Jan/ Feb 2016 AICC BoxScore

A PUBLICATION OF AICC—THE INDEPENDENT PACKAGING ASSOCIATION

January/February 2016 Volume 20, No. 1

FUTURE DRIVEN HOW SEASONAL PATTERNS AND CONSUMER TRENDS CAN EMPOWER YOUR PACKAGING

ALSO INSIDE A Comparison of Folding Carton Substrates Tips for Productive, Creative Meetings Defining Value to Your Customers

TABLE OF CONTENTS

COLUMNS

3

CHAIRMAN’S MESSAGE

4

SCORING BOXES

8

LEGISLATIVE REPORT

13

ASK RALPH

16

THE HIDDEN FACTORY

18

SELLING TODAY

20

TACKLING TECH

22

VIEW FROM THE FLOOR

23

LEAN LEARNINGS

24

LEADERSHIP

28

SUSTAINABILITY

54

ASSOCIATE ADVANTAGE

56

FINANCIAL CORNER

FEATURES

57

IN MEMORIAM

42

FUTURE-DRIVEN How seasonal patterns and consumer trends can empower your packaging

60

THE FINAL SCORE

48

A COMPARISON OF FOLDING CARTON SUBSTRATES AND APPROPRIATE APPLICATIONS The choice of substrate is influenced by key parameters including performance, protection, design, sustainability, and overall value

January/February 2016 • Volume 20, Issue 1

42

DEPARTMENTS

48

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. AICC is an international trade association representing a majority of independent North American manufacturers of packaging products and the suppliers to the industry. AICC members are represented by 538 boxmaking locations and 482 supplier locations, both segments of which are offered a full array of membership services, programs, and benefits. 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. ©2016 AICC. All rights reserved.

10

WELCOME NEW MEMBERS

31

GOOD FOR BUSINESS

40

POINT OF VIEW

58

ICPF UPDATE

Visit www.aiccboxscore.org for Member News and even more great columns. Scan the QR code to check them out!

BOXSCORE www.aiccbox.org

1

OFFICERS Chairman: Mark Williams, Richmond Corrugated Inc. Vice Chairman: Tony Schleich, American Packaging Corp.

Vice Chairman: Al Hoodwin, Michigan City Paper Box Vice Chairman: Joe Palmeri, Jamestown Container Companies Vice Chairman: Jay Carman, Stand Fast Packaging DIRECTORS-AT-LARGE Jim Akers, Akers Packaging Brad Albright, Touchpoint Packaging Matt Davis, Packaging Express Marco Ferrara, Cajas de Cartón Sultana John Forrey, Specialty Industries Inc. Jana Harris, Harris Packaging Corp./American Carton REGIONAL DIRECTORS Region 1: Don Simmons, Empire Container & Display Region 2: David Deline, Deline Box Company Region 3: Kevin Ausburn, SMC Packaging Group Region 4: Eric Elgin, Oklahoma Interpak Region 5: Gary Brewer, Package Crafters Inc. Region 6: Clay Shaw, Batavia Container Inc. Region 7: Finn MacDonald, Independent II Region 8: Joe Hodges, Mid-Atlantic Packaging Region 9: Larry Grossbard, President Container Group Region 10: Peter Hamilton, Rand-Whitney Corporation Region 11–12: John Franciosa, Coyle Packaging Group Region 14: Yair Caballero, CorrEmpaques Overseas: Kim Nelson, Royal Containers Ltd. President: A. Steven Young, AICC Headquarters Immediate Past Chairman: Greg Tucker, Bay Cities Container Corp.

Chairman, Past Chairmen’s Council: Mark Mathes, Vanguard Companies Secretary/General Counsel: David P. Goch, Webster, Chamberlain, and Bean Counsel Emeritus: Paul H. Vishny, Esq. ASSOCIATE MEMBER DIRECTORS Chairman: Keith Umlauf, Haire Group Vice Chairman: Jeff Pallini, Fosber America Secretary: Ed Gargiulo, Equipment Finance Corp Director: David Burgess, JB Machinery Immediate Past Chairman: Brian Kentopp, Bobst ADVISERS TO THE CHAIRMAN Tom Skinner, Phoenix Packaging Inc. Craig Hoyt, Buckeye Boxes PUBLICATION STAFF Publisher: A. Steven Young, syoung@aiccbox.org Editor: Taryn Pyle, tpyle@aiccbox.org EDITORIAL/DESIGN SERVICES The YGS Group • www.theYGSgroup.com Editorial Director: Annette Gray Managing Editor: Ashley Reid Copy Editor: Steve Kennedy Editorial Coordinator: Jordan Kell VP, Marketing Services: Jack Davidson Creative Director: Serena Spiezio Art Director: Jason Deller Account Manager: Brian Hershey SUBMIT EDITORIAL IDEAS, NEWS, AND LETTERS TO: BoxScore@theYGSgroup.com CONTRIBUTORS Director, Meetings: Cindy Guarino, cguarino@aiccbox.org Manager, Meetings: Laura Mihalick, lmihilaick@aiccbox.org Director, Latin America: Maria Frustaci, mfrustaci@aiccbox.org Director, Membership: Virginia Humphrey, vhumphrey@aiccbox.org Project Coordinator/Meeting Planner: Carolyn Patterson, cpatterson@aiccbox.org Administrative Assistant: Chelsea May, cmay@aiccbox.org President, ICPF: Richard M. Flaherty, rflaherty@icpfbox.org ADVERTISING Information: Taryn Pyle, tpyle@aiccbox.org Opportunities: Howard Neft, InTheKnow Inc. 847-899-7104 • thneft@aol.com Folding Carton and Rigid Box Advertising: Taryn Pyle 703-535-1391 • tpyle@aiccbox.org AICC PO Box 25708 • Alexandria, VA 22313 Phone 703-836-2422 • Toll-free 877-836-2422 • Fax 703-836-2795 www.aiccbox.or

Chairman’s Message

‘WHAT THE WORLD NEEDS’

I

n the days since my election as your chairman in Fort Worth, I have received many good wishes and thoughtful comments from you, the members. I thank you. Many of you were appreciative of my “persistent leadership” theme, saying that persistence is an elusive quality in our instant-gratification world, and that it’s time for us to return to this unique virtue because it’s so important to the success of any business. We’ve all had the experience of hiring someone who we thought had a promising future in our companies, only to have them walk out the door after the first week because they just didn’t have the patience to learn the job, our procedures, or our business. They lacked persistence.

One very special note, which arrived in my mailbox via the U.S. Postal Service, was from AICC’s first president, Jim Kowall. Jim, 89 years old and long retired, still has a youthful passion for what AICC represents and the value it brings to independent converters in our corrugated, folding carton, and rigid box industries. He wrote of his fond memories of the early days of AICC, saying that the association “represents the finest” companies in the industry.

But he also added a thought-provoking postscript, a quote of unknown origin—perhaps Jim himself wrote it. It was titled “What the World Needs,” and I offer it to you in this column for all who are looking for inspiration in the start of the new year.

The world today needs men who believe that this is a good world and who will work to make it a better one; men to whom honesty is not a policy, but their normal state of being; whose consciences respond to right and truth with the steadiness of the needle to the pole; men who have the courage of their convictions and dare to proclaim them, though the heavens totter and the earth yawns; men who prefer honor to wealth, truth to sophistry, kindness to covetousness, modesty to vaingloriousness, service to recognition, humility to grandeur, usefulness to reward; men who know their places and fill them; who have found their business in life and attend to it; who neither lie, shirk, dodge, nor meddle; who have definite aim, go straight for it, master details, and treat failure as steppingstones to success.

It needs men who dare to think for themselves, to drink out of their own well, and to eat their own bread earned by the toil of willing hands and brains; men who, surrounded by barnacles, bores, busybodies, croakers, fanatics, knaves, pests, triflers, and wiseacres, manage to maintain faith in God, in the high destiny of the human race, and an indestructible sense of humor. — From the old AICC archives of founding President Jim Kowall To my way of thinking, we could sum up Jim’s quote by simply saying, “What the world needs is persistence!”

From all of us at Richmond Corrugated, our best wishes for every success in 2016 and beyond.

Mark Williams President and CEO, Richmond Corrugated Inc. Chairman, AICC BOXSCORE www.aiccbox.org

3

Scoring Boxes

WARNING: HIGH INVENTORIES

BY DICK STORAT

A

s independent packaging converters make their ongoing assessment of customer and supplier market conditions, inventory of raw materials or finished goods is often the point at which the market pulse is taken. Inventories significantly lower than historical norms often signal that demand is rising faster than anticipated, while abnormally high stock levels offer evidence that production has gotten ahead of demand.

supplied from accumulated stocks, no new boxes are needed to package freshly produced goods.

At the national level, closely watched inventory data are published by the U.S. Census Bureau based upon monthly surveys. While absolute inventory levels are important, the most effective measure is to examine inventories relative to sales in total and in each of the major supply chain divisions: manufacturing,

Total Business Inventory/Sales Ratio 1.48

1.40 1.36 1.32

S OUR C E : U. S . C E NS U S BUR E AU

Ratio of Inventory to Sales

1.44

1.28 1.24 1.20

00

01

02

03

04

05

06

07

08

09

10

11

12

13

14

15

Manufacturing Recessions

In the past, inventory-led recessions have caused the most difficult business conditions faced by boxmakers. As already-boxed goods stack up in excess of demand in retail, wholesale, and manufacturing warehouses, demand for new boxes falls off sharply. Even after final consumer demand recovers, it may still be several months before excess inventory is cleared out of warehouses. So long as consumer needs for goods can be

wholesale trade, and retail trade. The chart above displays inventory-to-sales ratios in months of supply for the total U.S. supply chain.

During periods of manufacturing recessions, sales fall off far more rapidly than production and stocking of goods, causing the inventory-to-sales ratio to rise rapidly. Throughout the actual manufacturing recession and often well into the economic recovery, inventories are worked

down relative to sales as sales pick up and production remains lackluster. The greenshaded areas of the chart identify periods when manufacturing activity contracted in the United States, according to the Institute for Supply Management.

During the most recent recession, the inventory-to-sales ratio jumped from 1.23 months to 1.46 months, a 19 percent gain in about six months. It took aggressive cutbacks over the next six quarters to reduce inventories relative to sales back to prerecession levels. From 2010 well into 2013, U.S. manufacturing flourished, as domestic firms regained global competitiveness in many sectors. Inventories were well-managed relative to sales during that period, remaining within historical norms for periods of manufacturing expansion.

However, in mid-2014, the U.S. dollar began a relentless march upward against almost all of the world’s major currencies, as economic growth slowed outside the United States and investors increasingly sought the relative security of U.S. dollars.

As manufacturing output slowed and U.S. consumption failed to grow more rapidly, inventories rose relative to weaker sales growth. During December, U.S. manufacturing activity contracted, as measured by the monthly survey of the Institute for Supply Management. Relative to sales, inventories throughout the U.S. supply chain are now higher than at any time since the recession. While not at recessionary levels yet, this statistic is a flashing yellow light that warrants close attention.

The chart on Page 6 shows U.S. economic growth by major contributing sector. Notice how significant an influence liquidation of inventories had on the third quarter’s GDP growth.

Continued on Page 6

4

BOXSCORE January/February 2016

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Scoring Boxes

this aggressive liquidation of inventories was insufficient to keep inventories from rising relative to sales during the third quarter, when they measured 1.38 months at the end of October.

The corrugated industry and its independent converters are facing a

Inventory reduction subtracted nearly 1.5 percentage points from the initial estimate of economic growth. Simply put, if that inventory drawdown had not occurred, the reported growth for the quarter would have been 3 percent rather than 1.5 percent. However, even

U.S. GDP Growth by Component & Total 5 3.9%

3 2.1%

2

1.5% 0.6%

1 0 -1

SOUR C E : BE A

Percent Change Annual Rate

4

-2 -3

14Q4

15Q1

Personal Consumption

15Q2

Fixed Investment

15Q3

Inventory Change

Trade

Gov’t

Total

U.S. Containerboard Inventories

000 Tons

7.0

3,000

6.5 6.0

2,500

5.5 2,000

5.0 4.5

1,500

4.0 1,000

3.0

500

2.5

0

2.0 J07

J08

J09

Inventory (Left Axis)

6

BOXSCORE January/February 2016

J10

J11

J12

Weeks of Supply (Right Axis)

J13

J14

J15

Weeks of Supply Trendline

S OUR C E : A F & PA , F B A

3.5

similar situation. Early in the fourth quarter, stocks of containerboard at mills and box plants were approximately 10 percent higher than levels a year earlier. During the two-plus years since the end of 2011, the long-term trend line of stocks measured in weeks of supply has drifted up from around 4.0 weeks to 4.4 weeks, a 10 percent increase. And, as the chart below shows, inventories have almost always risen early in the year, a period of relatively slow demand, to be reduced as the year progresses.

This year, however, there was no meaningful midyear reduction, so inventories entered the fourth quarter abnormally high. Increasing the difficulty of significantly reducing stocks near year-end is the fact that both November and December have fewer shipping days than other months due to holidays in each month. That increases the difference between mill shipping days—they tend to run every day—and box plants, which usually close for holidays and weekends.

During the last two months of 2015, mills operated for 11 more days each month than box plants. Over the past 10 years, the average January inventory change has been an increase of 146,000 tons, the highest upswing of any other month. An increase of stocks even close to that amount this January will send containerboard inventories to their highest level ever, at a time when inventories remain swollen throughout the supply chain.

Dick Storat is president of Richard Storat & Associates. He can be reached at 610-282-6033 or storatre@aol.com.

Legislative Report

YOU, TOO, CAN SURVIVE THE 2016 ELECTION CYCLE

BY JOHN FORREY

A

s we begin 2016, we look ahead with anticipation—and some trepidation—at the coming election cycle. With our political banter becoming all the more coarse and the campaign cycle all the more tumultuous, it’s easy for most of the electorate, even those of us who should be the most rational and educated about these things, to tune out.

“We cannot, as business leaders, sit on the sidelines and hope others do the work for us. We have to get involved in this process.”

So here is my plea to you in the new year: Hang in, pay attention, get involved, and vote! Let’s look at each of my imperatives here so you, too, can survive the 2016 election cycle.

Hang In. Our AICC chairman this year, Mark Williams of Richmond Corrugated, has spoken very plainly about the importance of persistence in all we do. Let me appropriate this theme and apply it to the political arena because, as I said in my opening line, it’s very easy to succumb to political fatigue and disengage. We who are business owners

8

BOXSCORE January/February 2016

must be persistent, must “hang in,” and must stay engaged in this election year.

If we don’t, we leave our interests in the hands of “activists” who view the business community and its priorities with suspicion or even disdain.

Pay Attention. Following that notion, we have to pay attention to the issues important to our country’s economic health. After national security, there is no current issue more important than job creation. Sound fiscal policy is necessary to ensure a strong economy and strong manufacturing sector. Therefore, I pay attention to what candidates say about the current regulatory blizzard, tax issues, budget priorities, infrastructure, and workplace issues that will affect both our business and our loyal employees. You should, too.

Get Involved. U.S. manufacturing grew in October at its slowest pace in more than two years, according to recently released data from the Institute for Supply Management. We cannot, as business leaders, sit on the sidelines and hope others do the work for us. We have to get involved in this process, and one of the best ways to do this is to attend the AICC 2016 Washington Fly-In, June 6–7, 2016, in Washington, D.C. This is an easy way for you to establish a relationship with your representatives and senators. It is an unintimidating opportunity to learn about policy-making on the national level, and you’ll be with your industry peers to do it. We equip you with the knowledge you’ll need to state your case about legislation or regulatory policies that affect you and your business. We hold the

event in conjunction with the National Association of Manufacturers (NAM) Manufacturing Summit, so with strength in numbers we attain a formidable force of argument for our cause.

Vote! I’m confident that all of you reading this are regular voters. How we business owners can make a difference is to encourage our employees to vote. We should never tell them how to vote, but we can surely educate and suggest they vote with a view toward their future as a worker in the manufacturing sector.

NAM, cited above, has a wonderful campaign called “I Am a Manufacturing Voter” (www.nam.org/Election-Center/ Voter/I-am-a-Manufacturing-VOTER), and it behooves all of us to access these resources so our own employees can understand, in simple terms, the complex economic issues facing the country and how they can affect their livelihoods. You would be doing your employees a favor by helping educate them, rather than allowing their opinions to be formed by the shallow news reports of our mainstream media outlets.

So there you have it, my plea to you in 2016. Follow my advice here and you, too, will survive the 2016 election cycle!

John Forrey is president of Specialty Industries and NuPak Printing in Red Lion, Pennsylvania, and is chairman of AICC’s Government Affairs Committee. He can be reached at 717-246-4301 or jforrey@ specialtyindustries.com.

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New Members

WELCOME AICC’S NEW MEMBERS BANA BOX INC. ANDY BOENKER Vice President P.O. Box 79290 Fort Worth, TX 76179-0290 Phone: 817-232-3750 Fax: 817-498-0553 www.banabox.com andyboenker@banabox.com CARAUSTAR INDUSTRIES ANDY T. CAREY Containerboard Sales 36 Haddale Ave. Wheeling, WV 26003 Phone: 304-281-0550 www.caraustar.com andy.carey@caraustar.com

CUMBERLAND CONTAINER CORP. MARK JARED Director P.O. Box 250 1027 N. Chestnut St. Monterey, TN 38574 Phone: 931-839-2227 Fax: 931-839-3971 www.cumberlandcontainer.com mjared@cumberlandcontainer.com LEWISBURG PRINTING COMPANY KIRK KELSO Vice President/Sales P.O. Box 2608 Lewisburg, TN 37091 Phone: 931-359-1526 Fax: 931-359-1562 www.lpcink.com kkelso@lpcink.com

At C&M Conveyor, we’ve enhanced our ability to meet the demands of today’s corrugated marketplace by adding products and manufacturing capability. The benefit to you: maximum throughput with the flexibility to meet your customers’ ever-changing needs. Our project management approach means we’ll identify your requirements, manufacture to your specs and install on time. Contact us today; let us solve your toughest problem.

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10

BOXSCORE January/February 2016

PROACTIVE PACKAGING & DISPLAY DOUG JOHNSTON CEO 602 S. Rockefeller Ave. Ontario, CA 91761-7870 Phone: 909-390-5624 Fax: 909-605-2956 www.proactivepkg.com dougjohnston@proactivepkg.com QUANTUM INK COMPANY BEN QUINTON National Account Manager 4651 Melton Ave. Louisville, KY 40213 Phone: 502-364-8900 Fax: 502-364-8950 www.quantumink.com bquinton@quantumink.com

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Ask Ralph

FINAL WHITE TOP SEGMENT AND MORE ECT VALUES

BY RALPH YOUNG

T

his is the fourth and final submission on white top liners in North America. Although weâ&#x20AC;&#x2122;re wrapping this up, there is much more information on this subject than what weâ&#x20AC;&#x2122;ve covered here. Contact me directly for more information.

Independent-Focused RockTenn has by far the largest exposure to the independent corrugated market. IP, with the third-largest

production capacity and only a 50 percent integration level, is also sensitive to the open market. However, the product offerings from these two accounts are very different from each other.

Mergers and Acquisitions Although Simpson had itself on the auction block for many years and later reconsidered, RockTenn finally won the war. Now there do not appear to be

more consolidations ahead in companies making these substrates.

Separate Sales Forces A corrugated salesperson who sells brown will also sell white with two or three colors and maybe some process work. Corrugated utilizing higher-quality substrates, more detailed printing, and displays will be handled by a separate sales force. Mills are also known to separate sales forces based

BOXSCORE www.aiccbox.org

13

Ask Ralph

14

BOARD COMBINATION AND FLUTE: SINGLE WALL 26/26B/26 #/msf 26/26E/26 26/26F/26 31/26B/31 31/26E/31 31/26F/31 35/26B/35 35/26E/35 35/26F/35 42/26B/42 42/26E/42 42/26F/42 42/33B/42 42/33E/42 52/33A-K/52

ECT RANGE LOW TO HIGH 27–36 #/pli 27–36 26–35 30–35 31–36 29–34 33–45 33–44 32–44 39–52 39–51 38–51 44–60 43–59 58–72

BOARD COMBINATION AND FLUTES: DOUBLE WALL 26/26B/26/26B/26#/msf 31/26B/31/26B/31 35/26B/35/26B/35 42/26B/42/26B/42 42/33B/42/33B/42 26/26B/26/26E/26 31/26B/31/26E/31 35/26B/35/26E/35 42/26B/42/26E/42 42/33B/42/33E/42 42/26A/42/26C/42 42/33A/42/33C/42 52/26A/52/26C/52 52/33A/52/33C/52

ECT RANGE LOW TO HIGH 34–56 pli 41–54 55–76 66–83 74–103 33–55 41–52 55–75 66–86 74–102 68–89 76–107 88–106 96–125

BOXSCORE January/February 2016

upon the quality level of the printing substrates. Technical service support also increases as the quality increases.

While Kemi may have the best sales and technical force for its coated white top substrates, RockTenn is a close second and may have more support people per ton than any other manufacturer.

IP has many containerboard sales and technical people but none focused solely on the white substrates.

Closures in Recent Years Many companies and mills have exited the white market either because their volume was too small to compete with the bigger competitors, or they did not have the capital for the equipment upgrades to move from mottled white to white-top. Companies that are no longer engaged include Norampac, Weyerhaeuser (when acquired by IP), Inland (when acquired by IP), Champion (when acquired by IP), Arkansas Kraft at Green Bay and Morrilton, and Tembec in the fully bleached area. G-P never executed its plan to convert a machine at Big Island, but instead purchased from

then Smurfit-Stone’s (now RockTenn’s) Brewton mill.

More ECT Values It seems that the five other expected value charts that we have published have never been completely comprehensive, so we are occasionally asked by members to provide numbers for additional f lutes and board combinations. Here are some more you can add to your notebook (left). Please note that in the other charts, we published only the top quarter of expected ECT values, given perfect combing. Here we have published the entire range of values based upon the low to high range of ring crush/STFI values as compiled by the American Forest and Paper Association.

R alph Young is the principal of Alternative Paper Solutions and AICC’s technical adviser.

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

CORRECTION In the “Ask Ralph” column in the November/December issue of BoxScore, we provided an example of “low-end white top” grades of product coming from the Georgia Pacific mill in Brewton, Alabama. (See “Overview of the North American White Graphic Market, Part 3,” BoxScore, November/ December 2015, Page 13.)

We wish to correct the implication that Georgia Pacific’s products from that particular mill are somehow inferior. It is the editorial policy of BoxScore not to review or compare products of individual companies as was done in the article. A lapse in editorial oversight and comparative quality benchmarking caused this mistake, and we apologize for any potential confusion.

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The Hidden Factory

RETAIL-READY PACKAGING

BY LES PICKERING

D

Photos by Les Pickering

uring the few days run-up from work to Christmas, I visited a local store that specialized in items from around the world. It’s a tradition my wife started—when we visited homes or had guests over during the festive season, we’d take our Christmas crackers, a traditional item for many in Europe. Looking

16

BOXSCORE January/February 2016

around the store, I sighted packaging from Europe and England. What particularly caught my eye is that the packaging was “retail ready.”

Retail-ready packaging is the latest iteration in a solution created for European supermarkets. In the United Kingdom, there are four traditional supermarkets, and they are being shaken up by two upstarts called Aldi and Lidl. Supermarkets are under immense pressure to reduce costs; therefore, they tend to try and test solutions that have yet to make it here to the U.S. market or are just emerging.

One prevalent trend is retail-ready packaging, because it reduces cost in one of the most expensive areas of the supermarket—depalletizing and speed of placing product on the shelf. Retail-ready packaging is designed to reduce these two cost areas for the supermarkets directly.

This is important, as I have no doubt Wal-Mart knows. Wal-Mart owns one of the four major supermarket brands— Asda. Therefore, Wal-Mart will be able to measure and have accurate data for these two points in both the United Kingdom and here in the United States, as well as in other markets.

A consequence of retail-ready packaging is that product must be fitted to the multipoint gluers line—a special two-piece or twin feeder. These feed the box and lid at the same time, allowing these to be packaged and palletized as one unit to go to the filling processes.

In using this type of packaging solution, depalletizing is faster due to the fact that all you have to do is unwrap the pallet

from any protection, then transport it to the aisles. But the larger of the two benefits is seen at the aisle. Upon placing the product on the shelf, the team member simply removes the upper half of the package to reveal the lower item, together with the merchandise. There is no cutting of the boxes, no need to rip tape. In fact, the integrity of the brand message is sustained, because you can control the appearance of the packaging as it will be on the shelf.

Having the box in, effectively, two half sleeves allows the upper to be used as transit information and be of a much lower quality—saving cost. The lower half can then be a multicolored flexo job or litho printed.

With the increase of this as a solution in the supermarkets, multipoint gluers will now have to be fitted with twin feeders or two-piece feeders. This development will be difficult for some, as there may be insufficient space to incorporate this within the existing floor layout. For those that can incorporate a twin feeder, expect this type of solution to become much more prevalent in the marketplace sooner than later.

Les Pickering is co-founder of Quadrant 5 Consulting, based in San Francisco. Les can be reached at 415-988-0000 or leslie.pickiering@ quadrant5.com. Follow him and Quadrant 5 on Twitter @Q5cLP.

Selling Today

STOP HIRING SALESPEOPLE

BY KIM BROWN

T

he beginning of a fresh new year is a time of reflection. Many will feel concerns about last year’s lack of new business growth and react by hiring more sales reps. This stems from a belief that more salespeople pounding the pavement will generate the desired result in this new year. But before implementing a hiring strategy, let’s explore why quantity might not be the problem.

Technology has changed everything.

We have unprecedented access to both information and people. Our ability, and that of our buyers, to conduct research and learn who, what, when, why, and

Frequently these very different areas are lumped into one category and are theoretically solved by hiring more salespeople. This solution does not address the underlying reason for the lessthan-desired results. Before attempting to solve, consider new questions to ask that challenge previous business models and structures.

The road warrior salespeople are generating fewer opportunities through traditional prospecting methods in today’s technology-driven world. This high-dollar, low-yield model has become cost-prohibitive.

“You will not generate new results utilizing old methods.” how significantly alters the role of the traditional salesperson and the stages of the buying and selling process.

It is equally important to acknowledge what hasn’t changed. Selling will always be about people and our ability to connect with them in a meaningful and relevant way. The basic fundamentals of acquiring, cultivating, retaining, and multiplying our account base have also not changed.

The review of the previous year’s results should first include an agreement on the problems we want to solve in 2016. Here are some commonly heard issues: • Too much competition • Margins too low • Salespeople not effective • Buyers interested only in price • Can’t find talented people to hire • Lack of customer and employee loyalty

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BOXSCORE January/February 2016

The buying and selling process and the people involved in each stage must evolve to meet this new reality. The speed of business today requires: • More targeted prospecting • Fewer face-to-face meetings • Compressed sales cycles • Creative and relevant methods for initiating contact The biggest change this new sales structure will bring is a shift from the hunter model into a team-driven farmer model.

This change impacts the skills needed, the day-to-day functions, and the compensation structure for the sales team. The days of six-figure commissions, company cars, and expense accounts will transition into a salary and bonus program mutually shared by those in the newly created positions of revenue generation.

As our buyers have become more adept at identifying and solving their

own packaging-related challenges, it has become increasingly difficult to separate ourselves from the masses. This lumped-together category of interchangeable packaging suppliers creates challenges in our ability to convey any real value that a buyer is willing to pay for. Hiring more salespeople to mimic the current process and practices of existing salespeople doesn’t change this.

There are opportunities to explore within your existing team. They have different vantage points and perspectives on the customer experience with your operation. They possess skills that can be utilized in new and creative ways to maximize the impact of your sales efforts.

How do you remove the silos and foster this collaboration?

As you define the new strategy for 2016, be careful not to follow old patterns simply because “that’s the way we’ve always done it.” Seek input and drive change by asking different questions and including personnel from every department, suppliers, and customers in the dialogue.

You will not generate new results utilizing old methods. Explore new conversations with different people, and use this data to create a new business model—one that is aligned with today’s market. Work with this information to identify your target audience, craft your unique message, and align your team to one common vision. This is the beginning of a fresh new year.

Kim Brown is the founder of Corrugated Strategies.

She may be reached at 317-506-4465 or kbrown@corrugated strategies.com.

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■ Fruit Growers Supply, Ontario, CA ■ New Indy Containerboard Mill, Ontario, CA

■ Emerging Leaders Mentor Session – Tuesday, April 12 – 8:00 am – 10:00 pm Training Session – Wednesday, April 13 – 11:00 am – 3:00 pm Networking Session – Thursday, April 14 – 6:30 – 9:00 pm ■ Spouse/Guest El Paseo Walking Tasting Tour & Shopping Wednesday, April 13 – 11:00 - 4:00 pm ■ 3rd Annual AICC Independents’ Cup Charity Golf Tournament Thursday, April 14 – 12:30 - 5:30 pm ■ Aerial Tram Tour & Lunch at Kaiser Grille Thursday, April 14 – 12:00 - 4:00 pm ■ Sunset Hot Air Balloon Ride Friday, April 15 – 4:30 – 7:30 pm

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Tackling Tech

THE CHANGING PACKAGING LANDSCAPE

BY JOHN CLARK

I

f you were to ask 100 people involved in the packaging community what one word would reflect the greatest change facing the industry, many would say manufacturing and distribution; others might say shifting tastes; still others may say sustainability. And, in fairness, none of these answers would be wrong.

But I contend the one word that is going to have the greatest impact on the packaging industry is this: demographics.

Today’s consumers are living in more urban areas than ever before, and these consumers tend to be single or a single-parent household, technically savvy, and willing to indulge on premium products that enhance their quality of life. These members of Generation X and Y (born between 1965 and 1994) are in their prime earning years, and with fewer family obligations, they are not averse to spending money.

And this modern consumer presents a host of issues for packaging providers: Shifting Demographics — As we become a more urban society, we also become a household with fewer family members. The most common household type checked in the U.S. census was “person living alone.” This fact has all sorts of implications as far as retail product size and shelf life. Packaging designed to meet these demands at both the home and commercial level will become more prevalent as time passes.

Shifting Tastes — This generation does not want to drink its father’s beer.

Go the beer aisle in any grocery store, and look at the bewildering selection of beers available today. And what is the

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BOXSCORE January/February 2016

determinant of purchase in many cases?

The appeal of the packaging and the image it conveys. The ability to produce small custom batches of packaging at market-comparable costs will be the norm, not the exception.

Health Awareness — Terms such as “natural” or “organic” resonate with the modern consumer. Companies such as Burt’s Bees have developed compelling messages based on a consistency of packaging design holding true to the simple idea that what you put on your body should be made from the best that nature can provide. Creative packaging designs can enhance that message and encourage the consumer to try a new item or purchase items in different sizes or formulas.

Environmental Issues — Environmental issues are high on the priority list for Gen X and Y consumers.

They bring their own shopping bags to the store, and they recycle what they can. Environmentally friendly products and packaging are not just a feature to these consumers—they are a requirement. Designing packaging so it can be easily recycled after use should be a prime consideration.

Lightening the Load — Many consumers have shifted the purchasing point of acquisition. Although they may shop at a store or dealership to make their selection, the consumer purchases the item from companies such as Amazon for cost savings and tax avoidance. Since everything leaving the shipper’s facility carries a charge based on weight and size, small decreases in fiber content

or packaging choices can have a major impact on cost savings. Companies such as Amazon are concerned about every single ounce of packaging requirements.

Space Premium — In smaller living spaces, there is less room for the things you bring into your life. Modern consumers are choosing quality over quantity in everything from the sheets they sleep on to the whiskey they drink. While in many cases the relative value of comparable items may be hard to distinguish, the quality of the packaging and graphics is often the determinant in deciding which item is purchased and which one sits on the shelf.

Seasonality — In the classic sense, seasonality can be one of the key factors in packaging design and customization. A summer ale showing oranges and lemons looks far more inviting in July than it would in December.

As Bob Dylan (at age 74, ironically, a member of the Silent Generation) once sang, “The Times, They Are a-Changin’.”

And this is absolutely true in the packaging industry. Lighter, stronger, more vibrant, more tailored, less expensive, more environmentally friendly, and more sustainable packaging might not roll off the tongue as smoothly as some lyrics, but it’s the reality the industry is faced with.

John Clark is director of analytics at Amtech Software. He can be reached at jclark@ amtechsoftware.com.

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View From the Floor

SOME SKILLS ARE TIMELESS

BY DEAN MITCHELL

I

was struggling with my article for the beginning of 2016. I told my grandson, and he said that my recent articles all share the same theme: change! He suggested I share a perspective, based on my more than 50 years of business experience, on the things that remain constant—that were true in my day and still are today. So I dedicate this article to my grandson, Malcolm.

I will sum this up in the three words: ethos, pathos, and logos. Yes, they are all communications skills, and they are timeless. In simple terms, the cellphone, with all of its apps, has more than

Let’s discuss ethos and its importance to communication. It is not always about the college degree we have, the position we hold, or the length of service.

Our credibility is based on our word, the promises we make and keep, our experiences, our credentials, our expertise, and the daily interaction with customers and co-workers. Do we follow through?

When a request is made or challenges presented, are we viewed as someone who will provide answers and solutions?

In the business world, your reputation is your most valued asset. When convincing people in an organization to change or a

“In the business world, your reputation is your most valued asset. Do people trust what you communicate?” replaced the landline. A computer has replaced the fax, desk calculator, paper manuals, business letters, and chalkboards that I once used. Now there are websites, texting, emailing, and social media. Information is instantaneous and at our fingertips.

With all of these new technological methods of communication, its effective use is still highly dependent on these skills: Ethos is an appeal to ethics, and it is a means of convincing an audience based on the character or credibility of the persuader.

Pathos is an appeal to emotion and is a way of convincing an audience of an argument by creating an emotional response.

Logos is an appeal to logic and is a way of persuading an audience by reason.

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BOXSCORE January/February 2016

customer to buy from you, your character and credibility are most important. Do people trust what you communicate?

Next let’s discuss pathos and its importance to persuasive communication.

When a person communicates with passion, enthusiasm, and conviction, people often respond with the same emotions.

Back in my day, we didn’t text, tweet, or send out quick emails. We called on the phone, made in-person visits, and wrote formal letters. No matter the era, we must ask the question, “What is the purpose of the communication?” The person or persons we are communicating with must feel they are the most important, their issue has the highest priority, and we are passionate about getting it resolved. Our methods for conveying that message 50 years ago came somewhat easier, but

it’s still very possible to express those emotions today. Maybe that is a good reason to follow up with a phone call, as nothing conveys emotion better than your voice. Today, we can be even more effective by using video calls with apps such as FaceTime or Skype, adding body language to the emotion in our voice.

Finally there is logos, arguably the most important of these three skills. Today’s technology provides us with a wealth of data and information. We have available through industry MIS (management data systems) and our cellphone apps enough facts to provide a wealth of supporting evidence to persuade our co-workers, direct reports, or clients. Logic can sometimes be viewed as boring. However, it is the true foundation of any argument.

Ethos and pathos simply give life to the presenter’s logical communication.

And, of course, good old technology in the form of the flat-screen TV in the conference room and PowerPoint are great presenting tools that also give life to data and information.

Technology has provided new ways to communicate, but what has remained the same for generations is that effective and persuasive communication requires credibility, emotional appeal, and validation through the sharing of supporting facts using logic and reason. Let’s not forget these time-tested skills and how effective they have been and continue to be for both the successful business leader and company.

Dean Mitchell is the president of The Mitchell Group. Email him at tde55@aol.com.

Lean Learnings

STARTING A LEAN JOURNEY

BY MIKE NUNN

O

ne of the most common questions I get asked is: How do I start my LEAN journey? The best analogy I can give you is that building a sustainable LEAN journey is like building a house.

You begin with the foundation.

All too often people get excited about the lean tools, such as 5S, value stream mapping, and cycle time reduction.

However, we need to think about these tools as levels/floors of the house, not the foundation. Without a solid foundation, the house will fall down, or in lean terms, you will not get the sustainment you desire.

There are four crucial ingredients to building this successful foundation.

To make it easier to remember the four ingredients, all you have to do is remember LEAN (Lead, Educate, Apply, and Network).

Lead All too often I hear stories of business leaders who, after learning of the benefits of lean, tell someone on their staff to “go do that lean thing.” Meanwhile, the business leaders continue their nonlean practices and behaviors. In this environment, lean will not succeed. All leaders in an organization must be aligned with the true purpose, values, principles, and vision of lean. Remember, a leader by definition is the person who goes first, and the business will always be a product of the leader.

Lean is a companywide mindset.

Admittedly, you can achieve some isolated sustainment without having complete leadership alignment, but you will never get the cultural shift, value creation, and process changes you’re looking for across the company.

Educate Lean education has two distinctive steps.

First, you have to educate the entire company on what lean is. People fear the unknown and will make up what they don’t know, so make sure everyone knows what the LEAN journey looks like and what it means to them. Second, you have to pick your lean champions who are going to be educated in the lean principles, methodologies, and tools.

Choose these people wisely; they will be the ones leading the way and coaching/ training the rest of the team.

I am a big reader, and I’ve read many lean books since starting my LEAN journey in 2010 that have helped me learn.

Here are a few of the books I recommend you pick up.

• Andy & Me • The Machine That Changed the World • Lean for Dummies • Toyota Culture • Kaizen Express • The Toyota Way to Lean Leadership Apply How do you eat an elephant? Answer: One bite at a time. Now that you have the leadership and education, it is time to apply the knowledge. Your biggest goal at the start of a LEAN journey is to prove and share the results of lean initiatives to show everybody the benefits.

Choose a problem that has a relatively small scope, where clutter and lack of organization are the root cause, then pull together the stakeholders and execute a 5S (sort, straighten, shine, standardize, sustain). Once the kaizen (improvement) is complete, show everyone how much easier the work is; tell them people aren’t working harder, yet they are achieving

better results; show the value that was created, and ask everyone for feedback on where else they can use this new 5S tool. Once you get some smaller problems resolved and more people eager to join the journey, then it’s time to move on to bigger kaizen.

Network Do not try to reinvent the wheel; many people before you have started on and have been successful with a LEAN journey. In fact, if you were to reach out to your immediate network, I believe you would be surprised to find people who are starting on or are well down a lean path. Talk to your suppliers, customers, industry associations, friends, and family to see whom you can connect with to share and compare lean notes. The biggest thing you will learn from your lean network is that you are not alone—we all have the same challenges.

By approaching these four ingredients in order, you give your LEAN journey a far better chance of sustaining for the long term. Starting a LEAN journey can be an intimidating task, especially when faced with laggards, hurdles, and missed targets. However, if you focus on these four ingredients and are disciplined in practicing them, I know you will travel far along your LEAN journey.

Mike Nunn is director of operations at Ideon Packaging and is Lean Black Belt certified.

He can be reached at 604-524-0524 or miken@ideonpackaging. com, or followed on Twitter @mikednunn.

BOXSCORE www.aiccbox.org

23

Leadership

DO-IT-YOURSELF DELEGATION

BY SCOTT ELLIS, ED.D.

Tools Required: • Delegation Quiz (www.mindtools.com/pages /article/newTMM_60.htm) • Levels of Delegation • Steps of Delegation Project: Get exponentially more work done while training others to accomplish tasks as well as or better than you would on your own. Increase your time spent on tasks critical to company goals.

Current State: Delegation is more trouble than it is worth. In matters of

importance, it is easier to personally complete the task than to trust someone with less experience, skill, or initiative.

The problem is that delegation is consequently very directive, and the results are poor. Time to focus on high-level strategy and implementation is spent on lower-level tasks.

Who: Deciding to whom and how much you should delegate is critical to success. Rather than treating the decision to delegate as an either/or proposition, think of it by degrees of trust and expertise. With inexperienced employees,

one might provide a simple task, provide clear direction, and regularly measure and verify outcomes. With higher-level tasks, one must invest time and coaching in key employees to allow trust and independent decision-making to be reliable.

How: All delegation involves some level of training and requires good communication and coaching. The old maxim applies: “I do it and you watch; you do it and I watch; you do it alone.” The amount of time required is determined by the complexity of the task.

Step 1 Introduction. When introducing the task, describe the desired outcome.

Picture success, and describe what that would look like. Put yourself in the shoes of the person being delegated the task, and answer the why behind the task. Are you directing them to do the task as a convenience for you? Is it a part of their training? How is the outcome impactful for you or the company?

Step 2 Demonstration. Try to delegate outcomes rather than methods. However, if there are prescribed methods, make them clear. If there are guidelines to stay within or even failure paths to avoid, make these explicit.

Continued on Page 26

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BOXSCORE January/February 2016

Images courtesy of David Smith of Simply Brilliant Press

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It’s time to go back to school and get your business to the head of the class at AICC’s Packaging University.

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Leadership

SUPPORT

ALLOCATE AUTHORITY

ENSURE CLARITY

DEMONSTRATION

INTRODUCTION

Step 3 Ensure clarity. Agree on measurement of outcomes and progress and how often you should receive a report. Have the person restate the objective verbally or in writing.

Step 4 Allocate authority. With responsibility for the task, delegate the required authority to carry it out. Inform any parties necessary to remove obstacles to progress on the task.

Step 5 Support. Share your expectations, and give permission regarding your availability as a resource. Let them know that each responsibility you delegate is an opportunity for career growth and for you to focus on what you do best. The deep end is rarely a good spot for those to whom you delegate. Delegation without coaching is abandonment; it leads to their failure and your time being reburdened with lower-level tasks.

“Delegation without coaching is abandonment; it leads to their failure and your time being reburdened with lower-level tasks.”

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BOXSCORE January/February 2016

Finishing: Delegation is a skill that is developed to increase your own productivity and to grow your team. Invest the time and effort to clarify instruction and training for simple tasks (e.g., SOPs, work instructions, checklists, one-point lessons) or to meet with individuals and teams to clearly define more-complex tasks using project management tools (e.g., Gantt charts, PICK charts, smart goals, or P 2’s MAPP: Mission Aligned People & Process). As you make this investment in your personal productivity, as well as that of your team, your company will show significant improvement.

Scott Ellis, Ed.D., is a partner in P-Squared (P 2 ).

He can be reached at 425-985-8508 or scottellis@psquared usa.com.

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Sustainability

RECYCLABLE ALTERNATIVE COATINGS NOW OUTPACE WAX

BY DENNIS COLLEY

T

he corrugated industry has reached an impressive milestone in its continuous efforts to provide the most preferred, most environmentally responsible packaging available anywhere.

For the first time ever, recyclable alternative coatings are now more commonly used than wax.

How did this happen? Here’s a little history.

Traditionally, wax has been a one-sizefits-all option for products requiring a moisture barrier, such as fruits and vegetables, meat, and seafood. While it gets the job done for the product, wax presents a challenge to recovery and repulping at the end of life for a corrugated box.

With old corrugated container (OCC) recovery on the rise in the late 1990s, both the corrugated industry and retailers who receive the vast majority of the products they sell in corrugated boxes began to turn their attention to wax-coated boxes that constituted approximately 5 percent of total corrugated shipments.

Unfortunately, there was no one, all-​ encompassing direct replacement for wax.

Meeting the Challenge Ten years ago, the Fibre Box Association (FBA) developed a new recyclability standard for wax-alternative coatings that validates their repulpability so end-users can receive them with confidence.

The standard was hailed as a major breakthrough for the industry and for environmental progress.

Since the recyclability standard’s inception, the FBA has annually surveyed corrugated manufacturers to measure the

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BOXSCORE January/February 2016

industrywide use of wax coatings on the boxes they produce. Stakeholders in our industry, including retailers, are watching.

Continuous Improvement By developing and using wax alternatives, the industry continues to increase the amount of recyclable corrugated packaging.

In 2014, the corrugated industry shipped 10.6 billion square feet of boxes using recyclable wax alternative coatings.

That’s roughly 708 percent more than the 1.3 billion square feet shipped when first measured in 2002.

Progress has been made in replacing all types of wax-treated boxes (cascaded, impregnated, and curtain-coated) with recyclable treated boxes.

Forty-seven recyclable wax alternatives have passed certification testing for repulpability and recyclability, and have been registered with the Fibre Box Association as of October 2015.

A True Success Story During the past decade, the recovery rate for old corrugated containers continued

to climb, hovering near 90 percent for the past four years. Today, more corrugated packaging is recovered for recycling than any other packaging material. Growth in production of recyclable coatings helps retailers recover even more of the corrugated packaging that comes into their stores.

Corrugated is the most reliable, cost-effective, and sustainable package available for transporting most products.

The continuous decrease in wax coatings means that renewable, recyclable corrugated can be used for even the most demanding applications.

For more information about recyclable wax alternatives, including a fact sheet, visit www.corrugated.org.

Dennis Colley is the executive director of the Corrugated Packaging Alliance and president of the Fibre Box Association.

He can be reached at 847-364-9600 or dcolley@ fibrebox.org.

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BOXSCORE TIPS, TRICKS, AND SOLUTIONS TO BETTER BUSINESS

AICC TOOLBOX

A

ICC has always offered members great information. Now you have access to many new resources available to you online. To supplement this issue of BoxScore, check out these articles, white papers, and publications to maximize your membership.

The industry is constantly changing.

If you want to see what has happened this year, check out past installments of Scoring Boxes, a monthly perspective on conditions in the corrugated and containerboard industry by Dick Storat. www.aiccbox.org/scoringboxes Many members say a major issue for their companies is recruiting and retaining employees. Do you need to know the best ways to bring and train employees to increase retention? The Guide to New Employee Integration and Engagement was developed to serve as a tool, template, and starting point for developing a company-specific process in training new employees. The guide is divided into four main sections—Onboarding and Orientation, Process of Implementation, Roles & Process Owners, Phases & Key Activities—and includes sample checklists, communication plans, manager tools, and a resource guide for employees.

These documents are provided in both hard copy and electronic format to allow you to incorporate company-specific wording. www.aiccbox.org/onboarding Upgrading your plant can be a costly and sometimes scary undertaking.

Am I making the right choice? If I build it, will they come? How do I determine whether I have a business case for this purchase? These are only some of the questions members face when they make decisions about retrofitting, upgrading, or purchasing equipment. For some of the answers, check out this free white paper: www.aiccbox.org/more.

The containerboard survey and profile can give participants some critical information about the marketplace. If you want to benchmark your plant against others in your region, buy the new 2015 Sales Compensation Survey at www.aicccbox.org/2015survey. Based on a comprehensive study of U.S. and Canadian members, the survey details sales compensation programs in place at independent plants around the country. The report covers types of programs, payment basis, and the perquisites provided for a range of industry sales representatives.

In the broadest sense, lean organizations aspire to five key ideals. They speak to the importance of value, value stream, flow, pull, and perfection.

Aspects of these ideals are active in all successful manufacturers. However, when taken together and consistently applied, they will challenge much of conventional manufacturing wisdom—and bring greater profit. The Lean Job Shop has a compilation of articles P2 penned in the last several years to address the application of lean principles. Visit www.aiccbox.org/lean to learn more.

To access some of this information, you will have to log in. If you haven’t created a new password since AICC’s new website launched in September, you will have to reset your password by doing the following: Click “login” in the upper right corner.

Click “forgot my password.”

In the pop-up box, enter your email address.

Click “submit,” and you will be sent a link to reset your password. You may need to copy and paste the link into your browser.

BOXSCORE www.aiccbox.org

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Good for Business

MEETINGS

8 Tips for More Productive, Creative Meetings Conventional meetings are fine. Doing things the way they’ve always been done is fine. But not if you’re interested in an innovative product. Henry Ford said, “If you always do what you’ve always done, you’ll always get what you’ve always got.”

AICC members don’t want to stay stuck in the past—we want to move into the future. We want new products, better ideas, and happier customers. To achieve that, you need team members who value innovation and ingenuity. Inspire creativity throughout the office in every way possible. One way to do that is through reinventing the staff meeting.

1. First of all, let’s throw out the concept of a traditional weekly staff meeting. Let’s use my company as an example. For a smaller business, our employees have the luxury of being able to meet on a daily basis with one another.

This is something we value because it’s harder to do with a team of more

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BOXSCORE January/February 2016

than 100 employees. We use this to our advantage, and each of our departments meets daily for about 20 minutes to discuss projects and deadlines. This ensures every member of each department is on the same page, which can cut down on confusion and help everyone work more efficiently.

2. Have creative meetings with the entire staff every week. This is a great chance for the whole team to shoot out ideas and prepare for any upcoming events, conference calls, and new products.

I like to have the whole team in on these creative meetings, because everyone has his or her own unique perspective.

Our e-commerce department has a completely different point of view than our graphics design team. And that’s terrific.

Let everyone know their input is valuable and unique, and you will be amazed at what they can come up with.

3. Set up your meetings, and the office in general, for creativity. We hold

our creative meetings in “the pit”—an open room with couches, comfortable chairs, and whiteboards on the walls.

Everyone attends with notepads and pens, and we have a big screen in the room so we can pull up media and view it together.

When we moved into our new office, I told everyone, “Make your office personal.” When people feel comfortable, it’s easier for them to be creative. A plain, boring cubicle or office is uninspiring and bland. Make sure everyone feels free to make their workspace a space they can actually enjoy working in. Making sure everyone feels comfortable in his or her workspace every day has improved productivity in my office.

4. Communication is the best vaccine for confusion. It’s vital that the whole office be in sync. We open meetings with updates on completed projects, strategies for current projects, and goals for future projects. Everyone in the office updates our project management software at the end of the day, which makes it easy for us to track projects and work together. It also helps me stay in touch with everyone, especially when I’m out of the office.

5. Trust your team. I’m out of the office a lot. And I’m sure you are, too.

Maintaining your business is all about traveling, meeting new clients, networking, and discussing ideas. You can’t do all of that in a phone call from your desk.

You need to trust your team to function well when you are out and keep you informed at the same time.

I can’t be at every department’s meeting, even though I wish I could. Every day I am in the office, I meet with my chief operating officer and assistant to get caught up. I rely on them to manage the office and employees while I am away. My team is not shy to pick up the phone and

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call me with any questions or concerns they have. We pride ourselves on great communication skills with each other.

6. Empower your team. You hired your team for a reason—they can do their jobs, and they can do them well. The biggest way you can empower them is through practicing responsibility for their actions. When I give someone a project, I assume it will get done within the time frame I ask for. I make it very clear to my team that I am always available to help during a certain task or project, whether it’s by providing extra resources, involving other members on the project, or by simply giving advice. This allows me to have full trust with every member of my team and the tasks/projects I delegate to each of them.

7. Be forgiving. Improvement and meeting advanced goals is about making mistakes. If you’re not making mistakes,

you’re not trying hard enough. I always say, “It’s not so much about making the mistake, it’s what you do next that counts.” Your team needs to feel comfortable to take risks and be confident that you will let them learn from mistakes and forgive them.

8. Use meetings to say thank you.

Each member of my team works diligently to prepare me for my presentations, conference meetings, product proposals, etc. That’s what we build a strong, loyal team for. When I come back from a business trip, whether it’s in Texas or China, I pull everyone together to recap the details. Everyone’s input and hard work is crucial, and it’s important to express your appreciation and gratitude to your team. Without my graphics design team, I wouldn’t have a detailed, inclusive presentation to show to my clients. Without my administrative team, I wouldn’t have any

means of transportation, a hotel room to stay in, or a scheduled meeting to attend.

Even if I’m running on three hours of sleep, I make sure I get into the office to meet with my team when I return home, because without them, the company would not be what it is today.

Making your office more creative can be as simple as changing your approach to staff meetings. Use them as frequently as your office size allows, and hold them in creative spaces. Make sure everyone feels comfortable to share their ideas, trust your employees, and always, always say thank you.

William Scott is CEO of Marbles LLC. He can be reached at will@marbles1.com.

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DEVELOPMENT 3. LEARN HOW TO INSPIRE AND MOTIVATE THE NEXT GENERATION OF LEADERS AICC represents a majority of the independent corrugated and paperboard packaging manufacturers and their suppliers. Companies always need innovative ideas and new employees to come into their ranks. Foster your up-and-comers with professional development opportunities, like the Emerging Leaders Group, available through AICC.

5. ING ORK

10.

GROWTH

t with NETW onnec rs to

1.

STRENGTHter

You build a bet box, we’ll help 4. r you build a bette COMMUNIC ATIO company.

Be part of a cultu N that allows you tore ask questions an d share ideas.

2.

PARTNERSHIP Manufacturers and suppliers sharing information and knowledge.

Define your goals and we’ll help you get there.

e C membour r e h t o y grow ess. n i bus

9.

7.

INFORMATION

6.

Gain the practical know-how to grow and prosper.

KNOWLEDGE Stay competitive with industry information and benchmarking surveys.

N EDUCATcaItiOon you

Get the eduere and need wh ed it: e when you n iversity, n U g in Packag nd industry seminars, a ngs. meeti

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To learn more about AICC or getting the most out of your membership, visit AICCbox.org or contact Virginia Humphrey, Director of Membership at vhumphrey@AICCbox.org or call 703.836.2422.

113 S. West Street • P.O. Box 25798 • Alexandria, VA 22313 • Phone +1.703.836.2422 • www.aiccbox.org

Good for Business

PROBLEM SOLVING Hunt and Eliminate Your Losses

BY THOMAS S. ANDERSEN What prevents us from improving our companies? Believe it or not, profitability can be the greatest obstacle to growth and change. Companies that are doing well have difficulty not only identifying issues but also finding the motivation to work on them. At the opposite end of the spectrum, when a company is experiencing trouble with cash flow, the tyranny of the urgent can consume resources normally focused on improvement. So, how can we keep our companies focused on improvement, and what can we do to lead this effort?

To begin, we must lead with humility and courage to follow the data to systematically eliminate problems. Like most, I learned these lessons the hard way. Having spent more than 35 years in and around manufacturing facilities,

I recognize that an abundance of data, metrics, and analytics is available to management. I noticed that the company’s five big losses have been constant, though they are a different set of problems every year. The adventure of business is to know the problems exist, to hunt and eliminate them, and to grow a culture that does this continually. We should not be drowning in data and still lacking information.

We need to lead the charge in solving problems, and the first step is to admit that we have them.

There is no one-size-fits-all process for your company, but let me say that I heartily recommend that your process include these four components: declare, detect, discover, and develop. A wise person said, “You won’t see it until you believe it.”

In most cultures, people won’t talk about problems and bring solutions until given permission. You can give permission by admitting the company has problems,

by making it a point to declare that your organization has five major areas of loss right now. You can publicly promise to detect the extent and priority of losses by using the data at your fingertips. Then you can work with your people to discover root causes of those losses. Lastly, you can develop strategies, measures, policies, and procedures that will reduce or eliminate them.

Declare I want to be clear that admitting your organization has five big losses is not a negative statement. It’s just practical. It’s also a state of mind. It is the nature of organizations that at any point in time it is doing some things well, i.e., “in control,” and some things not so well, i.e., “out of control.” And to complicate matters, organizations do not operate statically but rather dynamically, so these losses change and shift constantly. The five big losses your organization was focused on last year are hopefully not the same five big losses you are focused on this year. As process improvement strategies are implemented, last year’s losses are reduced or eliminated, which means a new top five losses will rise to your attention. And so it goes, year after year. Don’t despair over this fact; embrace it as normal and healthy. It is what processes do.

Detect Once there is an admission that five big losses exist, which is no small step, where do you go from there? To the numbers, of course. A careful and holistic study of your general ledger, in tandem with what your instincts are telling you, should lead you to a list of priority losses that need to be addressed. I think the discovery step is crucial and needs to be done cross-​ functionally. It can even be fun! Once we admit we have five big losses, the process

Graphic courtesy of David Smith of Simply Brilliant Press

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BOXSCORE January/February 2016

Good for Business

of discovery and implementation becomes a treasure hunt—who doesn’t love a treasure hunt?

Discover Numbers can only tell part of the problem and never provide the solution.

People need to be brought into the discovery stage and the implementation stage, and this is where corporate culture really needs to be supportive of the mission. My experience has generally been that the people closest to the problem fall into two distinct categories: Either they are part of the problem and therefore too close to initiate and achieve real change, or they have been trying to bring the losses to someone’s attention for some time, just not in a way that has received serious attention. This group can be of great service in the discovery stage.

Both groups’ participation is required to implement lasting changes.

Develop There are any number of process improvement models available in the market today that can be additive to this journey.

There are plenty of tools available to effect real change in processes and therefore in your company. Google “process improvement,” and you will see an ocean of ideas and concepts that, if implemented properly, will improve performance. From the Deming Cycle of plan–do–check–act (PDCA) to anything written by Shigeo Shingo, the Lean Enterprise Institute, or the P 2 team, there is a wealth of knowledge available to you. The key factor is to be consistent in codifying your solutions, then training the users and holding each other accountable.

Cultivate Continual Improvement How will your corporate culture react to these process improvement initiatives? Will your culture embrace

change, or will your culture reject change? Not surprisingly, many companies do not embrace systematic, process-altering change. To companies that are too entrenched in the way we’ve always done it or resist the notion that we always have five big losses, change will not come easily. But, let me encourage all companies that the axiom “You won’t see it until you believe it” is far more valid and culturally defining than the axiom “Until I see it I won’t believe it.” I really believe that the first axiom will lead to greater teamwork, greater corporate unity, and greater profit.

Thomas S. Andersen is a founding partner of P-Squared (P 2 ). He may be reached at tom@ psquaredusa.com.

BOXSCORE www.aiccbox.org

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Good for Business

AICC NNOVATION You’ve Got to Be in It to Win It

BY VIRGINIA HUMPHREY Do you want to know the real open-​ market price of linerboard and medium?

Or maybe you want to know the average sales for an independent corrugator.

These questions and many more can be answered for AICC member companies who participate in confidential surveys.

Linerboard and Medium Weighted Average Purchase Prices (WAPP) In 2011 the AICC Paperboard, Regulations, and Sheet Supply

Committee recognized a need within the membership and began an independent survey that determined the monthly weighted average purchase price (WAPP) for containerboard. This survey gives a benchmark average weighted price for containerboard purchased on the open market. The only other benchmarks are prices published in the industry’s trade journals, so these provide an independent, real-world point of comparison. We believe the survey’s monthly reports are useful to members when negotiating their longer-term contracts with their container­board suppliers.

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The WAPP collects average prices for 42-pound linerboard, 26-pound medium, 100 percent recycled linerboard, and 100 percent recycled medium for open market tonnage. Data is collected confidentially by Dick Storat of Dick Storat & Associates. AICC does not receive the data. The results are available only to participating companies.

Census of the Independent Sector The first “Profile of the Independent” was done in 1984. The survey was conducted every other year until 2002. The survey began again in 2015 as a way to better understand the changing nature of our industry and the independent’s role in it.

The census collected information from members on corporate structure and vertical integration; annual production volume; annual sales; raw material consumption; product mix; major enduse markets served; employment; and physical plant characteristics.

The 2015 census was compiled by K545 Analytics in Alexandria, Virginia. All responses were collected confidentially, and no individual company data was revealed during the compiling of the statistics or in the final report. The full results are available only to participating companies.

If you are interested in participating in either of these surveys or making the most of your membership, contact us at membership@aiccbox.org.

Virginia Humphrey is AICC’s director of membership.

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Point of View

Q 1

Whether you are the owner, CFO, sales manager, sales representative, or in another department that collaborates with the sales department, you have an opinion about sales, the process, and how it could be done better. What advice would you give a salesperson entering the packaging industry? What would you tell them about creating value? About being a successful and responsible salesperson?

Selling in the packaging industry is a unique opportunity to interact and learn from many different business sectors: produce, automotive, consumer goods, electronics, etc. It never gets boring and is always challenging.

every call, email, text, etc., from a customer as soon 4 Aasnswer you can. Even if you don’t have an answer to their question,

ere are some best practices I H have picked up along the way, in no particular order:

on’t become a professional salesperson; become a 6 Dprofessional problem solver.

edicate more time to prepare for a meeting with a customer D than the actual meeting. Set goals to accomplish and plan for contingencies.

this action lets them know you are working on it. be afraid to say “I don’t know,” but be sure to know 5 Dtheon’tpeople who do know.

7 Be punctual. It shows respect for the other person’s time. e available 24/7 for your customers—you are 8 Bconnected/online 24/7 anyway.

A lways treat every visit to a customer as a formal affair.

2 There is no such thing as a casual visit.

e buyer should not be the only customer contact, 9 Th nor is he always the most important.

inish every visit with a reason and a date to return, and 3 Ffollow it with an email to thank clients for their time and

hen things go bad and a customer is yelling and cursing 10 Wat you, just think of this philosophy from The Godfather:

put in writing the next steps, commitments, etc.

“It’s not personal; its only business.” — Andres Viesca, commercial director, Sultana

My suggestion is to learn the business as soon as possible. That means memorizing grades and flutes and knowing how much weight can be handled by each. Learn the styles and why they are used. Most of this can be found in the Fibre Box Handbook, but a lot of it you will pick up by talking to others in the industry and paying attention to what works and what doesn’t. Become familiar with your plant floor. Spend hours watching the second shift run boxes. Observe setups and printing and how fast different styles run. Talk with as many production people as will talk with you. Do the same in your lab.

During this time, make as many face-to-face calls as you can. Try to see your customers’ operations. Ask about problems. If you follow the first steps, you will be able to help. Don’t worry about being rejected. Dress and groom as well as you can afford. Meet and know about the “players” in the industry. Spend off hours on your reports and learning the product. While your market is open, be in it. The top spots are still open for the people who have the passion and drive to work hard.

— John B. Pettengill, president, Michcor Container Inc.

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BOXSCORE January/February 2016

I am a firm believer that proper training and education is the key to having the fundamentals down for success. As a new salesperson, it is tempting to get out and sell. However, if you don’t have really solid background knowledge of the “business of your business,” you may struggle in the field. No one likes wasting time from an internal perspective, or even worse, from the client’s perspective. With the proper background and training a new salesperson will be armed with the knowledge to be efficient and create wins for everyone. When a new salesperson starts out—before they go on a solo sales call—their training program should consist of a minimum of one year and up to two years of working with all internal departments and areas of the business. With this they are destined to succeed faster than the “get in and figure it out” mentality without the frustration associated with this old-school practice. — Brett Kirkpatrick, chief operating officer/employee owner, Bay Cities

When calling on a new prospect, you should never talk about price. Doing so brings the whole call down to talking about pricing. You need to make several calls where you sell yourself, your company, and your products, and get the customer to want to buy from you. When they are ready to buy from you, then they will then ask you for a quote! — Peter B. Moore, chairman/CEO, Moore Packaging Corp.

March/April Point of View: When is it time and how do you fire a customer?

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E R U T N U E F IV

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E

HOW SEASONAL PATTERNS AND CONSUMER TRENDS CAN EMPOWER YOUR PACKAGING

E

ach new year brings new opportunities and, for many, an optimism that we can manage whatever unknowns the coming months may hold. For independent packagers, though, there may be fewer unknowns than you imagined.

Thanks to established seasonal buying patterns and new data regarding burgeoning consumer trends, packagers can start the new year prepared to meet and anticipate customersâ&#x20AC;&#x2122; needs.

Seasonal Standouts When it comes to predicting consumer behavior, a crystal ball cannot compete with a calendar. Holidays, graduation, back-to-school promotions, and sports seasons all occur with a regularity that makes planning easy.

BY ROBERT BITTNER

BOXSCORE www.aiccbox.org

43

Ellie Damashek

Drew Gilchrist

Dan Malenke

That very predictability also makes it increasingly difficult to stand out. What can you do to make sure your customers’ products get noticed when every other display, every other box on the shelf, is embracing the same Valentine’s Day colors or the same Christmas sparkle?

“Structural design and graphics will help you stand out for the consumer,” notes Drew Gilchrist, president of Gilchrist Packaging, a sales and training consultancy. “You need a creative use of design to show the product. You also have to communicate very quickly. With graphic packaging, you can put so much on that it just clutters things up. Keep it simple. Consider highlighting just the top three key features on the front.”

Gilchrist encourages packagers to evaluate the seasonal competition this year and then prepare a competitive response for next year’s product line. “I’m going into stores now and looking at bad packaging and structural design failures so I can start talking to my customers about how I can help them in 2016. I look at the box on the shelf, the fit and function. Maybe it’s hard to shelve the product because of the design. Maybe a display doesn’t offer enough facings of product, or maybe the cells are too small, especially in apparel; the product may be wedged in so tightly that it’s hard for the customer to shop and hard for the retailer to maintain.

“If it’s on the shelf, I’m going to look for packaging with bad perfs, rough edges. It shows they’re using a packager that didn’t

“We have moved beyond the period when consumers were siloed into larger demographic groups. Today’s consumers want to be treated as individuals.”

— Ellie Damashek

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BOXSCORE January/February 2016

use the right perf knife. Or maybe the packaging looks great, but it’s hiding the product. Maybe it’s a bad print job with poor litho structure. Or maybe they’re fine on regular packaging but they aren’t well-equipped to address specific seasonal needs. Some shops think, “Well, it’s not really what we do, but we’ll do the best we can,” rather than outsourcing it to a sister plant. I’ll take a picture of that box or product and then prepare a beforeand-after presentation for the client.

These situations represent an opportunity for the independent to go in and say, ‘Seasonal packaging is our wheelhouse.’”

It pays to plan for such presentations far in advance. “Retailers are planning one year out,” Gilchrist notes. “By early November, I’m already working on all of my late-summer, back-to-school packaging and even all the way through NCAA football season. Product suppliers need to think even further ahead, at least 10–12 months.”

While the seasons themselves are predictable, Gilchrist sees other aspects of the packaging business evolving. He fully expects that to continue through 2016.

“Buyers used to have a lot of autonomy,” he says. “Now, I’m seeing more of a hierarchy in the decision-making process. You spend all this time working on a program, but you end up waiting on the retailer, and it’s encroaching on the ‘go’ time to bring a package to market. Of course, that means the packaging company is getting lead times that are compressed, and they have to respond quickly.

“I’m also seeing a preference for buyers to do smaller trial runs to see how something is going to work. Especially with seasonal sales, they only have a limited window to see if the product sells.

So they’ll order a shorter run on the front end, just to put their toe in the water.

Independent converters are responding well to this through digital printing, which gives you fast, flexible printing for shorter runs.”

When it comes to challenges for the near future, Gilchrist points to the growth of e-commerce and retailer fragmentation, which leads to packaging that must be scalable for multiple-size venues as well as more SKUs to manage.

He recommends that packagers stay on top of trends—both negative and positive—by getting involved in industry organizations. “Join the Path to Purchase Institute. Join AICC. Attend conferences and trade shows. Develop relationships with retailers so you can ask questions.”

What People Want While it is easy to pinpoint dates and data when it comes to seasonal buying patterns, it is much more challenging to track— and anticipate—the changing emotional needs and interests of the buying public.

People are fickle. Today’s hot lifestyle for corrugated and paperboard packagers trend may turn out to be only a passing as they serve customers during the fad that isn’t worth packagers’ investment coming year: in time and equipment. Or it may deepen Post-demographic consumerism. into a long-lasting change in behavior. If “This is at the top of the list,” Damashek you know where customers are headed, says, noting that we have moved beyond you can help ensure your packaging is the period when consumers were waiting when they arrive. siloed into larger demographic groups.

Ellie Damashek follows consumer trends as client services director for North Today’s consumers want to be treated as individuals. She cites the popular example America at TrendWatching, a company that tracks emerging patterns of consumer of Coke, which produced cans printed with individuals’ names, and NextGen, a behavior, attitude, and expectation. “We cutlery company offering knives with 3-D track clusters of innovations around the printed handles to fit specific users’ hands. world that are unlocking these consumer Guilt-free consumption. “This is needs,” she explains.

TrendWatching does not focus solely on more relevant than ever. Brands need any one industry or demographic. Instead, to help consumers absolve their guilt regarding waste, working conditions, the company tracks 16 major trend and so on. A guilt-free approach helps categories around the world, breaking those down into 140-plus subtrends. Each them tackle that feeling by providing goods and packaging that not only November, they release an annual report has no negative impact on the world detailing the trends they believe will have but also contributes positively in some an impact over the next 12–18 months. way.” For example, she mentions a (The annual report, as well as free disposable coffee cup that has seeds monthly briefings and other resources, is buried in the paper and a sushi bar with available at www.trendwatching.com.) an invasive-species menu to help control Damashek notes that the following their spread. four trends may be of particular interest

From mundane to luxury. This means creating packaging with luxury appeal, which can lead to positive customer response for even ordinary goods. You probably won’t want to pitch an Applequality rigid box to a manufacturer of disposable phones. But there are likely design and production choices that could turn that client’s package into something more desirable and memorable.

“Still made here.” Damashek points out that customers are eager to celebrate locally made products. “Packagers need to share that information, especially when so many products are made abroad.”

Trends in Paperboard When it comes to industry-specific trends that are growing now and likely to be significant in the months to come, Dan Malenke—consultant, speaker, and president of PKGPRO—has noticed several key shifts, including hybrid packaging, smart packaging, digital printing, and the rise of dot-com retail.

Hybrid packaging. “By hybrid packaging, I mean packaging that uses the combined effects of paper, plastics,

BOXSCORE www.aiccbox.org

45

“I’ve always espoused the ability of the independents to be nimble and responsive. They can afford to take risks on a small scale in a way that integrateds can’t.”

— Dan Malenke

metallized films, functional coating. It’s not enough for a package to just contain the product,” he stresses. “I want a package that stands out and has a lot of ‘pow.’

That way, it’s going to differentiate itself.

“Hybrid might be a combination of sleeve, pouch, or bag in concert with a traditional folding carton or tray. You might save cost on the folding carton by using 100 percent uncoated recycled paperboard with a gorgeous paper sleeve that slides over the top. That will look great and can represent some actual cost savings.” One way to reduce costs further is to turn to alternative sources for paperboard. “The publishing industry has gone flat,” he notes, which means that, with fewer raw materials being bought by commercial printers and publishers, there is an abundance of lightweight substrates available to packagers. “It’s a

way to acquire lower-cost material, because of its abundance, and repurpose it into hybrid packaging. To their credit, the mills producing this material are out selling; they’re doing what needs to be done, if the independents are attentive to their game.”

Smart packaging. “Smart packaging may have enhanced communication features, theft and anti-counterfeiting protection, information features that will communicate with your smartphone. It could be a QR code. It could be product freshness indicators. It could be shockand-tilt sensors that indicate if a sensitive product has been exposed to hazardous conditions. Today, we can put electronics and circuitry into packaging that enhances product value.

“There’s also a huge trend now to take preservatives out of foods and incorporate them into the actual packaging.”

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BOXSCORE January/February 2016

Digital printing. Malenke says, “I believe digital printing is right on the cusp of taking off,” combining opportunities for late-stage customization with high visual impact. He believes there are affordable ways to get even more bang from digital printing.

“When you look at a package, there’s really only one face the customer sees.

That face has to be the best; it has to grab your attention. So, one side does most of the work, while the other five panels are mostly there for information. I say, invest in that facing panel at the expense of the other five. Thanks to digital printing, inline, and on- and off-press capabilities, we can do exactly that. Why should I pay for a paper machine to coat an entire web when I can decorate just the panel I want?

That’s an exciting prospect.”

Dot-com retail. “This is becoming a real threat to the folding carton guys,” Malenke admits. “You’ll be shopping online, looking at the great graphics on the packaging, and then the product arrives in a plain brown box.” In addition, often less packaging is required of goods bought online; there is little need for packaging that addresses theft protection and security.

Uniquely Equipped There may be a packaging bright side to the rise of online shopping, however. “It provides great opportunity in terms of bulk packaging that retailers can use in their supply chain.”

No matter how optimistic the predictions or how stiff the challenges, Gilchrist, Damashek, and Malenke all agree that

independent converters are uniquely equipped to respond.

“I’ve always espoused the ability of the independents to be nimble and responsive,” Malenke says. “They can afford to take risks on a small scale in a way that integrateds can’t. Smaller operations can throw one little piece into a trial and go to market much faster. But innovation is critical. Even a medium-sized independent should have somebody who really concentrates on innovation. You want to stay out in front of this stuff.”

Robert Bittner is an author and Michiganbased freelance journalist.

He can be reached at rmbittner@gmail.com.

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BOXSCORE January/February 2016

A Comparison of

FOLDING CARTON SUBSTRATES & Appropriate Applications

BY DAN MALENKE

BOXSCORE www.aiccbox.org

49

In today’s packaging landscape, the choice of raw materials can be daunting.

Substitutions are sometimes made with little or no regard to suitability; nonetheless, the differences in paperboard properties and appropriate application are creating some interesting nuances in today’s recovering economy. The choice of substrate is influenced by a number of key parameters, including the requirements of print performance, product protection, design features and requirements, sustainability, and overall value.

Print performance is a key object for paperboard packaging. Traditional print technologies such as sheet and web offset lithography, flexography, and rotogravure are being supplemented by digital printing, laser imaging, inkjet, and rotary screen. It’s a modern miracle that packaging substrates can and do perform suitably

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BOXSCORE January/February 2016

with each of the processes. Inks and overprints may be aqueous, solvent-based, oil-based, and so on. They may cure by a variety of mechanisms, such as oxidation/ polymerization, UV, IR, EB, etc. Finally, it’s interesting to note that packaging solutions often employ more than one printing process in a single package.

Product protection is important, since the contents—as well as the package itself—must survive the rigors of distribution through filling, packing, palletizing, transportation, retail, and consumer handling. Damaged packaging can result in unsalable products, which take an enormous toll on profitability. Dry and frozen foods, personal care products, beverages, pharmaceuticals, automotive, hardware, toys, and electronics all require differing sorts of protection—temperature, shock resistance, barriers for water,

humidity, bleach, alcohol, grease, blood, oxygen, and so on.

Design features and requirements, such as the size and style of the primary package, can greatly influence the choice of substrate. Panels, windows, opening, closure, filling line requirements, end-use and end-of-life scenarios may favor one material over another. The grain orientation of a package is also influential, since properties such as stiffness and tensile strength are favorable in the one direction, whereas tear strength excels in the opposing direction. The proportional differences depend on the type of fiber, density, and forming method of each material.

Sustainability is increasingly important in packaging substrate decisions. While paperboard packaging may represent less than 5 percent of a product’s overall carbon footprint, it is perceived to be much more than that.

Indeed, 60 percent of all packaging in the United States is ultimately landfilled, and initiatives such as packaging scorecards and extended producer responsibilities are raising the bar. Factors such as the use of certified fiber, renewable materials, recycled content, recyclability, biodegradability, compostability, package-​ to-content weight ratios, and cube utilization are all tied to these decisions.1,2 Overall value can be defined as the expectation of benefits gained for the price paid.3 Sustained value can be described as the customer’s willingness to specify, utilize, pay for, and reorder a given level of quality or service at a given price. Low-cost materials and packaging solutions are acceptable for some lower-margin product categories, but would be unacceptable for others. So, with these considerations in mind, an introduction to the types of paperboard follows, including solid bleached sulfate, coated recycled board, coated unbleached kraft, and uncoated kraft boxboard.

Solid bleached sulfate (SBS) is a prominent packaging material in North America, made from mostly hardwood, first-generation, chemically pulped fibers that are subsequently bleached, refined, and formed in one ply on Fourdriniertype paperboard machines. SBS is white on both sides and throughout the sheet.

The relatively short hardwood fibers are coated and polished, creating an impressively smooth print surface that accommodates the highest-quality imaging by offset, flexography, and gravure.

This ultrasmooth surface also forms an ideal foundation for film and metallized foil lamination. Most SBS products are coated on one side only (C1S), but some may be partially or fully coated on the back side as well (C2S). SBS generally performs well for embossing, gluing, and high-speed filling. It cuts cleanly and has sufficient internal and surface strength

properties to accommodate high-speed printing with tacky oil-based lithographic inks. SBS is often higher-priced compared with other paperboard substrates.

SBS is not known for tear strength, but it generally has good stiffness and compression strength. It may be susceptible to yellowing over time with exposure to white light. It is traditionally the first choice, however, for high-quality graphics in personal care packaging, medical, pharmaceutical, confectionery, media, and tobacco packaging. The pristine white back side and internal characteristics are preferred by purists for bakeries and other products involving direct food contact.

Primary North American suppliers of SBS include WestRock, International Paper Co., Clearwater, and Georgia Pacific.

Coated unbleached kraft (CUK) is also made from mostly first-generation,

chemically pulped fibers on Fourdriniertype paperboard machines; however this substrate is formed in two or three layers and is composed mostly of longer softwood (pine) fibers, which contribute to strength. A thin concentration of hardwood fibers is added to the top surface for somewhat enhanced smoothness.

CUK is known mostly for durability and resistance to tear. It is white on the top side due to its extremely opaque, titanium-​ based coating and otherwise brown throughout the sheet. It’s somewhat less expensive than SBS. CUK is safe for direct food contact and performs well in frozen food applications.

It is commonly used for packaging large club-store multipack cereals. A wetstrength version of this grade is used for the packaging of brewery and soft drink bottles and cans, where the paperboard retains 90 percent of its dry tear strength

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51

Decision Matrix GRADE

SBS – SOLID BLEACHED SULFATE Virgin bleached hardwood, 1 or 2 sides coated

CUK – COATED UNBLEACHED KRAFT 90% unbleached virgin pine, 10% hardwood kraft fiber, coated one side Natural back side

CRB – COATED RECYCLED BOARD 100% recycled fiber, bleached top, many (5–9) plies, coated one side Gray back side

UKB – UNCOATED KRAFT BOARD FIBER Approx. 85% virgin pine, 15% hardwood kraft fiber, uncoated APPEARANCE Clean white Natural, earth-tone appearance COMMON Personal care, medical, Frozen foods, dry foods, Multipurpose, setup boxes, Institutional food APPLICATIONS pharmaceutical, beverages, multipacks, breakfast cereal, dry foods, packaging, lawn and confectionery, media, automotive, electronics, toothpaste, snack crackers, garden, hardware, sporting tobacco sporting goods, filter facial tissue, pancake goods frames mix, powdered laundry detergent PRINT QUALITY Very smooth surface, high Smooth surface, good Acceptable surface, good Less smooth, but printability by offset, flexo, printing by offset, flexo, printing by offset and flexo reasonable printing by and gravure and gravure offset and flexo CALIPERS 8–24 pt.

14–30 pt.

14–40 pt.

12–34 pt.

BASIS WEIGHTS 112–254 lbs./3msf 60–114 lbs./msf 55–140 lbs./msf 46–98 lbs./msf DENSITY (APPROX.) 1 X 1X 1.03 X 0.73 X CONVERTING Excellent cutting and Very good cutting and Adequate cutting and Good cutting and gluing gluing gluing gluing STRENGTH Moderate strength Highest strength Acceptable strength High strength COST (APPROX.) 1.2 X 1X 0.8 X 0.8 X SUSTAINABILITY Renewable resource, Renewable resource, up to Renewable resource, 100% Renewable resource, certified fiber 17% total recycled content, recycled content reduced weight, certified certified fiber fiber Selection criteria: Cost, quantity, appearance, strength, environmental perception, finish 1 Life Cycle Assessment results: www.guardian.co.uk/environment/2009/feb/17/cadbury-dairy-milk-cows, beeractivist.files.wordpress.com/2008/07/carbon-impact.jpg 2 Greenliving: United States Recycling Statistics: www.greenliving.lovetoknow.com/united_states_recycling_statistics 3 Wikipedia: en.wikipedia.org/wiki/value%28marketing%29

when exposed to saturated, wet conditions. A general folding carton version of this grade is well-suited for frozen foods, snacks and cookies, multipack pudding cups, automotive, electronics, and sports equipment applications requiring superior tear, tensile, and compression strength in a relatively dry environment.

Primary North American suppliers of CUK include Graphic Packaging and WestRock.

Coated recycled board (CRB), also known as clay-coated news, is a dominant material in North America and elsewhere in the world. CRB is generally made from a blend of recycled newsprint,

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old corrugated containers, and mixed secondary paper. Its fibers are often 100 percent recycled with 35 percent or more of the content considered “post-consumer.” It is composed of as many as eight or more layers of material with the top ply made of bleached or semibleached fibers. A variety of machines, including Fourdrinier, cylinder, and hybrid forming systems are used in its manufacture.

CRB is the most common substrate for low-cost folding cartons when recycled content is preferred or required. It is often used for single-pouch cereal boxes and other multipurpose packaging where tear

strength and premium print quality aren’t paramount. It is not always used in direct food applications, although food-grade versions of CRB are not uncommon.

It often has a one-direction stiffness advantage that can be beneficial for bulge resistance in packaging of granular products such as rice, pet foods, pancake mix, and powered laundry detergent.

The specification tolerances of CRB are somewhat less stringent than with SBS and other virgin grades. It is often not as strong and tends to carry slightly higher moisture content than other grades. CRB is more absorbent than SBS and CUK, and therefore it requires a slightly thicker

ink film and/or stronger inks to achieve a given strength of color. As with all other materials, die cutting, creasing, and gluing conditions should be adjusted to optimize its performance.

Primary North American suppliers of CRB include Graphic Packaging, WestRock, Cascades, PaperWorks, Caraustar, and White Pigeon.

Uncoated kraft boxboard (UKB) is the final grade to be considered. Similar to coated unbleached kraft, UKB is composed mostly of first-generation, chemically pulped pine fibers. It is similarly formed on a Fourdrinier-type paperboard machine in two layers, where the top layer houses a concentration of hardwood fiber for somewhat enhanced smoothness. Since it’s uncoated, however, UKB can be a cost-effective alternative to coated paperboard, with applications that appreciate an environmentally friendly, natural brown surface. It is lower in density than other grades; therefore, cartons of equal caliper weigh less.

A sturdy material, UKB is safe for direct food contact. It can be reasonably printed by offset, flexo, or gravure and performs well in embossing and foil stamping. The quality of graphic reproduction doesn’t match that of coated materials; however, designers are sometimes creative with the earth-tone appearance. An interesting technique is to press-apply a white pigmented spot color in certain areas, then build process color on top of that.

UKB is a popular choice for institutional food packaging, lawn and garden, hardware, sporting goods, and other durable-packaging needs.

A primary North American supplier of UKB is KapStone Charleston Kraft.

WestRock produces an alternative product that is made from 100 percent recycled old corrugated containers.

Hybrid materials also exist. Some CRB products may have a brown kraft back side, hence the term “coated kraft

back” (CKB), or a white layer of fiber on the back side. Mechanically pulped (ground wood) fibers may team up with chemically pulped fibers, and varying percentages of recycled fiber content are now seen with some of the grades.

Nonetheless, it is incumbent on package designers to understand the effect that these treatments may lend to the performance characteristics of the various grades. In every situation, adjustments must be made in the printing, cutting, creasing, gluing, and filling line conditions to optimize performance given a substrate substitution.

Primary North American suppliers of CKB include Graphic Packaging and WestRock. White back CRB is produced

by WestRock. Ground wood fibers are

employed in some products produced

by Tembec.

The choice of substrates can be summarized in a decision matrix as on the facing page, understanding that these are guidelines only. Creative license allows for some products to play the field; for example, bar soaps have been successfully packaged in all four materials, and sometimes utilizing the back side of a material as the outward-facing side opens up a new world of possibilities.

Dan Malenke is president of PKGPRO LLC. He may be reached at 334-703-2114 or pkgpro@hotmail.com.

This article was reprinted with permission. © Zumbiel Packaging.

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53

The Associate Advantage

HAVE A PLAN TO ADDRESS MACHINERY OBSOLESCENCE JEFF PALLINI FOSBER AMERICA VICE CHAIRMAN PALLINIJ@FOSBER.COM

ED GARGIULO EQUIPMENT FINANCE CORP. SECRETARY EGARGIULO@EFC-FINANCE.COM

DAVE BURGESS JB MACHINERY FIRST ALTERNATE DBURGESS@JBMACHINERY.COM

BRIAN KENTOPP BOBST NORTH AMERICA INC. IMMEDIATE PAST CHAIRMAN BRIAN.KENTOPP@BOBST.COM

KEITH R. UMLAUF THE HAIRE GROUP CHAIRMAN KUMLAUF@HAIREGROUP.COM

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BOXSCORE January/February 2016

A

s the new vice chair of the Associates Committee, I have the honor of writing this column. I have worked for Fosber America for 30 years, and my experience is primarily on capital equipment. My articles will attempt to provide information that I hope is helpful when addressing the capital equipment portion of your business.

I welcome feedback on this article and ideas for future ones.

Obsolescence has become a dirty word in our industry, as it has caused many converters to face unbudgeted costs and unnecessary downtime. It has also become increasingly difficult for the original equipment manufacturers (OEMs), as electrical and software components have a much shorter lifespan than in the past.

However, with the proper knowledge and planning, obsolescence can be managed to assure you have the highest-quality, most productive, and safest machine.

I am often asked about the expected life span of corrugated equipment. There is no good answer to this. There is machinery running that is 50-plus years old and still provides a quality product and meets present safety requirements. Likewise, there are machines less than 10 years old that struggle to do either. So, I guess the correct answer to the life expectancy of machinery is “the ability of it to provide a quality product at a competitive cost in a safe manner.” The best way to extend a machine’s life expectancy is to have a plan for obsolescence and consider value-added

upgrades. Here are some tips on how best to approach this: new machinery purchases, 1 With negotiate a minimum guaranteed period under which all components and software will be supported.

When buying new machinery, be sure 2 your supplier offers obsolescence and upgrade solutions as common practice.

Ask to see examples. a reference list from the OEM 3 ofRequest other customers with like machines so you may consider “sharing parts” or sourcing components together.

Have an annual audit done by the 4 OEM, and request a list of any upgrades addressing obsolescence, enhanced performance, or safety features. Note: Many OEMs do this automatically through annual technical tips.

When buying an upgrade, request a 5 minimum guarantee on that portion of the machine.

Keep the old parts. Often, the parts 6 that are removed may be usable on another machine in your facility or can be sold online. Note: Some vendors use the old parts as part of a discounting structure on the upgrade, so be sure to clarify this upfront.

if training is required. Normally 7 Ask upgrades to replace obsolescence are developed as interchangeable without required training; however, this is not always the case. Be sure to know this upfront so you do not experience extra training costs.

If buying a used machine from a 8 supplier other than the OEM, contact the OEM with the serial number, and ask what obsolescence issues may exist.

“The best way to extend a machine’s life expectancy is to have a plan for obsolescence and consider value-added upgrades.”

Let me finish by suggesting this: Suppliers in our corrugated and folding carton industry are committed to your success. The best way to protect yourself and the suppliers from the unknown is to have conversations about obsolescence on a regular basis. With proper planning, it should be something that you can put into

your five-year budget plan and eliminate any surprises or unnecessary downtime. I am not suggesting that you keep your machine 50 years, but I wouldn’t settle for 10 either.

Use these tips to get the most out of your machinery.

This article was written by Jeff Pallini.

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55

Financial Corner

GROWING PROFIT CENTERS

BY MITCHELL KLINGHER

T

he first decision you have to make in implementing the best system for your business is to determine what measurable profit centers exist. A key component to being able to become effective profit predictors is to organize your reporting process in a way that facilitates this.

Unfortunately, there is no “cookie-​ cutter” approach to this process. However, there are some general common-sense parameters that you can apply:

try to measure 1 Materiality—Don’t small endeavors unless you are poised to make them grow.

Allocations—Some allocations of 2 resources will be inevitable; don’t be afraid of them, and use the best information you have available. The key is to be consistent, because if you keep changing the methodology, it will be difficult to compare periods.

Architecture—The design of your 3 financial accounting system and your performance measurement systems must take into account the level of sophistication that your company is capable of and can afford, and these parameters must complement each other. Gathering statistics and data

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that are not used and cannot be easily related to your financial information is a waste of time. Conversely, capturing financial details that are not separately relevant is a waste of resources.

For most converters, maximizing the use of their capital assets is the key to maximizing profitability. A large subset of converters who do handwork, assembly, fulfillment, and other labor-intensive functions must maximize the use of their labor to ensure profitability. Most of you also engage in some form of “brokerage,” where you sell items that are manufactured by someone else. So, the first issue is to create a profit center for brokerage, a profit center for labor-intensive work, and a profit center for machine-intensive work.

Each of these profit centers will have some directly allocable overhead, and of course, there will be pools of overhead that cannot be directly allocated. Some of these pools of overhead rise to the level of identifiable cost centers (customer service, design, accounting, etc.), and some will simply be part of larger groups of costs (selling expenses, delivery expenses, general and administrative expenses, etc.).

The key to this reporting, then, lies in the level of detail within each of these broad categories. I have shown examples in previous articles of treating each machine center as a profit center. I have

also suggested using the various routings in the plant as a blueprint for profit center reporting. It may be that you have one flexo folder gluer in the plant, and almost nothing that is run on it goes anywhere else in the plant, so it makes sense to treat it as a profit center. It also may be that you have three flexo folder gluers in your plant, and you can run a large variety of orders on any one of them, depending on how busy your plant is. In that case you may want to combine those three pieces of equipment into one profit center. Many plants do a lot of point-of-purchase displays where a common machine routing is laminator, rotary die cutter, specialty folder gluer. There is no reason why that cannot be a profit center by itself as well.

There is no right answer to what the profit centers should be. However, once you decide on them, there is work to be done in the estimating system, the books of original entry, the general ledger, the financial reporting framework, and the plant data collection to make the reporting meaningful.

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

In Memoriam

GERALD ‘JERRY’ JACOB HIGGINBOTHAM NOVEMBER 5, 1948–DECEMBER 22, 2015

G

erald “Jerry” Jacob Higginbotham, 67, of Roanoke, Virginia, passed away peacefully at home, surrounded by family and loved ones, on Tuesday, December 22, 2015.

Higginbotham was born on November 5, 1948, in Savannah, Georgia, to the late Demah Jacob (DJ) and Harriett Rembe Higginbotham. He was also preceded in death by his father-in-law and mother-inlaw, Edward Calvin and Frances Almon Powell; his brother-in-law, John Edward Powell; and his sister-in-law, Frances Powell Dodd, all of Cullman, Alabama.

Higginbotham grew up in the Roanoke Valley, which he loved fondly, and was a graduate of Cave Spring High School. He played football and basketball and ran track throughout his high school career.

Higginbotham continued his love for football at Lees-McRae College and then at Samford University in Birmingham, Alabama. At Samford, he met many of his closest life friends and found the love of his life, Doris Jean Powell, whom he married on March 3, 1973.

Higginbotham’s parents and his brothers created and built their family business, Corrugated Container Corporation, where he was vice president of manufacturing. Their operation was established in 1963, and it has expanded to three locations beyond Roanoke, including Piney Flats, Tennessee; Winchester, Virginia; and Holly Springs, North Carolina.

Higginbotham’s love and passion for his family and work ran over into

his community life, where he was active in bettering the Roanoke Valley by supporting programs such as the Southwest Roanoke County Soccer Club, the Roanoke Symphony Orchestra, and Mill Mountain Theater. At the time of his death he was serving on the board of Foundation for Roanoke Valley.

Higginbotham was a member of Cave Spring Masonic Lodge No. 230, Roanoke Scottish Rite, and Kazim Shriners of Roanoke, Virginia.

Higginbotham was among the pioneers in the growth of youth soccer in southwest Roanoke County. Through his vision, planning, and tireless efforts, the Merriman Soccer Complex was built and has been enjoyed by countless youth soccer players.

Jerry Higginbotham is survived by his loving wife of 42 years, Doris Powell Higginbotham, and his three loving children, their spouses, and six grandchildren: Jacob Sloan and Rachel Higginbotham (Adalynn and Lillian) of Johnson City, Tennessee; Joseph Edward and Kelsey Higginbotham (Katelyn and Adelia) of Roanoke, Virginia; and Taylor and Lindsay Higginbotham Grist (Lyndon and Oliver) of Charlotte, North Carolina.

He is also survived by his brothers and numerous nieces and a nephew: Ronnie and Ella Higginbotham, David and Sonja Higginbotham, Paul and Martha Ann Higginbotham—all of Roanoke—and John and Shelly Higginbotham of Buchanan, Virginia. He is also survived

by his cousins Kathy French, Lincoln, Nebraska; Nancy Thompson, Rapid City, South Dakota; Jim Roshone, Pierre, South Dakota; and by his loving wife’s family.

The family would like to thank the many doctors and caregivers that Higginbotham has had over the past year: Blue Ridge Cancer Care, the orthopedic and palliative care units at Carilion Roanoke Memorial Hospital, Carilion Clinic Hospice Care, and At Home Caregivers.

The family suggests memorial gifts be made in Jerry’s memory to Foundation for Roanoke Valley, P.O. Box 1159, Roanoke, VA 24006.

BOXSCORE www.aiccbox.org

57

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

PACKAGING

CORRUGATED

F O U N D AT I O N

It was standing-room only for Michigan State and other visiting packaging and graphic design students in the teleconference broadcast auditorium. An additional 15–19 campuses and more than 300 students participate remotely each year in the two-hour interactive ICPF broadcast.

17TH ANNUAL CORRUGATED PACKAGING & DISPLAYS TELECONFERENCE This February, ICPF will conduct its 17th annual live Careers in Corrugated Packaging & Displays Teleconference.

An estimated 400–500 packaging, graphic design, marketing and sales, supply chain management, business, and other students and faculty from 17 colleges and universities are expected to participate. This event is not a webcast, but a live video conference utilizing professional WKAR TV personnel and TV broadcast equipment in the public television studios for two-way interactivity. Campuses that are planning to participate in this year’s teleconference include Appalachian State University, Bowling Green State University, California Polytechnic State University–Graphic Communications & Packaging, Clemson University– Graphic Communications & Packaging,

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BOXSCORE January/February 2016

past February in ICPF’s Student Dunwoody College of Technology, Dialogue Dinner and Teleconference.

Indiana State University, Illinois The co-moderators acquired their State University, Lewis-Clark State student internships through ICPF. College, Michigan State University, The panel presentation will be followed Millersville University, North Carolina by a round of live questions remotely A & T University, Rochester Institute directed to the panelists from each of of Technology, Rutgers University, University of Florida, University of Texas– the participating campuses.

The two-hour teleconference grand Arlington, University of Wisconsin–Stout, finale will include ICPF’s annual and Virginia Tech.

The topic, “The Business of Corrugated “Best of the Best” student design presentation competition. Three student Packaging & Display,” will be addressed teams from UT–A and University of

by Billy Medof (president of Corrugated Wisconsin–Stout that earlier placed Packaging at Georgia Pacific) and Guy in AICC’s 2015 design competition Sanders (vice president of packaging at will be tasked to show, tell, and sell Smurfit Kappa Bates). Co-moderators their winning entries by explaining the will include Maggie McGuire (Illinois objective, the research conducted, State) and Sarah Niezabytowski (MSU), design, and other background informawho served as student interns in the tion. The student teams will be competing corrugated packaging industry this for cash prizes. past summer and participated this

THANK YOU, PARTICIPANTS AND SPONSORS! ICPF also wishes to recognize Board Converting News, Container-Board. com, Corrugated Today, Mid-Atlantic Packaging, NV Publications, PPI Magazine, RISI, AICC, FBA, and other ICPF supporters for their assistance in promoting this annual fundraising event. Andy Pierson and Mary Donohue (Mid-Atlantic Packaging) served as this year’s co-chairs and were major contributors to the event’s growth in attendance.

ICPF additionally wishes to thank the participants and sponsors of the Texas Band and Bar Benefit for ICPF, which was conducted last September in Fort Worth. The event raised $10,000 for ICPF operations and was initiated, managed, and conducted by Harris

Packaging and AICC Region 4. The 11 event sponsors included Age Industries, American Carton, Georgia Pacific, Harris Packaging, JB Machinery, Leaman Container, Liberty Carton, Lone Star Corrugated, MarquipWardUnited, Pamarco Southern, and Smurfit Kappa.

To learn more about hosting an ICPF benefit/fundraiser, contact ICPF at info@ icpfbox.org, 703-549-8580, or visit www. careersincorrugated.org.

Richard Flaherty is president of the International Corrugated Packaging Foundation.

Photo by Annette Young, Pratt Industries

Holiday Weekend in New York and Texas Band and Bar Benefit ICPF wishes to thank the 2015 sponsors and those who participated in making the eighth annual Holiday Weekend in New York this past December the most successful to date. The event broke both the attendance and fundraising record of last year. Sponsors included Pratt Industries, which sponsored the Friday opening reception at The View; Equipment Finance Corporation and Kiwiplan, which sponsored the Saturday performance of the Christmas Spectacular at Radio City Music Hall; Bobst North America, which sponsored the Saturday reception and dinner at The Pulse at 45 Rockefeller Center; and Gerber Innovations, MarquipWardUnited, and Corrugated Technologies Inc., which sponsored ICPF’s surprise holiday gifts for participants. Additional sponsors included Mid-Atlantic Packaging, Smurfit Kappa, and Serenity Packaging.

Corporate participants included Akers Packaging, American Corrugated Machine Corp., Amtech/Futura, Bay Cities, Bergey’s Truck Center, Bobst North America, Corrugated Technologies Inc., Dicar Inc., Equipment Finance Corporation, Fosber America, Gerber Innovations, Green Bay Packaging, Greif, JB Machinery, J.M. Fry Printing Inks, KapStone Paper & Packaging, Kiwiplan, Kruger, Landaal Packaging, Latitude Machinery, MarquipWardUnited, Mid-Atlantic Packaging, Norampac, Packaging Corporation of America, Pratt Industries, Robert Mann Packaging, Serenity Packaging, Smurfit Kappa, Sound Packaging, StandFast Packaging, Sumter Packaging, Vanguard Packaging, WestRock, AICC, FBA, and ICCA.

High above the crowd that emerged due to the record warm weather, ICPF's Saturday reception and dinner provided views of the Rockefeller Center Ice Rink and New York's iconic Holiday Tree.

BOXSCORE www.aiccbox.org

59

The Final Score

A CLOSED DOOR REOPENED?

H

George Washington Middle School in Alexandria, Virginia, at one time the city’s high school, long ago planted a bush to close the door to what was once the school’s industrial education wing.

ere in Alexandria, Virginia, I have the good fortune to live close enough to AICC’s office to be able to walk there, and from time to time I do. On my route I pass George Washington Middle School, which at one time was the principal high school serving this small city. In one of the wings of the school there’s a beautiful old stone doorway, now blocked by a large bush, with the word “shop” inscribed above it. Not only is the word “shop” prominent in its art deco design, but along with it are carved the symbols of industry—gears, hammers, and compasses—the tools with which our great industrial might was built.

There was a time in our educational system when shop classes were a normal and valued part of our secondary education curriculum, so much so that they merited a dedicated and decorated entranceway. I took drafting and machine shop during my years at Sandusky High School, for example, and those of my classmates who chose to do so could elect an entire vocational education track for their four years, be it metalworking, welding, drafting, or machining.

Our industry offers opportunity, for our industry needs skilled workers like the ones who were able to enter their shop classes through that stone doorway long ago. Proof that skilled worker training in our industry is needed is the sold-out AICC Machine Maintenance Program that we sponsored in Chicago last June. We can also take cues from a couple of AICC members who have taken matters into their own hands: President Container Group in Middletown, New York, offers remedial mathematics and plant skills education for local graduates, with a promise of a job later when they pass the final exam. Acme Corrugated in Hatboro, Pennsylvania, works in the community to scout and teach high schoolers about the job opportunities available in their plants. These are admirable and needed initiatives, done as only independent entrepreneurs could do them.

Our industry’s fine educational foundation, the International Corrugated Packaging Foundation (ICPF), is making great strides at creating educational opportunities at four-year colleges and then placing these students in internships and full-time positions in member companies. This is excellent work. But plants need qualified maintenance people, electricians, machinists, and press operators just as much as they need designers and higher managers, and they are becoming harder and harder to find.

So, what’s the solution? How about AICC carving its own stone door with the word “shop” inscribed above it? Not in a physical sense, but symbolically, by developing an industry apprenticeship program—a structured program that members can use to recruit, train, and mentor high school graduates into skilled plant workers. To me, this is an exciting prospect, for we will be able to make a positive impact on a group of students overlooked in the rush to college, and provide members with the needed skills in the workers they need.

Let’s reopen that closed door. Let’s cut down that bush.

Steve Young President, AICC

60

BOXSCORE January/February 2016

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