March/ April AICC BoxScore: New Administration, New Possibilities

A PUBLICATION OF AICC, THE INDEPENDENT PACKAGING ASSOCIATION

New Administration, NEW POSSIBILITIES

March/April 2021 Volume 25, No. 2

What the new presidential regime may mean for independents

ALSO INSIDE HR Rundown Digital Download Member Profile: Columbia Container

TABLE OF CONTENTS March/April 2021 • Volume 25, No.2

COLUMNS

ON THE COVER New Administration, New Possibilities

38

NEW ADMINISTRATION, NEW POSSIBILITIES What the new presidential regime may mean for independents

44

HR RUNDOWN

44

Managing benefits- and nonbenefitsrelated issues in 2021

52

DIGITAL DOWNLOAD How boxmakers are leveraging social media channels to engage customers and prospects

CHAIRMAN’S MESSAGE

4

SCORING BOXES

10

LEGISLATIVE REPORT

12

MEMBERS MEETING

14

ASK RALPH

16

ASK TOM

18

SELLING TODAY

22

ANDRAGOGY

24

LEADERSHIP

58

THE ASSOCIATE ADVANTAGE

60

STRENGTH IN NUMBERS

68

THE FINAL SCORE

DEPARTMENTS

FEATURES

38

3

12

WELCOME, NEW MEMBERS

27

AICC INNOVATION

30

MEMBER PROFILE

64

FOUNDATION FOR PACKAGING EDUCATION

66

ICPF UPDATE

52

BoxScore is published bimonthly by AICC, The Independent Packaging Association, PO Box 25708, Alexandria, VA 22313, USA. Rates for reprints and permissions of articles printed are available upon request. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of AICC. The publisher reserves the right to accept or reject any editorial or advertising matter at its discretion. The publisher is not responsible for claims made by advertisers. POSTMASTER: Send change of address to BoxScore, AICC, PO Box 25708, Alexandria, VA 22313, USA. ©2021 AICC. All rights reserved.

Visit www.aiccboxscore.org for Member News and even more great columns.

Scan the QR code to check them out!

BOXSCORE www.aiccbox.org

1

OFFICERS Chairman: Jay Carman, StandFast Packaging Group, Carol Stream, Illinois First Vice Chairman: Gene Marino, Akers Packaging Service Group, Chicago, Illinois Vice Chairmen: Jana Harris, Harris Packaging/American Carton, Haltom City, Texas Matt Davis, Packaging Express, Colorado Springs, Colorado Gary Brewer, Package Crafters, High Point, North Carolina Immediate Past Chairman: Joseph M. Palmeri, Jamestown Container Cos., Macedonia, Ohio Chairman, Past Chairmen’s Council: Al Hoodwin, Michigan City Paper Box, Michigan City, Indiana President: Michael D’Angelo, AICC Headquarters, Alexandria, Virginia Secretary/General Counsel: David P. Goch, Webster, Chamberlain & Bean, Washington, DC AICC Canada Director: Renee Annis DIRECTORS West: David DeLine, DeLine Box Co., Denver, Colorado Southwest: Eric Elgin, Oklahoma Interpack, Muscogee, Oklahoma Southeast: Ben DeSollar, Sumter Packaging Corp., Sumter, South Carolina Midwest: Casey Shaw, Batavia Container Inc., Batavia, Illinois Great Lakes: Mike Schaefer,Tavens Packaging & Display, Bedford Heights, Ohio Northeast: Stuart Fenkel, McLean Packaging, Pennsauken, NJ AICC Canada: Terri-Lynn Levesque, Royal Containers Ltd., Brampton, Ontario, Canada AICC México: Juan Javier Gonzalez, Cartró, S.A.P.I. de C.V. (CP), Tepotzotlán, Mexico OVERSEAS DIRECTOR Kim Nelson, Royal Containers Ltd., Brampton, Ontario, Canada

DIRECTORS AT LARGE Finn MacDonald, Independent II, Louisville, Kentucky Guy Ockerlund, OxBox, Addison, Illinois Kevin Ausburn, SMC Packaging Group, Springfield, Missouri Nelva Walz EMERGING LEADER DELEGATES Daniel Brettschneider, CST Systems, Kennesaw, Georgia Cassi Malone, Corrugated Supplies Co. LLC, Chicago, Illinois Lauren Frisch, Wasatch Container, North Salt Lake, Utah ASSOCIATE MEMBER DIRECTORS Chairman: Pat Szany, American Corrugated Machine Corp., Indian Trail, North Carolina Vice Chairman: Joseph Morelli, Huston Patterson Printers, Decatur, Illinois Secretary: Greg Jones, Sun Automation, Glen Arm, Maryland Associate Board Director: Tim Connell, A.G. Stacker Inc., Weyers Cave, Virginia Immediate Past Chairman, Associate Members: David Burgess, JB Machinery, Weston, Connecticut ADVISORS TO THE CHAIRMAN Greg Tucker, Bay Cities, Pico Rivera, California Jerry Frisch, Wasatch Container, North Salt Lake, Utah Pat Szany, American Corrugated Machine Corp., Indian Trail, North Carolina PUBLICATION STAFF Publisher: Michael D’Angelo, mdangelo@aiccbox.org Editor: Virginia Humphrey, vhumphrey@aiccbox.org

SUBMIT EDITORIAL IDEAS, NEWS & LETTERS TO: BoxScore@theYGSgroup.com CONTRIBUTORS Maria Frustaci, Director of Administration and Director of Latin America Cindy Huber, Director of Conventions & Meetings Chelsea May, Education and Training Manager Laura Mihalick, Senior Meeting Manager Patrick Moore, Member Relations Coordinator Taryn Pyle, Director of Training, Education & Professional Development Alyce Ryan, Marketing Manager Steve Young, Ambassador-at-Large Richard M. Flaherty, President, ICPF ADVERTISING Information: Virginia Humphrey, vhumphrey@aiccbox.org Opportunities: Taryn Pyle 703-535-1391 • tpyle@aiccbox.org AICC PO Box 25708 Alexandria, VA 22313 Phone 703-836-2422 Toll-free 877-836-2422 Fax 703-836-2795 www.aiccbox.org

EDITORIAL/DESIGN SERVICES The YGS Group • www.theYGSgroup.com Vice President: Serena L. Spiezio Content & Copy Director: Craig Lauer Managing Editor: Jessica Price Senior Managing Editor: Sam Hoffmeister Copy Editor: Steve Kennedy Art Director: Alex Straughan Account Manager: Max Lalwani

ABOUT AICC PROVIDING BOXMAKERS WITH THE KNOWLEDGE NEEDED TO THRIVE IN THE PAPER-BASED PACKAGING INDUSTRY SINCE 1974 We are a growing membership association that serves independent corrugated, folding carton, and rigid box manufacturers and suppliers with education and information in print, in person, and online. AICC membership is for the full company and employees at all locations have access to member benefits. AICC offers free online education to all members to help the individual maximize their potential and the member company maximize its profit.

WHEN YOU INVEST AND ENGAGE, AICC DELIVERS SUCCESS.

Chairman’s Message

Our Constants

I

n the past year of disruption and dislocation, I’m sure that you have sought reassurances from the constants in your life. Family has certainly been one of those constants. Like many of you, for me and my company, StandFast Packaging Group, the family and the business, in the past and for the future, are closely related.

That family feeling also extends to AICC. Our Association works well because of the family atmosphere of collegiality and caring. Because of the pandemic, we have been away from our AICC family for too long. Hopefully, this will change soon.

My father, John Carman, and his business partner, John Morrice, founded StandFast in 1967. Today we have the third generation of the Carman family working in the business alongside my three brothers and me.

The StandFast story is not so different from the stories of so many AICC members.

There are many multigeneration AICC member companies. So many are celebrating historical anniversaries that AICC recognizes during the “Members Milestones” presentation during national meetings. Companies have shared with their fellow members their 40-, 50-, 75-, and 100-year anniversaries, and the celebrations always highlight the origin and the family.

Sadly, my father passed away July 2 at age 90. Serving as your chairman since the fall of 2019 is a continuance of my father’s service to AICC. He was a founding member and served in various roles in the governance of AICC through the early years and beyond. But he left a legacy in his sons, in the company he created, and in the Association he helped found.

These legacies come to mind when we turn our thoughts to other members of AICC’s “greatest generation” who have passed this year. Ross Ausburn, Jim Johnson Sr., and Marvin Grossbard all built companies that are outstanding printers and converters today and a far cry from their humble roots—great representatives of AICC and the independent spirit of entrepreneurship and customer focus. They, along with my father, were founders and builders. They passed a torch that is extremely important today, and given what we went through in 2020, perhaps more important than ever.

We need to continue to grow, to learn, and to build our companies with the same spirit, fervor, and boldness that our predecessors showed. We have tremendous tools available to us: high technology for production and efficiency; the internet; unparalleled communication power; the most educated and capable workforce; AICC; our supplier partners; and each other.

Our box plants have been operating at historically high levels in response to the changing dynamics of the supply chain, wrought by the pandemic. When we emerge from the pandemic, will our markets, will our customers, revert back to what we have been familiar with, or will there be a new landscape?

Bet on the new landscape. As with the upheaval of the past year, the new can be as challenging as it is exciting. To navigate successfully, I suggest we rely on the constants that have kept us grounded and Jay Carman successful: our families and our famPresident, StandFast Packaging Group ily businesses.

Chairman, AICC

BOXSCORE www.aiccbox.org

3

Scoring Boxes

Deteriorating Trade Erodes Paper Packaging Markets

BY DICK STORAT

S

4

BOXSCORE March/April 2021

Real Consumer Spending for Nondurable Goods

250

4.0%

240

3.5%

Index (2009 = 100)

230

3.0%

220 210

2.5%

200

2.0%

190

1.5%

180

1.0%

170

0.5%

160 150

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2018

2019

2020

0.0%

Percent Change Year-to-Date

Source: BEA

Industrial Production Nondurable Consumer Goods 106

1.0%

104

0.5% 0.0%

102

Index (2012 = 100)

hifting consumer patterns in response to the coronavirus pandemic have been at the center of strong paper packaging markets since the pandemic’s beginning. Consumption of packagingintensive nondurable goods has risen, providing packaging suppliers with expanding market opportunities. As the top chart at right depicts, inflation-adjusted consumer spending for nondurable goods surged as the pandemic led to travel lockdowns and recovered rapidly as the pandemic continued. Through November, spending for these goods had risen by 2.6%.

Yet, while consumption of food and other fast-moving goods has grown, domestic production has not kept pace.

Most of the initial surge of demand for pantry and paper goods came from existing stocks, and the subsequent recovery in domestic production of these goods was much more muted than the recovery of spending.

As the middle chart at right shows, production sank during March and April and recovered only slowly thereafter. Domestic production of nondurable goods has yet to rise above prior year levels. And at the end of November, monthly production was declining, and production had declined by 2.8%.

That left a spread of more than five percentage points between consumption and production. Imports supplied the additional nondurable goods that were consumed but not made in the United States.

To get some perspective on the impact of international trade on paper packaging markets, we identified the commodities in international trade that required protective paper packaging. The table at right summarizes international trade

-0.5%

100

-1.0%

98

-1.5%

96

-2.0%

94

-2.5%

92

-3.0%

90

-3.5%

88

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2018

2019

2020

-4.0%

Percent Change Year-to-Date

Source: U.S. Census

Packageable Goods Trade Deficit ($ Billions Over 11 Months, 2020) PACKAGEABLE COMMODITY Computers & Electronic Equipment Textiles & Apparel Pharmaceuticals & Medicines Appliances Food & Beverage Fruits, Vegetables & Tree Nuts Cleaning & Toilet Supplies Other Packageable Goods TOTAL LIABILITIES & NET ASSETS

EXPORTS $175 18 62 8 68 16 16 66 $429

IMPORTS TRADE DEFICIT $342 $167 136 118 154 92 31 23 91 23 29 13 13 (3) 131 65 $926 $497

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Scoring Boxes

6

BOXSCORE March/April 2021

U.S. Packageable Exports

$50

-2.0%

$40

($ Billions/Month)

0.0% -1.0%

$45

-3.0%

$35

-4.0%

$30

-5.0%

$25

-6.0%

$20

-7.0% -8.0%

$15

-9.0%

$10

-10.0%

$5 $0

-11.0%

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2018

2019

2020

-12.0%

Percent Change Year-to-Date

Source: Census Bureau, RSA, Inc.

$110

U.S. Packageable Imports

$100

0% -1%

$90

-2%

$80

($ Billions/Month)

for packageable goods during the first 11 months of 2020.

During that time frame, exports of packageable goods amounted to $429 billion and provided demand for paper packaging. On the other hand, imports of packageable goods amounted to more than twice as much—$926 billion—and represented lost opportunities for U.S. producers of paper packaging.

Foods, including fresh produce, do not have the largest trade deficits. The dubious honors of having the largest trade deficits go to electrical equipment, clothing, and pharmaceutical goods, not to foods, beverages, and fresh produce. However, the markets for these packaging-intensive edibles have still racked up a combined trade deficit of $36 billion through this past November.

The top chart at right plots the monthly exports of these packageable goods. The three-month precipitous decline in exports reduced their value to 10% below the prior year’s shipments abroad. Although there has been some recovery from the initial decline, it has not been enough to get even close to prior year exports. At the end of November, packageable goods exports were down by 8.6%. Exports of these goods totaled $470 billion for the first 11 months in 2019, but they were only $430 billion in 11 months of 2020, a decline of $40 billion. That represents $40 billion of lost market opportunity for domestic producers of corrugated and other paper packaging.

The situation with imports of packageable goods is equally distressing. The bottom chart at right shows the trend of imports of packageable goods since 2018. Imports suffered just as exports did when international trade patterns were initially disrupted by the pandemic.

However, the recovery of imports has been substantially more robust than for exports. For the past three months, imports have exceeded prior year levels by a significant amount.

-3%

$70 $60

-4%

$50

-5%

$40

-6%

$30

-7%

$20

-8%

$10 $0

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2018

2019

2020

-9%

Percent Change Year-to-Date

Source: Census Bureau, RSA, Inc.

Through the first 11 months of 2020, imports were off by only 0.7% from 2019’s shipments abroad.

Through the first 11 months of 2020, imports of packageable goods amounted to $926 billion, close to their $933 billion at the end of November 2019.

Both imports and exports impact U.S. packaging markets, and the most comprehensive way to look at their overall impact is to look at the trade deficit, which is the excess of imports over exports. The chart on page 8 shows what the trade deficit for packageable goods looks like since 2018.

Beginning in June 2020 and continuing for every month since then, the trade deficit has grown by leaps and bounds compared to its year-earlier level. By November, the trade deficit had expanded by 7.2%. In November 2019, the trade deficit amounted to $463 billion. But, by November 2020, the deficit had increased by $33 billion to a total of $496 billion.

While the trends toward rapidly rising online purchases and more stay-at-home meals have provided opportunities for paper packaging producers, the increasing trade deficit for packageable goods has

Scoring Boxes

Dick Storat is president of Richard Storat & Associates.

He can be reached at 610-282-6033 or storatre@aol.com.

8

BOXSCORE March/April 2021

$60

U.S. Packageable Goods Trade Deficit

$55 $50 $45

($ Billions/Month)

resulted in a significant share of that market growth being siphoned off to imports rather than to the packaging of domestically made goods.

Dealing with the economic impact of the coronavirus pandemic may be garnering the headlines these days, but the impact of the country’s growing trade deficit for packageable products is being felt in the marketplace by corrugated and other paper packaging converters every day.

$40 $35 $30 $25 $20 $15 $10 $5 $0

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2018

Source: Census Bureau, RSA, Inc.

2019

2020

Percent Change Year-to-Date

8% 7% 6% 5% 4% 3% 2% 1% 0% -1% -2% -3% -4% -5% -6% -7%

Legislative Report

Jobs, Taxes, and Minimum Wage: The Manufacturing Sector’s Looming Setback?

BY ERIC ELGIN

T

he independent boxmaker doesn’t have a lot to cheer about given the news out of Washington, D.C., these past two months. While I like to be optimisitic about future prospects, the policy agenda of the Biden White House and Democraticcontrolled Congress are providing what I consider to be a challenging outlook for the business community in the months ahead. (See also “New Administration, New Possibilities,” page 38.)

Already we saw on the president’s first day in office the pen-stroke cancellation of the XL Pipeline, resulting in the direct loss of more than 11,000 well-paying union jobs in pipeline construction and supporting industries. In addition to this executive order on the XL, the president has also put a moratorium on all new oil and gas leases on federal lands, a move that the American Petroleum Institute said will cost upward of 1 million unemployed.

Those of you who may have attended our annual Washington Fly-Ins in the past might remember our industry’s collective advocacy of the XL Pipeline, specifically, and of greater energy independence generally in our visits with congressional representatives and senators. We argued then, and it’s just as true now, that a healthy manufacturing sector—and a healthy box business—cannot survive without abundant and reliable sources of competitively priced energy.

Somehow, our president and his allies in Congress have missed the point that, as

10

BOXSCORE March/April 2021

we are able to transition toward alternative sources of energy, fossil fuels will still be necessary for the efficient propulsion of our economy.

And even as our corrugated and paperboard industries applaud advances in sustainability, as we produce a renewable and sustainable packaging product, we also have to remain competitive as an industry.

And competitive energy is essential to that goal.

Another area of concern to us is the potential reversal of the tax cuts enacted in the 2017 Tax Cuts and Jobs Act. In 2018, when this legislation took effect, the stimulus effect of lower overall individual and corporate rates, plus the provisions for accelerated depreciation, boosted the overall economy generally and our box business in particular. For example, in August 2018, box shipments reached 35.5 billion square feet, the highest permonth level since the Great Recession of 2008–2009. Containerboard mills ran at 97% capacity, and the Institute for Supply Management’s monthly purchasing index topped 60 for two months in a row, according to the September 2018 edition of Scoring Boxes. Thus, we see the effects that lower tax rates can help achieve.

Now, the Biden administration has floated an overhaul of the 2017 law, which will increase corporate rates to 28% from their previous low of 21%. In addition to these corporate rate changes, the administration’s proposals will also raise marginal tax rates for high-income individuals. Mitch Klingher, CPA, of

Klingher-Nadler breaks this down in his excellent article on page 60 of this issue.

Added to these new burdens on business is the likelihood of a national minimum wage of $15 per hour.

Now I know that our industry in general pays starting wages in excess of this figure. According to AICC’s 2020 Salary, Hourly Wage & Benefit Survey, the average probationary rate for a forklift driver in a sheet plant is $17.62; for a flexo folder gluer operator, it’s $19.55. But there are many other positions, those requiring far fewer skills, that are paying in the $11–$12 range. Depending on the part of the country you’re in, your pay scales may be within the proposed minimum or dramatically below. If that’s the case, every business owner is forced to make the decisions that are likely to result in fewer jobs, not more.

As I told writer Robert Bittner in our cover story, overall, I’m an optimistic person, and I do hope for the best. If the Biden administration can stay in the middle, I think that’ll be best for everyone. Yet a new administration cutting jobs right out of the blocks, raising taxes, and increasing the minimum wage does not bode well for a booming economy or the continued robustness of our business.

Eric Elgin is owner of Oklahoma Interpak and chairman of AICC’s Government Affairs subcommittee. He can be reached at 918-687-1681 or eric@okinterpak.com.

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New Members

Welcome, New Members!

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Members Meeting

Dusobox Virtual Plant Tour

M

ore than 360 registrants clicked into AICC’s first virtual plant tour—a walkthrough of Dusobox, with President John Kelley. Attendees watched a video tour of Dusobox’s 250,000-squarefoot facility in Orlando, Florida, and asked questions of Kelley as well as featured suppliers.

After a brief company history highlighting the achievements of Dusobox during their nearly 70 years of operation, the tour brought attendees through the company’s administrative office, highlighting their data analytics team before moving on to showcase several of their design successes for displays and industrial packaging.

After explaining their facility’s layout and the increased collaboration they have seen with their open floor plan, the tour then moved on to the

12

BOXSCORE March/April 2021

plant floor. When Dusobox moved to their current facility in 2016, they focused on material flow and workflow.

In the maintenance department, Kelley espoused the importance of maintenance, especially on the hightech machinery. They have achieved an uptime of 95%. Their system uses artificial intelligence to bring predictability to their maintenance plan. All parts data, electrical schematics, and machine drawings have been digitized, so their team of five maintenance technicians can access the information wherever they are in the plant.

Kelley then walked attendees through the ink kitchen and around the floor to see their five-color Göpfert, laminating section, Autoplaten cutting and creasing area, specialty folder gluers, then ending in their digital space.

Following the tour, breakout rooms were open to allow participants to ask Kelley questions and get more information from the suppliers highlighted in the video, which included Bobst, JB Machinery, Bahmüller, Göpfert, Poteet Printing Systems, HP, Esko, and Kiwiplan.

The tour was sponsored by Dusobox, HP, Kiwiplan, Poteet Printing Systems, and JB Machinery.

By the time this issue has gone to press, hundreds of AICC members will have also participated in virtual tours of Wasatch Container & The BoxMaker. AICC will host several more virtual tours in the coming months. Registration for AICC members is free. For more information on upcoming virtual plant tours and to register, visit www.aiccbox.org/virtualtour.

printing better together

Our Teamwork Brings It All Together

Connect With Us

Each department works hard to ensure Quality, Precision, and Expertise in every Anilox Roll that leaves our facilities.

www.pamarco.com Shon Cornwell shon.cornwell@pamarco.com | 404-691-1700

Ask Ralph

Plastics: A Primer

BY RALPH YOUNG

T

he corrugated and paper industries, both domestically and internationally, have rallied to sing our praises and use hard analytical approaches to assert that organic fiber-based packaging solutions are more environmentally friendly than plastic alternatives. One such case was the life cycle analysis of comparing corrugated shipping containers to returnable plastic crates for fresh fruit and produce. On a personal basis, my wine club in California switched from Styrofoam primary bottle protection to molded pulp. Yeah!

In the 1950s, ’60s, and ’70s, there was a Dupont advertising slogan one would often hear on TV or read in the news magazines: “Better Things for Better Living ... Through Chemistry.” They are known for their research and innovation. In those old days, most single-use and, often, returnable or truly recyclable single-use food-grade products came in glass or metal containers.

Paperboard for juice and milk cartons and food packaging was just starting to be introduced. Then came plastic food jars.

Single-use plastic has always been an issue, especially in the area of food service. A few countries, states, and cities have even banned plastic straws recently.

Check out www.bio-agave.com. They have discovered additional uses for agave beyond liquid tequila.

At the time of this writing, a group called Break Free From Plastic reported research from their collection from 55 countries and found that for three years running, Coca-Cola, PepsiCo, and Nestlé were the top three plastic polluters globally.

And 5,000 other brands were also categorized from the waste stream. Plastics do not disintegrate or disappear, but instead break up into microplastics that often get consumed by the tiniest organisms. These toxins bioaccumulate and move their way

14

BOXSCORE March/April 2021

up the food chain and into our air, food, and water. Now the research is focused on the even smaller nanoparticles. Maybe a Yeti cup is the pollution solution!

Amazon reports that it used about 116 million pounds of plastic packaging in 2019. Oceana disagrees and reports Amazon’s volume is 465 million pounds of plastic waste. Maybe 22 million tons of that end up in our water ecosystems.

I wonder what it is in the COVID year, considering those two-ply bubble wrap plastic envelopes. A recycled-pulp bulk liner seems a better substitute.

Recycling rates for plastic are generally around 10%, with No. 1 and 2 rates at nearly 30%. These have sufficient market demand and domestic recycling and reprocessing capacity. Corrugated has been at the 90% level for many years, but it may have been a little lower in 2020, as collections from institutional facilities have fallen and as residential curbside collection has never been stellar.

Europeans are ahead of us on the replacement of plastics with corrugated and paperboard. Mondi, as recently announced in the media, is providing reductions in both plastic and carbon dioxide emissions. Their solution was a paper-based bag that was fully recyclable in existing paper streams and was able to be filled and sealed on existing machines.

Other innovative paper-based packaging options do come along, like the collaborative venture of Fishbone and Atlantic Packaging with a recyclable fourand six-pack can carrier system. And there are compostable paper-based mulches available to replace plastic sheets in farming, which are used to conserve moisture, control weeds, and boost soil temperatures.

So-called biodegradable plastics are not like cellulose-based or fiber-based

packaging. They require special industrial facilities and still get comingled with recyclable and compostable materials. At the present time, biodegradable plastics are not the solution. A recent press release said that DuPont and Kemira have partnered to bring about bio-based and inherently biodegradable product lines derived from simple sugars. The process is commercial and will be rolled out shortly. The product will provide strength and barrier properties to fiberbased packaging.

The United States, China, and India appear to be the leading plastic waste generators. Taken collectively, European Union nations would come next. It had been reported at a 2018 Bank of America materials conference that the 10 worst river-to-ocean plastic waste streams come from eight rivers in China and two in Africa. In total, it has been estimated that 8.8 million tons of plastic waste flow from the world’s coastal regions each year. Some estimates report that the total count of micro- and nanoparticles in the oceans’ surfaces is between 12.5 trillion and 125 trillion.

In conclusion, stay informed, and look even more intentionally at replacing plastic with corrugated and paperboard and recyclable coatings. Act before your customers ask. We are here to support you and are always working on your behalf.

Ralph Young is the principal of Alternative Paper Solutions and is AICC’s technical advisor.

Contact Ralph directly about technical issues that impact our industry at askralph@aiccbox.org.

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Ask Tom

Why You May Want a Data-Driven Manufacturing Culture

BY TOM WEBER

C

onnected devices are everywhere today. The manufacturing community may not have transformed as quickly as others, but it is one more place you can find connected and smart devices.

The key to thriving, though, is creating a data-driven manufacturing culture that takes full advantage of all available data.

Here are some reasons and benefits.

In a data-driven manufacturing culture, the firm leverages the breadth of data available from new technologies such as the Industrial Internet of Things (IIoT), automation, artificial intelligence, or other digitization tools.

There are many advantages to a data-driven culture. First, decisions are made based on fact. Rather than relying on hunches or “how things have always been done,” a firm can use real-time information—often in conjunction with predictive forecasting and historical data.

With data driving decisions, a firm can efficiently identify potential risks and new opportunities and achieve better results.

Added benefits include: • Reduced machine downtime from enabling predictive maintenance;

• Increased production capacity; • Lower material consumption; • Greater receptiveness to consumer demand; and • Improved ability to customize products.

The challenge can be in creating the data-driven manufacturing culture.

How to Create a Data-Driven Manufacturing Culture 1. Identify Assets In digital manufacturing, there are more assets available. On top of the factories or buildings and machinery and equipment, along with intangible assets such as patents, copyright, and licenses, there are now digital assets from industrial applications, digitally optimized processes (such as ERP, CRM), and edge and cloud computing.

To achieve the productivity and profitability gains possible in a data-driven manufacturing culture, the firm needs to clearly define all of its assets and put plans and processes into place to identify and dispense with data bottlenecks.

2. Break Down Silos Sharing data across the manufacturing organization streamlines processes and helps ensure that every team at the firm is pulling in the same direction—and able to understand why.

Develop your capabilities (software and human) to gather, merge, manage, and analyze the big data stored throughout the manufacturing firm.

If procurement and production, for instance, aren’t sharing data, you can’t improve their decision-making.

Don’t expect your humans to be able to get the most out of big data without the aid of advanced analytics.

For instance, with artificial intelligence and analytics doing the heavy data lifting, a company might analyze profit-per-hour factoring in as many as 1,000 variables and 10,000 constraints to help manufacturers figure out what to buy, what to make, and how they should make it, to yield the most profit in each period.

Fun fact: The digital universe is doubling in size every two years. By this year, the data we create and copy annually was expected to reach 44 trillion gigabytes, according to IDC. 3. Train Humans Better When a manufacturing firm adds more technology and demands greater interoperability, it creates a more complicated ecosystem. The humans already need to understand how to operate, troubleshoot, and monitor machines and the related technology. Now they also need to be trained on the process of data sharing and learn how the entire plant can

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Ask Tom

Tom recently hosted a four-part data managment webinar series to help companies leverage the breadth of data available from new technologies such as the industrial Internet of Things, automation, artificial intelligence, or other digitization tools.

Panelists included Kiwiplan, Amtech, EFI, Advantzware, and OMP. Recordings of these webinars are available to members with the All Access Pass.

function better by embracing this new interconnectedness. For example, valve manufacturer Richards Industrials achieved a 40% increase in productivity within six months of integrating its shop-floor management software.

By showing employees how to test and measure data, and helping them to understand its importance, you help get them invested in the datadriven culture.

4. Lead Intelligently While demonstrating empathy for those who find change challenging and are nostalgic for the “old ways,” leadership needs to prioritize developing an understanding around the value of smart devices, data analysis, and digital transformation. Leaders must know that the results are only as good as the decision-makers themselves.

This also can’t be an IT-team-only initiative. Heads of every business unit need to understand the use of big data and educate their teams about the importance of effective data security and data management.

5. Encourage Experimentation Data analysis should be directed at problem-solving, process improvement, and profit generation. Yet it can help to encourage people throughout the firm to experiment with the data. You may get a fresh perspective on processes or business challenges.

Establishing a data-driven culture as a priority can improve buy-in to the initiative while also leading to improved production rates, lower costs, reduced downtime, and greater employee satisfaction along the way.

Tom Weber is president of WeberSource LLC and is AICC’s folding carton and rigid box technical advisor.

Contact Tom directly at asktom@aiccbox.org.

BOXSCORE www.aiccbox.org

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Selling Today

Flexibility, Ingenuity, and Persistence Remain Key to Managing Sales Pipeline

BY TODD M. ZIELINSKI AND LISA BENSON

A

year ago, we couldn’t have imagined the tumultuous ride ahead of us when, without warning, the COVID-19 pandemic took “business as usual” and turned it on its head. Corrugated box, folding carton, and rigid box manufacturers needed to adapt quickly. Flexibility, ingenuity, and persistence helped many not only survive but prosper. We are looking back on the past year to see how some manufacturers adapted their selling techniques to the uncertainty they were facing.

Selling Challenges During the Pandemic Before the pandemic, the phrases “essential business” and “nonessential business” were not part of our everyday vernacular.

As governments scrambled to define them, manufacturers saw orders plummet in nonessential business sectors as well as

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retail display work. Those fortunate to service essential businesses saw orders skyrocket. The first challenge for sales was to shift focus onto industries showing growth, such as food and beverage, medical and pharmaceuticals, do-it-yourself, and cleaning supplies.

Manufacturers looking to grow in new industries or increase their customer base were faced with the challenge of reaching their prospects. Trade shows and in-person networking and meetings were no longer options. Many decision-makers who were not involved with operations directly, such as procurement and engineering, worked from home. For some, this made them harder to reach.

In the first months of the pandemic, salespeople found that even those in essential businesses were reluctant to talk because they were overwhelmed with

keeping up, and the timing wasn’t right to switch suppliers. Large companies and specific demanding industries, such as medical, became even more challenging to crack. Since in-person meetings couldn’t happen, an uptick was seen in prospects requesting quotes and focusing on price, which could put independents at a disadvantage.

Flexibility in Trying Times It became clear right away, for better or worse, that virtual selling would need to be embraced. For many, it was a massive paradigm shift from the traditional selling techniques they were used to. Through baptism by fire, some learned new technologies to adapt.

Virtual meetings, webinars, and virtual plant tours began to replace traditional selling methods.

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Part of the virtual selling strategy included connecting through social media channels, such as LinkedIn, creating virtual connections with decision-makers and centers of influence. The connections provided contact information for follow-up. Mobile applications made connecting and direct messaging even easier.

Many manufacturers, for the first time, evaluated the virtual first impression they were making. We saw many update their sales presentations, websites, and messaging. Inbound marketing tactics, combined with outbound and sales follow-up, have helped many manufacturers reach new prospects and build their sales funnels.

Messaging is key. Understanding where their prospects are in the buying cycle is critical. Educational messaging demonstrates proficiency and leadership to those not ready to buy. In the early months of the pandemic, this included everyone that was struggling to find their footing as selling-based messaging wasn’t resonating.

Initial communications, however, were focused on putting customers at ease and included information on how they were dealing with the upheaval, such as special cleaning protocols, employee staffing, and social distancing practices.

As their prospects’ needs become evident, successful manufacturers adapt messaging, and sometimes services, to reach them. For example, the pandemic impacted the paper packaging industry as the demand for paper products and e-commerce packaging spiked, leaving some companies facing extremely long lead times, which further disrupted their supply chains. Various state governments restricted employee capacity on the production floor, reducing production.

Savvy independent corrugators with excess capacity, understanding that many weren’t ready to change vendors, offered to be a secondary supplier and pick up the work overflow. To take it further, some offered vendor-managed inventory services, which helped their customers

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manage box inventory while giving them a deeper understanding of the customer’s needs and the ability to provide additional solutions to them.

In some cases, cold calling is more difficult during the pandemic. When business phones are not set up to transfer calls to cellphones, emails sent to those prospects will often be answered with outof-office messages that provide additional contact information for the prospect or additional decision-makers who can be reached out to.

With the viable prospects pool shrinking during the pandemic, structured and repetitive follow-up is even more critical.

Promptly following up on meetings, RFQs, and quotes can be the difference between making a sale and losing a sale to another supplier. If prospects don’t have an immediate need, ask when you can call back, and then make sure you do. Also, ask if you can send information to them periodically through a lead nurture email campaign.

To contend with prospects focused only on receiving quotes, some manufacturers require a meeting to discuss the quote.

They may also request samples and set a meeting to discuss them. The idea is to engage as much as possible while learning more about the prospect’s needs. The key is to pivot the conversation to learn as much as you can about the pains the prospect faces.

In addition to changing the way they communicated with prospects, some manufacturers have expanded their solutions to meet customers’ needs. This included purchasing new equipment or going the extra mile for customers, like providing pack-out and fulfillment services.

Lessons Learned There is still much uncertainty as we move forward and settle into a new way of selling.

The No. 1 lesson learned is that flexibility is and will continue to be a primary factor in success, whether that means learning new technologies, adapting virtual selling

strategies, moving into new industries, or providing new services.

Another lesson by many during the pandemic is the importance of having a process for managing your prospecting activities. That may sound counterintuitive to flexibility, but an important part of a process is looking at your data to determine what is and isn’t working and then taking necessary corrective actions.

Having a process also ensures that follow-up activities are carried out. When a quote is drawn up, make it part of your process to virtually meet with the prospect to discuss it or, at the very least, follow up after a specified time. If it isn’t accepted, ask why. You might not get an answer, but if you do, it may provide valuable information about what is happening in that industry, especially if you are hearing the same reasons time and time again.

Moving forward, we are still facing uncertainty. Although several vaccines have been introduced, and companies have instituted social distancing and other rules to keep employees and visitors safe, new strains of the virus have also been showing up. Some areas have resumed face-to-face meetings, but trade shows are still being postponed or done virtually. One thing that is certain is that flexibility, ingenuity, and persistence will continue to be essential characteristics of top performers.

Todd M. Zielinski is managing director and CEO at Athena SWC LLC. He can be reached at 716-250-5547 or tzielinski@athenaswc.com.

Lisa Benson is senior marketing content consultant at Athena SWC LLC. She can be reached at lbenson@athenaswc.com.

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Andragogy

Spring Refresh With Continuing Education

BY JULIE RICE SUGGS, PH.D., AND ALLI KEIGLEY

S

pring is heralded for a host of reasons: the blooming flowers, heaps of sunshine, ideal temperatures, warm breezes, the emergence of new life.

And with those changes comes a sense of renewal we feel all around us—a time for fresh beginnings.

For many, we’re spurred into a flurry of activity in our homes. Windows are flung open, baseboards scrubbed, closets emptied and reorganized, and multiple trips to the local Goodwill ensue. But this year, let’s push ourselves to focus on more than just the cobwebs along the ceiling—let’s do something with the cobwebs in our minds. There has been much to fill our minds in the past year, and a lot of it may have bogged us down. Maybe now, during this season of hope, we can turn our thoughts to curated learning and personal growth in our education.

You might have already reflected on this year, tested out some new ideas, made some plans—a list of things you want to start or improve on. That list may include exercising more frequently, cultivating a meditation practice, drinking more water, going to bed earlier, or making yourself smile before you even get out of bed. Adding continuing education would help round out that list. And while we may not be able to help you reach a state of enlightenment, we can most certainly help you learn more in the realm of packaging.

Just like the relationships on display everywhere in the springtime (bees and flowers, gentle rains, sunshine, and plants), AICC and The Packaging School work together to offer member companies and all respective employees the value-add of free training programs.

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Among these programs are more than 80 online courses in both English and Spanish, all related to the packaging industry and the manufacturing environment. With over 500 learning videos and some 250 educational documents and resources available, there’s plenty of opportunity for you to learn something new.

The Certificate of Packaging Science (CPS), a 12-course online curriculum that teaches the materials, processes, and influences shaping the advancement of the packaging industry, should be on your list of achievements to undertake this year.

After completing all 12 CPS courses, AICC members are eligible for the CPS final exam coordinated through The Packaging School—the resulting credential is a registered and framed certificate that is sent to each earning graduate.

This e-learning program provides relevant and comprehensive education on the global role of packaging in business and society.

What makes our online courses special? For starters, we use a technique called microlearning. If you aren’t familiar with the term, it just means we take difficult topics, break them up, and arrange them into bite-sized lessons learners can engage with on any device. We might use infographics, quick readings, videos, animations, discussions, or interactive slides as the vehicle to deliver information.

This unique method empowers you to learn and complete courses on your schedule, at your own pace. We believe these short focused sessions help avoid mental burnout and cater to adult learning styles.

The benefits of continuing education throughout your career are numerous— an enhanced understanding of the world, newly opened doors to opportunities, improved quality of life, to name a few. Broadening your knowledge base will keep your brain active and sharp—and also improve your memory (anyone else desperate for help in that area?).

Research shows a strong link between reading and overall health. Overall, learning is a form of mental exercise that can keep your mind robust and strong.

The promise of hope seems more prevalent and longed-for this spring.

We’ve collectively been through many challenging circumstances since the spring of 2020. As we look around our natural world to watch the green buds burst forth into life during this change of season, our hope for you is that you overcome whatever difficulties you may be facing. Keep striving, take advantage of our programs, and continue learning, growing, and bettering yourself.

Julie Rice Suggs, Ph.D., is academic director at The Packaging School.

She can be reached at 330-774-8542 or julie@packagingschool.com.

Alli Keigley is production coordinator at The Packaging School.

She can be reached at alli@packagingschool.com.

Leadership

Brain Space

7S WORKPLACE 7S WORKPLACE PLAN PLAN FISHBONE DIAGRAM FISHBONE DIAGRAM LESSON

BY SCOTT ELLIS, ED.D.

7S WORKPLACE PLAN

FISHBONE DIAG

P

eople often want to borrow your brain. Our Matthew used to ask me why boys of his age and stature were required to take out the garbage.

I would promise to discuss it when he came back from taking out the garbage.

Come to think of it, it has been 30 years, and we still have not discussed it.

I think I will text him about this, while I talk to you about developing critical thinking in your team.

In recent articles, I have described some of the tools used to solve proximate problems and to teach team members to solve the problems they face tomorrow. We have discussed tools to plan, problem-solve, and measure progress. They are used in the moment to improve work processes, to reduce waste, and to foster a healthier and more profitable company. Over time, they have the added benefit of providing much-needed experience with concepts of judgment. Working with people with a wide range of capacities, I have found that the willing ones can learn habits of critical thinking. This will improve the work and the culture, but it will also enhance the individual’s career and the community.

I have limited brain space and a number of projects that fill it. Self-serving as I am, I have noticed that I spend a good deal less time solving problems for others.

Folks often ask questions for spurious reasons. Sometimes, they want to delegate the problem back to me; other times, they are just avoiding an onerous task. When those who have participated in the use of these tools ask me to think for them, I try to resist the temptation. Instead, I ask what they learned when they looked at the data, prioritized, or completed an A3 report. Then they leave—annoyed—and I work on more value-added tasks. When

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BRAIN BRAIS BRM MA

they return, they have pride in having done the work, and their solutions are usually superior to those I would have suggested.

Most often, people learn these concepts best using low-tech tools like

whiteboards. I am well acquainted with the various software tools available for meeting management, problem-solving, planning, and measurement reporting.

In fact, I use many of them, but not in a group setting. This has absolutely

Leadership FISHBONEDIAGRAM DIAGRAM FISHBONE LESSONS LEARNED

ESSONS LEARNED

LESSONSLEARNED LEARNED LESSONS AGENDA

AGENDA

IN SPACE BRAIN SPACE SPACE BRAIN MAP

N SPACE MAP MAP MAP nothing to do with me being a boomer.

It does, however, have a good deal to do with learning theory. People learn best when they are involved. If our education system were modeled on the schools developed by Maria Montessori, then

all subject matter would be integrated and interactive. For example, in today’s kindergarten class, we might play with frogs, learn about the color green, write the letter F, and sing along with Kermit.

This would use all the associations

AGENDA AGENDA involved to embed the lessons. However, economics’ influence on public education has devolved to students sitting quietly while they are shown things and talked to. Some folks adapt to learning well in this environment, but everyone learns faster and better when they interact with the subject and with one another. Consequently, utilizing a lowtech interactive tool keeps all engaged and learning.

Some of the most intentional learning companies adorn the walls of their meeting room with planning and problem-solving tools. If you enjoy Toyota Production System nomenclature, you can dub it the Obeya Room. I think that would be dumb, because it just means “big room,” but you can do it. I prefer the Improvement Center, or War Room, or maybe even the Brain Space.

No matter what you name it, the value is found in the fact that the tools are right there to help reinforce critical thinking.

In the midst of a busy day, we can take a moment to explore an error and try to make it very difficult to repeat. We could also celebrate a success by making it easy to replicate. There have been many times when I was just about to think for a questioner, but the fact that the tool was right there on the wall reminded me that we could find a better solution together.

Matthew just texted me back. He says he doesn’t want to talk about it.

Go figure.

Scott Ellis, Ed.D., delivers training, coaching, and resources that develop the ability to eliminate obstacles and sustain more effective and profitable results. He recently published Dammit, Learning Judgment Through Experience. His books and process improvement resources are available at WorkingWell.bz. AICC members enjoy a 20% discount code: AICC21.

BOXSCORE www.aiccbox.org

25

Planning for the future is one of your most important jobs. Selling your business, succession planning, equipment decisions and expansions require the best advice and strategy. We’ve been providing Business Planning Services to the independent converter for over 30 years. Need to make a big decision? Call us now.

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INNOVATION Awards

Calling All Machinery Innovators: 2021 IOY Call for Entries

A

ICC, Board Converting News, and Corrugated Today have issued a call for entries in the 2021 Innovator of the Year (IOY) competition. This year’s category is machinery. The Innovator of the Year competition, held in conjunction with the AICC/TAPPI 2021 SuperCorrExpo, August 8–12, at the Orange County Convention Center in Orlando, Florida, will highlight the best that AICC Associate members have to offer.

Developed more than two decades ago as a forum for AICC members to share their best ideas, IOY has evolved into a highly competitive arena that showcases solutions that AICC members have developed.

The entries submitted into the IOY competition are first judged by a panel of industry experts on the AICC Plant Innovations Committee, who select the finalists. Finalists are featured at SuperCorrExpo, and meeting attendees vote by ballot to name the winner.

The machinery category, open to

AICC Associate (supplier) members, focuses on innovations of equipment, products, or services that are directly related to the mechanical converting process. Innovations should benefit the paperboard packaging industry through enhanced efficiency, quality, productivity, and/or safety of converting plants.

The mechanical converting process covers all operations that involve direct contact with corrugated, folding carton, or rigid box substrates (i.e., printing, cutting, creasing, scoring, stitching, gluing, material handling, etc.).

Entries must be received by Friday, June 4. More information and the entry form can be found at www.aiccbox.org/innovator.

Questions about the IOY competition, SuperCorrExpo, and the value a well-connected workforce brings to a company can be directed to Cindy Huber, director of conventions and meetings, at 703-836-2422 or chuber@aiccbox.org, or to Laura Mihalick, senior meeting manager, at lmihalick@aiccbox.org.

Past IOY Competition Machinery Winners 2016: Gemini North America – Barberán high-speed, high-quality digital printer 2012: JB Machinery – KleenPlate® plate wash eliminator 2008: HIDE-Pack – Inline R.F.I.D. embedding system for flexo folder gluers 2004: Alliance Machine Systems International – ALF-MAX robotic palletizer system 2001: Curioni USA Inc. – Extend-O-Slot 1998: Pamarco Inc. – Fiberlyte anilox roll 1995: Langston Corp. – Rotofold folding system

BOXSCORE www.aiccbox.org

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AICC Innovation

Leadership and Management

Leading Remote Teams – One Year On

BY BEN BAKER

W

e all remember that day in our company’s life when we sent our teams home in the spring of 2020. Most of us assumed, hoped, and planned for this to be a short-term exercise. “A couple of weeks of inconvenience,” and therefore, not much thought went into things beyond making sure people took their laptops and cellphones home with them.

Weeks turned into months, and for many of us, bringing everyone back to the office full time may never happen again.

Teams have grown accustomed to working remotely, leaders have adjusted—some well, some not—and in the vast majority of cases, this has not been as horrible an exercise as we have thought it would be.

Or has it?

The challenge is, we sent our teams home with Band-Aid and duct tape solutions. There were no new policies, very few procedures, and leadership teams who had never managed remote workers before. Some innovative companies have realized this and have taken the time, made the effort, and invested capital in making sure that this shift has happened not only efficiently but effectively; but unfortunately, many have not.

Many companies are stuck relying on antiquated ways of doing business and leading their people, hoping that things will eventually go back to the way they were; but they might not! The ways we work and how we lead people have evolved and must continue to change.

If we do not, we will be left behind as businesses. We will become inefficient

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and ineffective, and we will lose our best people and possibly our livelihoods.

Every company must evaluate how they are communicating with, setting expectations for, and supporting remote teams. This is vital to ongoing success.

If we are not communicating with our teams effectively, we have failed right off the bat. When people are remote, we do not have the same opportunity to check in as frequently, and therefore clear and concise communication is critical in isolated situations. The more you can get people to acknowledge, communicate back, and verify, the more effective you will be. It is imperative to have people listen, understand what is expected of them, and know why those expectations exist—to have them engage and be productive members of the team.

Expectations are critical. People need to understand what is required, when, by whom, and why, in order to prioritize tasks efficiently. We are no longer in the Henry Ford assembly line mentality world. We live in a world where our goal is to have our people solve problems and help the company and its clients achieve their objectives. Leaders must focus expectations on results and not time-based activity. The more we micromanage, the more we focus on time spent instead of outcomes, the more frustrated our teams will become, the less engaged and productive they will become.

Supporting teams requires different thinking and active leadership.

Command-and-control management styles need no longer apply. We need

to realize that, for every worker, working from home is unique and has different needs and challenges. Do they have a quiet, well-lit space where they can work effectively? Do they have the technology they need to be effective and efficient? Do they have a desk and a chair that enable them to be comfortable? Are they safe from physical or mental harm working from home? Are they a single parent juggling three kids while trying to live up to work expectations? All of these could be realities for your teams. It is up to each leader to assess what individual workers require to be effective and to coach, lead, and mentor them accordingly. The goal must be to work with members, both individually and collectively, to communicate objectives, motivate them, and be successful and productive team members.

None of this is easy. All of this takes effort, but the long-term return is well worth the investment.

Ben Baker is president and CEO of Your Brand Marketing, an employee engagement consultancy designed to help you communicate the value of your brand effectively.

He is the author of two books: Powerful Personal Brands: A Hands-On Guide to Understanding Yours and Leading Beyond a Crisis: A Conversation About What’s Next. Ben also hosts the iHeart- and Spotify-syndicated YourLIVINGBrand.live show, with more than 180 episodes.

VISIT OUR WEBSITE LPCINK.COM OR CALL 800.559.1526

Member Profile

Columbia Container: ‘The Right Box at the Right Time’

BY STEVE YOUNG

COMPANY: Columbia Container ESTABLISHED: 1998 JOINED AICC: 2014

Photos courtesy of Columbia Container Corp.

PHONE: 410-467-1400 WEBSITE: www.columbiacontainer.net LOCATIONS: Baltimore, Maryland CEO: Brendan Moynihan In the Columbia Container lobby, from left: Columbia Chief Financial Officer Jim Swope; AICC President Michael D’Angelo; and Columbia CEO Brendan Moynihan.

T

he term “elevator speech” has gained some traction in the business world of late, based on the supposition that you had better be able to articulate the value proposition of your enterprise in the short span of an elevator ride. Visit the website of Columbia Container in Baltimore, and you’ll see a model of succinct clarity: “The Columbia Advantage: The right box at the right time.”

Brendan Moynihan, CEO, expands: “Columbia Container focuses on providing the cost efficiencies of a manufacturer with the high level of customer service typically found with a distributor.”

Moynihan, who started his career in 1986 as a sales representative for Oxford Container in New Oxford,

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Pennsylvania, explained that in his years at Oxford, he noticed there were many corrugated manufacturers that focused on high-volume, cost-efficient production runs and distributors who focused on customer service. “We saw a market opportunity for a company that could combine both these characteristics, and that has been our operating philosophy here at Columbia Container,” he says.

Rich History in a Rich Market Feeling the tug of entrepreneurship, Moynihan left Oxford Container in 1998 and, with his partner, Jim Swope, purchased Columbia Container. Swope, now chief financial officer of Columbia, was a lifelong banker who left the

financial world to start a career in the corrugated industry. Columbia emerged on the partners’ radar screen when Don Sturtz, who had been in the corrugated business locally for more than three decades, was looking to sell the company.

As Moynihan tells it, Sturtz named the company Columbia Container because that was the name of the first corrugated box company he worked at—one with an interesting connection to local Baltimore lore.

“The original Columbia Container had been destroyed in a fire but had employed both Don and legendary Baltimore Colts Quarterback Johnny Unitas as salesmen,” Moynihan explains.

“As we’ve heard the story told, Johnny worked at Columbia in his early years

Member Profile

with the Colts, because the pay in professional football in those days was not enough to support his growing family; boy, how times have changed!”

Moynihan says Sturtz had no children interested in taking over the business, and like many good business owners, he didn’t want to sell without giving the people he employed a chance to continue working at Columbia. Says Moynihan proudly, “We still have one employee, Gerald Helmick, who worked for Don.” Moynihan and Swope recognized the potential of the Baltimore market.

Baltimore, as the major seaport between New York and Norfolk, is a major manufacturing and distribution hub.

According to the Baltimore County economic development authority, manufacturing accounts for more than 56,000 jobs in 1,800 employing companies. Industries such as machine tools, defense, food and beverage, consumer products, and building supplies take advantage of the city’s extensive and accessible rail, road, and shipping networks, making Baltimore the locus of an extensive box market area encompassing Maryland, Pennsylvania, Delaware, and Northern and Central Virginia.

Moynihan says that most of Columbia’s customers are located within 60 miles of the plant in Baltimore.

“Our market is comprised of food and beverage, pharmaceutical, distribution, and industrial companies,” he says.

“Our largest concentration is in the food and beverage segment.”

Sales Manager Chris Saumell, who joined Columbia in 2004 after a 14-year stint in sales at Oxford Container, concurs: “We are heavily involved in food and beverage,” he says. “We sell brown boxes with one- or two-color print to a number of meat companies, spice companies, bakeries, food distributors, and retail food manufacturers, with customers also

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in industrial, bio-tech, and consumer products industries.

“We manufacture RSCs mostly—a lot of kraft single-wall but also a lot of oyster white double-wall. Recently,” he adds, “we have been converting a lot of D flute.” D flute has a caliper lying between C and E flutes and has as its major advantage a high strength-toMoynihan shows off Columbia’s recent acquisition, a Post volume ratio. In other specialty gluer. words, it’s a space saver for customers. are supported by the Langston, where Saumell, who worked as a salesman standard setups are done in 14 minutes, under Moynihan at Oxford, oversees and on the EMBA, where similar setups a team of four sales reps: Kevin Parks, take all of seven minutes.

Colin Moynihan, Shawn Yakscoe, and The most recent addition to this roster Ron Milhimes. He says they get a lot of is the 74-inch Post. Acquired in 2019, it opportunities because of referrals from was completely rebuilt in early 2020 by existing customers. “We are seizing on Tom Torosian of Torosian Tech Services our ability for quick-turn, reliable serin Racine, Wisconsin. According to vice and competitive pricing,” Saumell Moynihan, the Post will lead the comsays. “We do what we say we are going pany’s push into value-added packaging, to do; if we fall short, we communicate particularly the addition of auto-bottoms, proactively. We give outstanding service small RSCs, and glued trays in demand at a competitive price. We have forged in the market. long-term relationships with many of Will Cole, in his role as plant manager, our customers, and as they have grown, oversees the manufacturing floor. He’s so have we. We rarely lose a customer.” a 26-year veteran of the corrugated Last year, he adds, despite the COVID industry with an extensive résumé of slowdown in May and June, sales were production responsibilities. “I’ve served “up dramatically.” in various capacities, including machine operation, supervision, superintendent, Equipped for the Job quality manager, and safety manager,” he Columbia’s equipment mix supports its explains. He has been at Columbia for business model. The company has a 43" x four years.

94" EMBA two-color flexo folder gluer, Columbia, like many independents a 50" x 113" Langston Saturn III flexo in North America, relies on a well-oiled folder gluer with die-cut section, a 60" x maintenance plan to keep their older 80" Staley two-color rotary die cutter, a machines running efficiently. “We just 74-inch Post folder gluer, and a 50" x 112" use common sense,” Cole says. “We Serenco two-color flexo printer slotter get feedback daily from our machine with lead edge feeder. Moynihan explains operators on the operational aspects that their quick turnaround capabilities of each piece of equipment. We track

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Member Profile

preventive maintenance using a simple Outlook task manager.”

Touring Columbia’s orderly plant floor, the emphasis on good housekeeping is evident. “We employ lean manufacturing principles, particularly 5S,” Cole says.

“We are constantly looking at process improvement, especially setup times.”

The effort has paid off in supporting Columbia’s quick-turn-around customer satisfaction. Cole says his past experience has taught him what can be done with a dedicated and focused approach to process improvement. “I came from a three-shift integrated operation to a one-shift sheet plant,” he says. “I was asking myself, ‘How much could they be doing?’ ” Now, of his experience at Columbia he says, “It’s amazing how much we are putting through this plant and what we are getting done, day in and day out. I am proud to be a part of this team.”

Christine Lee is Columbia’s customer service manager. She tells us she’s been with the company 13 years, adding, “with many more to come.” Lee is the linchpin in Columbia’s promise of quick turnaround and on-time delivery, a promise that starts with understanding and getting to know each account personally. “It’s all about knowing the story,” she says. “I sit down with our sales reps to help understand the ‘story’ on each account.”

Lee says that this data collection process is the key to acquiring and keeping loyal customers. “A simple rule is that the more you know about the account and their specific needs, the better your chances of figuring out what will work for them and winning,” she says. “I ask a lot of questions: What are the issues?

Where are their needs not being met?

What are the three things they would change if they could?”

Lee’s enthusiasm for the business is contagious: “It has been a joy working for a family-owned company and learning

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BOXSCORE March/April 2021

about boxes,” she says. And acknowledging what industry veterans have long known, she adds, “Who knew boxes could be that interesting?”

Lee and her three colleagues in Columbia’s customer service department, Cliff Mangle, Ashley Fama, and Shakara Alston, also profess what she calls one of their “core beliefs” of continuous improvement.

“We never stop improving what we are doing and how we are doing it at each of our accounts,” she says. “We constructively challenge our production team, tooling vendors, sheet suppliers, and even our customers to improve our understanding so On the plant floor, Moynihan notes the daily setup we can improve our approach.” time numbers for Columbia’s 43" x 94" Emba two-color These practices inevitably lead to flexo folder gluer. what she says is “a happy ending for each story.”

No member interview in the year “tremendous core” of talent with 2020 can ignore the effect of the keeping up with demand and keeping COVID health crisis. Corrugated customers satisfied. Yet Columbia, industry data in the fall of 2020 shows like many independents in the industry, a year-to-date increase in corrugated is struggling to find workers who are shipments of 2% or more over 2019, a willing to commit to the rigors of figure driven by online shopping and working in a fast-paced, ever-changing government stimulus actions to dampen environment like an independent the negative effects of various economic sheet plant. shutdowns. AICC members have with Moynihan and Cole rely on referrals near uniformity reported robust order to fill the gaps, offering monetary backlogs but also tightness of material incentives to employees, dependent on supply and increasing challenges in how long their new recruits remain recruiting and retaining workers. successfully on the job. They say they Columbia’s experience mirrors the had their best success recruiting from industry’s. “We’ve had a dramatic commercial printers and binderies, increase in sales in this year alone,” says which have similar job-shop processes Moynihan. “Our lead times are three or and order procedures. Cole believes four days, and we are four weeks into the key to finding and retaining good the addition of a second shift to keep up people, while challenging in today’s with the COVID demand. The second environment, is really very simple. shift has really helped keep our lead “Simply do what you say and say what times down.” you do,” he says. “Treat everyone with The company employs 53 people, dignity and respect. Word-of-mouth has and Moynihan credits what he calls a been huge for us. We have an employee

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Member Profile “We do what we say we are going to do; if we fall short, we communicate proactively. We give outstanding service at a competitive price. We have forged long-term relationships with many of our customers, and as they have grown, so have we.”

—Chris Saumell, sales manager, Columbia Container

incentive program where it pays to bring in good people, and this has been working very well for us.”

As Moynihan sees it, recruiting and maintaining a high-quality workforce is one of the biggest challenges facing the industry today. “We feel our people are our biggest resource and that our employees have significantly contributed to our growth,” he says.

Vision Ahead When we ask Moynihan and Swope about their future plans for Columbia, both agree that technology will drive the company forward while keeping their focus on maintaining short lead times.

“As technology continues to impact our industry, choosing the right equipment is critical,” says Moynihan.

Adds Swope, “We look at the direction the industry is going and look for strategic investment after our current machines are filled.”

Like so many independent sheet plant owners, Moynihan and Swope have established their success on well-maintained used equipment selected to support the mission. “We are a brown box plant focused on expanding our offering and pushing into new markets,” says Moynihan.

“Our investment in new equipment will never stop so we can ensure our ability

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BOXSCORE March/April 2021

to meet the needs of our customers and grow our business.”

Moynihan and Swope are eyeing significant investments in the years ahead, and they have mapped out a multiyear plan to achieve them. In 2021, a multicolor inside-outside flexo rotary die cutter and stacker are in the plans. In 2022, a multicolor inside-outside flexo folder gluer upgrade. And in the years 2023–2025, identifying and moving to a new production facility from their current 70,000-square-foot space.

Columbia Container can, from many perspectives, be considered a model independent sheet plant— family-owned, well-defined core values around customer satisfaction, efficient performance and integrity, a loyal and dedicated workforce, and a diverse, satisfied customer base. But there’s more: Columbia, like many model independents, is also a pillar of the Baltimore community. When the COVID health crisis shuttered so many businesses and threw thousands out of work in the Baltimore area, it fell to state and local nonprofit food banks and distribution sites to provide food assistance to the needy.

The Maryland Food Bank (MFB), the state’s largest food assistance safety net, provides, according to its website, 40 million meals per year from its

locations in Baltimore, Salisbury, and Hagerstown. A key ingredient in the success of this enterprise is the packaging needed to deliver food to its clients.

Columbia Container stepped up and, with the help of donated raw materials, particularly sheets from CorrChoice in Palmyra, Pennsylvania, has donated more than 550,000 boxes to MFB as of this writing.

About their membership in AICC, Moynihan, Swope, and Saumell are enthusiastic in their recommendation of the Association’s services. Both Moynihan and Swope are members of CEO advisory groups, and Saumell has taken it upon himself to avail his team of AICC’s Packaging School for individual and group training. In our visit with them, they called out AICC’s Taryn Pyle, director of education and talent development, and Chelsea May, education and training manager, for their tireless work in helping members train and educate their employees, especially in the environment of the COVID health crisis. “Taryn and Chelsea have been absolutely fantastic in their assistance to us this year,” Moynihan says. “They are a cohesive team helping members.”

Moynihan sums up AICC’s visit by returning to his opening remarks: “We focus on companies that require a high level of service and quick turnaround on their orders. We work hard to understand the needs and inventory requirements of each of our customers and then put a customer service plan in place to serve their needs.”

In other words: “Columbia Container: the right box at the right time.”

Steve Young is AICC’s ambassador-at-large. He can be reached at 202-297-0583 or syoung@ aiccbox.org.

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New Administration, NEW POSSIBILITIES What the new presidential regime may mean for independents

BY ROBERT BIT TNER

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BOXSCORE March/April 2021

A

s box manufacturers look ahead to the next four years, questions abound regarding the impact that a new presidential administration—and the regulations and legislation it may introduce—will have on domestic and international trade, the economy, wages, and issues of health and safety.

As this feature was being developed, the Biden administration was

just days old. At this point, there are more unknowns than knowns.

Plans and policies discussed on the campaign trail might never make it through the House and Senate. Priorities may need to shift as world events dictate. Not surprisingly, “It’s hard to know what the Biden administration will bring,” notes Eric Elgin, owner of Oklahoma Interpak.

But it is possible to make some educated guesses based on the recent history of Joe Biden’s political party, as well as his previous statements and actions. Mark Williams, president of Cauthorne Paper Co., believes, “The main issues that I expect will challenge all manufacturers under the Biden administration are higher taxes, regulatory issues, labor and employment issues, and trade.”

BOXSCORE www.aiccbox.org

39

A Taxing Concern One potential change that concerns manufacturers is a reduction of the tax breaks put in place by the previous administration. “We’re likely to see a reversal of the Trump tax cuts,” Elgin says. “That’s probably going to happen pretty quickly.”

Utah Paperbox President Steve Keyser agrees. “I think it’s probably fair to say that the new administration won’t be as friendly to business as the Trump administration was. But I don’t know that for a fact. At this point, Biden hasn’t been in office, and he hasn’t done anything yet. It’s impossible to speculate about the future.”

Even so, Keyser admits that the prospect of higher taxes does not overly concern him. Acknowledging that not every AICC member will share his opinion, he says, “Even if it costs the company money in higher taxes or fees— even if it costs me personally—it’s going to be worth it to me just to have a new administration in the White House.”

Williams observes that tax increases could have a wide-ranging impact on boxmakers. “Many AICC members are S corporations, so they are taxed on flowthrough income from their businesses,” he says. “Higher taxes will slow reinvestment in businesses. Hopefully, rules on accelerated depreciation will continue, because those are excellent incentives for owners to purchase equipment to grow

their business and benefit from a tax standpoint. Eventually, the tax man gets paid, but the accelerated depreciation laws help business owners postpone the tax somewhat while their businesses expand.

The goal is to grow—and tax policy can have a significant impact on growth.”

Despite Biden’s earlier pronouncements, which included a plan to raise corporate taxes from 21% to 28%, some analysts now believe it may be premature to worry about a tax hike. “The immediate focus is more likely to be on pandemic stimulus spending and economic growth rather than major tax increases,” according to an early December survey by CNBC. Nearly two-thirds of the corporate financial officers who responded to that survey concluded that Biden is more likely to be neutral for business rather than negative or positive.

Environmental Justice A significant element in Biden’s campaign platform was combining environmental responsibility with a need to end the kind of systemic racism that has put low-income neighborhoods and communities of color at higher risk from environmental pollutants. The resulting blend of environmental stewardship and social justice is called “environmental justice,” and it is “a core tenet of Biden’s climate plan,” his website states.

“I’m aware of a lot of talk about focusing on the environment again and reinstating some policies that promote recycling and sustainability and clean air. That’s a plus for the industry, because I think our industry has a wonderful sustainability story to tell.”

—Steve Keyser, president, Utah Paperbox

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BOXSCORE March/April 2021

On the one hand, a renewed focus on the environment could help to bring public attention to the paperboard industry and its advantages in terms of recyclability and sustainability.

“I’m aware of a lot of talk about focusing on the environment again and reinstating some policies that promote recycling and sustainability and clean air,” Keyser says. “That’s a plus for the industry, because I think our industry has a wonderful sustainability story to tell. For example, Utah Paperbox has embraced sustainability. We have invested in solar, we’re in a LEED-certified building, and we provide a lot of electric-car charging stations for employees.”

Environmental stewardship is a major concern for Keyser, whose company is based in Salt Lake City. “Salt Lake City has a terrible pollution problem,” he says.

“When I think about handing the planet over to my three kids, I don’t want them to say to me, ‘You did nothing about this problem.’ I believe in climate change. I believe in science. I am very happy to see an administration that is focused on the environment. I’m OK with regulations that help the environment, even though it may cost the company money.”

Increased costs for converters might not be the only price to pay. Elgin suggests that Biden’s approach may result in increased regulation that could potentially stifle paper manufacturers.

“The biggest thing that would concern me [from the new administration] would be heavy regulation,” he says. “The paper industry in general uses a lot of energy.

And the factories where my raw material comes from use a lot of energy. From talking with people over the years, one of the big concerns is the possibility of increased Environmental Protection Agency regulations on their paper mills.

“Obviously, some regulations are very important,” he continues. “You’ve got to be safe. You’ve got to be responsible about your waste. But I think sometimes, there

“There is a lot of uncertainty out there regarding trade. It would be nice to secure more fair free-trade agreements like the one we have with Canada and Mexico.”

—Mark Williams, president, Cauthorne Paper Co.

are regulatory expectations for paper mills that are very difficult to meet. Paper is already difficult to get right now. If mills get shuttered due to increased regulation, that could hurt supply in the future.”

“I think there is the potential for overregulation,” Williams adds. “We need to do our part by staying in touch with our representatives and sharing facts about the excellent track record of our industry.”

to employees,” Williams points out. “The preference is not to have a third party negotiate these things.”

Biden has also expressed a desire to raise the federal minimum wage from $7.25 an hour to $15 an hour. Analysts are divided

on the chances of such a proposal making it through the Senate, making this issue yet another case of wait-and-see. “I am in favor of some kind of plan to increase the minimum wage over time,” says Williams.

“Most AICC members are happy to pay well above minimum wage for skilled operators.

But we don’t want to pay $15 an hour for someone who lacks the skills—and determination—to succeed.”

Global Goals At this point, few specifics are known regarding the Biden administration’s approach to international trade. On the campaign trail, Biden was reluctant to discuss too many details of his plans before taking office, stating that “there’s

Workforce and Wages “President Biden is admittedly a ‘union’ guy,” Williams says, “so look for unions to be more active under the new administration.”

In fact, Biden’s campaign website highlights his stance: “Strong unions built the great American middle class.

Everything that defines what it means to live a good life and know you can take care of your family—the 40-hour work week, paid leave, health care protections, a voice in your workplace—is because of workers who organized unions and fought for worker protections.” As a result, Biden’s plan is to strengthen public- and private-sector unions.

The elements of Biden’s plan seem tailored primarily to redress the actions of “bad actors” in the corporate space. For those well-run manufacturers that already maintain strong employer-employee relationships, there may be nothing that needs redressing.

“Most AICC member companies are nonunion and take great pride in providing nice-paying jobs and benefits

BOXSCORE www.aiccbox.org

41

only one president at a time.” He has commented on his desire to join with U.S. allies, including the European Union, in a common front against China and its trade practices. However, he told the New York Times that he would not immediately remove the 25% tariffs that the previous administration imposed on China’s exports to the United States “or the Phase 1 agreement Trump inked with China that requires Beijing to purchase some $200 billion in additional U.S. goods and services during the period 2020 and 2021—which China has fallen significantly behind on,” the Times reported. “[Biden] first wants to conduct a full review of the existing agreement with China and consult with our traditional allies in Asia and Europe,” the paper noted, going on to quote Biden as saying, “It’s going to be a major priority for me in the opening weeks of my presidency to try to get us back on the same page with our allies.”

Williams believes the new administration’s progress in this regard bears watching. “U.S. box manufacturers compete in a global economy and need policies that improve our competitiveness and our customers’ competitiveness,” he says. “There is a lot of uncertainty out there regarding trade. It would be nice to secure more fair free-trade agreements like the one we have with Canada and Mexico.”

Time Will Tell It is impossible to know in these early days how the Biden administration will fare regarding industry-related legislation and regulation. Even so, the manufacturers we spoke to are generally positive about the near future.

“Looking at 2021, I’m optimistic,” Keyser says.

“Honestly, when I think about any upcoming regulatory or legislative changes coming with the Biden administration, there isn’t anything at this point that concerns me.”

Elgin is also looking forward to what the future holds. “Overall, I’m an optimistic person, and I do hope for the best,” he says. “Biden has been pretty much in the middle, not swinging too far to the left or right. If his administration can stay in the middle, I think that’ll be best for everyone.”

Robert Bittner is a Michigan-based freelance journalist and a frequent BoxScore contributor.

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BOXSCORE March/April 2021

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HR RUNDOWN Managing benefits- and nonbenefits-related issues in 2021

BY CHRISTINE WALTERS AND ADAM MEEHAN

W

hile specific dates vary, January marked the one-year anniversary of the first reported case of COVID-19 in the United States and a declaration by the World Health Organization of this outbreak as an international public health emergency. This article provides a high-level overview, looking back and to the future, of what employers need to know about changes to benefits-related programs like group health, retirement, flexible spending accounts (FSAs), and student loan assistance, as well as nonbenefits-related issues like managing leave and time off, vaccinations, working from home, and more.

BENEFITS-RELATED ISSUES Last February, many AICC members who sponsor employee benefit plans were quite comfortable having settled into Affordable Care Act compliance (if applicable) for group health plans and were slowly beginning to think about implementation efforts of the SECURE Act for retirement plans.

But then COVID hit, which brought a firestorm of legislation—the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March and the Consolidated Appropriations Act of 2021 (CAA) in December—and accompanying regulations impacting employee benefit plans. The information below focuses on the legislative takeaways.

BOXSCORE www.aiccbox.org

45

Retirement Plans – Distributions and Partial Terminations The CARES Act introduced new ways for participants to access funds from retirement plans, including special distribution rights, enhanced loan limits, and suspension of loan repayments for one year. AICC members should ensure that they amend for these changes by the last day of the plan year beginning in 2022.

The CAA authorizes “qualified disaster distributions” (up to $100,000), enhanced loan limits (up to $100,000 or 100% of vested balance), and loan suspension relief for individuals whose principal residence during the incident period of a qualified disaster is in a qualified disaster area and who has sustained a related economic loss. Qualified disaster distributions are not subject to an early withdrawal penalty and can be taxed and/or repaid over a three-year period. Additionally, eligible participants who received hardship distributions to purchase or construct a principal residence in a qualified disaster area, but who did not use the funds due to the qualified disaster, can now repay such a distribution. These provisions are optional, and because they are relatively similar to prior initiatives, recordkeepers should be ready to implement.

The CAA also provides relief from partial terminations. In general, a retirement

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plan may be partially terminated if more than 20% of participants were laid off in a particular year. In such an event, participants must be fully vested. The new law provides that a partial termination will not occur if the number of participants as of March 31, 2021, is at least 80% of the active participants as of March 31, 2020.

AICC members who had layoffs during 2020 should review this relief against their facts and document reliance.

Health Plans – Participant Protections The CARES Act had certain provisions impacting group health plans, including requiring group health plans to cover COVID testing and to cover vaccines as

“preventive care” (in each case, without any cost-sharing), allowing telemedicine coverage at no cost without frustrating health savings account eligibility and authorizing over-the-counter medications without a prescription. Plan sponsors should ensure that they made the required changes and considered the permissible changes.

The CAA went further with respect to changes to group health plans, including numerous protections to curb “surprise billing.” For instance, individuals covered by a group health plan receiving nonemergency services at a network facility cannot be balance-billed by a nonnetwork provider (subject to certain exceptions for ancillary services), absent notice and consent requirements. If a plan covers emergency services, it must cover nonnetwork emergency services without prior authorization and subject to in-network cost-sharing rules. Other features include independent dispute resolution processes, price comparison tools, and provider databases, among other items.

The recent law also provides a number of transparency-focused initiatives, including: • Prohibiting group health plans from entering into agreements that prevent the disclosure of provider-specific cost and quality information.

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The CAA allows AICC members to provide greater flexibility for FSAs by amending their plans by the end of the plan year in which the change takes effect.

• Mandating disclosures from brokers and consultants, including a description of services and all direct and indirect compensation (similar to retirement plan disclosures already in effect).

• Requiring that plans file a report with the Department of Labor (DOL) by December 27 (and annually) that includes information about prescription pharmacy benefits and costs.

Most plan-level mandates are not required until plan years starting on or after January 1, 2022, but there are data collection items that require immediate attention. AICC members, with the help of legal counsel, should be monitoring vendor efforts to ensure that compliance obligations are being met.

FSAs – Flexibility Similar to earlier guidance, the CAA allows AICC members to provide greater flexibility for FSAs by amending their plans by the end of the plan year in which the change takes effect. The following changes are authorized: • Midyear election changes. For plan years ending in 2021, a plan may allow participants to change contributions to FSAs prospectively, without regard to any change in status.

• Carryovers. A plan may allow participants to carry over any unused amounts from the 2020 plan year to the 2021 plan year, or the 2021 plan year to the 2022 plan year.

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BOXSCORE March/April 2021

• Grace period. For plan years ending in 2020 or 2021, FSAs may extend their grace period to 12 months and allow employees who terminate participation in a health care FSA during 2020 or 2021 to continue to receive reimbursements through the end of the plan year.

• Dependent care age. For dependents who aged out of eligibility on or before January 31, 2020, plans may extend the maximum age from 13 to 14.

Student Loans – Tax Code Relief The CARES Act introduced tax code relief for employer student loan assistance by utilizing long-recognized tuition reimbursement rules. Specifically, employers could reimburse employees for qualified education loans up to a maximum of $5,250 per employee through the end of 2021. The CAA extends this feature for five years, through 2025, and there is speculation that this will become a permanent feature.

Final Note Given the litigious and regulatory environment, AICC members need to understand the changes impacting their employee benefit plans, document the decision-making, and ensure that the decisions are made by the appropriate party.

NONBENEFITS-RELATED ISSUES As the nation, states, and local jurisdictions develop processes for distributing and administering vaccines, employers

will be well served to consider these and other related issues.

Paid Leave and Time Off The Families First Coronavirus Response Act (FFCRA) expired December 31. That law provided most employees of employers with fewer than 500 employees with job-protected, paid leave for any one of five reasons (the sixth never came to fruition). The CAA extended the FFCRA’s tax credit for employers but not the entitlement for employees. As a result, as of January 1, employers may choose to continue to offer the emergency paid sick or family leave provided under the FFCRA and still receive the tax credit through March 31.1 A few considerations: • Do you want to continue to offer the leave?

• What will be the direct and indirect costs of doing so?

• What liability might you have if you choose (not) to do so?

• What other leave options are available for your employee that could be used concurrently with or in lieu of extended FFCRA leave: federal family and medical leave (FMLA); mandated state or local leave (sick, family, family responsibilities, medical, and others); or your company-offered vacation, sick, or paid time off (PTO) leave?

• Watch for IRS guidance regarding any changes in the information you need to obtain and retain to receive the tax credits.2 Vaccines Many employers are asking if they should require employees to be vaccinated. The U.S. Equal Employment Opportunity Commission (EEOC) has not expressly stated that this is permissible but has inferred it. On December 16, the EEOC published3 updated related guidance. A few additional considerations include:

• Contact your local health department for an estimate of when the vaccine will be available for your employees and how long it is expected to take for all eligible workers to get vaccinated once it is available. As of this writing, states are rolling out plans identifying who is eligible for the vaccine and in what order.

• Develop your business case. Will your policy apply to all employees regardless of their job or only to those who have a greater risk of exposure?

• Consider what policy or practice will be applied to others coming into the workplace such as visitors, vendors, and contractors.

• As of this writing, the vaccines are free. If a charge becomes associated with a vaccine, check with the laws of your state and local jurisdictions to determine if you are required to pay the cost.

Work(ing) From Home This is not a new concept, but the rate at which employees are working from home is new. Many AICC members as well as others in the manufacturing and service industries have been creative in determining when, how, and where employees work on-site and off. A few considerations: • Develop your business case for requiring an employee to return to work. If the job can be performed remotely and the employee has been successfully doing so, why change it now?

• If a job can be performed remotely but the employee is not doing so successfully, try to understand why. If it is related to child (or parental) care, physical or mental health, then leave, flexible staffing, or some reasonable accommodation might be required. If it is a resource issue, see the next bullet.

• If the employee does not have what he or she needs at home to get the job done, determine whether you can provide it. If the employee incurs an expense to working from home, you may have to pay those costs. As of this writing, at least 15 states and the District of Columbia have enacted a related law.

• Recognize the wage and hour risks; ensure that you have processes in place for your nonexempt employees to properly record all time worked, including evenings and weekends. Consider guidance issued by the DOL.4 • Check in on any tax withholding obligations for people who may work from home in other states.

Discrimination As is often the case, the best of intentions can go awry. Age, pregnancy, and disability of the employee, a family member,

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follow every guidance, but you have considered it.

MONITORING Watch these legal, legislative, and regulatory developments. If you are an AICC member, talk to fellow members in your region and across the country to share proactive practices and learn about the pitfalls you may want to avoid. Join one of the advisory groups and consider engaging your up-and-coming staff in the Emerging Leaders program. U.S., state, and local chambers of commerce and HR associations can also be a great resource.

As is often the case, the best of intentions can go awry. Age, pregnancy, disability of the employee, a family member, or even a friend can all create legal liability. or even a friend can all create legal liability. A few considerations: • It is generally permissible to make an exception to your policy or practice. However, be able to explain why your exception is equitable, job-related, and consistent with business necessity.

• Do not try to predict the future.

Focus on what an employee can or cannot do today. Remember that the Americans With Disabilities Act, Title VII, and other laws prohibit discrimination based on perception.

Other Some other COVID-19-related policies that AICC members might consider include:

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• Using broad terms to reduce the need to update your policy every time the Centers for Disease Control and Prevention5 or another agency changes a definition, such as what constitutes “close contact.”

• Using the same terms as used in your governor’s or local executives’ orders, such as physical rather than social distancing, or face coverings rather than face masks.

• Including a statement that your policy is in consideration of, rather than in accordance with or following, federal, state, and local guidance.

That may give you some flexibility, especially where agencies’ guidance varies, and your employees can understand that you might not

Christine Walters is founder and independent consultant at FiveL Co. She can be reached at christine@fivel.net.

Adam Meehan is a partner at Smith & Downey, P.A. He can be reached at ameehan@ smithdowney.com.

Note: This article does not constitute the rendering of legal advice. Please talk to your company’s employment and/or ERISA counsel about specific issues or questions.

Endnotes 1. See Q#104 and #105. www.dol.gov/ agencies/whd/pandemic/ffcra-questions.

2. See Q#44 and #45 plus any updates. www.irs. gov/newsroom/how-should-an-employersubstantiate-eligibility-for-tax-credits-forqualified-leave-wages#substantiate_eligibility.

3. See Section K. www.eeoc.gov/wysk/ what-you-should-know-about-covid-19-andada-rehabilitation-act-and-other-eeo-laws.

4. www.dol.gov/agencies/whd/flsa/pandemic.

5. CDC’s General Business FAQs. www.cdc.gov/coronavirus/2019-ncov/ community/general-business-faq.html.

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DIGITAL DOWNLOAD How boxmakers are leveraging social media channels to engage customers and prospects

By Lin Grensing-Pophal

W

hile the COVID-19 pandemic affected some industries more than others, one profession in particular had to quickly pivot to seek new ways of connecting with customers and prospects—salespeople. No longer able to connect in person or network via traditional events such as trade shows and conventions, golf outings, etc., salespeople and business development professionals had to look for new ways to connect. The past year has been one of exploration, trial and error, and—in some cases—significant success for organizations that were able to quickly pivot to the “new normal.”

Reacting to a Changing Communication Environment One major area of focus for those striving to stay connected during the pandemic was social media. Some had already established a presence; others quickly jumped into the fray. The good news: Social media had already proven to be an effective way of connecting with consumers. A blog by social media software company Sprout Social, titled “5 Stats to Improve Your 2021 Marketing Strategy,” points out: • While many may view social media engagement to be driven primarily by a search for humor or inspiration, 57% of consumers use social media to learn about new products and services.

• Effective social engagement requires top-notch customer service in the

real world—49% of consumers say they’ll unfollow brands with poor customer service.

• Images and videos are a must for effective engagement—68% of consumers say they want to engage with images, 50% with video content.

According to Social Media Today, top trends that emerged in 2020 related to social media content include: • The use of interactive content.

• Augmented reality (AR) and virtual reality (VR).

• “New-breed” SEO—the tendency of search engines, particularly Google, to continually change algorithms to require associated shifts in strategy among marketers.

• Social commerce.

• Smart bidding in Google ads—the use of machine learning to optimize bidding.

Boxmakers are embracing many of these trends and the opportunities that social media and other digital marketing tactics can provide in an environment in which they’ve been denied in-person interaction with both prospects and customers.

A Quick Shift to Virtual Meetings One of the first major impacts experienced by boxmakers was a sudden

shutdown that limited—or eliminated— their ability to physically interact with customers, notes Todd M. Zielinski, managing director and CEO of Athena SWC, a firm serving boxmakers that offers inbound and outbound marketing best practice services.

When much of the country moved to remote-service operations in the spring, tools such as Zoom and Webex suddenly became go-to options for connecting with customers, says Zielinski. Most customers were no longer allowing vendors on-site in their plants. “What we started to see was a great amount of demand from the packaging industry on how to connect with prospects and customers outside of traditional sales methods,” he says.

What he was hearing from his contacts in the industry, he says, was “I can’t go to a trade show; I can’t network at a golf outing; but I still have the demand—how do I make this happen?”

Demand varied significantly around the country, with places such as New York being hit hardest and box manufacturers serving that market most challenged to stay in contact with customers in meaningful ways. The demand for information on how to connect virtually began to grow.

Before reaching out, though, some firms took advantage of the opportunity to be introspective first.

BOXSCORE www.aiccbox.org

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“Take a look at the trends, posts from people and competitors, and follow influencers, podcasts, and news sources.

What are they talking about? Is there a relevant topic that you can post about, a conversation you can join?”

—Erin Robinson, social media director, Paper and Packaging Board

Determining a Desired Brand Identity pay-per-click. Moving forward, he plans to Zac Surprenant is the marketing director transition to social media ads focusing on at Bennett Packaging and is in charge designers and marketers. E-commerce is of the company’s website and social an area of fast growth in which he plans to media. Surprenant’s background is in the place much of his effort. “That’s where most film-editing and music video space in Los of the dollars are going to be,” he says.

Angeles, but he moved his family recently His advice to other boxmakers: Take due to COVID-19, taking advantage of a close and critical look at their brands an opportunity to work with Bennett, with an eye toward refreshing to ensure where his father is general manager. Upon that the brand reflects their desired arriving, he took the opportunity to do a position in the space. In Bennett’s case, brand refresh, redoing the brand colors, the he says, “When I came in, I was told that website, and all social media profiles (the they were one of the largest independent company is on seven social media channels). manufacturers in North America.” The The main thing he wanted to do, he says, is brand has to reflect that, he says. engage with people—not companies.

Joan Sahlgren, senior director of public Social media is the perfect place to relations with the Paper and Packaging do that, although he says he sees a lot Board, agrees. “Boxmakers, like all of other companies, including box brands, should start companies, “just putting out pamphlets.” with the audience Instead, he says, his goal is to engage in mind,” she says. designers and business owners to give “Who do they need to them design tips for displays and packagcommunicate with?” ing and to educate them about the various Are they selling to and options available to them. consulting with small Surprenant says he’s learned a lot over startup businesses, or the last seven months and will be applydo they need to show ing that learning to marketing strategy bigger brands what they in 2021. That strategy, he says, is likely can do? In either case, to include social media and other paid social media offers a advertising. “We’ve put our ad budget wide range of channels in places where I think we’ll find more that allow connections customers,” he says. to be made easily and In the past, Surprenant says, much of the cost-effectively. Not all digital advertising focus was with Google channels are the same,

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however, and they don’t all reach the same audiences.

Social Media Is Critical For those hoping to connect with professionals in a B2B environment, LinkedIn is the go-to tool, says Zielinski. “That doesn’t mean that Facebook or Twitter or others aren’t good places to be,” he says.

“It’s just that the platform for LinkedIn was really created around the premise of business connections.”

Sahlgren agrees and says that, although LinkedIn “is always a good bet” for business communications, “business audiences also reside on platforms like Facebook.”

The Paper and Packaging Board’s own “How Life Unfolds” campaign has earned millions of impressions across several social platforms and a website.

With so many people connected to their smartphones 24/7 and the ability to download a LinkedIn app to their phones, it’s easy to text or send messages through the app to make connections. “It’s just become an extension of how you connect with people in the business environment,” says Zielinski.

Despite LinkedIn’s prevalence, though, even prior to the pandemic, Zielinski says, he was surprised by how many people weren’t aware of, or using, the channel.

Machinery and Handling for the Corrugated Board Industry

Erin Robinson, social media director for the Paper and Packaging Board, points out that there’s much to be learned by watching what others are doing. “Take a look at the trends, posts from people and competitors, and follow influencers, podcasts, and news sources,” she says.

“What are they talking about? Is there a relevant topic that you can post about, a conversation you can join?”

Social strategies will vary across the different channels, says Robinson, because the different channels have different audiences. “A Facebook or LinkedIn post might be text and a link to more information, but a Pinterest and Instagram post would include a photo or art,” she says. “I recommend thinking about the visuals you make, no matter what audience you reach. Video is likely more disruptive and more interesting than still images, and a social media post that is text-only is likely less engaging in general to the user.”

Beyond the posts themselves, Robinson recommends monitoring the time of day when posts get the most traffic and what days are most successful. “More is not better,” she cautions. “Make sure each of your posts has a purpose, even if that means posting once a week or less. Optimize your posts to go up when your audience is online and engaged. And be sure to use relevant hashtags to get more eyes on your post.”

One of the big benefits of social media, aside from its relatively low cost (primarily the cost of creating and managing posts and engagement) is the ability to readily test strategies and tactics and adjust accordingly. Consider basic A/B testing, Robinson suggests. “Try the same image with two different sets of copy, or the same copy with a different image, and see what your audience engages with the most.”

In addition, don’t be afraid to reuse posts that have worked well, she says.

“You may need only a handful of resonant pieces of content to make a big impression—but discovering what performs best may be a mix of analytics and art.”

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“I saw a lot of packaging customers say this has kind of forced their hand to look at how they structure the sales model.

Do we just keep hiring more people, or do we take a step back and recognize that we haven’t kept pace with virtual methods to connect with people?”

—Todd M. Zielinski, managing director and CEO, Athena SWC

Through it all, both Sahlgren and Robinson agree with Zielinski on the importance of staying true to the brand.

“Be genuine to your brand, and a real part of the platform,” says Sahlgren.

The Future of Digital Connections While 2020 was a unique year and it’s not yet clear what 2021 will bring, it is certain that the future of connections in the packaging industry will be different.

Moving forward, says Sahlgren, “the shop-at-home trend and takeout food delivery behaviors seem here to stay as convenience and safety are still in play for the coming year.”

The pandemic experience is likely to change how boxmakers approach sales even after the threat from the virus is over, Zielinski predicts. “I saw a lot of packaging customers say this has kind of forced their hand to look at how they structure the sales model,” he says. “Do we just keep hiring more people, or do we take a step back and recognize that we haven’t kept pace with virtual methods to connect with people?” It’s an opportunity, he says, for packagers to improve their websites and their messaging.

Zielinski says that his customers tend to be in two camps—those whose sales have been negatively impacted by the effects of the pandemic on demand for packaging materials (the hospitality industry, for

instance) and those who have seen a significant uptick in demand (those that supply grocery store chains, for example) and wonder how long this uptick will last.

For himself, Zielinski says it’s been his best year ever. “When this happened, we were very nervous,” he admits, but customer retention and the ability to add new accounts has never been higher, he says. He, like others experiencing the positive impacts of the virus in certain industry segments, will “ride this wave” as long as he can.

There is opportunity for everyone, though he says, “Here’s an opportunity for us to do things a little bit differently than we’ve traditionally done. Different doesn’t necessarily mean bad. This is a way to streamline, to improve, and to add something to our efforts that can help bolster us and position us for growth in the future.”

In the packaging industry, say Zielinski and others, there is a new understanding and acceptance of connecting and selling virtually and the recognition that you don’t have to be physically present and face-to-face to be successful.

Lin Grensing-Pophal is a Wisconsin-based freelance writer and a frequent BoxScore contributor.

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The Associate Advantage

Your Association Resources

BY JOE MORELLI

JOE MORELLI HUSTON PATTERSON PRINTERS VICE CHAIRMAN JMORELLI@HUSTONPATTERSON.COM

PAT SZANY AMERICAN CORRUGATED MACHINE CORP. CHAIRMAN PSZANY@ACM-CORP.COM

GREG JONES SUN AUTOMATION GROUP SECRETARY GREG.JONES@SUNAUTOMATION.COM

TIM CONNELL A.G. STACKER INC. DIRECTOR TCONNELL@AGSTACKER.COM

DAVE BURGESS JB MACHINERY IMMEDIATE PAST CHAIRMAN DBURGESS@JBMACHINERY.COM

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W

hen you invest and engage, AICC delivers success. That is AICC’s mission statement that you have probably heard numerous times in the last few years. The numbers behind that statement reflect it. Some of the more loyal and invested AICC members, like Bay Cities (81%), Michigan City Paper Box (88%), and SMC Packaging (122%), have all seen tremendous growth since their time as invested and engaged members of AICC. The last year has been different, though, and it’s made all of us pivot from our normal day-to-day life, including how our businesses interact with AICC. How can we still have success, engage, and invest in our Association during the COVID-19 pandemic so we can continue to see this growth?

The first resource AICC members can engage with is the Converter Think Tank, a bimonthly videoconference series established to foster peer-to-peer learning.

During the COVID-19 shutdown, AICC offered insights during calls each week to help members navigate the complexities of the situation as it evolved. These calls evolved into the think tanks, which touch on a broader range of topics affecting your businesses today and beyond. During the first videoconference, Kevin Ausburn, chairman and CEO of Southern Missouri Containers and chairman of AICC’s Paperboard, Regulations, and Sheet Supply Subcommittee, along with several committee members, discussed the recent activities with paper, demand, capacity, and related issues. On the second call, the series pivoted back to COVID, but this time, the vaccine was discussed with Rhonda Bayer, vice president and general counsel of Liberty Diversified Industries, and Christine Walters, founder of FiveL. The Think Tank series is an excellent resource

that offered moments of clarity during the industry chaos caused by COVID. The second resource AICC members can engage with during the pandemic is the All Access Pass to AICC’s in-depth webinar series. When companies invest in professional development, they equip their teams with shared knowledge that helps them perform at a high level and improve their companies’ bottom lines. These webinars address a broad range of topics and dive deep into the specifics of production-related issues, human resources topics, design, customer service, and sales training courses, just to name a few—all ways to invest and engage in AICC during the pandemic.

The final AICC resource I’ll mention is the free online industry education content.

These courses support the needs of production, sales, service, design, and finance departments. There is also an overarching theme of leadership development training that applies across departments. AICC provides more than 90 courses online and is developing more every month. Courses are created by industry experts and vetted by Scott Ellis, Ed.D., principal of WorkingWell.

They can be taken at your leisure, with minimal disruption to your employees’ daily responsibilities, and they offer an excellent snapshot of our industry as a whole.

Combining the online education courses, the webinars, and the Converter Think Tank videoconference series, AICC will give you and your employees an excellent platform to succeed during this unprecedented time. Invest the time and engage in these resources, and you will see success on the backside of it.

Joe Morelli is vice president of sales and marketing for Huston Patterson Printers and is vice chairman of AICC’s Associate board.

Strength in Numbers

A Time for Reflection and Reevaluation

BY MITCH KLINGHER

F

or some sectors of our economy, the pandemic has been a total disaster, but the corrugated and other paper-conversion businesses have been booming of late. Shipments are up 5% year over year, and paper has become extremely tight for the first time in many years. There has already been one price increase, and from what I hear, another one is looming in the not-too-distant future. While I could make the argument that, since mill operating rates are still on the low side and North America is still exporting a tremendous amount of paper at seemingly little or no profit levels, the “shortage” is somewhat artificial and should be short in duration, I will leave that one for another day.

The bottom line right now seems to be that the public is being forced to stay at home, and they are ordering more and more things via internet and

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telephone. Things that by and large need to be shipped in paper-based shipping containers, which has caused just about everyone in the paper-conversion business to be extremely busy. This dynamic has caused large integrated producers to send numerous orders to independent producers and larger independent producers to send numerous orders to smaller independent producers. Almost everyone is busy and must wait for paper and sheets, so on-time delivery percentages are decreasing, and many converters are running out of machine hours to sell, without running overtime or building additional shifts. No one knows if this is a temporary situation or if these trends will continue.

So, the operative question is what to do with all of this newfound success that is testing everyone’s productive

capabilities. Is this just a passing fad, or is it the new normal? Is this a time to take on risk by buying new equipment, hiring new employees, looking for acquisitions, or entering new lines of business? Or should you hunker down, put some money in your pocket, and wait to see what happens? The answer to these questions is probably one that would require a team of social scientists—economists, sociologists, psychologists, and maybe a Ouija board—and the answer is likely to be slightly different for every one of you. What I see in my travels is that two of the most prevalent traits of the most profitable converters are a focus on speed and a focus on quality.

Speed makes you competitive, and quality helps you maintain customers.

Everyone can make a pretty square box with reasonably good printing, even

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Strength in Numbers

using a lot of the older equipment that is around. But in a world with the following factors, can you afford to stay competitive for long if you do nothing?

• The e-commerce boom has likely accelerated due to the pandemic and will probably continue to grow as retail America continues to shrink.

• Product distribution has become a pick and pack world filled with automatic case erectors that require very tight tolerances.

• Graphics and other detailed printing of bar codes and other information, both on the inside and outside of a box, have become more prevalent.

• Digital printing has become faster, wider, and much more available.

• Robotic and other automated feeding and take-off equipment have dramatically reduced labor costs and waste.

• Technological advances are allowing the best operators to go from initial quote to production and delivery in days, even for complicated orders.

All of this will depend on: • The strength of your balance sheet.

• Evaluation of the niches that you are trying to exploit relative to your current capabilities.

• Your tolerance for additional risk at this stage of your business life.

• Analysis of your markets and competition.

For many of you, this newfound success can and should be used to upgrade your capabilities to ensure your long-term survival.

In addition to the aforementioned market-based factors, there has been a significant change in the federal government and how we expect it to view fiscal policy.

President Joe Biden has announced that he wishes to: • Raise marginal tax rates for corporations.

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• Raise marginal tax rates for highincome individuals.

• Tax capital gains at ordinary income rates for individuals with taxable income over $1 million.

• Lower the estate tax exemption back to $5 million dollars per person.

Although these figures are likely to change throughout the legislative process, it appears that he has the political clout to get this done. So, for many of you it is time to update your income and estate tax planning, and do it quickly. Here are a few things you need to consider: • Should I consider a transfer of wealth prior to the enactment of any reduction in the estate tax exemption?

• What assets should I select to transfer?

• How should I effectuate the transfer?

• What estate tax level is likely to be exempt?

• Are there any items of income that I can accelerate into 2020?

• Are there any items of expense that I can defer into 2021?

The current federal estate tax exemption is $11.18 million dollars per person ($22.36 million per couple), although not all of the states have exemptions that high. Notwithstanding Biden’s stated desire to lower this to $5 million per person, it was always going to “sunset” back to around this level in 2027 unless Congress voted to extend the 2017 tax changes. So, for those of you who have potential estates over $10 million, you may have a limited amount of time to take advantage of the current $22.36 million exemption. This is a complex arena that cannot be comprehensively discussed within the confines of this BoxScore article. However, you need to think about transferring assets outside of your estate quickly.

Assets that have the most potential for appreciation should be No.1 on your list of things to transfer, since the value in

your estate may be much greater than their current value. In addition, assets with a fairly high tax basis should be considered for transfer, while it may make sense to leave assets with a comparatively low basis in your estate, as the basis in these assets will be stepped up to fair market value as they pass through your estate. There are myriad vehicles that can be used to minimize the value of what is being transferred and to make sure that effective control of the assets being transferred is still left in your hands, so you need to bring in a qualified expert. I also suggest you do it quickly, since the estate planners and business valuation firms are about to get very busy.

Since tax rates are likely going to be higher in 2021 than they were in 2020, you need to take a hard look at whether there are items of future income that you can accelerate into 2020 and whether there are potential current tax deductions that you can push into future years, such as charitable contributions. Since the effective rate of capital gains may be significantly higher in the future, you may want to recognize gains this year that you may have been able to take in future years, such as electing out of installment sale treatment on the sale of an asset that contains payments in future years.

Current trends in the business world and changes in government will serve to make the immediate future for converters both interesting and challenging. There will be many opportunities and some dangers, which serve to make this a time for reflection, reevaluation, and for many of you, decisive action.

Mitch Klingher is a partner at Klingher Nadler LLP. He can be reached at 201-731-3025 or mitch@ klinghernadler.com.

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Foundation for Packaging Education

Keep Up the Momentum

P

ledges and dollars continue to come into the Foundation for Packaging Education. Several contributors got their first-year tax-deductible pledge in prior to the end of the year. From when the foundation was announced in November to the time of this writing early in the new year, pledges total $745,000, with funds on hand growing. With the AICC “Million Dollar Match” program, the foundation is well on pace for its $2 million financial goal.

Pledges have been received from the following “Inaugural Donors”: Michigan City Paper Box; Bay Cities; Jamestown Container; Wasatch Container; Oklahoma Interpak; SUN Automation Group; StandFast Packaging Group; Harris Packaging; DeLine Box Display; Package Crafters; Central Package & Display; Packaging Express; BCM Inks; Buckeye Boxes; Welch Packaging Group; and L.D. Davis. With the receipt of another $255,000 in pledges, the Inaugural Donor class will close, and AICC’s Million Dollar Match will be met. Please help us to reach this immediate goal.

For those of you who may not be aware, AICC has created the Foundation for Packaging Education to support the development and delivery of employee education and training resources for workers in the corrugated, folding carton, rigid box, and related supply chain industries. In other words, the foundation’s mission is to support training programs for your box plant employees.

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The foundation will allow AICC to keep your online training free.

AICC’s education programming continues to support membership at an all-time high in terms of use.

Logins to AICC’s Packaging School averaged almost 850 per month in 2020, with nearly 6,000 courses completed from January 2017 through December 2020. These numbers are more than double the totals from the end of 2019. Course development for The Packaging School continues to add about 10 new courses per year. Total courses at The Packaging School now number 80, with 20 of the courses available in Spanish. More classes and translations are always coming. To see the course catalog, visit www. aiccbox.org/packagingschool.

If you have a suggestion for a new course, please reach out to Taryn Pyle at tpyle@aiccbox.org or Chelsea May at cmay@aiccbox.org.

AICC has enhanced the online course offering at The Packaging School with an increased schedule of webinars and hybrid courses being offered online. This was a natural evolution given the pandemic and the limits on travel for seminars and hands-on education opportunities. We are in the midst of more than 50 online webinars outside of the AICC Packaging School that cover a broad range of relevant and timely topics.

Ensuring a better-trained workforce in the corrugated, folding carton, and rigid box industries is a cause worthy of your investment. To make a pledge to the Foundation for Packaging Education, visit www.packaginged.org/donate.

International Corrugated Packaging Foundation I N T E R N AT I O N A L

PACKAGING

CORRUGATED

F O U N D AT I O N

It’s Not Too Late to Recruit 2021 Student Interns and Graduates

T

he International Corrugated Packaging Foundation (ICPF) continually works to attract the best and the brightest students for available jobs and internships within the industry. Every year, over 750 packaging engineering, sales and marketing, graphic design, packaging design, business, supply chain management, chemical engineering, mechanical engineering, industrial engineering, and related students and upcoming graduates demonstrate interest in corrugated packaging careers by joining ICPF’s corrugated packaging career network, posting their résumés, applying for openings through ICPF’s Career Portal, and participating in ICPF’s educational programs and interactive broadcasts.

On average, over 120 student interns and new graduates are hired annually through ICPF resources.

If you are an ICPF Corporate Partner or are considering becoming a partner, it is not too late to begin recruiting for 2021 by posting 2021 summer internships/co-ops and openings for upcoming 2021 graduates on ICPF’s Career Portal.

It is simple and fast. Contact info@icpfbox.org for information on posting openings and to access ICPF’s Résumé Bank for upcoming graduates and students. For those seeking applicants for immediate entry-level openings, there are some December 2020 graduates available as well.

The following is a cross section of upcoming graduates and student interns who currently are available through ICPF’s Career Portal.

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Katie K. (Michigan State University [MSU] packaging science major, graduating May 2021) is president of MSU’s Student Chapter of CoPPAC and the ICPF student representative at MSU. She conducted a six month co-op in Ohio at Nestlé and has been a sales floor associate at Target since January 2018. “I attended the virtual ICPF Student/Executive Dialogue Dinner and enjoyed hearing all that this unique industry has to offer. Additionally, I will be attending the April 2021 ICPF teleconference to hear more about potential career opportunities. I am interested in corrugated design, production, sales, and R&D.” Katie is seeking a full-time position upon graduation in May. John C. (University of Wisconsin–Stout [UW–Stout] packaging major with a project management minor, graduating May 2021) serves as the ICPF student representative at UW–Stout. “UW–Stout has prepared me to enter the field of packaging with a vast array of relevant knowledge. Through UW–Stout, I was given the opportunity to attend the ICPF Student/Executive Dialogue Dinner and teleconference in February 2020, where I met corrugated packaging industry professionals to learn about careers. ICPF is extremely helpful by providing information and ways to enter the

corrugated packaging industry. For example, the Career Portal on the ICPF website has job postings from multiple companies across the United States. I have been highly recommending the portal to students as a resource.” John has specific interests in R&D as well as design. He is seeking a full-time opening upon graduation in May. Isabel S. (Rochester Institute of Technology [RIT] packaging science major with an immersion in economics, graduating May 2021) is currently a lab technician in the RIT Packaging Dynamics Lab, a research assistant, the president of RIT’s student chapter of IoPP, and serves as an ICPF student representative at RIT. She has conducted co-ops as a packaging development engineer at DePuy Synthes Cos. of Johnson & Johnson and as an R&D packaging engineer at PepsiCo. Isabel additionally was a teaching assistant for Packaging Metals and Plastics. Isabel is an IoPP certified professional in training, an ISTA certified packaging lab professional (technician level), and a certified lean Six Sigma green belt. “ICPF has been a great resource, from using the Career Portal to seeing what positions are available in the corrugated industry.

Attending ICPF’s Student/Executive Dialogue Dinner was an invaluable experience to speak with other students and executives while networking. I am looking forward to promoting the corrugated industry as an ICPF student

International Corrugated Packaging Foundation I N T E R N AT I O N A L

PACKAGING

CORRUGATED

F O U N D AT I O N

representative.” Isabel is seeking a full-time packaging engineer opportunity upon graduation in May. Michelle C. (University of Florida marketing major with a minor in packaging science while in graduate school for a master’s degree in international business, graduating May 2021 and December 2021, respectively) says, “I am grateful to Richard Flaherty and the whole ICPF community for teaching me more about the packaging industry and opening the door for career opportunities in corrugated. ICPF’s Student/ Executive Dialogue Dinner introduced me to industry leaders I now look up to and aspire to work alongside one day.

The Career Portal has provided an efficient and accurate method to stay up to date with the latest internship opportunities. I am pursuing packaging sales, given my strong interest in consumer behavior, marketing, and relationship management, as well as my diverse background in business.” Michelle is seeking a summer 2021 internship upon completing her undergraduate degree this May, as well as a full-time position after completing her master’s degree in December.

Sam S.O. (California Polytechnic State University [Cal Poly] industrial technology and packaging major with a concentration in packaging sciences and a minor in Spanish, graduating June 2021) has served in two separate research assistant positions at Cal Poly, holds a current position as the career readiness and networking chair for the packaging

student board, and serves as an ICPF student representative at Cal Poly.

“Last year, I participated in ICPF’s teleconference and in the recent virtual Student/Executive Dialogue Dinner that reinforced my interest in a corrugated packaging career. My areas of interest lie in the design, manufacturing, and engineering processes of corrugated packaging and production.” Sam just accepted a position to which he applied through ICPF’s Career Portal.

Matthew H. (RIT packaging Science major, graduating May 2021) is a research assistant (stretch wrap and apple tray research), a teaching assistant (PACK 211 and 312), and an ICPF student representative at RIT. In addition, he has completed six-month internships at Steelcase, Nestlé Professional, and Hershey chocolates. “I initially connected to ICPF through its corrugated packaging career network on LinkedIn, where I found more about ICPF and the resources they provide to students. I was able to participate in ICPF’s Student/Executive Dialogue Dinner this past December, which was a valuable experience to talk about corrugated packaging with industry professionals. The ICPF portal also has been a valuable tool to learn more about the opportunities in the corrugated industry.” Matthew is seeking a full-time packaging engineering position starting in June.

Cole B. (Clemson University packaging science major with a minor in business administration, graduating May 2021) is the recipient of the

Robert Testin Outstanding Packaging Science Senior Award. He participated in co-ops at Disease Control Technologies LLC and Robert Bosch LLC. “I was introduced to ICPF by Elizabeth Anderson, who serves as ICPF’s student representative at Clemson. She suggested I use ICPF as a place to network with professionals in the corrugated industry. Since then, I have participated in Student/Executive Dialogue Dinners and used the Career Portal to begin my job search. These are invaluable resources for students and new graduates to expand their professional network.” Cole is seeking a full-time corrugated packaging sales position after graduation in May. Gloria C. (Virginia Tech packaging systems and design major with a minor in business leadership, graduated May 2020) participated in ICPF’s Teleconference on the Business of Corrugated Packaging & Displays in February 2019 and February 2020. “I am a Baltimorearea resident and am currently enrolled in a six-month digital marketing certification program through the University of Pennsylvania Experience Lab, LPS. My corrugated packaging career interests include marketing and sales, design, and the sustainability aspects of packaging.”

Gloria is seeking a full-time position for June 2021.

Richard Flaherty is president of the International Corrugated Packaging Foundation.

BOXSCORE www.aiccbox.org

67

The Final Score

Trends, the Independent, and AICC

H

ere we are in 2021. All our 2020 problems are not behind us, but we do begin the year with hopes of better things for our country, our communities, and our industry.

Regarding the industry, aside from substrate shortages, can things get any better? Data continues to pour in about the “hot and historic” demand that is causing backlogs at the mills and seven-day operations at box plants. Demand will eventually find a level of stability that can be addressed—through increased operating rates and additional capacity coming online at the mills, and incredibly productive and efficient printing and converting technologies at the box plants.

That leaves us to ponder what is permanent about the disruptions of the past year driving the market surge and what is transient.

Prognostications are not my strong suit, but I do pay attention to several resources and have been compiling a list of trends identified by others that I believe every AICC member needs to keep in mind as they game-plan their todays and tomorrows.

The Fastmarkets RISI International Containerboard Conference took place in November. From my notes, here are some things to consider: • Greg Tucker, chairman and CEO of Bay Cities: “Everything is going to get faster.”

• Packaging selling on the shelf and online.

• Mass customization/personalization = boxes on demand.

• Automation of the ordering process.

• The future of the independent is with small and medium-sized companies buying from them, while Amazon and consumer packaged goods buy from big players.

AICC member Pratt Industries has shared its view of future packaging trends: • Lightweighting • 100% recycled packaging • Less plastic in packaging • Personalized digital printing and promotion • The smart box • Subscription boxes • Portion control and focus on food waste reduction

Finally, Smithers has put out a market report that includes five key trends that are changing the future of the corrugated packaging market: • E-commerce • Fit to product • Sustainability • Retail changes • Digital printing advancements

These diverse sources all seem to see common threads that bear attention. AICC committees and staff have been taking and will continue to take these into consideration when planning AICC programming for online events, our Spring Meeting at Amelia Island, FL April 26 – 28 and beyond.

In the meantime, AICC continues to provide: virtual plant tours, which have proven to be very popular; Converter Think Tanks on the timely issues of importance to members; a robust schedule of webinars and online hybrid events; and AICC’s Packaging School, which continues to add courses in both English and Spanish.

Now, if AICC could just find a way to instantly add a paper mill to our member services.

Michael D’Angelo AICC President

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BOXSCORE March/April 2021

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