s action resolved allegations that New-Indy’s factory had caused an “imminent and substantial endan- germent’’ to public health and/or the environment through hydrogen sulfide releases, the U.S. Attorney’s office said. The release said New-Indy is still required to comply with operational requirements and to monitor for pollution. Despite resolution of the hydrogen-sulfide issues, the company could face additional federal action. The EPA is continuing to investigate whether the company is obeying other environmental laws. If the agency finds “additional non-compliance’’ with federal environmental laws, the EPA could take more action, federal prosecutors said. DHEC has previously suggested further enforcement action could be taken against New-Indy at the state level. “DHEC has taken significant actions requiring New Indy to address the issues that have impacted the lives of many people who live near the facility,’’ said DHEC director Ed- ward Simmer.
According to multiple media reports, a federal court has approved a $1.1 million fine against New-Indy's Catawba mill in South Carolina that generated nearly 50,000 odor complaints in less than two years. The U.S. District Court’s action finalized the fine and requirements that the New-In- dy improve its operation in York County, south of Char- lotte. Federal officials leveled New-Indy with a $1.1 million fine last December, but needed a court’s approval for it to become final. The court could have increased or de- creased the fine, attorneys said. Critics of New-Indy say the U.S. Environmental Protec- tion Agency fine was too light for a national corporation that should have known how to operate the paper mill without causing substantial odors. The odors, some of which were likened to the smell of rotten eggs, have been described by the plant’s neighbors as worse than the usu- al smells associated with paper mills. The company says it has made progress in resolving the issues. In announcing the court’s decision, the U.S. Attor- ney’s Office in Columbia said the fine and requirements that New-Indy ensure pollution from the plant stay within safety levels were justified. “This is a substantial penalty that represents accountability and corrective justice under Section 303 of the Clean Air Act,” said Adair F. Boroughs,
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KOLBUS RD 115S Fl e x o Rotary Die Cutter Ex cellence in M otion "We have been thoroughly impressed with the machine quality. Simply put – the machine is an engineering marvel . From the 4” thick cast iron side frames, print quality, on-time installation with exceptional training, and after installation support, we couldn’t be more pleased with our investment in the Kolbus RD115S. It’s allowed us to print jobs immediately, that took us years to perfect.” - Steve MacDonald Production Manager, New England Wooden Ware
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Registration Opens December 16 For 2023 AICC Spring Meeting & Independents’ Cup AICC, The Independent Packaging Association, announces open regis- tration beginning December 16 for the upcoming AICC Spring Meeting & Independents’ Cup at Trump National Doral on April 24-26, 2023.
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The premier paper packaging event will offer three days of gener- al sessions, invigorating speakers, informative workshops, and social events. The 9th Annual Independents’ Cup Charity Golf Tournament the afternoon of April 25 is set to be a sellout for those wishing to strengthen their industry connections. Attendance requires an additional fee. The 800-acre resort features four championship golf courses includ- ing the Blue Monster, and various recreational amenities, including tennis courts and a clubhouse. The Royal Palm Pool, featuring 18 private caban- as and a 125-foot slide, allows plenty of time for sun and poolside fun. The resort also includes a deluxe spa, which the resort describes as a 48,000-square-foot oasis to rejuvenate mind, body, and spirit.
600 + Plants 60,000 Users North America Latin America
The preliminary schedule of events includes an opening night recep- tion, focus sessions on hot industry topics, morning general sessions, networking lunches, offsite dinners and Emerging Leaders events. The resort is situated eight miles from the Miami International Airport, and rooms at the AICC rate are $295 per night, which includes the night- ly resort fee. Book online at trumphotels.com/miami/aicc-spring-2023- meeting or by phone at (305) 592-2000. The hotel group rate deadline is March 31. Contact Cindy Huber at chuber@aiccbox.org or Laura Mihalick at lmihalick@aiccbox.org or (877) 836-2422.
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Chambers Joins Sales & Design Team At Engineered Recycling Systems Atlanta, Georgia based Engineered Recycling Systems (ERS) has announced Alton Chambers as the newest mem- ber of its Sales and Design team. In his new role, Cham- bers saw an opportunity to join a “true organization” with a great team dedicated to customer service.
The Perfect Combo Get Peak Performance From Your Equipment with Matched Component Sets
“ERS doesn’t sell cookie cutter solutions. It’s a company that looks at their customer’s needs and creates real solutions for real problems,” he said. “Nobody ever says, ‘That’s not my job.’ If they can’t help you, they find somebody who can.” In the converting industry since
Alton Chambers
1987, Chambers has a strong background in systems anal- ysis, design, and sales after starting out as a field foreman. Researching and developing tailor-made solutions to fit a potential customer’s unique situation is part of his skillset. “They might think they need a stronger fan, but it’s ac- tually their baghouse that’s plugged up. I like doing that kind of ‘detective work,’” Chambers said. Chambers has enjoyed serving as an advisor and men- tor to younger project managers and understands the im- portance of choosing the right person to oversee a proj- ect. At ERS, every project is appointed a dedicated project manager who is specifically qualified for that role. “Above all, ERS is a human organization,” he said. “Some companies let bureaucracy get in the way of client relationships, but with ERS, if you call them with a problem at your plant, they’ll send somebody out to help you right away. The priority is to keep you running.” BHS Robotics Introduces Integrated Robot Solution For Bin Picking Hanover Park, Illinois based BHS Robotics has introduced the PickBot, an integrated, automated robot solution with 3D vision technology for random bin picking. Used in a variety of applications including assembly, packaging, part loading and unloading, and palletization, it is available for leading robot brands with a broad range of payload and reach capabilities. PickBot features include Artificial Intelligence program- ming technology to reduce training time, with no CAD file required for object recognition. Other highlights include high resolution cameras for image areas up to 40-inches by 48-inches, Allen-Bradley PLC and HMI, safety light cur- tain, machine guarding and system programming. The PickBot boasts one-second object recognition and location for fast cycle times, object picking in random ori- entation, and smart software including 3D dimensioning, quality detection, and robot motion path control. Visit bhs-robotics.com for more information.
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Over 200 Members Attend AICC Mexico Meeting And Trade Fair More than 200 members of AICC Mexico met November 15-17 in Guadalajara, Mexico, for the 2022 AICC Mexico Annual Meeting and Trade Fair. The three-day event of- fered educational seminars, general session presenta- tions, and a trade fair featuring 37 suppliers of corrugated machinery, equipment, and services. Also on the agenda was a tour of Cartographic, a corrugated and folding car- ton operation in the nearby town of El Salto. The opening event featured the seminar, “Packaging Design Workflow Process Mapping,” presented by An- drew Hurley, a professor of packaging science at Clemson University in Clemson, South Carolina. The daylong ses- sion looked at a seven-step process of design for custom- er-focused, sustainable packaging. Working in teams, the
52 attendees created hypothetical products, developed and assembled packaging design prototypes, and then presented them to the group. The opening event began with 'Packaging Design Workflow Process Mapping,' a daylong seminar.
DESIGNS THAT INCREASE PRODUCTION
AICC Mexico President Sergio Menchaca, CEO of EKO Empaques, opened the session, noting the growth of AICC Mexico in the past two years with 75 member companies, up from 40 in 2019. AICC President Mike D’Angelo reported on activities at AICC International and urged members of AICC Mexico to participate in the Association’s Spanish-language training pro- grams and free online courses. Jana Harris, CEO of Harris Packaging and American Car- ton in the Dallas-Fort Worth, Texas metro area and Chairman of AICC, also gave welcoming remarks, noting the need for more education about the industry in colleges, universities, and trade schools. Industry speakers included Mark Wilde, Senior Paper & Packaging Analyst with BMO Capital in New York, who gave an overview of the containerboard and corrugated markets in North America. He noted the recent decline in box demand and the softening container- board markets as a result and predicted that the major producers will soon be announcing closure of older mill assets, adding that new capacity coming onstream in 2023 will also put downward pressure on paper prices. Juan Javier Gonzalez, CEO of Cartro, a ma- jor independent supplier of sheets in the Mex- ico City area, presented a leadership discus- sion on the qualities and characteristics of the chief executive. Key characteristics needed for a successful company executive include men- tal and physical energy, sound mind, emotion- al equilibrium, maturity, good work habits, and refined social skills. All these, he said, contrib- ute to effective and ethical leadership.
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AICC Mexico Meeting (CONT’D FROM PAGE 16)
how in his early days of building his company he suffered a heart attack and, in rehabilitation, re-ordered his life pri- orities to family, faith and friendship. His book, “Pleno,” tells the story of his journey. The program also included AICC Mexico’s annual Hall of Fame Award, this year presented to Jose Diaz of EAM
Rodrigo de Leon, a professor of political science and economics and IPADE, the Instituto Panamericano de Alta Direccion de Empresa, spoke about the new geopolitical order in the post-pandemic world and Mexico’s increasing-
ly important role. De Leon said demographics, geopolitics, democracy, and sustainability are the four factors that will influence the country's geopolitical structure into the mid- 21st century. Simon Cohen, CEO of the global logistics company HENCO, discussed “The Secrets of an Entrepreneur who, in Search of Success, Found Happiness.” Cohen described The meeting featured a trade fair with 37 suppliers of corrugat- ed machinery, equipment, and services.
Mosca. Diaz has been a member of AICC Mexico’s Board of Directors since 2002 and has been instrumental in its growth over the past 20 years. For more information about AICC Mexico and its annual meeting, contact Maria Frustaci, Director of Latin America, at mfrustaci@aiccbox.org. Recipient of the Hall of Fame Award, Jose Diaz of EAM Mosca, center, has been extremely instrumental in the growth of AICC Mexico.
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Pamarco Expands Partnership With Greene House Group In Southwest Pamarco has announced the expansion of the Greene House Group (GHG) sales territory for Pamarco’s anilox rolls, sleeves and service solutions. The new agreement designates GHG as a Pamarco sales representative in Tex- as, Oklahoma and Louisiana adding to their existing sales territory of Arizona, New Mexico, and Southern California. GHG has been a reliable sales partner for Pamar- co since 2016. Pamarco, founded in 1946, specializes in manufacturing anilox rolls and sleeves, glue and metering rolls, and press accessories. Pamarco also offers audits, training, and services on existing anilox systems. For over 75 years, Pamarco has served the corrugated and flexible packaging industries with a commitment to quality, a focus on innovation, and a vast portfolio of solutions. “Frank and Hayden Greene have been a very important and successful partnership for Pamarco in our western ter- ritories," said John Burgess, President of Pamarco. "They have continued to serve the corrugated and flexible pack- aging industry with their vast technical knowledge. We are proud to continue our partnership with Greene House Group.” For more information, visit www.pamarco.com , or call (404) 691-1700. For more information on Greene House Group, visit www.greenehousegroup.com .
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Registration Open For FTA FORUM & INFOFLEX 2023
The annual title conference of the Flexographic Technical Association (FTA), FORUM 2023, returns with the theme “Tradition Reimagined” on April 16-19 at the Hilton Colum- bus Downtown in Columbus, Ohio. Registration for the four-day technical conference is open with more information available at forum.flexogra- phy.org . In tandem with the conference, attendees will have the chance to network, learn, and discover the latest in products and services at INFOFLEX 2023. The 41st iter- ation of the exhibit will take place on April 17-18, boasting 180 exhibitors over 25,000 square feet at the Greater Co- lumbus Convention Center. Following the Fall Conference 2022 and sold-out IN- FOFLEX at Fall Conference, FTA is eager to welcome members, partners and industry professionals to Colum- bus. The “Tradition Reimagined” theme calls upon the deep-rooted traditions of package printing alongside the rapid change in technologies. With 75 percent of the show floor sold, FTA encour- ages prospective exhibitors to sign up as soon as possi- ble by reaching out to Director of Membership & Business Development Jay Kaible at jkaible@flexography.org or by phone (631) 737-6020 ext. 120. The current floor plan can be viewed at infoflex.flexography.org .
Quality leads result in new customers
Read the articles in Board Converting News every week to learn about the people, places and machinery that will open the doors to new or repeat business.
Len Prazych at 518-366-9017 lprazych@nvpublications.com
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Arvco Container Corp. (CONT’D FROM PAGE 1)
business grows and outgrows their ability to run it the way they want to run it." Greg’s first task, as he described it, was to huddle with the company’s management team. “I called all the manag- ers, and I say, ‘Guys, I’ve got a revelation for you: You’re managers; I expect you to manage. I can’t do it the way my dad did,’” he says. Greg taking the reins of the business in 1989 began a period of refocusing Arvco’s mission. The company’s cap- ital equipment was aging, and the customer base—which was at that point largely automotive and consumer appli- ances—was also shifting. Arvco’s plant in Warsaw, which was built, in part, to serve the Whirlpool parts business in LaPorte, was hobbled by extensive capital equipment needs Greg in his new position could not immediately jus- tify. “The big thing we looked at was our business mix at the Warsaw plant,” he remembers. “We did a lot of folding and gluing down there. Our biggest customer was Whirlpool for their parts boxes, and most of the other business we were running in Kalamazoo anyway. And Warsaw, 73 miles away, is not that far. So, we made the difficult decision to close that plant and put all our money back into the mother ship.” ‘Invert the Bell Curve’ The consolidation of Arvco’s production assets and the reinvestment in capital equipment began in earnest in
just wanted his own thing; he wanted to make corrugated boxes. That was in 1971.” The company’s first location in Kalamazoo had two Langston letterpress printer slotters, a slitter, bandsaw, and taper. In 1975, after another move to its current lo- cation near downtown Kalamazoo, George acquired a used Hooper-Swift 78-inch corrugator. He also opened a sheet plant in Warsaw, Indiana, in 1974 and a sheet plant in Northwood, Ohio, near Toledo, in 1978. Following the bankruptcy of Grand Rapids Packaging in 1980, Arvco picked up a number of Grand Rapids Pack- aging’s salespeople, expanding its market reach north and leading to the opening of a sheet plant in Cadillac, Mich- igan, in 1982. The following year, Arvco moved its North- wood plant to Delta, Ohio, and added a corrugator, a move that Greg admits was not the best one for the company. “We didn’t invest enough in the plant to keep it economi- cally viable,” he says. In the meantime, though, Arvco was investing heavily in its Kalamazoo facility, adding a second corrugator—an 87-inch model—and new Hycorr (now Kolbus) rotary die cutters. Then in 1989, George passed away. Greg, at age 28, became president of the company. Reflecting on the tran- sition he had to lead at that time, Greg says, “As happens with a lot of entrepreneurial guys that start businesses, the
CONTINUED ON PAGE 26
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Arvco Container Corp. (CONT’D FROM PAGE 24)
1994 with the retirement of its older 78-inch and 87-inch corrugating capacity and the acquisition and installation of its 98-inch Agnati/Fosber corrugator. “I say, ‘We’re going all-in, and we’re going to put in a new corrugator.’ It was the best thing we could have ever done.” Arvco’s corrugator capacity serves a broad waterfront, with flute profiles A, B, C, E, F, and K in single-face and single-, double-, and triple-wall board. As Greg explains it, Arvco’s business mix at the time was heavyweight- based, with triple-wall applications and heavier containerboard grades. But its broadening reach into the food and bever- age business—Arvco manufactures 265 food packaging items and holds 10 food-related patents—required a ma- chine with flexibility in emerging microflutes like E and F. “We were already in the food business, and so I needed a corrugator that could make triple-wall as well as light-
er-weight microflutes,” he says. “The Europeans had a lot of experience with microflutes, so it’s one of the reasons I was steering toward Agnati.” Greg Arvanigian, left, with Maintenance Manager Chad Haw- kins at Arvco's Kalamazoo facility.
The company’s converting and finishing capabilities have mirrored the flexibility and diversity of the 98-inch corrugator. Arvco’s Ka- lamazoo plant maintains an impressive large- box and triple-wall capacity in its jumbo Flex- oline 86-inch by 212-inch 2-color flexo folder gluer, and its J&L 150-inch specialty folder gluer. The company also maintains a stable of equipment suitable to the industrial box mar- ket, with its Langston Saturn III 3-color mini flexo and its Post 84-inch specialty folder glu- er. In between is a complement of workhorse machines: Ward and Hycorr (Kolbus) rotary die cutters as well as enhanced-graphics rotary die cutters in Arvco’s two Apstar 66-inch by 110-inch 4-color and its Hycorr 66-inch by 85- inch 4-color. In Cadillac, a similar machine footprint can be seen in its Langston 50-inch 2-color flexo folder gluer, Ward 66-inch by 85-inch two-col- or die cutter, and Hycorr 66-inch by 85-inch 3-color rotary die cutters. Rounding out the equipment mix are a Göpfert MAXI boxmak- er, a Bahmüller stitcher, and a DPI three-color digital printer. About Arvco’s broad business mix, Greg says, “We want to sell the stuff that nobody else wants to sell. If you were to look at our mix, take the bell curve of the corrugated in- dustry where ultra-lightweight is on one end and super heavy triple-wall is on the other end. Invert that bell curve, and you have an Arvco. “When it comes to doing something with a corrugated box,” he adds, “we do more stuff on-site than anybody else in the world. I don’t
CONTINUED ON PAGE 28
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Arvco Container Corp. (CONT’D FROM PAGE 26)
As Greg explains, Arvco’s focus on the food business balanced the highs and lows of industrial and automotive sectors. “The food business—it’s a hedge,” he says. "When the economy changes, the food business gets good when the industrial business doesn’t. People realize they can feed a family of four for $20 when they order a pizza. Where else can you do that? So, that helps us get through a lot of these downturns.” Arvco’s specialization in pizza has expanded into other styles of convenience packaging for other kinds of fast- food outlets selling chicken and sandwiches. Giving one specific example, Greg described the on-site packaging space savings they achieved for Subway by transitioning from E flute to F, allowing twice as many packaging units to be held in-store. People, Family Like many an independent, Arvco has a family feel to any visitor touring the plant. The company employs around 220 people full time. Citing longtime employees who have been with the company 20, 30, or 40-plus years, Greg says, “We treat people like people. It’s a culture thing. We treat people with respect; we treat people well.” Arvco has had its share of difficulty finding good em- ployees, just as others in the industry. But the company also takes pride in not laying off employees for economic reasons. “I have never economically laid anyone off in the 30 years I’ve been here,” Greg says. “My job is to make
know anybody else that does what we do. And we’re con- stantly trying to move that along.” Trying to move that along requires continual invest- ment, and Kyle Baldwin, Arvco’s Chief Financial Officer (CFO), attributes the company’s success at procuring the right equipment to Greg’s gut feel for what will work. Says Baldwin, “He definitely has more of that entrepreneurial spirit when it comes to capital expenditures and invest- ments.” “I make educated guesses,” counters Greg. Greg’s “educated guesses” serve a unique but evolv- ing mix of business. The company’s market has ebbed and flowed through an eclectic mix of government, au- tomotive and industrial, and food and beverage. “We’re very diversified,” he says. “We actually do a fair number of government contract boxes like weather resistant, Class-2 triple-wall, etc. We’ve always done government work.” Arvco is also a principal player in the pizza box busi- ness, a piece of the market brought to the company in the 1970s by Steve France, one of the company’s sales repre- sentatives at the time. Today, that business represents 45 percent of Arvco’s production. “Steve basically focused on selling pizza boxes,” Greg recalls. “He went out and bought cutting dies. We did a couple of marketing pieces, and we trademarked the name, ‘Pizza-tainer.’”
CONTINUED ON PAGE 30
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Arvco Container Corp. (CONT’D FROM PAGE 28)
Board Converting NEWS INTERNET DIRECTORY
sure they’ve got something to do, so we don’t believe in layoffs. It’s one of the advantages we have.” To attract and keep the valuable employees it has, Greg is studying a pilot project to pay for an associate de- gree at a local community college. “I was talking to one of my customer service reps the other day, and she has a son who just graduated from high school,” he says. “He can’t afford to go to college, so he’s going to get a job for a while and try to save money for college. I thought, ‘There must be a lot of kids in that boat. What if we offer to pay for an associate degree at community college if they come to work here?’”
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Greg sees this as an answer to the aging of his work- force and the need to attract younger, more motivated workers. Says Greg, “I think the talent level will get better because you’re going to be attracting people who are as- piring to go to college and better themselves.” Team For The Future If the workers at Arvco feel like family, imagine how family at Arvco feels like family. As the second generation of Arvco ownership, Greg has followed his father’s model of bringing in his sons to the business. Nicholas Arvanigian, Greg’s younger son, is a sales representative for the company. Alex Arvanigian is Vice President of Operations, a position he has held since 2018. Says Greg, “When Alex was a kid, he played competitive hockey at a pretty high level, and I used to tell everyone, ‘Alex is the guy you want on the ice at the end of a 1–0 game.’ He’s cool under pressure; he doesn’t get fazed. That’s a really good trait to have in our business.” Alex’s view of the business is on the production floor and the issues converters face there each day. “I oversee production between here and Cadillac, shipping, mainte- nance, all of it,” he says. “The biggest challenge now is finding ways to get more out with fewer people—finding ways to automate simple processes." Asked if he had any advice for younger managers, Alex CONTINUED ON PAGE 32 Arvco leverages the capacity of two Apstar 66-inch by 110-inch 4-color rotary die cutters.
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