Sept/ Oct BoxScore: Getting Strategic About Building Your Network

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GETTING STRATEGIC ABOUT BUILDING YOUR NETWORK

A conversation with sales experts

ALSO INSIDE

Special Section: AICC Education Catalog

Special Section: AICC Sales Compensation Report Summary

September/October 2023 Volume 27, No. 5
Digital Marketing: Web of Engagement
A PUBLICATION OF AICC, THE INDEPENDENT PACKAGING ASSOCIATION
BOXSCORE www.AICCbox.org 1 TABLE OF CONTENTS September/October 2023 • Volume 27, No. 5 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. ©2023 AICC. All rights reserved. Visit www.NOW.AICCbox.org for Member News and even more great columns. Scan the QR code to check them out! COLUMNS 3 CHAIRWOMAN’S MESSAGE 4 LEGISLATIVE REPORT 6 MEMBERS MEETING 10 ASK RALPH 14 ASK TOM 18 SELLING TODAY 22 ANDRAGOGY 24 LEADERSHIP 28 DESIGN SPACE 36 MEMBER PROFILE 64 THE ASSOCIATE ADVANTAGE 66 STRENGTH IN NUMBERS 76 THE FINAL SCORE DEPARTMENTS 5 WELCOME, NEW & RETURNING MEMBERS 31 AICC INNOVATION 70 FOUNDATION FOR PACKAGING EDUCATION 76 INTERNATIONAL CORRUGATED PACKAGING FOUNDATION 42 48 56 60 FEATURES 42 GETTING STRATEGIC ABOUT BUILDING YOUR NETWORK A conversation with sales experts Ed Wallace and Mark Roberts 48 WEB OF ENGAGEMENT Using digital marketing to increase customer connections 56 EDUCATION FOR YOUR COMPANY AND TEAMS Heading into its 50th year, AICC continues to deliver the most robust training and support for members and their employees 60 ON THE UP Sales compensation rises in 2023, says AICC survey

OFFICERS

Chairwoman: Jana Harris, Harris Packaging/American Carton, Haltom City, Texas

First Vice Chairman: Matt Davis, Packaging Express, Colorado Springs, Colorado

Vice Chairs: Gary Brewer, Package Crafters, High Point, North Carolina Finn MacDonald, Independent II, Louisville, Kentucky

Terri-Lynn Levesque, Royal Containers Ltd., Brampton, Ontario, Canada

Immediate Past Chairman: Gene Marino, Akers Packaging Service Group, Chicago, Illinois

Chairman, Past Chairmen’s Council: Jay Carman, StandFast Packaging Group, Carol Stream, Illinois

President: Michael D’Angelo, AICC Headquarters, Alexandria, Virginia

Secretary/General Counsel: David Goch, Webster, Chamberlain & Bean, Washington, D.C.

AICC Canada: Lee Gould

DIRECTORS

West: Sahar Mehrabzadeh-Garcia, Bay Cities, Pico Rivera, Califormia

Southwest: Jenise Cox, Harris Packaging/American Carton, Haltom City, Texas

Southeast: Michael Drummond, Packrite, High Point, North Carolina

Midwest: Casey Shaw, Batavia Container Inc., Batavia, Illinois

Great Lakes: Josh Sobel, Jamestown Container Cos., Macedonia, Ohio

Northeast: Stuart Fenkel, McLean Packaging Pennsauken, New Jersey

AICC Canada: Terri-Lynn Levesque, Royal Containers Ltd., Brampton, Ontario, Canada

AICC México: Sergio Menchaca, EKO Empaques de Cartón S.A. de C.V., Cortazar, Mexico

OVERSEAS DIRECTOR

Kim Nelson, Royal Containers Ltd., Brampton, Ontario, Canada

DIRECTORS AT LARGE

Kevin Ausburn, SMC Packaging Group

Springfield, Missouri

Eric Elgin, Oklahoma Interpack, Muscogee, Oklahoma

Guy Ockerlund, Ox Box, Addison, Illinois

Mike Schaefer, Tavens Packaging & Display Solutions, Bedford Heights, Ohio

Ben DeSollar, Sumter Packaging, Sumter, South Carolina

Jack Fiterman, Liberty Diversifies, Minneapolis, Minnesota

EMERGING LEADER DELEGATES

Lauren Frisch, Wasatch Container, North Salt Lake, Utah

John McQueary, CST Systems, Atlanta, Georgia

Jordan Dawson, Harris Packaging, Haltom City, Texas

ASSOCIATE MEMBER DIRECTORS

Chairman: Greg Jones, SUN Automation Group, Glen Arm, Maryland

Vice Chairman: Tim Connell, A.G. Stacker Inc Weyers Cave, Virginia

Secretary: John Burgess, Pamarco/Absolute, Roselle Park, New Jersey

Director: Jeff Dietz, Kolbus America Inc., Cleveland, Ohio

Immediate Past Chairman, Associate Members: Joseph Morelli, Huston Patterson Printers/Lewisburg Printing Co., Decatur, Illinois

ADVISORS TO THE CHAIRMAN

Al Hoodwin, Michigan City Paper Box, Michigan City, Indiana

Gene Marino, Akers Packaging Service Group, Chicago, Illinois

Greg Jones, SUN Automation, Glen Arm, Maryland

PUBLICATION STAFF

Publisher: Michael D’Angelo, mdangelo@AICCbox.org

Editor: Virginia Humphrey, vhumphrey@AICCbox.org

ABOUT AICC

EDITORIAL/DESIGN SERVICES

The YGS Group • www.theYGSgroup.com

Vice President: Serena L. Spiezio

Senior Director of Content Strategy: Craig Lauer

Managing Editor: Therese Umerlik

Senior Editor: Sam Hoffmeister

Copy Editor: Steve Kennedy

Art Director: Alex Straughan

Account Manager: Frankie Singleton

SUBMIT EDITORIAL IDEAS, NEWS, & LETTERS TO: BoxScore@theYGSgroup.com

CONTRIBUTORS

Cindy Huber, Director of Conventions & Meetings

Chelsea May, Education and Training Manager

Laura Mihalick, Senior Meeting Manager

Patrick Moore, Membership Services Manager

Taryn Pyle, Director of Training, Education & Professional Development

Alyce Ryan, Marketing Manager

Steve Young, Ambassador-at-Large

ADVERTISING

Taryn Pyle 703-535-1391 • tpyle@AICCbox.org

Patrick Moore 703-535-1394 • pmoore@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

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.

A Year of Memories and More

Wow, how a year can fly by! It seems like yesterday that Gene Marino passed me the gavel in San Antonio. It has been such an honor to be AICC’s chairwoman. My husband, Zachary, and I enjoyed the opportunity to travel on behalf of AICC and see what many of you are up to in your regions. We made our fair share of trips and made some new friends along the way. We had a lot of fun and got some work done. Our experiences and trips were all memorable, but here are some of the highlights.

The first trip as chair was to speak at the AICC México Annual Meeting and Trade Fair in Guadalajara. It was a great time and turnout. If you have not attended an AICC México meeting, I highly recommend it, and if you do not speak Spanish, they have translators.

Next up, we took a trip to South Carolina for the first fundraising event for the Foundation for Packaging Education. It was a wonderful time networking and getting a little golf in when the weather permitted. The foundation was established a few years back by AICC, and its mission is to fund the continuation of ongoing education for individuals employed in our industry. The foundation’s next fundraiser will be in July 2024 in Napa, California, so make sure you join us.

Another memorable event was in December. Zachary and I made it to the annual International Corrugated Packaging Foundation (ICPF) Holiday Weekend in New York City. ICPF welcomed its new president, Caitlin Salaverria, and I am so excited about the direction she will be taking this foundation. She and the ICPF board are committed to investing more heavily in education and focusing on two-year colleges, trade schools, high schools, and even middle schools. You can learn more about this effort at www.icpfbox.org. I am excited to say that AICC, ICPF, and the Foundation for Packaging Education are more synergized now than ever, and I see good things ahead with packaging education. Better Minds, Better Boxes!

AICC’s Spring Meeting in Miami also made the cut. We had an outstanding turnout at Trump Doral and raised money for the Foundation for Packaging Education at the 9th Annual Independents’ Cup Charity Golf Tournament. What a successful meeting!

Last but not least, I made it to Colorado Springs for the Emerging Leaders (ELs) First Vice Chair Workshop. I am so proud of these young adults and how eager they are to learn from us and each other. If you have any young talent whom you see being a future leader, consider enrolling them in this program. We have three ELs from our company who are active, and they love it.

So, after an amazing whirlwind year, I say thank you for allowing me to represent AICC, thank you to the staff for making it easy, and thank you for the memories! I now have the pleasure of turning over the chairmanship to the very capable Matt Davis of Packaging Express. Congratulations, Matt!

Cheers!

BOXSCORE www.AICCbox.org 3 Chairwoman’s Message

In Full Transparency, You Heard It Here First

In this issue of BoxScore, we present “Everything You’ve Always Wanted to Know About the Corporate Transparency Act (CTA).” What’s this? You haven’t heard about the CTA and the reporting requirements it will impose beginning January 1? If not, you’re in good company. But AICC, through its network of allied small-business organizations in Washington, D.C., can now bring you up to speed on what to expect.

We start our primer by going to the source of all things legal—lawyers. In a recent article in the ABA Journal , the American Bar Association says, “At its core, the CTA is a mechanism to deal with issues related to ‘dirty money’—i.e., guarding against money laundering, terrorism financing, and other forms of illegal financing—as well as the general lack of beneficial owner (i.e., ‘true owner’) information with respect to many domestic entity structures. ... The CTA was born of the view that the availability of beneficial ownership information is a crucial tool in the fight against tax evasion, money laundering, corruption, terrorist financing, and other financial crimes.”

The “high crimes and misdemeanors” against which the CTA is targeted are hardly the stuff of our businesses’ day-today accounting challenges. (Just ask your accounts receivable manager.) Yet, it is precisely the small-business community that will bear the brunt of what the CTA and its enforcement arm, the Financial Crimes Enforcement Network (FinCEN), will require. Says Brian Reardon, CEO of the S Corporation Association, “Starting next year, millions of small-business owners will get a letter from a federal agency they never heard of telling them they need to comply with a law nobody’s

told them about. Most, like reasonable people, will probably think the notice is a scam and throw it away.”

The letter we’ll receive will tell us that starting January 1, 2024, all newly formed corporations, LLCs, and other covered entities must report the personal information of their “beneficial owners” to FinCEN. On January 1, 2025, all covered entities with less than $5 million in revenue and 20 employees will have to do the same. The information to be provided for beneficial owners includes name, address, Social Security number, and photos. Noncompliance can result in fines of up to $500 a day or two years’ imprisonment.

Now you know about the CTA. There is a bright side to this dark story, however. The National Small Business Association has filed a lawsuit against it,

NSBA v. Yellen, which argues that the CTA is unconstitutional. Given recent landmark decisions by the U.S. Supreme Court and its subsidiaries, we can hope that reasoned judges will see this law for what it is: an unconstitutional invasion of privacy.

Let your U.S. representatives and U.S. senators know how you feel about this law and its potential effects on your business. Go to www.house.gov or www.senate.gov to find your congressional representatives. Or call the U.S. Capitol switchboard at 202-224-3121.

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

BOXSCORE September/October 2023 4 Legislative Report

SAICA PACK U.S., LLC

BRIAN GREENBUSH

Sales Manager

2995 McBride Ct. Hamilton, OH 45011 513-399-5602

www.saica.com

PACIFICOLOR LLC

KENNETH BROOKS

Vice President of Business Development

1547 W. 2290 South Woods Cross, UT 84087 801-294-4455

www.pacificolor.com

EOS AMERICA CORP.

JEFFERY ROTH

North America Sales Manager

450 7th Ave., Suite 1501 New York, NY 10123 614-824-9558

www.eos-corrugated.com

DS SMITH – NORTH AMERICA

CHERYL HOLLIDAY

Marketing Director

600 Peachtree St. NE, Suite 4200 Atlanta, GA 30308 470-645-1320

www.dssmith.com

DIAMONDBACK CORRUGATED CONTAINER

JOHN BRADLEY JR. Managing Partner 4302 Profit Dr. San Antonio, TX 78219 210-807-7296

www.diamondbackbox.com

ADVANCED EQUIPMENT SALES

JEFFREY DIETTERICH

President 535 Hagey Rd. Souderton, PA 18964 215-723-7200

www.advancedequipmentsales.com

CHAMPION CONTAINER CORP.

ANNA RIZZO

General Manager 1455 N. Michael Dr. Wood Dale, IL 60191 630-530-1990

www.champion-container.com

Welcome, New & Returning Members BOXSCORE www.AICCbox.org 5
Welcome AICC’s New Members!

2023 Southeast Summit: Mill Tour Brings 60 Members Together

Over 60 attendees participated in the 2023 AICC Southeast Summit in July in Kingsport, Tennessee, touring Domtar’s mill, playing in the annual golf tournament, and strengthening their industry relationships.

AICC members, including several first-time summit attendees, saw Domtar’s venerable, now modernized Kingsport Mill. Originally opened in 1916, the mill is a downtown landmark on the Holston River. Through extensive renovation, Domtar converted the facility into the company’s first 100% recycled containerboard facility. It is expected the mill will produce and market about 600,000 tons of recycled linerboard and corrugated medium annually, making it the second-largest recycled containerboard machine in North America. Domtar sells its output to independents.

Attendees received a tour that began with the historical aspects of the mill and progressed through the renovations and upgrades that

have made the mill a showcase of the most modern papermaking technology. The mill utilizes 50,000 tons of recycling residuals and other

BOXSCORE September/October 2023 6
Members Meeting
AICC Southeast Summit attendees were treated to a tour of Domtar’s Kingsport Mill in Tennessee. This year’s AICC Southeast Summit golf tournament was held at the Cattails at the MeadowView Golf Course at the MeadowView Marriott Resort. Photos courtesy of AICC. CARE® Pads & Brushes Solvent & UV Based Cleaning Products

Members Meeting

byproducts that otherwise would enter landfills.

“AICC appreciates Domtar opening the facility for our members,” says

AICC President Michael D’Angelo. “It is impressive to see one of the widest, fastest paper machines in the world creating 100% recycled product.

It is the cleanest paper mill that I have ever visited.”

The summit golf tournament was held on the Cattails golf course at the MeadowView Marriott Resort, one of the top public golf courses in Tennessee. The winning team included Gregg Diethorn, Longreach International; Greg Jones, SUN Automation Group; James Moncure, J.M. Fry; and Chris Neighbors, Cumberland Container.

AICC thanks platinum sponsor Domtar, along with other event sponsors Haire Group, A.G. Stacker, Bobst, SUN Automation Group, Independent Corrugator, American Corrugated Machine, Independent Paperboard Marketing, Baysek Machines, EAM Mosca, and TranSouth Logistics.

Join us for the 39th Annual West Coast Golf Tournament on October 17 at the Strawberry Farms Golf Club in Irvine, California. Learn more at www.AICCbox.org/calendar.

For more information about AICC summits, contact Laura Mihalick, senior meeting manager, at 703-836-2422 or lmihalick@AICCbox.org.

BOXSCORE September/October 2023 8
Troy Wilson, Domtar Kingsport Mill manager, leads AICC members by incoming mill furnish. Tourgoers take in the majesty of Domtar’s Kingsport Mill.

Some Corrugated and Containerboard History: Part One

More than 10 years ago, we published a trilogy of the last 50–70 years of our industry. As AICC is getting ready to celebrate its 50th anniversary at the Spring Meeting in April in Palm Desert, California, we wanted to remind everyone where we came from. Our incoming chairman, Matt Davis, recently said, “We need to embrace and honor the past.” Remember the independent advantage. So, for those of you who are new to this industry, we submit this legacy for you. For those of us who are veterans, a few memories:

Our industry has a rich history of single entrepreneurs, families, and partners taking risks in very local venues. The beginnings were not corporations; they were very fragmented and very independent. It might have been as simple as a straw farmer seeking a higher return on his crop (an early fiber source for medium), rather than just a feed for cattle. And he would partner with papermakers and box manufacturers that were moving out of wooden crates into corrugated “packaging.” It was only over many years that larger and more geographically focused companies came to acquire the local and regional business operations.

St. Regis

On August 1, 1984, Champion International Corp. and St. Regis Corp. announced jointly that they had signed a definitive agreement to merge the two big paper companies in a deal valued at $1.7 billion in cash

and stock. The merger would create the nation’s biggest paper producer in terms of sales, far outstripping GeorgiaPacific Corp., the then-current leader. It would also challenge International Paper Co. for the top spot in the industry in terms of pulp and paper tonnage produced.

St. Joe

The St. Joe paper mill at the corporate headquarters in Florida was most profitable in the 1960s, with products being marketed directly to independents, trade partners, and company-owned box plants. However, an extended period of downtime (nine months) due to market conditions in 1996 signaled the beginning of the end for the mill. After nearly 60 years, St. Joe decided to get out of the paper business. The mill was sold in 1996 to Florida Coast Paper for $390 million and was able to operate and produce paper until another decline of the containerboard market. The mill closed August 16, 1998, and did not reopen. The mill was gone by 2003.

In November 1995, St. Joe announced a deal to sell 16 box plants and its pulp and paper mill for $390 million, taking a big step to divest its noncore assets. Box USA, owned by Four M Corp. of Valhalla, New York, the largest privately held corrugated boxmaker in the nation at that time, acquired the East Coast box plants. It also bought the pulp and paper mill in Port St. Joe, Florida, in a joint venture with Stone Container Corp. of Chicago. After the sales, St. Joe Paper

was left with 1 million acres of forest land and property in Florida, among other assets.

Gaylord

Gaylord Container was a byproduct of the hostile takeover of Crown Zellerbach by Sir James Goldsmith in July 1985, which resulted in the breakup of the San Francisco-based forest products corporation in May 1986. The more profitable manufacturing assets (fine paper mills) were sold to James River Corp. of Richmond, Virginia—which became Fort James in 1997 and was acquired by GeorgiaPacific in 2000. The less profitable container division (brown paper) became Gaylord Container and, after a brief period as a limited partnership, was sold in November 1986 for $260 million to a group of Midwest investors, led by Warren Hayford and Marvin Pomerantz. They headed MidAmerica Packaging, a single kraft paper mill in Pine Bluff, Arkansas, acquired from Weyerhaeuser in December 1985 for $28 million. Soon after the acquisition of the former Crown Zellerbach assets, the headquarters of Gaylord Container were moved from California to Illinois.

The company was originally named after the gaylord container, a bulk-size corrugated box by a company of the same name, based in Gaylord, Michigan. The company was acquired by Crown Zellerbach in 1955, which renamed its brown paper operations to Gaylord Container Division.

BOXSCORE September/October 2023 10
Ask Ralph
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Ask Ralph

In 2002, Inland acquired Gaylord Container Corp.

Container Corp. of America Container Corp. of America (CCA) was founded in 1926. In 1968, CCA merged with Montgomery Ward & Co. Inc. in a move that was largely intended to thwart takeover bids against either company. MARCOR maintained separate management for the operations of each company but had a joint board of directors. In 1986, Mobil Corp., which had bought MARCOR in the early 1970s, sold the CCA company to Jefferson Smurfit Corp., which merged with Stone Container Corp. in 1998 to become part of Smurfit-Stone Container Corp. CCA was a wholly owned subsidiary of Smurfit-Stone Container Corp.

Wabash/Weston Paper

Also added in 1998 by International Paper was Weston Paper and Manufacturing Co., acquired through a stock deal valued at $232 million. Based in Terre Haute, Indiana, Weston operated 11 corrugated container plants in the South and Midwest, including a medium mill at its headquarters.

Mead

MeadWestvaco was formed in January 2002 as the result of a merger between the Mead Corp. of Dayton, Ohio, and Westvaco (originally Piedmont Pulp and Paper Co. and then West Virginia Pulp and Paper Co.). In 2005, the papers business unit—including both Mead and Westvaco paper mills—was sold to investment firm Cerberus Capital Management for about $2.3 billion. The new company is called NewPage Corp.

In 2008, MeadWestvaco sold its Charleston, South Carolina, kraft paper mill to Kapstone Paper and Packaging and its Stevenson, Alabama, medium mill to Smurfit-Stone, which became RockTenn.

Box USA

In April 2004, International Paper announced it had agreed to acquire Box USA Holdings Inc., one of America’s leading corrugated packaging companies.

MacMillan Bloedel

In June 1999, Weyerhaeuser announced its intention to buy MacMillan Bloedel Ltd. of Canada for stock valued at about $2.45 billion. The merger made Weyerhaeuser, which at that time was already the world’s largest producer of softwood lumber and market pulp, a leader in packaging as well.

Union Camp

In 1999, Union Camp Corp. was acquired by International Paper. At the time, it was referred to as a merger, but it was actually a takeover. The Union Camp chairman at that time, W. Craig McClelland, had actually sold another company, Hammermill Paper Co., to International Paper in the mid-1980s, when he was also in charge of that company. He finally retired from International Paper’s board of directors in late 2006.

Continental Can

In 1976, Continental Can Co. changed its name to Continental Group, a conglomerate with operations in many countries, but it kept Continental Can as its packaging unit within Continental Group. In 1987, the remnants of Continental Can became part of the United States Can Co. (a subsidiary of Inter-American Packaging). Continental Group was dismantled in 1991, and early that year, Continental Can Co. was ordered to pay out $415 million to some 3,700 former employees and members of the United Steel Workers of America, when the courts found that the company had attempted to defraud the employees

of pensions during the late 1970s. The rights to the Continental Can Co. name and logo were sold in 1991 and renamed Viatech Continental Can Co. Inc. in October 1992. In June 1998, Suiza Foods Corp. completed its acquisition of Continental Can. In July 1999, Suiza sold all of Continental Can’s U.S. packaging operations in partial exchange for a minority interest in the purchaser, Consolidated Container Co. As of 2000, the only remaining business of Continental Can was Dixie Union, a small flexible film business based in Kempten, Germany.

Champion International

In 2000, Champion International was bought by International Paper. Champion had operated since the late 19th century in the United States and other countries.

Next Issue

In the next two issues, we will cover Owens-Illinois, Great Northern Nekoosa, Crown Zellerbach, Southern Container, Longview Fibre, Boise Cascade, Hinde and Dauch, Inland, U.S. Corrugated, CeCorr, St. Laurent, Westvaco, Horner Waldorf, and Chesapeake.

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

Sources: Personal knowledge from employment, media articles over 40 years, Corrugated Shipping Container: An Engineering Approach, annual reports, 10Ks, industry technical committees, interviews, personal relationships, and Wikipedia.

BOXSCORE September/October 2023 12

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Pay for Performance in 2023

My intention below is to recap my recent three-part webinar series with what I have seen progressing in the packaging industry from a market compensation perspective. There have been many changes occurring into mid- and late 2023, as well as many planned for 2024 and beyond.

The biggest change is considering the labor market and how fast or slow salaries are moving in the market across different geographical areas, industries, and job levels. A key to understanding your company pay positions is ensuring you have relevant survey data to benchmark positions and assess how much inflation and other economic factors impact the market.

Pay for performance is expected to be a significant approach for pay differentiation in late 2023 and 2024. The big question is, how does the employer ensure they are spending their merit increase dollars the right way?

One effective method of merit dollar allocation is a traditional merit pay chart. Merit pay charts consider an employee’s performance rating and pay within their salary range. The merit pay charts intend to ensure the highest increases are awarded to employees with the best performance who are also paid low in the salary range. As employees reach midrange, assuming they are meeting performance expectations, increases will trend with the budget. For employees high in the salary range or near the top, pay slows down, and increases tend to trend at or below budget as those employees are likely already paid above market.

The table at right is a sample merit chart based on three performance ratings. This is the expected distribution that will drive how much above or below the intended budget increase can be allocated to each

cell. In the example table, the budget was anchored at Meets Expectations for employees in the bottom third of their range. Higher performance will allow for a salary increase allocation above the 4% budget. All other positions will result in a salary increase below budget. Below are some examples of how this chart is implemented:

• Sally Smith is a financial analyst performing at an Exceeds Expectation level. She is currently paid at the minimum of her salary range. As a result, Smith’s manager can allocate a 6.5% increase.

• John Snow is a purchasing manager who has been with the company for 15 years. He is meeting expectations but is paid almost at the top of his salary range. Snow would be eligible for a 3% merit increase.

• Mark Hanson has been an accountant with the company for three years and is paid in the middle of the range. He has performance issues and has been rated Needs Improvement. He is not eligible for an increase during this compensation planning cycle. His compensation could be reviewed again in six months, assuming improved performance, to determine if an off-cycle pay increase is warranted.

The performance rating distribution is typically based on employee ratings from the prior year. As a result, once all salary increases are established utilizing the merit pay chart, some adjustments may need to be made for some ratings if the final allocations exceed the budget. This is typically done at a department level initially and then rolled up to a leadership level for final review to ensure pay equity.

Affordability

Consider the labor market and how fast or slow salaries are moving in the market across different geographical areas, industries, and job levels. Remember, a key to understanding your pay position is ensuring you have relevant survey data to benchmark positions and assess how much inflation and other economic factors impact the market.

BOXSCORE September/October 2023 14
Tom
Ask
PERFORMANCE RATING PAY IN RANGE DISTRIBUTION Exceeds Expectations 6.50% 5.50% 4.50% 25% of employees Meets Expectations 4% 3.50% 3% 70% of employees Needs Improvement 0% 0% 0% 5% of employees Expected Distribution 49% 35% 16% 100% of employees

Ask Tom

So, what are some options for pay if you have a small budget and are not able to increase base pay? Consider the following:

• Instead of a base salary increase, provide a lump sum equivalent to the base salary increase. These increases are considered supplemental wages and are taxed at a higher rate. Since lump sum increases are a one-time payment, they do not increase fixed costs over time.

• Determine if any benefits can be added (e.g., transportation stipend, tuition reimbursement) that would benefit a large percentage of the employee population.

• Consider increasing the employer cost share of benefits as another option.

• Provide increased paid time-off programs (employees rarely abuse them).

• Implement companywide recognition programs that can be given out on a quarterly or semiannual basis. Although these awards tend to be smaller (e.g., $500 or $1,000) they can provide a small and welcome boost for employees and their families.

My efforts here once again have been to stimulate your thought processes regarding ways to improve your hiring, retention, and employee motivation strategies. This webinar recording is available at NOW.AICCbox.org for All Access Pass holders or for individual purchase. Explore the various webinars AICC includes in its All Access Pass at AICCbox.org/Pass

Contact AICC Director of Education and Leadership Development Taryn Pyle at tpyle@AICCbox.org or Education and Training Manager Chelsea May at cmay@AICCbox.org with questions.

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 September/October 2023 16
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A.G. Stacker

Adducco Communications

Akers Packaging Services

American Corrugated Machinery

Arvco

Athena SWC

Bay Cities

BCM Inks

Buckeye Boxes

Jay & Terese Carman

Central Package & Display

Commonwealth Packaging

Mike D'Angelo

DeLine Box & Display

Domtar

Equipment Finance

Freedom Corrugated, LLC

Geo. M. Martin Company

Nick & Deborah Griffin

Haire Machinery

Harris Packaging

Independent II

Jamestown Container

JB Machinery

Greg & Karen Jones

Klingher Nadler LLP

Kolbus

L.D. Davis

McLean Packaging

Michigan City Paper Box

NV Publications

Oklahoma Interpak

Ox Box

Package Crafters

Packaging Express

Paige Packaging

Pamarco/Absolute

Royal Containers

Southern Missouri Container

Standfast Group

Sun Automation

Tavens Packaging & Display

Torosian Technical Services

Greg & Bette Tucker

Tyoga Container

Viking Industries

Wasatch Container

Welch Packaging Group

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The Science of Converting Cold Leads: How Many Touches Are Necessary?

Prospecting is one of the most challenging components of sales, even for the best hunters. There is one often misunderstood and seldom tracked metric that holds the potential to redefine the success of a business. This often underappreciated metric we are referring to is the number of touch points required to transform a prospect from a new name on your target list to a qualified prospect that says, “Let’s have a chat.” Qualified, of course, means that the lead meets your criteria for product mix, annual spending, etc.

Success doesn’t necessarily come with speed. It requires a blend of endurance, strategic planning, and patience. In the fast-paced, immediate-gratification world we live in, patience may seem antiquated, but this virtue must be embraced when selling industrial custom packaging or retail point-of-purchase (POP) displays, which can take months to close. The journey from cold prospect to scheduled appointment requires communication, process adherence, and astute timing. Understanding this and nailing down these data points will allow you to better predict and plan for future revenue growth.

Why Is This Important?

Prior to the COVID-19 pandemic, companies were trending away from road warriors making in-person cold calls. Travel is expensive and time-consuming. Every trip, even a few hours away, is 100% cost if the sale doesn’t materialize. Faceto-face meetings can play a significant role in the sales process, but they must be more strategic and follow initial contact and qualification through phone calls or digital interactions.

Today, many companies have held onto elements of virtual sales, but a lot of them lack a process, consistency, and tracking. Sending out occasional emails isn’t enough to convert a prospect. Multiple touches at regular intervals are required. Touch points include all phone calls, voicemails, video calls, text messages, email communications (e.g., personal and bulk emails), social media interactions, and even direct mail. It is crucial to understand how many touches are required for conversion because the data is helpful for multiple purposes:

• Sales forecasting: These data points can help with sales forecasting and pipeline management, leading to more accurate predictions for future sales performance, which can guide decision-making.

• Resource allocation: Having an accurate picture of the work involved in converting a lead allows companies to better allocate time, effort, and resources to lead-generation activities.

• Sales strategy refinement: Understanding the conversion timing can assist with refining your sales strategy by making sure each touch is meaningful and helps to move the lead closer to conversion. It can also allow communication to be tailored to the customer’s buying journey.

• Performance metrics: With data showing the number of touches to conversion, these performance

metrics can be used to assess the effectiveness of sales and marketing efforts. If the number of touch points grows, it may indicate a change in contacts or process is required.

How Many Touches Does the PaperBased Packaging Industry Require?

Understanding the sales process and the time and effort it takes to convert a cold lead into a qualified relationship is essential for anyone selling paper-based packaging products. A salesperson may need to invest hours of activity with multiple touch points before a lead becomes sales-ready. The time and number of touches required for conversion can vary depending on the product or service offered.

Although everyone’s experience may be different, our customer data shows the following differences per company based on what they are purchasing (see table below). We should note that these are averages; some outliers convert in days, and some may take a year or more. Also, this involves three to seven contacts per company. Additionally, it is outbound phone call-heavy (65%) and uses direct line and cellphone numbers. Phone calls allow open-ended questions to be asked and useful information to be uncovered when one listens more than speaks. To succeed, the sales team must be consistent with its outreach over time, not just make a touch or two a month via email.

BOXSCORE September/October 2023 18 Selling Today
PRODUCT TOUCHES TIME FROM COLD TO MEETING Brown Box ~20  (60–90 Days) POP Displays 30–50  (180+ Days) Retail Packaging 25–40  (90–180 Days) Folding Cartons  15–20  (90–180+ Days)
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The following data from Crunchbase supports phone-heavy outreach:

• Organizations that don’t cold call experienced 42% less growth than those that do.

• Voicemails eventually lead to a callback (11% after the first, 22% after the second, and 33% after the third).

• The majority (57%) of C-level buyers prefer to be contacted via phone.

Notably, our data finds that the size of the company being approached can play a crucial role in the conversion process. Smaller companies with less bureaucracy tend to be easier and quicker to convert, while larger corporations with more layers may require more time and effort. Additionally, the higher the contact person’s position in the company, the harder it is to convert them.

Sales of POP displays are cyclical and tend to be more project-based—this is where astute timing matters. Getting to the right person when they have a project can move the process along faster. If they

don’t have a project when you speak with someone, nurturing the lead consistently will be key to converting them.

When looking at inbound leads, these numbers drop significantly, averaging around two to three touches and less than a week for conversion. When someone has come to your website and filled out a form, they are looking for a packaging vendor. This indicates the importance of a balanced approach using outbound and inbound strategies.

One caveat is that other variables may not have been considered here, and results can vary from company to company, region to region. The sales team’s approach and varying skill levels can impact these numbers. Some industries may be harder to penetrate than others. The packager’s messaging, value proposition, and delivery will also influence the number of touches required to secure an appointment with a qualified opportunity.

Ultimately, the key to a successful sales process is understanding the number of

touches and time commitment required for your approach and adapting strategies accordingly. Sales teams not currently measuring touches can gauge their prospecting performance against the above averages. If they find themselves falling short, it’s an indication their strategy may need to be reassessed. These insights provide an invaluable road map to enhance the efficiency and effectiveness of their lead-conversion process.

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

BOXSCORE September/October 2023 20 Selling Today

The Magical Repurposing of Corrugated

What comes to mind when you think about corrugated board? I am sure your mind is racing with tons of ideas because you, as corrugated professionals, know it has a multitude of uses in the packaging world. Naturally, a corrugated board’s design depends on the function it needs to perform, such as holding up products in a point-of-purchase display, working hard as a shipping container for e-commerce purchases, or silently selling a product on retail shelf packaging.

What you may not know is that the characteristics of this substrate (e.g., inexpensive, lightweight yet sturdy, easily recyclable or renewable, reusable, readily available) lend themselves exceptionally well to not only packaging applications but also arm immobilizers (of all things!).

Since this may seem like a random topic, let me give you a little backstory. Recently, my 8-month-old daughter had surgery on her cleft lip, and she needed arm immobilizers to prevent her from damaging the surgical site. The idea here is similar to that of a cone worn by pets to prevent them from chewing their stitches. And like my cat that has worn that cone, my daughter hated this act of restraint. She was given a brand of arm restraints at the hospital, No-No®; they are made from polyethylene foam and a polypropylene rigidifying cuff (see top photo at right). Although an improvement from past versions—medical metal frames placed around the infant’s arm and taped in place to keep the elbow straight—these No-Nos were still bulky, too big, and uncomfortable for my daughter.

Forgoing the doctor’s instructions to wear the arm restraints for two weeks was not something we ever considered, but we knew we needed a better option than the current setup. My mom, an

advanced practice nurse, scoured the internet to find something we could use as a replacement. We quickly discovered our commercial product could be easily replicated using on-hand materials such as corrugated board. Although we chose not to venture out and make these on our own, we did purchase some (thanks, Amazon) made with wood and the same basic construction (see bottom photo at right).

If we had been ready to MacGyver these arm restraints for our little one, we would have needed only a few items to make it happen—corrugated board (reused from something as convenient as a box of pre-grilled hamburgers from a cookout), Velcro cable wraps, sticky back Velcro, and foam shelf liner. With these materials and some minor tools—a serrated kitchen knife, scissors, a stapler, straightedge, and measuring tape—we then would measure and cut the corrugated, roll it into a tube, cut and attach the foam liner, attach Velcro, and add Velcro cable wrap to have infant-ready arm restraints.

While you may not be in the market for arm immobilizers anytime soon—and I hope not—the point of this recollection is to show the magic of corrugated board for accommodating unique needs. Along with this creative repurposing, corrugated can be used for packaging and sending plants via mail, furniture designs, innovative architecture, and even bicycles.

So, the next time you have a corrugated box and nothing on your agenda, put on your creative hat, and make something you’ve never thought of associating with corrugated board! And if you want to dive deeper into the material itself and learn more about grades, fluting, manufacturing, converting, surface treatments, and

more, check out our fabulous corrugated course today at bit.ly/3PmYCrr or check out AICC’s many corrugated courses at learning.AICCbox.org

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, who contributed to this article, is production coordinator at The Packaging School. She can be reached at alli@packagingschool.com

BOXSCORE September/October 2023 22 Andragogy
Photos by Julie Rice Suggs, Ph.D.

When to Be Closing

What is your most frequently quoted movie? Is it Caddyshack ? Perhaps it’s The Big Lebowski. By far, the most quoted mantra for sales professionals must be from Glengarry Glen Ross : “Always Be Closing.” What sets the best packaging salespeople apart is not the “ABC” principle but knowing when to be closing. By the way, this is said with a Talladega Nights level of “all due respect.”

My introduction to the packaging industry was an investigation into what abilities and traits are unique to those who consistently sell at a high level. My toolbox included measurement and interview tools to isolate the abilities and traits that equipped eight diverse individuals to average a million dollars a month in sales. This was back in the day when a million dollars was a lot of money.

The project assessed math and language problem-solving skills and found that top performers had the expected verbal reasoning but also possessed even stronger math skills. Spatial reasoning was measured in the hopes that specifications communicated in two dimensions resulted in working three-dimensional products. Lastly considered were a range of general personality traits and those specifically related to sales.

Consistently productive salespeople shared a constellation of traits, though their methodology varied. Measures of sales performance normally render scores for sales disposition, comfort with cold calling, and sales closing. While all top performers were above average in all three of these measures, the highest scores were for closing. Looking deeper, it was not surprising to find that diplomacy,

self-confidence, and the ability to stay motivated with minimal supervision were common to the group. One factor that stood out was a level of uncooperativeness that operated without the loss of diplomacy. In short, these people know when to close. They know when not to take no for an answer. They push when others would retreat to attack another day.

Those who are always closing are perceived as self-serving and overly aggressive. Knowing when to stay, to push, or to offer a solution is the distinctive mark of great salespeople. This takes people skills or what Daniel Goleman termed “emotional intelligence” (also known as “emotional quotient” or

EQ). This is a measurable quantity of people skills he defined in his first book on the topic as “in practical terms … being aware that emotions can drive our behavior and impact people (positively and negatively) and learning how to manage those emotions—both our own and [those of] others.”

Research and practical experience have shown that EQ can be improved. This is good news because no shortage of technically skilled but interpersonally challenged workers has been reported. How does one approach such an individual? Well, one guarantee is you will not be the first to broach the subject. Past employers, coaches, and spouses will

BOXSCORE September/October 2023 24 Leadership

Build Better

Precison & Durability Saves

have discussed this relationship-limiting situation. In fact, all of us can improve our EQ, and it may be a good exercise for the entire sales team.

An EQ resource was recently added to the Packaging University, the online learning platform of AICC. I contacted Daniel A. Feldman, Ph.D., author of The Handbook of Emotionally Intelligent Leadership, which includes an assessment of EQ. Having received permission to utilize the assessment online, a student is now able to take the assessment and gain clear feedback for improvement in areas of strength and weakness. The class includes several exercises to develop key skills and gain feedback on progress. The course is titled Emotional Intelligence for Career Development.

It applies to all of our jobs and could be a part of any department’s continuous improvement efforts. In this model, team members take the course individually and then discuss its practical application as a group.

In summary, the research into what sets top salespeople apart included excellence in various abilities and traits. I believe that chief among them is development of the ability to recognize and adapt to one’s own emotions and those of others. Conscious effort to improve my own EQ has enriched my business and personal relationships. As Carl Spackler in Caddyshack once said, “I’ve got that going for me, which is nice.”

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 with code AICC21.

BOXSCORE September/October 2023 26 Leadership
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Design Space

Collaborating to Create Award-Winning Displays

Creating successful retail packaging and displays requires a collaborative effort that involves multiple individuals and departments. From initial concept development to production, supply chain management, and delivery, the process is complex and time-consuming. Every project requires a team of experts who work together to design and manufacture unique, visually appealing, and environmentally friendly point-of-purchase displays and packaging.

A chain of effective communication is a critical element during any project life cycle, especially when timelines can vary from immediate turnarounds to longterm planning. Time and action calendars are essential to staying on track through each department, and innovative technology automates various actions to save crucial time prepping files and workflows. Breaking down the creative process, we’ve captured firsthand how our structure, graphics, and 3D departments play an integral role in executing successful programs that help your favorite brands shine on the shelf—and online.

Design Process

Our team of 3D designers start with an initial concept using 3D Studio Max. Next, the structure team gets started on a line drawing that is presented to the client for approval. This provides a clear understanding of product capacity and display footprint. We carefully consider the number of pieces and types of corrugated and non-corrugated components needed to bring the project to life. Throughout phase one of the design process, our 3D and structure departments maintain

constant communication with the graphics team who create production art and ensure everything is optimized and ready for printing.

Using state-of-the-art automation software, our team develops tailored workflows that streamline various tasks typically handled manually by designers, resulting in significant time savings in the long term. We efficiently convert and prepare files in multiple formats by consolidating all of the necessary details for the printer’s comprehension.

During phases two and three, we focus on meticulously crafting and perfecting the project’s structure. This includes conducting thorough International Safe Transit Association testing with the product to guarantee that the board grade and shipping materials are highly effective for transportation. Once final, detailed step-by-step assembly instructions are created for our packout team, who will fold up each piece, load product according to a planogram, and palletize for shipment. To streamline the process, we utilize innovative software that maps out the precise placement of each pallet on the appropriately sized delivery truck once it is ready for shipment. Think of it as a strategic game of Tetris, where each pallet is strategically positioned to secure the others on board, reducing the risk of damage during transit.

Importance of Collaboration

Collaborating across departments guarantees seamless communication throughout the entire project journey and opens up numerous opportunities for creative input based on each team’s expertise—from ensuring the artwork complies with print

specifications and branding to providing recommendations on structure engineering to optimize it within retail guidelines. The absence of information, assets, or products can hinder and delay the production process when it is communicated through unofficial channels. Therefore, we provide best-practice sheets to ensure all assets and necessary information are obtained and confirmed.

As an employee-owned company, we actively foster and promote our core values of creativity, passion, integrity, responsibility, safety, and fun on a daily basis. These values not only enhance the well-being and satisfaction of our employees but also foster a positive and thriving work culture. Additionally, they enable us to deliver comprehensive and integrated packaging and logistics solutions, which have been proven to drive sales and exceed client expectations.

Jessica Buck is associate marketing manager of content and research at Bay Cities.

BOXSCORE September/October 2023 28
Photo courtesy of Bay Cities.
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Headline

Leadership

Education, EL Program Translate to Actionable Growth

The corrugated industry is constantly evolving, and in today’s fast-paced world, it demands innovation, agility, and competent leadership. So, as a past AICC Emerging Leader (EL), I wish to share my experiences with leadership and continuous education.

Becoming part of AICC’s EL program was a watershed moment in my professional journey. The program provided a platform to network with like-minded professionals. The insights and experiences shared by industry veterans were enriching and allowed me to view the corrugated industry’s challenges through different lenses. This perspective helped formulate innovative strategies at Vail Industries.

As part of the management team at Vail Industries, I understand the critical role of effective leadership in ensuring the company stays ahead of the curve. The transition from an individual contributor to a leadership role was a crucial point in my career. One of my first initiatives was to focus on the team’s dynamics by

creating an environment in which innovation thrives and individuals feel valued. The EL program, specifically the quarterly C-suite remote sessions, helped me realize that a motivated team is an asset, and the creativity of team members can lead to groundbreaking solutions for the challenges the corrugated industry faces.

One of the key takeaways for me was to learn to delegate and trust the members

of my team in various functional areas to contribute. This seems pretty straightforward, but the desire to strive for perfection often meant I was taking on too many responsibilities. Through the C-suite meetings, I learned firsthand that the true decision-makers in companies build a competent staff so they can focus on the big-picture problems their organizations face. This means taking the time to mentor

BOXSCORE www.AICCbox.org 31

and train those around them in understanding the process we as individuals have developed so they can provide the value that sets the organization apart from the competition.

In my situation, this meant giving up most of the design and estimating duties that made me a successful sales professional and replacing them with prospecting and marketing efforts. This meant I needed to share the focus on design for manufacturing and line efficiency at the customer location by first walking the team through the process and learning what they needed from me in my new project requests. This would help them develop the skills in the future to provide the suggestions that matter to customers proactively in their direct communications as well as with the new projects I am bringing to the company. This effort has cut down on turnaround time and led to increased margins for the organization as cost savings are shared in a way that reduces the customer’s total expense, while improving margins for the

organization beyond what is possible in the “apples-to-apples” bid process.

Understanding the importance of continuous education, I turned to AICC for resources to enhance not only my own but my team’s skill set. AICC’s educational materials, including webinars, seminars, and courses, have been invaluable. For instance, AICC’s sales training programs enhanced my understanding of how to ask the right questions at the right time and how to leverage social media platforms such as LinkedIn in a positive way, enabling me to make more effective sales calls and thus reducing the sales cycle and accelerating Vail’s growth.

Another area where my experience with AICC’s resources proved invaluable was workforce development. With the skills and knowledge acquired through AICC, I could drive recruitment strategies focusing on developing talent with the right blend of technical know-how and creative thinking. Moreover, through training programs and workshops, we ensured that

Member Benefits

On the Road Again

One of AICC’s goals is to make your job easier. We provide a lot of resources, online and in person, and we know it can be difficult to keep up with everything we offer and even harder to make sure all of your team members know what is available to them.

As we head into our 50th year, AICC wants to see you. We will be making stops around the United States to visit members and walk your team members through the benefits available to them. We will have lunch for your team, invite a few other members and

prospects, and make sure everyone knows how to access free online education and is informed about AICC’s free live webinars, various peer groups, and other benefits.

If you are interested in being a stop on the roadshow, contact AICC Director of Membership and Marketing Virginia

our existing workforce continually evolves and adapts to the dynamic demands of the corrugated industry.

My journey to a leadership role at Vail Industries, supplemented by the enriching experience as an AICC EL and the continuous learning through AICC’s educational resources, has been immensely fulfilling. The corrugated industry requires leaders who not only are technically sound but also possess the vision to drive innovation. Through collaboration, continuous learning, and fostering an environment that encourages creative problem-solving, we can ensure the corrugated industry continues to thrive and meet the ever-evolving global market demands.

BOXSCORE September/October 2023 32 AICC Innovation
Justin Woods, MBA, is sales manager at Vail Industries.
Humphrey at vhumphrey@AICCbox.org
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Civic Duty Notice 2022 Economic Census

The due date for responding to the 2022 Economic Census has passed, but it is not too late to respond. Businesses that received an invitation to respond but have not yet replied are receiving past due notices with instructions on how to respond and, if needed, how to receive assistance. Response to the economic census is required by law.

Economic census data serves as the foundation for the gross domestic product and other leading economic indicators for the nation. Trade associations, economic development agencies,

governments, and individual businesses use the data to make decisions and create policies. By completing the economic census, companies contribute to a wealth of valuable data that can help grow their business. Data compiled from the 2022 Economic Census is possible only because of the participation of businesses such as yours. Your response makes a difference. All responses are confidential.

Visit www.census.gov/programs-surveys/ economic-census.html or scan the QR code at right to get started.

BOXSCORE September/October 2023 34 AICC Innovation
Scan the QR code to respond to the 2022 Economic Census today!
100+ Webinars for All Team Members ALL ACCESS PASS www.AICCbox.org/Pass Subscribe Today Learn Industry Trends, Current Market Challenges, & Best Practices

Independent II : ‘Built by a Few, Succeeding With Many’

Company : Independent II

Established : 2006

Joined AICC: 2007

Phone : 502-315-2525

Website : www.independent2.com

Headquarters : Louisville, Kentucky

President : Finn MacDonald

The story of Independent II in Louisville, Kentucky, begins with one Neil MacDonald, who retired in 1997 following the sale of his company, Independent Container, to Greif. His 30-plus years in the box business in the Louisville market built long-standing relationships with many good customers. So, before his formal departure, he did what any shrewd entrepreneur would do: He gave his home phone number to all of them.

“Our existing customer base was probably the loudest reason to incorporate Independent II,” says Finn MacDonald, Neil’s son and president of the company. “My father did the job of retiring; he just left his phone number with most of the customers.”

As Finn recalls, those customers were not shy about exploiting this valuable resource: “During retirement, Neil received a lot of phone calls, just about ‘Hey, who can we call …?’ or ‘We need a little help.’ There’s a point where any seller is going to say, ‘I’m your guy. I’m your help.’ ”

Independent II was thus incorporated in July 2006 in a 100,000-square-foot building with what Finn calls “typical grassroots equipment”—a 38" flexo, a 50" flexo, and a 66" x 80" die cutter. “We were able to hire some talent, earn some new business, and really start up a sheet plant,” Finn says, adding that the former Independent Container’s longtime, loyal customers stepped up and embraced the resurrected company and its stellar

service. “We turned the ignition on, and we were probably 10 million square feet in month one. That’s the power of that existing business; that’s the power of being in Louisville for such a long time. When we opened the doors, sure enough, there were orders and there were sheets being delivered. It was a quick start.”

So quick, in fact, that Louisville Business First for seven consecutive years—from 2010 to 2016—cited Independent II in its “Fast 50” list of fastest-growing private companies.

Finn, 51, came to Independent II in 2010. His route there was circuitous. He graduated in 1994 from the University of Puget Sound in Tacoma, Washington, with a degree in English/communications.

BOXSCORE September/October 2023 36 Member Profile
Photos
courtesy of Independent II
Team Independent II (from left) includes Tim Rosetti, shipping and warehouse manager; Anthony Jennings, plant manager; Justin Gittings, production supervisor; Finn MacDonald, president; Kelly Papp, director of business operations; Michelle Huber, digital print supervisor; and Gracie Collins, director of quality, safety, and improvement.

He then followed a disparate career path, from photojournalist to museum founder to owner of a historic inn. Cut from the same cloth as his father, Neil, Finn inherited the successful entrepreneur’s instinct for customer service, explaining simply: “Each of these career choices required an entrepreneurial vision, tireless work, and a dedication to always taking care of the customer.”

He carried this keenly focused customer service eye to Independent II when he joined the company. “At that time, Independent II was really shifting into fast-growth mode,” he recalls. “The market here was beginning to ask for more than just brown boxes, and seeing an opportunity to expand what the business offered its customers, how it was produced, and assembling the team to do it was a leadership challenge that appealed to me.”

Independent II ’s long-standing customer focus was the starting point for Finn’s transformation and expansion of the company. “Independent II was built on ‘Take care of the customer by saying yes and getting it done,’ ” he says. “It’s the hierarchy of business, and it’s in our molecular DNA.”

While this ethos served them well, he recalls, it had its limits. “We did not spend a lot of time figuring out how to get things done more efficiently,” he says. “We had not spent the time investing in equipment and processes to make it easier.”

One of the critical limits to the company’s future was its physical location. Independent II operated out of two buildings: a 100,000-squarefoot manufacturing facility and a 200,000-square-foot warehouse across the street. “We were our No. 1 shipping customer for years because we had to ship our finished goods 100 yards across the street to our warehouse,” says Finn.

In spite of the layout, Independent II in its former location was running 40 million square feet per month with a respectable lineup of equipment: two BW

Papersystems flexo folder gluers with die cut sections—a three-color 37" x 96" and a two-color 50" x 110"; two Ward rotary die cutters—a two-color 66" x 80" and a three-color 66" x 113"; a Baysek die cutter; a Post Torosian specialty folder gluer; and two Solarco Boxmatic machines—a 98" one-color with inline feed and a 90" two-color.

Finn and his Independent II team knew that investing in new equipment or plant flow in that packed environment was unfeasible. “We knew an expiring lease was coming, and we hadn’t found a successful way to connect the two buildings,” he recalls. “So that put a move front and center as our only option.”

With that decided for them, Finn and his team then faced the next two questions: To lease or to build? And where would it be located? “It was critically important for the company and our customers to retain our labor force and to not move too far,” he says. “You know if something looks great but it’s 35 minutes away, it doesn’t look great to anybody making that drive.”

Finn found a solution in what he calls a “hybrid site,” two blocks down the road with an existing building and an adjacent lot. “There was a building in half of the space and an empty greenfield next to it,” he says. “So if we tear one building down, shovel it over to the greenfield site, and level it, we get 340,000 square feet. We fit perfectly in that little puzzle piece of land just two blocks away.”

According to Finn, the ramp-up to the move was theoretically three years, with design, build, and machinery acquisition and plant layout. “Then we developed our timeline, which was 18 months, and we woke up to reality when supply chain and allocation issues hit us. We

were literally finishing the new building, moving from the old site, and trying to produce and warehouse in both over a four-month period,” he recalls. “So, it was the best-laid plan that didn’t survive the fourth quarter of last year.”

In January, Independent II moved into its new 340,000-square-foot facility, where its 125 employees work two shifts to generate an annual corrugated production of more than 50 million square feet. Anthony Jennings, plant manager, oversaw the equipping and layout of the new plant. He came to Independent II five years ago from another independent corrugated box company in the Southeast. Finn calls him the “architect” of the new facility. Commenting on some of the challenges leading up to the relocation, Jennings says, “We had a great plan with new equipment coming into this building first, but with supply chain issues and everything that was going on globally, we had some hiccups here and there. We had to hit a lot of curveballs.”

Jennings credits Production Supervisor Justin Gittings with a lot of the heavy lifting in getting the move done smoothly. “He held it together over at the old building while I was here laying out the plant;

BOXSCORE www.AICCbox.org 37 Member Profile
Michelle Huber, digital print supervisor, (center) and operators display a sample from Independent II ’s Domino x630i digital printer.

then, when we needed his leadership here, he made that move over,” he says.

Jennings explains that key hiring decisions were made to enable a smoother transition. “We did some strategic hiring on the leadership side. About eight months ahead of the move, we made a couple of hires so that we would be comfortable running two facilities at one time,” he says.

Jennings justifies the new positions by noting Gittings’ supervision of the machine centers running a majority of the production. “Knowing that we were expanding equipment here made that decision easy,” he says. “Justin is captain of 65% of our business, so we were able to justify additional positions. … We’re starting to hit our stride now, so I think it was a pretty successful move.”

Finn and Jennings also used Independent II ’s membership in AICC to consult with other members who had also taken on major expansion and equipment installation projects. “Through our membership, we got realtime feedback on suppliers and services that are vital in making good investment and planning decisions,” Finn says. “AICC’s No. 1 benefit is interaction with and access to peers and plants.”

Independent II ’s new plant is a showcase of cleanliness, efficient layout, and state-ofthe-art production capability. In addition to the existing equipment moved over from the old location, significant investments were made in new equipment and plant flow, with ACS conveyors and load-tiering systems governing the movement of work in process and finished goods. On the converting side, the most notable additions are two Isowa flexo folder gluers: an Isowa Falcon 37" x 95" four-color with die cut section and an Isowa Ibis 47" x 120" threecolor with die cut section. Both machines have Alliance pre-feeders and load formers and EAM Mosca bundlers. These two machines comprise what the team refers to as the “Isowa Island” midplant. Finn

explains the operating principle that governs the center: “When we really looked at our labor and how one flexo would contribute to our game versus two, we opted for two sitting in a mirrored fashion. Paper could flow to them, nothing would get in the way, and we could get 65% of our day done in a shift. So that was the big swing, the big vision.”

Gittings confirms the machinery choice: “In our conversations when we were getting these machines, I’m hoping in six months we’re at our goals; we did it in three. We hit a million square feet on the Ibis on one shift in the first two months, and we’ve hit over 100,000 kicks on the Falcon in one shift.”

Tim Rosetti, shipping and warehouse manager, joined Independent II in February 2022. Far from being overwhelmed by the production speeds now being realized, Rosetti says the new plant, with everything under one roof, has improved on-time deliveries by a factor of 15–20 percentage points. “Now we have a solid warehouse layout,” he says. “We can handle the business we’re doing, but we’re also ready for growth. We are up to 94% on-time shipping, and when I started, we were in the high 80s.”

The amped-up productivity in the new plant serves Independent II ’s market aspirations, as well. “Our slogan to the market is ‘Brown, Brand, and Digital,’” Finn explains. “Those three words represent the diversity that we’re trying to achieve in the marketplace. Brown still dominates. It’s what we’ve been doing the longest, and brown is what we’ll always do.” This mix plays well into the northern Kentucky and southern Indiana area, which Finn describes as a “great mix of brown, branded, and digital consumers in food and beverage, e-commerce, consumer goods, spirits, and home appliances.”

Independent II ’s equipment roster has been curated to serve its diversification beyond its brown-box roots. As Finn

explains, the “brand” in the company’s market pitch is supported by its two-, three-, and four-color printing capabilities in its Isowa and MarquipWardUnited (BW Papersystems) machines. But Finn qualifies the company’s graphics work. “We’ve got a fleet of converting equipment, but outside of the new Falcon, which is a four-color machine, our top-line printers had been three-color, and a lot of that had not been process- or built-color but had been just for multiple colors on a sheet. We have learned to handle basic brand well, and we have grown that segment of our business.”

The logical next level, Finn notes, would be a move to higher-end process printing, yet here again, he balances the company’s capabilities with the market’s expectations. “We moved out of brown and got into branded, but then that next step was process printing, prepress management, and developing a sales force that can sell complexity if you have a market that can accept it,” he says. “All of this is achievable, but in Louisville, we had to be realistic.”

Enter the Domino x630i single-pass digital printer. Installed almost three years ago, the four-color aqueous-based printer is an important part of Independent II ’s aspirations to grow the brand and digital segments of its business by $10 million in the years ahead. Michelle Huber, digital print supervisor, oversees the department, and she and Finn agree that the Domino checks a lot of boxes for Independent II ’s operational and customer service goals. Says Finn, “It takes a lot more than three people to grow and evolve traditional direct print to process printing. With the Domino digital press, it takes Michelle and her two operators the process of receiving and ripping a file and then hitting the green button. All of a sudden, we can have four-color through a single-pass machine.”

Finn explains that the preprinted digital sheets go directly to the company’s die cutters, where they are handled efficiently and there are no printing plates to receive,

BOXSCORE September/October 2023 38
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mount, or wash up in the process. As of press time, the Domino was slated to receive a coating section this summer, an addition that Huber says “will be positive for the client because a lot of clients want a coating or shinier, brighter print. It will help us grow.”

Independent II ’s management team is a cohesive unit with a shared sense of purpose to serve the customer. Kelly Papp, director of business operations, joined Independent II only recently, and she brings with her 20 years’ experience at another Louisville-area independent. “We’re really blessed with a professional, experienced customer service team,” she says. “What we’ve been working really hard on is improving our communication and processes internally.”

This, Papp adds, is a natural extension of Independent II ’s growth into the brand and digital segments. “It takes time to develop experience handling not only brown boxes but handling brand through displays, fulfillment, and everything like that, so we are actively spending time upfront validating our customers’ expectations,” she says.

Another new team member, Gracie Collins, is a recent Indiana State University

packaging/safety program graduate. She is the director of quality, safety, and improvement, which encompasses the entire environment in the plant. She, like Papp, is committed to improving internal communication. Independent II ’s weekly QSI meeting with production staff and the plant workers was her innovation. “It’s really important to get the team together to get everybody on the same page,” Collins says. “They don’t take breaks at the same time, so the Monday meetings have one topic, say, a quality topic, a safety topic, and one improvement topic based on the way the previous week went. You have that communication with the team, and you show them what page we’re on so they know what page to be on as well.”

Independent II has also added to the leadership team a senior controller who worked for one of the company’s customers. “I knew what kind of people they were; they were people of integrity,” the controller says.

The position allows the company to be more proactive—rather than reactive—in financial planning and strategic growth. Finn makes an analogy to Independent II ’s logo, which features an italicized Roman numeral II. “If you look at it, those two

blocks are always leaning forward. And what we’re trying to do across the company in manufacturing, in customer service, in our financial arm, and on the selling side is to lean forward and into both our challenges and our opportunities.”

Finn is the second generation in the second iteration of a successful independent company. When he joined Independent II in 2010, he knew that growth would require a more strategic and directed approach to the market and a team of talented people to guide it. The team he has assembled is not limited to the one within the company, however. Finn attributes much of his success in leading Independent II to his involvement in AICC. “I’ve used AICC to accelerate my professional development,” he says. “I believe my ability to grow and manage Independent II comes from many years of investing in AICC through meetings and programming, my work on the board of directors, and my brotherhood in my CEO Advisory Group.”

To confirm his commitment to AICC and to the advancement of the corrugated industry, Finn will assume the AICC chairmanship in the 2025–2026 membership year.

Independent II ’s elevator speech is “Experience Packaging Success.” By any objective measure, Finn—and his team at Independent II —are proving this to their customers every day. Harkening back to his father Neil’s founding of Independent Container and Independent II and looking to the future, Finn, tipping his hat to his team, says simply, “Independent II was built by a few, but it is succeeding with many.”

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

BOXSCORE September/October 2023 40 Member Profile
Jason Gittings, third from right, and the Isowa Falcon and Ibis crews produce up to 65% of Independent II ’s brown box orders in a single shift each day.

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GETTING STRATEGIC ABOUT BUILDING YOUR NETWORK

A conversation with sales experts

BOXSCORE September/October 2023 42

As the saying goes, “It’s not what you know but who you know.” So, salespeople and others have set out to build their networks, but the questions become, how strategic are those networks? How can salespeople strategically build relationships in today’s sales environment?

BoxScore aims to answer those questions by connecting with Ed Wallace, thought leader, relationship skills trainer, and author of Business Relationships That Last, and Mark Roberts, sales effectiveness consultant, coach, trainer, and author of the newly released book Driving Explosive Growth

BoxScore: Ed and Mark, what are you seeing post-pandemic? Are people returning to sales kickoff meetings, conferences, and trade events, or are they finding what they want and need virtually?

Wallace: In our practice, we are seeing more live conference workshops and trainings than we experienced prepandemic. As we engage with trainees, we often hear how excited they are to meet with their contacts and prospects face to face again.

Roberts: Like Ed noted, we are seeing more national sales meetings and sales kickoff meetings. Some teams have not all been in one room for over three years. When teams invest in these events, we often encourage and facilitate teambuilding exercises because in most cases, there are many new faces and people in new roles. AICC and other associations are experiencing record attendance.

BoxScore: Why do you think we are seeing such high numbers in attendance for AICC conferences, trade events, and sales kickoff meetings?

Wallace: I believe many teams adapted to virtual selling, Teams meetings, and Zoom, but they missed the face-to-face interaction. Yes, you can have a phone call with an industry contact or a Zoom call, but it is not the same as sharing a coffee after an engaging workshop at an event.

Roberts: In our training, we discuss how we use terms like B2B (business to business) and B2C (business to consumer), but really, we are in the H2H business— human to human. People still buy from people, and it is harder than ever to engage with prospects who do not know you. That is where your network comes in. For example, over 85% of my practice’s revenue is from referrals. It is critical we build strategic networks today.

BoxScore: What goes into preparing for an association meeting, trade show, or even a smaller event?

Wallace: We recommend you and your team have a specific goal and objective when attending any association meeting

BOXSCORE www.AICCbox.org 43
Wallace Managing Director ACHIEVENEXT HUMAN CAPITAL Mark Roberts CEO OTB SOLUTIONS

or trade event. Who do you know will be attending, and how can you build your relationship with them? Who are those attending you would like to meet, and what is your plan to move from a stranger to an acquaintance? How will you move from an acquaintance to a peer they turn to for help solving their business challenges?

Roberts: Like Ed, I believe we should have a plan and ideally a return on investment from attending an event. Your goal may be building 25 new contacts with market-leading prospects, building relationships with some of your key contacts, attending conference training, and learning new trends and challenges your customers face. I encourage salespeople to attend panel discussions and listen to some of the current and urgent problems industry leaders share. If you have a booth or your team is delivering an event, you must invite attendees who match your ideal customer profiles and key persona influencers.

BoxScore: How do you “work the floor” and get the right leads?

Wallace: We train teams to have a show plan and meetings booked well in advance of the conference. Tune up your value proposition based on the current challenges your customers face, and practice it with your peers prior to the event. After you book your key meetings, map your game plan of who you want to meet and what that exchange will look like. We encourage salespeople to do their homework. For example, let’s say you wanted to meet Mark at the next AICC meeting. Our training teaches you to do some research on Mark, understand his role and new trends that could be impacting his business. You would find he just launched a book. We train salespeople how to develop strong discovery questions to start conversations that turn into meetings after the show.

BOXSCORE September/October 2023 44
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Roberts: Working the floor, as people call it, is fun if you do it correctly. Do your research on each company and key contact you wish to meet well in advance of the show. As Ed shared, we encourage salespeople to build strong discovery questions that quickly build trust and demonstrate competence. Your goal at a show is not to “make a sale” but to build a relationship. The more authentic you are and the more you understand the other person’s challenges, the better the future result. We encourage leaders to volunteer

to deliver thought-leading presentations and participate in panel discussions to be seen as thought leaders in their industries.

BoxScore: What happens after an event? How do you go about following up and staying in touch?

Wallace: We encourage salespeople to follow up quickly and mention comments from your introductory conversations. We teach sales teams to ask, ask, ask, ask, then tell. This method of asking great questions and then sharing how you

help others like them in the form of a memorable story is powerful.

Roberts: We train salespeople to send LinkedIn connection invites within 24 hours of conversations with new contacts. As Ed shared, mention something from the conference and ideally something from your introductory conversation. You are starting a conversation, not closing a sale. We encourage sharing possible solutions to challenges the contact may have shared. If you both attended a workshop on delivering price increases that stick, for example, you might send them a thought-leading article or white paper on how to strategically raise prices while building business relationships.

BoxScore: Any other advice as more and more business leaders are attending events?

Wallace: In my book Business Relationships That Last, I share what we refer to as the relationship ladder. You can be a stranger, an acquaintance, a peer, and earn the respected advisor status. We encourage salespeople to rank their relationships with key contacts on the ladder and have a plan to advance the relationship up the ladder. We have tools and templates we share in our training to help salespeople map this strategic relationship-building process. Be prepared to share the problems you solve for each of the decision-maker personas you meet at the event. For example, what is important to a sales vice president is often different than a discussion with a vice president of engineering. We teach teams to identify their top three to five personas and be prepared to share how you help others like them.

Roberts: Don’t forget about who brought you to the dance! We often see salespeople so focused on building and winning new customers, but the quickest and most profitable return on your time is building relationships with your current accounts. You know those

BOXSCORE www.AICCbox.org 45
“Tune up your value proposition based on the current challenges your customers face, and practice it with peers prior to the event. After you book your key meetings, map your game plan on who you want to meet and what that exchange will look like.”
—Ed Wallace, managing director, AchieveNEXT Human Capital

customers who have been with you for years and actually pay the bills. What current customers will you meet with? Who will you ask your current contacts to invite to a lunch, dinner, or meeting to expand your relationship network at your key accounts? Today, key buying decisions often include more than six decision-makers. The burden is on sales to determine who those decision-makers are and strategically build what we refer to as your emotional bank account long before you need that relationship.

One last thought: We teach to not ask any questions you could have answered by

a Google or LinkedIn search. Preparation and taking a genuine interest in others and their business are key; strangers can smell commission breath from a mile away at events.

As more and more associations’ conferences occur and have record attendance, they become key opportunities to start building strategic relationships while also moving your current relationships up the ladder. Nothing happens if you just show up, throw up, and wander around the event. Pre-event planning is key to turning a conference into relationships that lead to greater revenues.

BOXSCORE September/October 2023 46
Business Relationships That Last: 5 Steps to Transform Contacts Into High-Performing Relationships Driving Explosive Growth: A
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Web of Engagement

With the help of digital marketing, boxmakers are exploring ways to improve customer communication, build brand awareness, open new sales channels, and connect with digital-first and digital-friendly generations.

“The reality is, as baby boomers retire and Gen X is aging, millennials are in a lot of the decision-making—or at least the pre-purchase research—positions,” notes Katy Hart, director of marketing and communications at The BoxMaker. “To make sure we’re reaching them, it’s very important for manufacturers of all

kinds, including packaging manufacturers like ourselves, to be online, findable, engaging, and actively present.”

Digitally Relevant

“At The BoxMaker, we are heavily focused on content and inbound marketing,” Hart says. “Having a first-rate website is important for first impressions, and it influences what people think of The BoxMaker overall—even if their first touch point with us is through a sales rep, some other piece of collateral, or they meet us at an event.

So we try to drive a lot of leads through our website.”

In addition, Hart is frequently blogging and posting on social media. Although social media often means just Facebook and Twitter, Hart focuses attention on the channels that get more traction, particularly LinkedIn followed by Instagram. The content she posts is driven by the company’s mission. “We think of ourselves first and foremost as an educator, a partner in learning for packaging,” she says. “That’s the philosophy behind 85%–90% of the

BOXSCORE September/October 2023 48
Using digital marketing to increase customer connections

content. The other 10%–15% is more sales-focused, letting people know about new products while always focusing on how those products can help to solve their problems.”

Because so many people will consume multiple streams of information, Hart stresses the value of being consistent across every platform. “Having a consistent message that’s on-brand and current has had a very positive effect on people’s opinion of us,” she says.

At sales consultancy Athena SWC, Senior Marketing Content Consultant

Lisa Benson helps clients formulate their consistent, on-brand digital messaging from their very first meeting. “I work with customers to help them find their differentiators and the value they bring, as opposed to just the capabilities they have for making boxes,” Benson explains. “For example, I’ll walk them through a spreadsheet that helps them list out all the pains that their prospects may be feeling in the market, all the things that would make somebody either leave their current vendor to come to you or turn to you as a secondary. Is it

poor quality? Delivery delays? And then we ask, what is it costing those companies if they don’t have somebody that can solve those issues for them? What is the actual cost to the manufacturer for having that poor quality or those late deliveries? And then we look at how clients can mitigate those situations. That’s a better way of thinking about differentiators than focusing on messages like, ‘We make this kind of box.’ ”

While some boxmakers rely on a suite of services from digital partners such as Athena SWC, others turn to in-house

BOXSCORE www.AICCbox.org 49

solutions. For example, The BoxMaker invested in HubSpot, a comprehensive customer resource management application. “HubSpot provides complete transparency between marketing and sales,” Hart says. “It allows us to take the digital marketing to the next level with things like list building, [email] targeting, and things of that nature because we have all of the data in HubSpot. It’s our main tool that we use for everything.”

Of course, traditional marketing, such as direct mail, is still used, still effective. “But we always try to give everything some type of digital touch point so we can track it,” Hart says. “So, even if it’s a physical mailer, we’ll include a QR code on it and create a related landing page on the website. We try to give potential customers a reason to visit us online so we can get them into our digital ecosystem and start being aware of their client journey.”

Start Your Engines

The starting point for most prospective customers and potential employees is the company website. And one critical element of an effective website is search engine optimization (SEO), which helps your site appear as high as possible in search engine results. Maintaining effective SEO requires constant attention.

Google—which currently owns 85% of the overall search market, 95% on mobile devices—frequently updates the algorithms it uses to select and display search results. The effects of those updates can be devastating. “When Google updated their search algorithm in 2021, it caused our web traffic to flatline,” Hart recalls. “The algorithm changed so significantly, our traffic went down, down, down.” Adapting to the changes required an overhaul of The BoxMaker’s website.

Scott Finkelstein, director of content with NgageContent, works regularly with boxmakers and other packaging clients—as

BOXSCORE September/October 2023 50
“We always try to give everything some type of digital touch point so we can track it. … We try to give potential customers a reason to visit us online so we can get them into our digital ecosystem and start being aware of their client journey.”
—Katy Hart, director of marketing and communications, The BoxMaker
We Come to You ROADSHOW Contact Virginia Humphrey, vhumphrey@AICCbox.org or 703.5351383 to learn more. Tell Us What You Need & We Show Your Team AICC Resources That Will Help You Grow

well as Athena SWC—to develop their digital marketing, including social media marketing and website design. When working on SEO for a client, he devotes a significant amount of time to the process, researching users’ locations, their preferred search engines, and the different ways they search when they are merely curious versus ready to buy. He also analyzes the competition’s use of search. The goal is to connect the most relevant user keyword searches to the client’s website content, with as much precision as possible.

Regionality also is an important aspect of SEO, one that depends on the user’s willingness to share information (often called a “cookie” or a “pixel”) from their computer or device regarding their location so they can be shown search results

relevant to that location. It is essential when it comes to digital recruitment, in which prospective employees are searching for jobs within a given area. But it is equally important for reaching new customers. “There is actually a lot of local search,” Finkelstein says, “and there’s a lot of opportunity to position a company locally. So let’s say a folding carton manufacturer wants to really own the southeast United States. We’ll create content pages that go after searches tied to those cities, regions, or states.”

Another way to guarantee a high search engine ranking is to pay for it. Typically called search engine marketing or pay-perclick (PPC) advertising, paid links appear at the very top of the search results page, marked “Sponsored.” The ad’s sponsor pays

a fee every time a user clicks on the ad link. (Retargeting involves delivering similar ads to users who have visited your website but have since moved on to other sites.)

PPC ads may not be the right approach for every boxmaker. “If a corrugated manufacturer wanted to go after a certain industry, we would do extensive research on that industry to see if it makes sense to actually invest money in PPC,” Finkelstein says. “If the data justifies a spend into what the client is wanting to do, we’ll test it for several months. If it performs, we’ll keep going and keep optimizing. If it does not, then that money is put somewhere else.”

Artificial Intelligence Assistance

With the increasing popularity of tools driven by artificial intelligence (AI), it is not surprising that digital marketers are turning to them for assistance, especially when it comes to content creation. But their use comes with caveats.

Hart acknowledges that she has leveraged ChatGPT to increase her content output for the The BoxMaker’s blog and website. “But you still have to have a person behind it, editing and adding to anything that you use,” she says. (See sidebar on p. 54.)

Finkelstein agrees, adding, “Our position is that AI tools alone shouldn’t be used to create your online content. They can be used to accelerate the process; they can help content creators, copywriters, and PPC specialists generate ideas to overcome writer’s block. But there are disadvantages with just creating that content and using it en masse.”

For instance, AI sometimes can deliver nonsensical or inaccurate results. Or, Finkelstein notes, “Say I create a blog about ‘corrugated for nutraceuticals’ using ChatGPT. It’s likely that someone else is doing the same thing somewhere else in the country. And the AI tools you’re both using are going to create very similar content.”

That AI-created content also is being identified now by search engines. And

BOXSCORE September/October 2023 52
“Leads still need to be managed , evaluated, qualified. There’s still work to do to make sure those leads represent the right opportunity and then schedule the next steps.”
—Todd Zielinski, managing director and CEO, Athena SWC

Google, for one, is penalizing it in its results, placing it below other content. Because of that, Finkelstein says, “original content is going to perform better.”

Digital Dedication

We have only scratched the surface of the digital marketing tools currently available. And digital innovations will continue to transform the way manufacturers communicate and connect with customers and prospective employees. But they won’t be transformative overnight.

“There’s an expectation that the leads are going to come pouring in as soon as you turn on SEO or social media or some other form of digital marketing, and all you have to do is run with them and close them. That’s not the reality,” says Athena SWC Managing Director and CEO Todd Zielinski. “Leads still need to be managed , evaluated, qualified. There’s still work to do to make sure those leads represent the right opportunity and then schedule the next steps.

“If you’re making an investment in this kind of best-practice infrastructure to develop the front end of your sales funnel, you have to give it time. Compare it to hiring a new salesperson. How much time would it take that person to get up and running and productive? That could be a 12- to 24-month process. So give your digital marketing the time and effort that it needs.”

“If you’re not sure whether a particular digital approach will work for you, just give it a shot,” Hart advises. “Start small. If it works, then you can scale up. Focus on what you can do with the tools that you have.”

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

FUTURE CHAT

To get a taste of the current capabilities of AI for content creation, we signed in at openai.com and asked ChatGPT to compose a 200-word blog post about the sustainability of corrugated packaging. (Like a human writer, it ignored the assigned word count, coming in at over 300 words.) Here is its unedited response:

Title: The Sustainable Advantages of Corrugated Packaging

Introduction: In a world increasingly conscious of environmental impact, sustainable packaging solutions have become a key focus for businesses and consumers alike. One standout option that offers numerous eco-friendly advantages is corrugated packaging. Made from recycled materials and easily recyclable itself, corrugated packaging proves to be a sustainable choice for businesses and a preferred option for eco-conscious consumers.

1. Renewable and Recyclable:

Corrugated packaging is predominantly manufactured using renewable resources such as wood fibers from sustainably managed forests. Additionally, the recycling process for corrugated packaging is straightforward, making it easy to recover and reuse. Recycled corrugated boxes can be transformed into new packaging materials, reducing the demand for virgin materials and minimizing waste.

2. Lightweight and Space-Efficient:

Corrugated packaging is lightweight yet durable, allowing for efficient transportation and reduced energy consumption during shipping. Its unique structure of fluted layers provides strength and cushioning while minimizing material usage. Furthermore, the ability to customize sizes and shapes of corrugated packaging optimizes space utilization, reducing the need for excess packaging material.

3. Reduced Carbon Footprint:

Corrugated packaging requires less energy and generates fewer greenhouse gas emissions during production compared to alternative packaging materials. Its recyclability and lightweight nature further contribute to lower transportation costs, reducing fuel consumption and carbon emissions throughout the supply chain.

4. Versatile and Biodegradable:

Corrugated packaging is highly versatile, accommodating various product types and sizes, making it suitable for diverse industries. When properly disposed of, corrugated packaging is biodegradable, breaking down naturally without leaving harmful residues or microplastics in the environment.

Conclusion: Corrugated packaging emerges as a sustainable solution, aligning with the growing demand for environmentally friendly practices. Its renewable composition, recyclability, lightweight nature, and versatility make it an optimal choice for businesses committed to reducing their environmental impact. By adopting corrugated packaging, companies can contribute to a circular economy, conserving resources, reducing waste, and promoting a greener future. Likewise, eco-conscious consumers can confidently choose products packaged in corrugated materials, knowing they are making a sustainable choice.

Source: chat.openai.com

BOXSCORE September/October 2023 54

EDUCATION FOR YOUR COMPANY AND TEAMS

As AICC enters its 50th anniversary year, we can look back and be proud of the role education has taken in providing you and your employees with the best in education.

Looking ahead to 2024, AICC remains dedicated to expanding its educational offerings and staying at the forefront of industry advancements. In response to emerging trends and challenges, AICC continues to develop new programs, services, workshops, and events that will equip you and your team of professionals with the tools they need to thrive. Whether it is exploring sustainable packaging solutions, leveraging cutting-edge technologies, or addressing evolving market demands, AICC is committed to empowering its members with the knowledge and skills necessary for continued success in this dynamic industry.

Member Network:

NEW Online Networking Events

In response to member requests for enhanced peer connectivity, AICC will

be organizing specific online networking opportunities. These virtual networking sessions will provide a platform for packaging professionals to connect with their peers across the country and share insights and experiences related to their specific challenges.

The first networking event will focus on safety/EHS, with the second one specific to human resources. These online programs will allow participants to discuss best practices, exchange ideas, and learn from one another.

Member Network: Safety/EHS

Date: October 11, 2023

Member Network: Human Resources Date: November 8, 2023

These networks are member-driven. If you have a specific topic you would like discussed in a member network, contact Taryn Pyle, AICC director of education and talent development, at tpyle@AICCbox.org or 703-535-1391.

Learn more at www.AICCbox.org/calendar

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With over 100 courses available—many translated into Spanish—this comprehensive resource serves as a valuable tool for industry education and training. The online courses cover timeless topics. Courses begin at the basics such as How to Read a Tape Measure and Safety Basics and offer advanced topics such as Benchmarking a Plant and Decision Trees There are courses for every department. New and popular courses include:

• Benchmark a Plant

• Specification Management Foundations

• Holding People Accountable

• Leading Your Peers

• Reduce Paper Waste

• Speak With Data, Bring Solution to Your Problem

• Time Management for Supervisors

• Maintenance Department 5S

• Adhering to Corrugator Standards

• Rightweighting

BOXSCORE September/October 2023 56
Heading into its 50th year, AICC continues to deliver the most robust training and support for members and their employees
SPECIAL SECTION

In the past year, nearly 2,300 courses have been completed by 1,055 learners. In addition to structured courses, members can find a variety of resources in the Packaging University, including:

• Carton Styles: An interactive gallery of carton styles commonly used in the packaging industry. Created with the support of AICC member eProductivity.

• Machine Primer: Take a virtual plant tour, clicking on machinery to learn about capabilities.

• Cross Training: Build bench strength in your workforce by keeping people engaged and productive by continuous training and opportunity.

In January 2024, AICC will release Learning Tracks, which will outline courses and a learning path for each department. Moreover, the inclusion of a syllabus provides managers and human resources experts with a structured guide to lay out specific training plans based on the needs of their respective departments. This tailored approach ensures that employees receive targeted and relevant training, promoting efficiency and effectiveness in their roles while addressing specific departmental requirements. Tracks include:

• Customer Service

• Sales

• Design

• Production

• Warehousing and Logistics

• Human Resources

• Quality

• Finance

• Leadership

For more information and to take courses, visit www.AICCbox.org/packu

Carbon Neutrality Program

With sustainability becoming an increasingly important attribute to packaging buyers, this course aims to educate your team of professionals on implementing carbon-neutral practices within your

own company operations. Participants learn about measuring carbon footprints, implementing renewable energy sources, optimizing transportation logistics, and adopting sustainable materials. By equipping you and your employees with the knowledge and strategies to reduce your carbon emissions, AICC’s Carbon Neutrality Program ensures you can meet the evolving expectations of environmentally conscious customers.

Learn more at www.AICCbox.org/carbon.

AICC NOW

AICC NOW offers a centralized platform for accessing a wide range of resources. It includes over 100 webinars, new interviews every month, virtual plant tours, a searchable BoxScore, Scoring Boxes, and AICC Experts. Although some resources have fees, there are also many free courses available.

By becoming an All Access Pass participant, your team will have access to all the webinars and One Point Lessons on AICC NOW in addition to all of the resources listed above that are included in AICC membership. AICC’s webinars cover current topics critical to the industry today. Some popular webinar recordings currently available include:

• Understanding the Relationship Between Cost and Price

• Level Up Your Hiring in 2023 – The Top 8 Ways to Hire Hourly Workers

• Recruiting and Retaining Shop Floor Operators

• Recession Proof Your Business

• Understanding Your Capabilities

See it all at NOW.AICCbox.org

Advisory Groups

AICC offers learning groups to bring people in similar positions together to learn and network.

CEO ADVISORY GROUPS

The CEO Advisory Groups were formed as a resource for box manufacturing plant CEOs. Members of each group

ONLINE COURSES VS. WEBINARS

Packaging University, with free online courses for all members, focuses on providing basic job training to help employees quickly become proficient in their roles. AICC webinars, with recordings available on AICC NOW, delve into industry trends and challenges.

This coming year, all live webinars will be free, with recordings available through the All Access Pass (www.AICCbox.org/Pass) or for individual purchase.

focus on real-world experiences, best practices, and pitfalls to avoid. You are held accountable and helped by your peers. Connecting with other executives gives you the opportunity to see your company from an outside perspective and discuss changes that can positively impact your bottom line.

EMERGING LEADER PROGRAM

The AICC Emerging Leader (EL) program is an exclusive series of training, networking, and leadership opportunities for ambitious young professionals in the paper and packaging industry. With the opportunities and information available in the EL program, young professionals who are ready to commit to their professional development will have the chance to grow into proven, reliable future leaders in their company and industry.

LEADERSHIP ADVISORY GROUP

As a leader in an AICC member company, you face challenges that many others do not comprehend—the pressure to succeed, to make the right decisions, and to create a positive future for yourself and the company. When involved in AICC programs, many of you have the opportunity to confide in others, share ideas, and receive honest feedback. The Leadership Advisory Group will be even

BOXSCORE www.AICCbox.org 57
Visit www.AICCbox.org/calendar to see upcoming webinars and register for free.

more intentional in meeting its members’ specific needs for connection, education, and discreet communication.

PRODUCTION LEADERSHIP ADVISORY GROUP

The Production Leadership Advisory Group is designed to include operations and production managers from AICC member companies. This group is open to all member companies regardless of location or market niche.

CONTINUOUS IMPROVEMENT LEADERSHIP GROUP

The Continuous Improvement Leadership Group is designed to serve managers of all departments. The group is open to all member companies regardless of location or market niche. You will be part of a group marked by mutual trust, sharing of best practices, and respectful disagreement for the advancement of each member company’s success, productivity, and group members’ career development.

SALES MANAGEMENT COHORT

Sales management was tough enough pre-pandemic, but add in the pandemic and supply chain challenges, and it has never been harder to be a sales manager than in today’s market. So, AICC has teamed with renowned sales consultant and coach Mark Roberts and bestselling author and sales training facilitator Ed Wallace to deliver AICC’s first Sales Management Cohort professional development program.

SALES ADVISORY GROUP

AICC teamed with Roberts and Wallace to deliver AICC’s first Sales Advisory Group professional development program. The Sales Advisory Group program is data-driven, using sales skills and relationship diagnostics that help you assess your selling strengths and skill gaps that could be costing your commissions.

COMING SOON: WOMEN’S LEADERSHIP ADVISORY GROUP

AICC is bringing together a group specifically for women in manufacturing. We know that, for women, career paths are often different. This group will give you a platform to find better ways of communicating, marketing yourself, and sharing your experiences. You will showcase your abilities and add to the growth of this industry as employees, advocates, and leaders within your company.

To learn more about these groups, visit www.AICCbox.org/advisory or contact Taryn Pyle, AICC director of education and talent development, at tpyle@AICCbox. org or 703-535-1391.

XPERIENCE CONFERENCE Printing & Die Cutting Xperience

February 13–15 2024, Rosemont, Illinois

This program, designed with your production team in mind, aims to enhance your understanding and mastery of printing and die cutting processes. With the new technologies, personnel, and processes that have come into play over the last few years, this Xperience focuses on reengaging your production manager, supervisors, and operators to drive improvements aligned with your box plant’s needs.

Key areas addressed in this Xperience include innovative techniques for corrugated board handling, the intricacies of ink chambers, anilox rolls, and doctor blades, along with insights into die preparation, die boards, and die cutting processes. By synergizing these aspects, the Xperience aims to pave the way for greater success in your printing and cutting operations.

UPCOMING WEBINARS Workforce Sticky Situations –Prevention Before Investigation

Tuesday, September 26

This webinar will touch on two areas that are complex issues for human resource professionals:

ALL ACCESS PASS

AICC has over 100 webinar recordings currently available on AICC NOW. These and all the webinar recordings for the coming year are available for $1,895 with the All Access Pass, which covers all employees at participating companies.

By providing 24/7 access to these webinars, you ensure that your team can benefit from the valuable information and knowledge even if they are unable to attend the live event. This flexibility empowers your team to learn and grow at their own pace, setting them up for success in their profession.

Learn more at www.AICCbox.org/ Pass

• Abuse of the Family and Medical Leave Act, Americans with Disabilities Act, and workers’ compensation

• Managing discrimination investigations

Learn best practices to protect your organization from abuse and discrimination investigations.

Get Tax Credits for Sustainability Research and Development

Tuesday, October 24

When it comes to taxation, planning is vital to manage the income tax burden for your company and its owners. Learn how the research and development tax credit can help you lower your tax bill and keep cash in your pocket.

Ransomware: Security Solutions for Your Firm

Wednesday, November 15

Ransomware attacks occur every day and continue to be a major threat to businesses of all sizes and industries. Learn about what really happens behind the curtain of a ransomware attack, how to improve detection, and tips for developing a response plan.

Learn more and register for these free webinars at www.AICCbox.org/calendar

BOXSCORE September/October 2023 58
SPECIAL SECTION

SPECIAL SECTION

ON THE UP

Sales compensation rises in 2023, says AICC survey

AICC has released its 13th Independent Corrugated Converter Sales Compensation Report. Based on a survey conducted this spring, it is the most comprehensive look at key sales compensation salaries and benefits being paid by independent corrugator plants and sheet plants in the United States.

This report received data from 75 independent corrugators and sheet plants. These companies employ nearly 8,300 full-time employees spread across the United States. In aggregate, these plants sold approximately $2.1 billion of corrugated products in 2022.

“AICC’s biennial sales compensation survey is the only one of its kind in our industry,” remarks AICC President Michael D’Angelo. “We know this survey will be helpful to AICC members in reviewing their sales compensation policies and procedures. It is a critical way for AICC member companies to ensure best practices and leadership.”

As of January 1, the mean base salary for sheet plant salespersons in the U.S. was $80,365, which is 4.8% higher than reported in 2021. This represents an increase slightly smaller than that observed between 2019 and 2021 (5.6%). Total compensation, which adds actual commission

or bonus paid in 2022 with the January 1 base salary, averaged $186,872, which is a substantial 32% higher than that reported in 2021 ($141,517).

The mean base salesperson salary at responding U.S. corrugator plants as of January 1 was $89,443, which is a 2.6% increase over the average reported in 2021 ($87,101). Total compensation averaged $241,728, which is an increase of 13.2% over the average reported in 2021 ($213,475). Both figures are much higher than reported in previous years.

The report offers information on sales objectives, base salaries, bonus basis, customer relationship management usage, social media activity, and more, both as a national and regional view to allow independent sheet plants and corrugator plants to benchmark their companies.

The report also reveals the responses to COVID-19-related questions about vaccination requirements, travel restrictions, and more. While these responses represent a snapshot in time, they still provide valuable insight into the sentiments of the industry.

All responses to this survey were collected and compiled by Association Research Inc. in Gaithersburg, Maryland, and have been held in strictest confidence.

None of the data received has been seen by any AICC member or staff member. All survey participants received a complimentary copy of the report. The full report is available for electronic download for $225 for AICC members and $415 for nonmembers.

For questions about the 13th Independent Corrugated Converter Sales Compensation Report, contact AICC Membership Services Manager Patrick Moore at pmoore@AICCbox.org or 703-836-2422.

To order the full report, scan the QR code below, visit www.AICCbox.org/store, or contact Moore.

Scan the QR code to order your copy of the 13th Independent Corrugated Converter Sales Compensation Report

BOXSCORE September/October 2023 60
BOXSCORE www.AICCbox.org 61
$102,138
$0 $ 50,00 0 $100,000 $150,000 $200,000 $250,000 $300,000 $350,0 00 $400,0 00
$241,728 $318,184 $226,307 $187,255
$279,213 $171,756
n
Annua l Sa les Ind u st ry Exp erien c e Source: 202 3 AI CC Sale s Compe nsation Survey Data Average Tot al Co m p en sat io n – J anu ar y 1 , 2 0 2 3 U . S. Co r rugat or Pla nt s
All respondents 20 or more years 10 – 19 years 5 – 9 years Less tha
5 years More than $75 mill ion $75 mill ion or less

Less than $25 mi llion

$25 mill ion or mor e

Less tha n 5 years

5 – 9 years

10 – 19 years

20 or more years

All respondents

BOXSCORE September/October 2023 62 Average To t al Co m pen sat io n – J an u ar y 1 , 2 0 2 3 U .S . S heet Pl ant s $186,872 $220,852 $209,791 $140,154 $108,952 $209,101 $137,750 $0 $50 ,0 00 $10 0,000 $150,0 00 $ 20 0,000 $250,000 $ 300 ,0 00
Annua l Sa les
Source : 202 3 AI CC Sale s Compe nsation Survey Data
Indu s t ry Exp erien c e
SPECIAL SECTION
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The Associate Advantage

Making Meetings Count

For my first column for BoxScore, I thought I would lean on personal experience with AICC and its various meetings and conferences. I am often asked what the benefit is of being an AICC member, particularly an Associate member. I think it’s a fair question, given the commitment in time and cost that can go into attending national meetings and summits, along with the sponsorships we provide to help defray the costs of some of the meeting activities.

The benefits are immeasurable. Certainly in this post-COVID-19 world, I believe face-to-face contact has become even more important than it ever was. The ability to spend precious one-on-one time with customers, co-vendors, Emerging Leaders, and others is priceless. To understand the dynamics of the industry at that snapshot in time—both the good and the bad—is business intelligence you cannot gain from any other source. Unlike trade shows, which of course have their place in the hierarchy of personal contacts, AICC meetings provide a much more relaxed environment to meet and get to know customers, and the opportunity to meet their families brings with it a much more personalized environment.

The network of co-suppliers is a valued resource. There is a technique to networking that most understand, and some don’t. To me, the essence of networking is that it’s a two-way street: If you are just the recipient of information and not sometimes the provider, the network will come to a grinding halt. With the number and quality of co-suppliers involved in AICC, the visibility to new projects, machinery upgrades, and greenfield installations is second to none.

What does it take to be a successful Associate member or, for that matter, general member? This is the million-dollar

question that should be asked. I think the answer is obvious and straightforward: You have to be prepared to get involved. The AICC slogan “When you invest and engage, AICC delivers success” is so true. Success does not come from just attending one national meeting, playing a round of golf, and expecting business to flow through the door. There is a learning curve to go through as a new member. Who do I target? How interested is the business owner-operator in discussing my product, or is the association made at these meetings going to give me a path to the customer at a later date? I can also tell you from personal experience that if there has ever been a problem with a product or service provided, it’s much easier to discuss that in a casual setting such as a national meeting rather than in your client’s boardroom.

One of the more difficult things when attending these conferences is to remember this is work, not a vacation. It isn’t work in the traditional sense; however, it does afford you the opportunity to meet existing and potential clients from dawn to dusk—and beyond. But don’t oversaturate that potential client; make your point and, if possible, arrange a meeting in the real world after the conference. Most general members offer an open-door policy to fellow AICC members; the “keep it in the family” ethos does really work and can be of great benefit.

The strength of AICC is built upon its members and their active participation in the organization. This, in turn, creates opportunities for innovation to further enhance and support the industry and ultimately benefits all of us associated with this vital and sustainable economic endeavor.

BOXSCORE September/October 2023 64
JEFF DIETZ KOLBUS AMERICA INC. DIRECTOR JEFFREY.DIETZ@KOLBUS.COM JOHN BURGESS PAMARCO SECRETARY JOHN.BURGESS@PAMARCO.COM TIM CONNELL A.G. STACKER INC. VICE CHAIRMAN TCONNELL@AGSTACKER.COM JOE MORELLI HUSTON PATTERSON PRINTERS & LEWISBURG PRINTING CO. IMMEDIATE PAST CHAIRMAN JMORELLI@HUSTONPATTERSON.COM GREG JONES SUN AUTOMATION GROUP CHAIRMAN GREG.JONES@SUNAUTOMATION.COM
PODCASTS Breaking Breaking Down Boxes
Update Update Update AICC Compelling conversations with successful entrepreneurs released on the first Monday of the month. A weekly update on benefits and upcoming events for AICC members.
Down Boxes

Greedflation, Wageflation, and the Great Resignation

They say economics is the “dismal science,” probably based upon a prediction by Thomas Malthus, a 19th-century economist who once said the world’s population would grow so large it would outstrip the resources required to sustain it. (So far, he has been wrong, by the way.) Personally, I’m not sure economics even rises to the level of a science, but it does attempt to measure how people value the various resources available—and unavailable—to them and attempts to predict their behavior in the various marketplaces for goods and services.

Probably the three greatest economic thinkers of all time had radically different views on the fundamentals of economic behavior in a “capitalist” economy. In the 18th century, Adam Smith, who is considered to be the father of capitalism, was the preeminent proponent for the operation of a free market. His core belief was people will always do what they believe is in their best interests and should therefore be allowed to decide what the economy produces simply by voting with their money—the so-called “invisible hand.” He argued that government interference, the so-called

“command economy,” was unnecessary and might even be detrimental. John Maynard Keynes, who is considered to be the father of modern macroeconomics, believed that governments should solve problems in the short run rather than wait for market forces to fix things over time. Milton Friedman introduced the concept of monetarism in the late 1950s and made the case that controlling the money supply was the key to economic stability. He also fervently believed that voluntary interactions between consumers and businesses would produce far better results than anything the government

Strength in Numbers BOXSCORE September/October 2023 66
Free Online Education For more information about becoming an AICC Education Investor, contact Mike D’Angelo, President, 703.535.1386 or mdangelo@aiccbox.org. 100+ Courses available, including: Created with the support of AICC Education Investor: Created with the support of AICC Education Investor: RIGHTWEIGHTING See them all at AICCbox.org/PackU This course will dive into the origin of right-weighting, its application today, the technology, and where the future of rightweighting is headed. ROTARY DIE CUTTING OPERATION This course covers the fundamentals of rotary die cutting operations, major sections of the machine, and housekeeping and maintenance procedures for your machine.

Strength in Numbers

could come up with, and lower taxes and less government regulation would be the key to having a successful economy.

Three brilliant men, with three very different views on the factors that lead to economic growth and prosperity. I have studied economics and actually have a degree in it, and I can tell you that if you put 10 economists in a room and ask them to opine on something, you will likely get 10 different opinions. However, some of the core principles of all great economic thinkers have proved true over time. At the end of the day, businesspeople need to have a more pragmatic approach as to how to proceed.

The past two years were characterized by a fairly new concept that has been labeled “greedflation,” most notably by Robert Reich, the former U.S. Secretary of Labor. Under this theory, rising prices are not simply the product of the normal supply and demand curves but rather are the product of excess corporate power. I have seen numerous charts showing that some of the largest companies raised prices significantly during this time because they could, and the increases far surpassed the increase in their underlying costs. One could make the case that the papermaking “oligopoly” increased paper prices so many times in 2021 and 2022 simply because they could. However, in 2023, the basic laws of supply and demand have kicked in, and the oversupply of paper has been driving prices down.

Similarly, the undersupply of labor in 2021 and 2022, which was greatly influenced by the COVID-19 pandemic and its related government subsidies, drove wages up significantly. This undersupply of workers caused salaries and wages to increase dramatically over the past few years, and all of these additional funds gave consumers more money to spend, which increased the demand for goods and services and led to higher prices.

Economists have dubbed this as “wageflation,” and although there are no absolutes in terms of the causes for the inflation of the past two years, this has clearly been a factor.

In my opinion, the basic laws of supply and demand still govern most everything, and the demand for labor has clearly outstripped the supply, which is why wages have risen. The other significant contributing factor to the dramatic increase in wages has been the large numbers of potential employees who have voluntarily removed themselves from the workforce in the wake of the COVID-19 pandemic. There have been many factors cited as causing this phenomenon, which has been called “the great resignation” by many economists. Among them are inflexible remote-work policies, job stagnation, long-lasting job dissatisfaction, and the high cost of benefits. Enhanced unemployment benefits and other government assistance programs during the pandemic are also undoubtedly strong factors in this. Most converters struggled to fill open job positions during 2021 and 2022, particularly in the plant labor area.

Well, now in 2023, all of this seems to be changing. The rate at which workers voluntarily quit their jobs through May has fallen dramatically and is only modestly above where it was before the pandemic disrupted the U.S. labor market. In June, the overall inflation rate has decreased to 3% over the past year. The gross domestic product seems to be growing in 2023—growth in the first quarter was just revised up to 2%, and most economists now expect the economy to have a soft landing this year, which means a recession is unlikely. However, the packaging industry has certainly been in recession for the past six months, and no one knows what the future will bring. There is clearly too much paper being produced domestically and in our export markets, and in

the absence of a significant increase in demand or the closure of mills, the price of paper is likely to continue to go down. When paper prices go down, packaging prices go down, and so far, 2023 has been an exercise in the preservation of margins. Based upon what I have seen in my travels, this has been a success so far for most independent producers. Volumes are down, but margins remain high.

My advice to converters is that irrespective of what the overall economy is doing, you are in a recession and need to act accordingly. Economics is a dismal and inaccurate social science that still does not have any cohesive theory that allows it to predict economic performance with any degree of accuracy. Smith, Keynes, and Friedman have compelling theories that are interesting but not always actionable. I tell people that 2009 was the best year ever for converters because that year they cut expenses, reduced overhead, and reengineered their companies to be the lean, mean fighting machines that propelled them to high levels of profitability for the next 10 years. You need to execute the same playbook now. Reduce head counts, eliminate shifts, cut down on warehouse leases, and trim out all of the fat you can find.

Sure, 2023 is going to be a down year, but I wouldn’t worry about it too much. Eventually, the paper companies will get supply and demand back to equilibrium because it is in their own economic interests to do so, and it looks like the economy will continue to grow. The future is bright, but this is the year you need to take a deep breath and set yourselves up for future success.

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

BOXSCORE September/October 2023 68
STILL the Industry Experts 580 Sylvan Avenue, Suite M-A Englewood Cli s, NJ 07632 (201) 731-3025 • Fax: (201) 731-3026 info@klinghernadler.com 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.

Help to Keep Our Foundation Strong

Since this is the “back-to-school” edition of BoxScore, it’s an appropriate time to review how AICC education programming works for membership.

All AICC education content available in the AICC Packaging University is a member benefit included with dues. Access is available for any team member at an AICC company in good standing. More than 100 courses are available online in English and Spanish, ranging from how to read a tape measure to the fundamentals of flexo. This content has been put together and provided by education professionals in support of AICC staff and AICC education donors.

AICC webinars are available through the All Access Pass and through the AICC NOW website. All AICC webinars are educational in nature and delve into timely and relevant topics.

In July, AICC launched a new “educational cohort” that is a combination

of online and in-person learning that addresses understanding carbon. It is a course designed to help you understand your plant’s and your box’s carbon footprint and to give you ways to make that a competitive advantage in the marketplace. AICC will never stop growing its educational offerings.

The Foundation for Packaging Education, created three years ago, was established to ensure AICC will always have funds available to create and renew education content for its members. Consumption of AICC education programming is approaching 16,000 completed courses since 2017, so there is an obvious and constant demand for added content.

If you are not a foundation donor, please consider joining the 35 companies and 10 individuals that have made such a commitment. Your pledge will bring a return to your operations as the foundation’s

commitment is to your employees and their continuing education and improvement. The Foundation for Packaging Education is a 501(c)(3) education charity administered by AICC. Your pledge is tax-deductible and will ensure the future of this industry’s independents. Yours is a generational business—pay it forward!

BOXSCORE September/October 2023 70 Foundation for Packaging Education
Scan the QR code to donate to the Foundation for Packaging Education today!

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International Corrugated Packaging Foundation

Registration Still Open for ICPF’s Holiday Weekend in New York

Please join us for the International Corrugated Packaging Foundation’s (ICPF’s) Holiday Weekend in New York City event, December 8–10.

Support ICPF’s educational programs and initiatives while enjoying New York’s holiday season. The event will begin with a Friday evening reception, sponsored by Pratt Industries. ICPF guests will then attend a Saturday matinee of A Beautiful Noise: The Neil Diamond Musical , sponsored by BW Papersystems. Below is an excerpt about the musical:

“The story of the legendary Neil Diamond comes to life onstage in an uplifting new musical featuring all his hit songs, including ‘Sweet Caroline,’ ‘America,’ and ‘Cracklin’ Rosie.’ From those exhilarating early days in New York to the sold-out spectacles that defined his career, A Beautiful Noise explores the life of a rock icon through the music that made him ‘a national treasure.’”

On Saturday evening, participants will attend a reception and dinner sponsored by Bobst North America at Keens Steakhouse. Keens Steakhouse owns the largest collection of churchwarden pipes in the world. The tradition of checking one’s pipe at the inn had its origins in 17th-century England, where travelers kept their clay pipes at their favorite inn. Keens’ pipe tradition began in the early 20th century. The hard clay churchwarden pipes were brought from the Netherlands, and as many as 50,000 were

ordered every three years. A pipe warden registered and stored the pipes, while pipe boys returned the pipes from storage to the patrons. The membership roster of the pipe club contained over 90,000 names, including those of Teddy Roosevelt, Babe Ruth, Will Rogers, Billy Rose, Grace Moore, Albert Einstein, George M. Cohan, and J.P. Morgan.

Additional weekend sponsors include Green Bay Packaging and Hood Container Corp.

ICPF is also excited to announce a new hotel partnership for the event, Refinery Hotel, two blocks from Bryant Park in Midtown Manhattan’s Garment District. This luxury hotel’s stylish loft rooms, acclaimed Parker & Quinn restaurant, and trendsetting Refinery Rooftop bar create a fashionable refuge for locals and cultured visitors in New York.

Drawing inspiration from its history as a hat factory, each of the 197 rooms at Refinery Hotel features industrial details

such as 12-foot ceilings, large windows, and distressed hardwood floors. ICPF has reserved studio king rooms ($649) and suite Atelier Executive rooms ($799) for the event. Hotel reservations are the responsibility of participants.

Space is limited to a first-come, first served basis. Scan the QR code below for additional information and to register.

BOXSCORE September/October 2023 72
INTERNATIONAL
PACKAGING
CORRUGATED
FOUNDATION
Scan the QR code to register for ICPF’s Holiday Weekend in New York.
YOUR ONE-STOP SHOP FOR AICC RESOURCES NOW.AICCbox.org Webinars • Interviews • White Papers • Podcasts • Industry Stats • AICC Experts • Virtual Plant Tours 100+ FREE ONLINE COURSES AICCbox.org/PackU Customer Service • Finance • HR • Leadership • Maintenance • Production • Safety • Sales in English & Spanish

International Corrugated Packaging Foundation

ICPF Announces Nominations to Circle of Distinguished Leaders

The International Corrugated Packaging Foundation (ICPF), co-sponsored by AICC and the Fibre Box Association (FBA), nominated Dennis Colley and Pete Watson for induction into ICPF’s Circle of Distinguished Leaders.

The program honors exceptional individuals—leaders whose vision, creativity, and energy have moved the corrugated industry forward.

Colley spent 35 years at International Paper, where he held management positions in mill operations, converting operations, global containerboard, and supply chain. He just recently retired from FBA, where he led the association as president and CEO for the past 12 years. He had also managed the International Corrugated Case Association as president and CEO since 2016.

Watson retired in 2022 after 22 years with Greif Inc. He served as executive chairman, president, and CEO since 2015 and held multiple other leadership roles during his time with the company. Prior to his time with Greif, Watson served as vice

Scan the QR code to learn more about the International Corrugated Packaging Foundation’s Circle of Distinguished Leaders.

president and general manager at Concept Packaging Group and general manager for Union Camp Corp. He also served on the FBA board of directors and was chairman of the association from 2015 to 2016.

If you would like to join in recognizing Colley or Watson, firms and individuals can make donations in their names to support their recognition at the 2024 FBA Annual Meeting at the Ocean Reef Club in Key Largo, Florida, May 6–8. Firms and individuals making donations will be recognized during the induction ceremony for Colley and Watson and in a subsequent news release to the packaging trade media.

Contact ICPF President Caitlin Salaverria at csalaverria@icpfbox.org

if you would like to join in recognizing Colley or Watson by making a tax-deductible “nomination donation” to ICPF. The foundation will then forward an invoice with mailing and automated clearinghouse instructions for your accounting department.

Scan the QR code at left for more information on ICPF’s Circle of Distinguished Leaders and to see who has been honored in the past.

BOXSCORE September/October 2023 74
INTERNATIONAL
CORRUGATED PACKAGING FOUNDATION

D A T A - D R I V E N E N E R G Y

M A N A G E M E N T S O L U T I O N S

O u r t e a m o f e x p e r t s w i l l a s s e s s y o u r f a c i l i t i e s ' e n e r g y n e e d s , b u i l d a c u s t o m , c l i e n t - s p e c i f i c e l e c t r i c i t y o r n a t u r a l g a s p r o c u r e m e n t s t r a t e g y , a n d t a k e t h e b u r d e n o f e n e r g y m a n a g e m e n t o f f y o u r p l a t e .

O u r s t r o n g r e l a t i o n s h i p s w i t h o u r c a r e f u l l y v e t t e d p o o l o f s u p p l i e r s g i v e s u s t h e p o w e r t o d e l i v e r d a t ad r i v e n s o l u t i o n s f o r t r u e a p p l e s - t oa p p l e s p r i c e c o m p a r i s o n s .

W e p a r t n e r w i t h i n d u s t r y e x p e r t s t o p r o v i d e y o u r o r g a n i z a t i o n w i t h c o m p r e h e n s i v e e n e r g y s o l u t i o n s a n d s e r v i c e s t h a t g e n e r a t e v a l u e w h i l e r e d u c i n g e n e r g y d e m a n d a n d c o n s u m p t i o n .

W e a n a l y z e g a s a c c o u n t s a n d p r o v i d e a c o m p a r i s o n o f e a c h a c c o u n t t o c o m p e t i t i v e m a r k e t p r i c e s a n d t h e u t i l i t y s u p p l y t a r i f f r a t e .

C o n t a c t y o u r d e d i c a t e d e n e r g y c o n s u l t a n t f o r m o r e i n f o r m a t i o n

AD APPI
E F F I C I E N C Y & S U S T A I N A B I L I T Y S O L U T I O N S E L E C T R I C I T Y P R O C U R E M E N T N A T U R A L G A S P R O C U R E M E N T
A P P I E N E R G Y C O N S U L T A N T S C R A F T S O L U T I O N S T H A T F I T E A C H C L I E N T ’ S N E E D S
Noel Temple
d: 667.330.1159 Endorsed By Since 2003
e: ntemple@appienergy com

The Final Score

The Now and the Future Are Bright!

Happy New Year!

AICC began a new fiscal year, 2024, on July 1. As you might expect, there is always a flurry of activity at the close of the fiscal year—invoices, credits, reconciliations, all necessary to be able to “button up” the books and provide the AICC board of directors with the year-end reporting financially and for the destination model that drives the board’s vision through AICC activities. We will provide a full report on the just-closed year to BoxScore readers in the November/ December issue.

Despite the year-end needs, I much prefer getting out of the office. I took a couple of trips that have made me extremely optimistic about the paper-based packaging industry, in general, and AICC members, in particular.

The first was an early May visit to the Acme Corrugated Box Co. Inc. in Hatboro, Pennsylvania. The occasion was an open-house celebration of the longtime AICC member’s most recent addition, both to the footprint of the plant and to the equipment and solutions the company offers to serve its customers. In business for more than 100 years, the Cohen family opened their doors, and plenty of customers showed up. That was great to see. But it was the number of suppliers, friends of Acme, former employees, and well-wishers who were on hand that impressed me and really contributed to the spirit of the event. A true tribute to the Cohens, the relationships that they’ve built and the camaraderie of this great industry.

And the technology! New equipment in the form of a 110"-wide Fosber double-wall corrugator, a K1-X Jumbo from Global Boxmachine, and a WIP High Rack Storage System from WSA USA all combine to increase an already impressive capacity with Acme’s modern stable of machines and professional team.

Acme’s open house was a reminder of the amount of box plant expansions, new plant startups, and a still sizable number of equipment installations AICC members have going on at this time. It really is exciting!

Then in early June, I had the great honor to speak at the AICC Emerging Leaders Chairman’s Field Trip, hosted by incoming AICC Chair Matt Davis and Packaging Express in Colorado Springs, Colorado. With all the talk of millennial and Generation Z pros and cons, participating in this 40-person event has me confident that our box plants, our industry, and this Association are in really capable hands for the future. I spoke with them about “leading from any level,” and I can say this is a group eager to learn, with much to contribute, and eager to lead.

A diverse group by responsibility, family, geography, and experience, each one was able to teach me something. These young people offer incredible perspectives. They are knowledgeable and confident and are true assets to their businesses. If you have young people in your organization, please give them an opportunity to join this group.

I am extremely proud that AICC offers the Emerging Leaders program!

BOXSCORE September/October 2023 76

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