May/ June 2016 AICC BoxScore

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2016 MEMBER BENEFIT ISSUE!

A PUBLICATION OF AICC—THE INDEPENDENT PACKAGING ASSOCIATION

May/June 2016 Volume 20, No. 3

BUILDING BENCH

STRENGTH PREPARING EMPLOYEES FOR LEADERSHIP POSITIONS

ALSO INSIDE Hiring Legal Immigrant Workers Optimize Anilox Roll Performance Large-Format Printing

TABLE OF CONTENTS COLUMNS

May/June 2016 • Volume 20, Issue 3

44 FEATURES

44 50

54

BUILDING BENCH STRENGTH Preparing employees for leadership positions HIRING LEGAL IMMIGRANT WORKERS Hiring immigrants can have big benefits, but employers must tread a fine line to stay compliant HOW TO OPTIMIZE THE PERFORMANCE OF YOUR ANILOX ROLLS Measure, clean, and maintain— it’s that simple

3

CHAIRMAN’S MESSAGE

4

SCORING BOXES

8

LEGISLATIVE REPORT

13

ASK RALPH

14

TACKLING TECH

16

THE HIDDEN FACTORY

18

LEAN LEARNINGS

20

LEADERSHIP

24

SUSTAINABILITY

64

THE ASSOCIATE ADVANTAGE

65

FINANCIAL CORNER

68

THE FINAL SCORE

DEPARTMENTS

50 54

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

26

MEMBERS MEETING

31

GOOD FOR BUSINESS

38

POINT OF VIEW

40

MEMBER PROFILE

58

FOLDING CARTON

66

ICPF UPDATE

This is our annual Member Benefit issue! Look for this seal throughout the book that calls out each of your exclusive AICC member benefits.

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.

WHETHER YOU NEED A RIGHTY OR LEFTY TO HIT ONE OUT OF THE PARK FOR YOU . . .

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

CHOOSE KLINGHER NADLER LLP FOR ALL OF YOUR ACCOUNTING, TAX AND FINANCIAL NEEDS

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 L. 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.org

“The Industry Experts” 580 Sylvan Avenue, Suite M-A Englewood Cliffs, NJ 07632 (201) 731-3025 Fax: (201) 731-3026 Info@Klinghernadler.Com

Chairman’s Message

WHAT DOES A ‘WINNER’ LOOK LIKE?

I

’m writing this on the morning after the Villanova Wildcats beat the North Carolina Tar Heels 77–74 in the NCAA championship game. Nothing beats being a part of a winning team—just ask the guys at Villanova. No one wants to lose; imagine how North Carolina feels. In fact, one of the most basic human desires is the desire to win.

It really doesn’t matter what is at stake—people are naturally competitive and want to win. All we need to know is what it takes to win at something—or what winning looks like—and let the games begin.

Just about a year ago I was introduced to a unique concept called “destination modeling,” and I learned of it at AICC’s 2015 Spring Meeting down in Naples. Destination modeling is part of a strategic agility program developed by Holly Green, CEO of The Human Factor, an organizational consulting and behavior firm in Denver. Holly Green was introduced to AICC and its members by our immediate past chairman, Greg Tucker of Bay Cities. When I learned more about this concept at AICC’s meeting, I signed up for an intense, yearlong program for Richmond Corrugated that is building a “destination model” of what our winning strategy looks like three years down the road. We are learning to identify what winning looks like for our organization. After we answered organizational questions like “Why do we exist?” (mission) and “How will we behave?” (values), we began describing in detail what winning looks like for our organization. Every company is different, but we’ve defined it in terms of dollar sales; square footage produced per man-hour; measurable waste reduction; customer satisfaction and retention; employee engagement and turnover; and profitability and shareholder value. Every person on our team is learning what a Richmond Corrugated “win” will look like in terms of these metrics, and how each of these relates to his or her specific job. Once everyone sees this, the organization is more likely to start chalking up the wins, because seeing is believing.

So, do you know what your “win” looks like? With Holly Green’s “Ready, Aim… Win!” program available to AICC members, you can identify it, model it, and write the road map to get there. This is another reason why I believe “winning” companies are part of AICC and all this association offers. In fact, AICC itself is developing its own “destination model” to become the very best association for its members and the industry. Holly has been working with AICC’s board of directors and staff to write this model and begin putting in the metrics to measure how we are succeeding at “winning.”

Good for AICC, and even better for us who are members.

Now that’s a win-win!

Mark Williams President and CEO, Richmond Corrugated Inc. Chairman, AICC

BOXSCORE www.aiccbox.org

3

Scoring Boxes

WHAT DO JOB STATISTICS REVEAL ABOUT OUR ECONOMY?

BY DICK STORAT

A

t precisely 8:30 a.m. Eastern time on the first Friday of each month, the U.S. Bureau of Labor Statistics (BLS) releases the most closely watched data about the U.S. economy—the number of jobs created during the past month.

Economic growth is created either by adding to the workforce or by the workforce operating more productively.

So, the total number of jobs added is a primary barometer of economic growth.

However, the economy is not like the universe—expanding uniformly in all directions. Rather, some sectors thrive and others wither, so the net sum of all sector contributions is the measure of economic advance.

Knowing something about job growth in various box-consuming sectors of the economy is vitally important to independent converters who want to position their business to take advantage of the most attractive market opportunities.

In this article, we will examine the March 2016 employment data by sector and selected industry detail. Primarily, we will examine the change in employment over the 12 months ending this March and learn where jobs have been created or eliminated over that trailing annual period.

The table on Page 6 contains some data that will be used for this analysis. This information and additional details are available to anyone who wants to delve into the statistics on the Bureau of Labor Statistics website, www.bls.gov.

At the end of March 2016, there were 143.8 million people employed in the United States, 3.7 million more than a year earlier. Eighty-five percent of them

4

BOXSCORE May/June 2016

“Knowing something about job growth in various box-consuming sectors of the economy is vitally important to independent converters who want to position their business to take advantage of the most attractive market opportunities.”

worked in the private sector. Employment is concentrated in the service sector of our economy. Even though the service sector accounts for about two-thirds of total consumption, it employs a larger 83.4 percent of the workforce. The goods-​ producing sector also lags in share of new jobs created during the past year. Even though it made up 16.2 percent of the workforce in March, only 13 percent of the new jobs created during the preceding 12 months were in the goods-producing sector. Mining and logging, including oil well drilling, lost 128,000 jobs during the past year, most of them in the energy industry.

On the other hand, the construction industry has been growing rapidly, adding 10.3 percent to its total payrolls during the year ending this March. Yet manufacturing, which makes up 10 percent of private-sector employment, added only 37,000 jobs during the past year, including a loss of 29,000 jobs in February. The entire manufacturing sector accounted for less than 1 percent of all new jobs

created in the United States during the last 12 months.

Even within the manufacturing sector where about 80 percent of boxes end up being filled, there is a large difference between employment changes in the durable and nondurable goods sectors. In the durable goods sector, employment decreased by 43,000 jobs last year, while the nondurable goods sector added 80,000 jobs, most of them in food production. According to the BLS, the paper and paper products industry—including corrugated box manufacturing—employed 373,000 people in March 2016 and had added 2,000 jobs during the prior 12 months.

The private service sector employed more than 100 million people in March 2016. During the 12 months ending in March, private-service sector employment rose by 3.5 percent, outpacing the 2.6 percent annual advance in total employment.

Largest individual sector gains during this annual period included retail sales

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Scoring Boxes Employees on Nonfarm Payrolls by Industry Sector and Selected Industry Detail INDUSTRY Total Nonfarm Total Private Goods-Producing Mining and Logging Construction Manufacturing Durable Goods Nondurable Goods Private Service-Providing Wholesale Trade Retail Trade Transportation and Warehousing Utilities Information Financial Activities Professional and Business Services Education and Health Services Educational Services Health Care and Social Assistance Health Care Leisure and Hospitality

Other Services

IN THOUSANDS MARCH 2016 (P) 143,774 121,692 19,683 720 6,672 12,291 7,701 4,590 102,009 5,920 15,942 4,859 566 2,774 8,227 20,042 22,539 3,517 19,022 15,420 15,461 5,679

CHANGE FROM: FEB. 2016 MARCH 2015 215 3,675 195 3,941 (4) 530 (12) (128) 37 621 (29) 37 (24) (43) (5) 80 199 3,411 6 88 48 637 (3) 100 — 12 1 44 15 190 33 809 51 566 7 (98) 44 664 37 537 40 862 8 102

Source: U.S. Bureau of Labor Statistics

(637,000 new jobs); professional and business services (809,000 new jobs); health care and social assistance (664,000 new jobs); jobs in eating and drinking establishments (up by 542,000); and the amusement, gambling, and recreation sector (189,000 new jobs).

Educational services experienced the largest single-sector decrease during this annual period. Private educational services employment decreased by 98,000, while state government education employment decreased by 150,000 jobs. Local government education jobs decreased by an additional 345,000 jobs, leading to a total U.S. education employment decrease of 593,000 jobs!

6

BOXSCORE May/June 2016

In the service sector, there were several categories where employment rose by more than 10 percent during the annual period ending this March: scenic and sightseeing transportation employment advanced by 14.7 percent; services for buildings and dwellings increased by 11.2 percent; and jobs in the amusement, gambling, and recreation area, including casinos, rose by 13.7 percent. In the goods-producing sector, only the construction sector posted a double-digit employment gain of 10.3 percent.

Lastly, taxpayers contributed to net growth in educational government employment. Federal, state, and local government employment excluding

education jobs rose by 229,000 during the 12 months ending in March, a 2.0 percent annual increase of taxpayer-​ funded employment.

All in all, it seems pretty certain that many more employees work to empty the corrugated containers that independent converters manufacture than are employed to fill them in the United States.

Dick Storat is president of Richard Storat & Associates.

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

Legislative Report

DoL AND EEOC CONTINUE ASSAULT ON LABOR RELATIONS

BY JOHN FORREY

E

arlier this spring, the Department of Labor (DoL) and Equal Employment Opportunity Commission (EEOC) gave us two more reasons why the business community can get so riled up against these two government agencies.

In March, the DoL put the final touches on its so-called “Persuader Rule” provisions modifying a 1959 law—the Labor Management Reporting and Disclosure Act (LMRDA)—that governs communications that employers may have with employees concerning union representation and contract negotiations.

In a move that the DoL says is designed to “increase transparency,” employers will now have to report the engagement of any outside labor relations consultants who may be brought in to advise them, even if these consultants have no direct contact with employees. Aside from the additional reporting burden, the rule is being called an “unwarranted” intrusion into the employer-employee relationship.

In a statement from the National Association of Manufacturers (NAM), President and CEO Jay Timmons

said, “This unwarranted action by the Department of Labor will further restrict employers’ ability to educate and inform employees on essential issues in the workplace. For small and medium-sized manufacturers especially, this ‘revision’ could silence employers for no good reason. ... The NAM will aggressively pursue legislative and legal action to overturn this dangerous, unnecessary rule.”

NAM’s Senior Vice President and General Counsel Linda Kelly also weighed in, saying NAM’s Manufacturers’ Center for Legal Action (MCLA) will challenge the rule in Arkansas. Kelly said, “The Department of Labor has violated manufacturers’ First Amendment rights and the Fifth Amendment’s due process clause by greatly restricting manufacturers’ ability to educate and inform their workforce.”

The EEOC action proposes to revise the Employer Information Report (EEO-1) to include collecting pay data from employers, including federal contractors, with 100 or more employees. This new data will assist the agency in identifying

“The Department of Labor has violated manufacturers’ First Amendment rights and the Fifth Amendment’s due process clause by greatly restricting manufacturers’ ability to educate and inform their workforce.”

— Linda Kelly, NAM’s senior vice president and general counsel

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BOXSCORE May/June 2016

possible pay discrimination and assist employers in promoting equal pay in their workplaces in accordance with the Lilly Ledbetter Fair Pay Act. Members of the public had only 60 days to submit comments.

Labor Attorney Steve Brown of Bressler, Amery & Ross, PC, writes in the online journal Law 360, “Once the EEOC starts gathering and analyzing this newly available pay data, we can expect to see a significant increase in both individual and class pay discrimination litigation.”

The NAM also weighed in, urging its manufacturer members to add their names to public comments.

According to NAM, the EEOC rule—if adopted—would impose a significant and unjustified burden on manufacturers with more than 100 employees, and would likely result in the collection of unreliable information by the EEOC and fail to safeguard the confidentiality of a company’s information.

So, here are two prime examples of government at work again, working against the business community. This is a message we will repeat at the upcoming AICC/FBA Washington Fly-In, and it’s the story we’ll continue to tell until Washington understands.

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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7

YEARS YOUNG

New Members

WELCOME, NEW MEMBERS! CACTUS CONTAINER L.C. BRIAN R. WEBBER JR. Owner 4645 W. Van Buren St. Phoenix, AZ 85043 Phone: 602-353-1380 Fax: 602-353-1381 Website: www.cactuscontainer.net Email: brian@cactuscontainer.net CARDBOARD CARTONS PTY LTD. LINDEN BARRY Managing Director 21 Galli Court Dandenong South, VIC 3175 Australia Phone: +61 3 9799 9333 Fax: +61 3 9799 9099 Website: www.cardboardcartons.com.au Email: linden.barry@cardboardcartons. com.au EFI G. SCOTT WOOD Senior Product Manager 6750 Dumbarton Circle Fremont, CA 94555 Phone: 650-357-3500 Website: www.efi.com Email: gscott.wood@gmail.com FIDELITY FIBER SOLUTIONS MICHAEL FIREMAN President P.O. Box 1564 Horsham, PA 19044 Phone: 215-639-6622 Email: michael@fidelityfiber.com

10

BOXSCORE May/June 2016

PHILIPP LITHOGRAPHING CO. STACY BUENING Executive Vice President/General Counsel 1960 Wisconsin Ave. Grafton, WI 53024 Phone: 262-377-1100 Fax: 262-377-6660 Website: www.philipplitho.com Email: stacyb@philipplitho.com

REGIO CORRUGADOS S.A. DE C.V. CESAR CANTU OMANA Director Humberto Lobo 9315 Parque Ind. Mitras 66000 García NLE Mexico Phone: +52 818-3810 902 Website: www.regiocorrugados.com.mx Email: ccantu@regiocorrudados.com.mx

L.D. DAVIS INDUSTRIES INC. TRIPP DAVIS President 1725 The Fairway Jenkintown, PA 19046 Phone: 800-883-6199 Fax: 215-886-7001 Website: www.lddavis.com Email: tdavis@lddavis.com

TOROSIAN TECH SERVICES THOMAS TOROSIAN President 930 10th St. Racine, WI 54303 Phone: 262-633-5133 Fax: 207-439-4870 Email: tomtorosian@aol.com

8 out of 10 general members say AICC has had a substantial, positive impact on their business.

“Eight years ago a fellow AICC member company approached us about an account that was opening operations in our region. After some investments and training, the account grew steadily becoming one of our three main customers. The contacts and networking at AICC add huge value to independents,� Marco Ferrara, Sultana, AICC Director at Large.

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DETERIORATION OF DOMESTIC RECOVER/RECYCLED FIBER

BY RALPH YOUNG

T

he Institute of Scrap Recycling Industries (www.isri.org) is prominent in setting standards for the classification of secondary fiber. It sets the definitions used by traders in the more than 50 million tons/year U.S. recovered paper market. Curbside collection over the last 15 years has grown and now accounts for 10–15 million tons of this total; now there are concerns about the quality of single-stream residential collection.

Double-lined kraft (DLK) clippings from box plants are very clean, and old corrugated containers (OCC) from supermarkets and big-box stores are excellent sources of fiber for recycled linerboard and recycled medium. However, 30 percent of our containerboard-bound fiber now comes from sources offshore, which package the goods we buy that are not manufactured in the United States. Since the United States grows the strongest fiber in the world, anything we add from outside sources has the opportunity for weakening our containerboard.

Now add to the above possibility the fiber contamination that could be introduced from newspapers, junk mail, magazines, printing and writing papers, and paperboard packaging. These are all different types of fibers and challenge the mechanical fiber-to-fiber bonding we prefer for the strongest containerboard grades. Our mills are able to reclaim and process fiber, but with more variations and poorer quality coming into our system, we may experience recycled components that are very different from one another.

Here is the exact wording from the Paper Stock Industries website and

specification document. The first one would be the addition of a new category of Old Corrugated Containers (OCC, grade B) and the second a change to the original one and all-inclusive category.

OCC grade B — Consists primarily of OCC and includes other brown grades of paper sorted from fiber collected typically, but not limited to, residential recycling programs. Includes domestic and offshore OCC (not limited as to percentage), grocery bags, boxboard cartons, and other household papers.

May contain up to 10 percent white or colored papers. Prohibitive materials may not exceed 1 percent (wax-coated, foil papers, other nonpaper material).

Out-throws plus prohibitives may not exceed 5 percent.

OCC — Consists of corrugated containers having liners of either test liner or kraft, the majority of which is made of U.S. domestic corrugated containers.

May contain a maximum of 30 percent offshore OCC. Prohibitive materials may not exceed 1 percent (wax-coated, foil papers, other nonpaper material.) Outthrows plus prohibitives may not exceed 5 percent.

So, what does all this mean to a combiner of linerboards and mediums, a converter of corrugated sheets, and a buyer of boxes that all look brown but may behave quite differently in the supply chain? Not every mill system and every paper machine has the ability to clean and prepare mixed fibers for processing into containerboards made from recycled fiber. There are instances where there is a lack of cleaning and sorting of recovered fiber, and the mill has to use “clean” double-lined kraft clippings from box

plants to avoid commingled waste and contamination from nonfiber products.

Even with all these concerns, we are still the preferred supplier to China, but that can change! I have often pointed members and associates to the container­ board grade structure as it exists in Europe. Long challenged by a declining quality of fiber for packaging for a variety of reasons, the containerboard producers agreed to several different qualities based on the Mullen/burst and stacking strength potential short column test—or what we know as STFI or cross-direction ring crush.

The five—yes five—quality levels based on performance are as follows: • Brown kraftliner • Test liner 1 • Test liner 2 • Test liner 3 • Test liner 4 Now, it may be that this classification is not completed based on fiber quality but may consider the levels of manufacturing sophistication at the individual mills. Some of this structuring is also based on a broader mix of corrugated products than what we experience here.

In other words, some applications may call for lower-quality containerboards.

Visit www.cepi-containerboard.org for more information.

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

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

BOXSCORE www.aiccbox.org

13

Tackling Tech

CHALLENGE FOR A NEW GENERATION

BY JOHN CLARK

E

14

lection years are a good time to look back to see where we have been. They also afford an opportune time to look forward and see what lies over the horizon. This exercise will examine the challenges facing a new manager entering a packaging plant for the first time.

to learn about estimating and scheduling were part of the curriculum, but more emphasis was placed on plant knowledge.

At the end of the day you could go home, and except for the occasional paperwork, leave your work life behind and enjoy time with your loved ones.

1968 U.S. population: 200 million Price of a gallon of gas: $0.34 U.S. president: Lyndon Johnson No. of female U.S. senators: 1 U.S. GNP: $4.62 trillion Unemployment rate: 3.7% Percent of world GNP: 42%

1992 U.S. population: 265 million Price of a gallon of gas: $1.75 U.S. president: George H.W. Bush No. of female U.S. senators: 3 U.S. GNP: $9.41 trillion Unemployment rate: 7.3% Percent of world GNP: 31%

This was a very good time for manufacturers. The car you drove was made by Ford or General Motors, your television was made by RCA or Zenith, and your clothes were made in textile mills that filled New England and the South. Almost everything consumed in the United States was made there, and the packaging containers required to ship these goods were made in plants from coast to coast.

Estimates and samples were all built by hand. More sophisticated companies had brought in adding machines to help speed up calculations, but we were still several years away from microchips and calculators. With gas at 34 cents a gallon and mostly local deliveries, logistics were something of an afterthought. Lead times were measured in weeks, and management structure was based on the shared experience of military service.

A new employee would spend most of their time learning how the plant functions, with particular attention paid to learning the machines and the manufacturing process. Periodic trips to the office

Just one generation later, the world had changed. A new crop of high-speed converting machines and specialty equipment allowed for wider breadth of designs and styles, and the introduction of sheet feeders allowed sheet plants to fight on an almost level playing field with their cousins that had their own corrugator.

Computer technology had become affordable, and plants replaced paper with computer monitors and packaging software solutions. Industry education was still based on understanding the plant, but as these new hires were younger and more proficient with computers, their day was shifting away from the plant and toward the office.

Gas prices had skyrocketed, and now most oil was coming from the Middle East, not the middle of Texas. Logistics were now an important part of the plant’s vocabulary, but few had the skill, tools, or knowledge to implement any kind of programs to reduce costs.

Now, at the end of the day, you took your portable car phone with you, and

BOXSCORE May/June 2016

you may have had a fax machine at home to receive time-sensitive documents.

2016 U.S. population: 320 million Price of a gallon of gas: $2.45 (down from a 2012 high of $3.80) U.S. president: Barack Obama No. of female U.S. senators: 20 U.S. GNP: $16.4 trillion Unemployment rate: 4.9% Percent of world GNP: 22% This new generation of packaging industry leaders will take lessons learned from other industries to drive out costs and increase profits. Logistics, for example, might borrow from companies such as Amazon and UPS, bringing transportation solutions to bear using traffic patterns, historical data, and customer incentives to keep the time and cost of transportation in check.

All this data will be in the cloud, accessible from mobile devices. Tying this all together will be increasingly sophisticated algorithms and analytics developed to ensure all the moving parts lead to increased ROI and profit.

And at the end of the day today, there really is no end of the day. You can be in instant contact with anyone nearly anywhere in the world. The old work day of 9 to 5 is long gone. Today’s manufacturing leader, possibly for the first time, will have to be more knowledgeable in the area of business, rather than running the plant.

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

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The Hidden Factory

THE PLANT TOUR

BY LES PICKERING

T

he plant tour has always been an excellent method of sharing the story of a company’s quality, but now more than ever it’s becoming an excellent differentiator between plants that offer commodity products.

For the simplicity of this article, let’s separate customers into two distinct types: unsophisticated and sophisticated.

The unsophisticated come to see products and equipment—not the work. The sophisticated customer knows that you can supply the product they need. They are coming to visit to see how the work is done. They are interested primarily in how you are undertaking the work and the processes that produce conforming product, and what happens when non­ conformance is found and processed.

Unsophisticated Tours Many facilities don’t handle tours efficiently or well, despite the numerous times they undertake them. For example, just one or two people may handle the tour, such as a sales manager or an owner.

Most times the tour leader sails right past the team members, sometimes skirting some parts of the facility they are not thoroughly familiar with. Another poor tour practice is falling prey to habit. The tour route is similar no matter who or how many are taking it, and conversation is used to bridge areas in the facility that

don’t look nice. Almost no interaction with team members is a typical trait.

Team members in the facility don’t know that a tour is scheduled. If the facility scrambles to clean up for tours, this is a telltale sign of unsophisticated methods and all but guarantees poor to average results from the tour. This method is exhausting for the person leading the tour and at times can lead to a lack of enthusiasm from both the tour guide and the participants.

Sophisticated Tours A well-constructed tour is all about showing primarily how the work is done, and secondly showing the processes that produce the products. Several team members participate to enhance the experience of the visitors. They explain processes within the areas that support quality, speed, and cost reductions. The tour leader’s role is to facilitate the visitors from tour area to tour area. At each tour stop there are clear processes to explain the differentiator to the competition, and each time the message is clear: See how the competition does it, and then see how we do it.

An Ideal Scenario To ensure your company or plant tour goes as smoothly as possible, be sure to take some of the following measures:

• The tour coordinator has communicated to all necessary people the reason for the visit and visitor details.

• A parking area is designated for the visitors.

• A welcome is ready for visitors who arrive in a timely manner.

• The meet-and-greets should not be overwhelming to the visitor(s).

• The tour route is adhered to.

As the tour enters a department, there should be a “customer landing area” where you can explain the characteristics of the department. Here, the tour coordinator hands off the visitors to team members within the department.

Finally, the greatest differentiator of a great tour—process explanation.

Anyone can purchase a machine; it’s the systems that support the process that make all the difference.

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

“If the facility scrambles to clean up for tours, this is a telltale sign of unsophisticated methods and all but guarantees poor to average results from the tour.”

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BOXSCORE May/June 2016

AICC’s Got Class

(es)

AICC’s Packaging University continues to expand the largest and most recognized curriculum of industry-specific webinars, forums, workshops and e-learning courses for independents in the Corrugated, Folding Carton and Rigid Box business. From Sales to Maintenance, Production Managers to CEO’s, AICC has comprehensive, targeted, training programs for all levels. Our instructors, both in and outside the paper and packaging industry, are respected and knowledgeable consultants with direct experience in the topic at hand.

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

Log on to the AICC Packaging University site at AICCbox.org, contact Taryn Pyle at tpyle@aiccbox.org or call 703.535.1391 to receive AICC’s new course catalog.

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Lean Learnings

THE FOUR FORMS OF VALUE

BY MIKE NUNN

A

ll too often, people confuse value with the finished product or service for which they’re willing to offer their resources or money. However, value is not completely defined by the finished product; instead, value is defined primarily by what went into making the finished product.

What are you willing to pay for? This is the million-dollar question that all businesses need to be asking themselves, and it is also one of the key questions at the heart of a lean journey. What are our customers willing to pay for?

To help explain value, I'll use a fast-food hamburger meal as an example.

Initially, people would say they’re willing to pay for the burger and fries presented on the tray or to go; however, there’s more to it. Are you will to pay for cooking the patty and fries? Of course you are. Are you willing to pay for them to put it together for you? Of course. But are you willing to pay for waiting in a line? Not me. Are you willing to pay for wrong orders? Nope.

In the eyes of a customer, 95 percent of your time is considered nonvalue. What?!

Why? As I said earlier, most customers confuse value with only getting a finished product or service; they just want the thing they ordered. When you know that value is defined by everything that

18

went into the finished product, then you can discuss the steps/resources needed to make the widget and how each adds value to the completed widget.

So, if value is defined by the customer, then we need to be sure we are always adding it. Moreover, we need to involve everyone in driving nonvalue tasks, costs, processes, and resources out of the business. There are more than just the two forms of value; value comes in four forms: Value — Things a customer is willing to pay for. In order for something to have value, progressive and value-added changes need to have taken place—it was done right the first time, and the customer was willing to pay for it. With an extreme example from the burger explanation, if a customer wants to assemble their own hamburger, then the step of someone assembling the burger for the customer would not be adding value for that customer.

Nonvalue — Things that are not necessary, absorb resources, prevent processes from flowing, and a customer is not willing to pay for. In lean, these are the various forms of waste and their presence in your business and processes. The forms of waste—as originally defined by Taiichi Ohno—are waiting, overproducing, overprocessing, transportation, motion, inventory, and defects. Unfortunately,

most forms of waste get “tucked under the rug” because it’s easy to ignore them and just assume that they’re part of your business. Defects usually get the spotlight because they are so easy to see, but I say all forms of waste are equally detrimental to your business. Learn the wastes, find them, and eliminate them. This is lean.

Business value — Things the customer probably doesn’t want to pay for, but you choose to do anyway because they are necessary for your business. These are usually the things that attract and retain employees—having a nice work environment, training and development plans, reward and recognition programs, etc. It is very important not to confuse business value with nonvalue.

Regulatory — Things you are required to do by bodies such as government, third-party auditors, and so on. One could argue that this form of value is the same as business value, but I like to break them out because these things are usually under external control from your business.

Business value, on the other hand, is completely within your circle of influence.

Now that you know of the forms of value, go looking for them. Where you find value, celebrate. Where you find nonvalue, eliminate. Where you find business value, make it flow. Where you find regulatory value, master it.

“What are you willing to pay for? This is the million-dollar question that all businesses need to be asking themselves, and it is also one of the key questions at the heart of a lean journey.”

Mike Nunn is vice president of operations at Ideon Packaging and is Lean Black Belt–certified.

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

BOXSCORE May/June 2016

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Leadership

AVOIDING PLAN B

BY SCOTT ELLIS, ED.D.

M

ost of my worst decisions start with the same phrase: “Oh, what the heck?” Many of these have occurred when planning how to attack a business problem. I huddle with the team to strategize, and before we have formed a real Plan A, I’ve grown impatient to get started on a project. I say, “Oh what the heck, let’s get started and see how it goes.” So, when we find ourselves dealing with unforeseen obstacles and consequences, I announce that it’s time to go to Plan B. Then we spend much of our time mopping up, crafting a plan, and restarting the project. The truth is that we would not be working on Plan B if we had created a solid Plan A. I have seen this pattern repeated more times than I would like to admit. The most poignant memory relates to a failed company. At the first meeting of the various groups that would be involved in

“Even a good plan needs revision.

As a wise general once said, ‘No plan survives first contact with the enemy.’” the green-field project, a key player suggested we begin by agreeing on a common purpose for the diverse group. The leader fired back immediately, “I’ll give you a mission statement—we attack at dawn, now let’s move on!” This leader forgot his military training and went on without a common purpose. This contributed to many activities that were not tied to a common goal that would serve the health of the company. Even a good plan needs revision. As a wise general once said, “No plan survives first contact with the enemy.” Failure to complete Plan A allows

and/or requires the parties involved to act independently.

In response to my own failures, and to those in which I have participated, I studied methods of planning to define a process that would be brief and effective.

The resulting planning tool is a series of questions that may be answered by a team in less than an hour. It is also thorough in that it addresses the goal of the project, the goals and strategy of the company, and the skills, resources, and methods to anticipate and avoid common failure paths. It is a path to a real Plan A

MAPP: Mission-Aligned People & Process Project Goal

Define success. What will the desired result of the project look like?

Key Measures

Tasking

What are the baseline measures?

Are unnecessary tasks eliminated?

Will the necessary information be available when needed?

What are the key dates and milestones for the project?

Are the key participants regularly available to each other?

What can we do to make it easy to do it right the first time?

Key Participants

Decision-making

What opportunity is provided for learning from internal customers?

How will progress be measured?

Who are the managers and opinion leaders we will need to cooperate with to achieve the goal?

Key Behaviors

What are the behaviors we need to encourage?

Are the tasks clear?

Do the participants have the authority to make the changes?

Will participation be mandatory?

Will noncompliance be subject to discipline?

Knowledge

Ability

Do people have the skills necessary to accomplish the tasks?

How will people receive the training needed?

What are the behaviors we should discourage?

DESIRED RESULT

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BOXSCORE May/June 2016

GUIDELINES

ACCOUNTABILITY

RESOURCES

Leadership

that I call “mission-aligned people and process” (MAPP).

Defining and Aligning The MAPP begins by prompting the team to clearly define the project goal in terms that describe what success will look like. Second, before we waste our time, we define the connection between the project goals and the goals and strategy of the company.

This is important for two reasons. First, if there is no connection, either the project goal or the company’s goals need adjustment. If there is no alignment, then the project will fail and should be abandoned. Second, if the project and company goals do align, then the team should communicate and report results in those terms. This will allow all departments to see the value and more readily share resources.

Once the desired results have been clearly defined and aligned, the team moves on to clarifying guidelines as to how progress will be measured, who should participate, and how they will communicate.

Accountability The team then decides how often they will check progress and assigns key tasks. They check to ensure that the participants have the required authority to make decisions about the project. Finally, they address the priority of this project in relation to the regular duties of the participants (e.g., if I have a hot order to get out, am I dismissed from participation?).

Resources Next, the team looks into the knowledge available to the group, as well as the abilities represented. Based on this, they

Motivation

What will motivate people to make the desired changes?

What will motivate people to resist the desired changes?

What will people lose by cooperating? How are they rewarded now?

How will exemplary participation be rewarded?

Creativity

Will innovative approaches be recognized and rewarded?

Will sufficient time to be allotted for problem-solving and planning?

REWARDS

Name the key parts of our mission and strategy that will be served by this project.

Is either the project goal or the company strategy in need of adjustment?

MISSION & STRATEGY

can draft experts with specific skills. They also may resource training specific to the task from vendors, local colleges, etc.

Rewards Lastly, the team discusses what will motivate people to make the desired changes. How will it benefit them in terms of making the job easier, faster, or of higher quality? Will the rewards be intrinsic, such as improved job security, or will there be recognition of exemplary behavior, or even financial incentives?

Creativity must also be addressed.

Innovative approaches are happening all the time, so the team must decide how they will capture and reward these ideas. They will need to provide both the time and the communi­cation path to allow busy people to suggest improvements, and then recognize and appreciate them for doing so.

The MAPP tool has been very useful in quick and systematic project planning that avoids the expense and hassle of going to Plan B. Making a habit of constructing a solid Plan A has saved me time, hassle, do-overs, and the embarrassment that comes when I avoid my own advice. Plan ahead!

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.

An e-learning module on project planning with use of the MAPP was recently added to AICC’s Packaging University curriculum, where its use is described in detail. Visit www.aiccbox.org/aicc/packaging_university.

BOXSCORE www.aiccbox.org

21

Sustainability

TEMPERATURE, TIME-TESTING PROVES CORRUGATION PROCESS DESTROYS BACTERIA

BY DENNIS COLLEY

F

oodborne illness is an escalating problem, with outbreaks making news on a more frequent basis. Often, the infections are traced back to contaminated protein products or fresh produce. Much effort is going toward identifying the sources of contamination and preventing bacteria from multiplying along the way to store shelves. This important public health issue commands attention and diligence from all parties in the food supply chain, including food packagers and shippers as well as producers and retailers.

The containers used to ship food products are just one link in the chain that should be evaluated for cleanliness to prevent the spread of disease. The good news is, studies are proving that packaging in single-use, recyclable corrugated containers is a cleaner, safer way to go.

Last year, third-party testing and analysis confirmed the cleanliness of corrugated containers in the field1. Now, new research has shown that the corrugated manufacturing process is sufficient to destroy common food pathogens, effectively meeting the U.S. Environmental

Protection Agency’s (EPA) requirements for chemical sanitizers.

The new laboratory research, conducted

by NSF International under the direction of Maryann Sanders, senior regulatory specialist and microbiologist at Haley & Aldrich Inc., and sponsored by the Corrugated Packaging Alliance (CPA), evaluated both temperature and time to determine whether typical corrugated manufacturing processes, which combine a fluted or arched layer of paper sandwiched between two smooth layers, were sufficient for sanitization.

The analysis employed a temperature and time profile representative of manufacturing practices in which linerboard reaches temperatures of 180 to 200 degrees Fahrenheit for approximately nine seconds. Under these conditions, linerboard contaminated with a cocktail of various thermotolerant organisms, including both E. coli and Salmonella spp., reached the specified temperature for the identified time, resulting in a 5-log reduction in organisms present on the liner surface, effectively meeting the EPA’s defined requirement for sanitization.

“This research confirms what we have known for decades. The corrugation process has sufficient temperatures and dwell time to kill microbes.”

24

BOXSCORE May/June 2016

1

This research confirms what we have known for decades. The corrugation process has sufficient temperatures and dwell time to kill microbes. Clean boxes have been consistently verified at box plants and at customer locations.

This study is the latest in a line of both field- and laboratory-based research studies performed over the last several years demonstrating the cleanliness of single-use corrugated packaging. A study conducted from 2010 to 2014 showed that more than 400 microbiological test results collected from 40 paper and box facilities all met acceptable standards for clean packaging. Another study released in February 2015 revealed that 100 percent of corrugated boxes from six different box suppliers tested at six different customer locations in three different U.S. regions met standards for clean packaging.

We stand by our conviction: Corrugated packaging is the safest container for shipping food products to help prevent illness. For more information about the cleanliness of corrugated packaging, 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.

Study commissioned by the Corrugated Packaging Alliance and conducted by the University of California–Davis and toxicology experts Haley & Aldrich.

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Members Meeting

2016 CEO FORUM

BY TARYN PYLE

Steve Young set the stage for the forum with his information on trends affecting packaging.

T

he AICC inaugural CEO Forum, held in conjunction with the 2016 Spring National Meeting, was an incredible success by every definition. The projected numbers of attendance were easily surpassed, cementing the thought process behind the program’s creation.

We all possess an innate desire to share challenges with our peers. This can be to solicit their input and advice or simply to swap war stories to affirm we’re not alone in the challenges we face. As owners, it can be easy to fall prey to the trap of routine behaviors. We rely on these familiar behaviors, as they helped formulate the successful companies we have today.

Questioning these behaviors and exhibiting a willingness to explore new terrain can be difficult. The participants of this initial forum stood against this allure of the known to actively engage in conversations focused on the present and the future, not history. They considered

26

BOXSCORE May/June 2016

new perspectives regarding business challenges we all face and the methods we can use in developing the solutions. They demonstrated their dedication to continual improvement both in their companies and as leaders of their organizations.

We appreciate their participation and feedback and applaud their desire and commitment to seek new ways to grow and improve their operations.

There are many nuances to running a successful business. In this inaugural session, the agenda and speakers were selected to highlight five key areas impacting companies today.

and footage of industry shipments and changes to the number of plants producing this material on both the independent and the integrated side. He was able to further break down these segments to identify current market share and trends happening with the independents, including several acquisitions that have occurred in just the past few years. Young provided the group with a breakdown of end-use markets and growth potential, with a detailed profile of trends in the food and beverage segment. This served as a great opening to the inaugural forum outlining why it’s imperative to stay abreast of industry news, market trends, and technology advancements.

Trends Affecting Packaging — Steve Young, president, AICC Steve Young shared hard data regarding the state of the industry, including current and historical information on dollars

Financial Focus — Mitch Klingher, partner, Klingher Nadler LLP It’s easy to become overwhelmed with the oversaturation of data, and it can be difficult to discern which numbers give

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Members Meeting

us the necessary insight into the real status of our company. Mitch Klingher broke this down into an easy-to-digest methodology by explaining the benefits of moving from the historical cost-plus estimating method into one more applicable to today’s competitive market. He challenged this forward-thinking group to work with their own financial team to update the reports they use in analyzing their results. He stressed the importance of understanding your number and formatting the documents into usable and actionable information, rather than simply maintaining the reporting model originally built into your software.

Operations Assessments — Scott Ellis, partner, P 2 One of the most important areas of operating a manufacturing plant is a continual focus on improving efficiency and reducing waste. This segment outlined the process of benchmarking operations by rating them against the world’s best manufacturers. Defining waste as “anything your customer would not gladly pay for, were you to bill for it separately,” Scott Ellis shared with the group details on several different aspects of analyzing your own operation.

Gary Brewer of Package Crafters generously shared his own experience with Ellis—the assessment tools, processes, and the subsequent plan he built utilizing the data uncovered.

Emerging Technologies — Tom Anderson, partner, P 2 One of the biggest changes happening in the industry is the advancement in digital print technology. Utilizing this as an example, Tom Anderson shared the factors to consider in the decision-making process of when and how to invest in the ever evolving technology surrounding us. This segment gave us an in-depth exploration of key areas to consider and questions to ask regarding the internal and external realities and well-thoughtout predictions involved in making the investment. The digital print example allowed the group to walk through this cost-benefit predictive model and gain a full understanding of the impact it has on the decision-making process.

Convergent Sales — Kim Brown, founder, Corrugated Strategies Your blood, sweat, and tears built a successful company, and now new market conditions, technology, and younger generations of buyers and employees are impacting your growth and your margins. The follow-the-leader pattern forcing price wars is not sustainable.

These changes compel us to create a new sales strategy. Kim Brown shared new perspectives and methods for developing an effective approach to the market. She demonstrated ways to identify your target audience, craft a differentiating message, get noticed by prospects, build a solid market presence, and eliminate

“The participants of this initial forum stood against this allure of the known to actively engage in conversations focused on the present and the future, not history.”

28

BOXSCORE May/June 2016

the challenges of finding that elusive next sales hunter.

Key Takeaways The participants in the inaugural CEO Forum came away with relevant and current data and methods to analyze and implement within their own operations.

Each attendee received copies of each of the presentations. This binder provided the perfect location for detailing comments, making relevant notes on each section as it related to their unique operation, and creating action items to implement upon return to the office.

In addition to the presentations, the binder contained a few bonus takeaways for the attendees. Ellis included two assessment tools the group could take back and use to grade their internal operations. With these tools, they will be able to gather the necessary data and create action items to improve their operational efficiencies.

Brown shared her Sales Training Departmental Outline. She explained that most companies send their new sales­people on an internal training tour through each department of their operation, often without either side understanding the key takeaways for the trainee. She created this document to serve as a checklist for both the sales­ person and the departmental trainer to use in ensuring the key components relating to their future function and success are thoroughly covered.

The comments heard from both the attendees and the presenters reinforced that this was only the first in a lengthy future for this program. Stay tuned for the next chapter in this exciting new venture.

Taryn Pyle is the director of marketing and communications for AICC.

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GOOD FOR BUSINESS

AICC TOOLBOX ................................................ 31 EMERGING LEADER ..................................... 32 AICC INNOVATION ........................................ 36

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 issues 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 to recruit and retain employees. Do you need to know the best ways to attract and train employees to increase your employee 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 formats 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.

Did you know AICC collects monthly containerboard pricing information in the Linerboard and Medium Weighted Average Purchase Prices survey? You can have access to this information if you participate in the survey. The identity of the

participants and all data supplied is kept confidential. Individual company data is destroyed within the month following the calculation of weighted average purchase prices. If you want to participate or learn more, email us at info@aiccbox.org.

To access some of this information you will have to log in to the AICC website.

If you don’t know your password or haven’t created one since the new website launched in September, you will have to reset your password: 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 set your password. You may need to copy and paste the link into your browser.

BOXSCORE www.aiccbox.org

31

Good for Business

EMERGING LEADER

AICC Wields the Power of Networking

BY BILL KURTZ

N

etworking is a vague term that encompasses a broad topic. Ask five people to define networking, and you could very well end up with five different answers. Search online, and you can have 546 million results in front of you in 0.63 seconds. What would happen if you narrowed your search by including AICC? While you may be looking at a relatively slim 67,000 results now, it would be difficult to find one that dutifully explains how central networking is to AICC’s core.

While my time as a member of AICC is merely a fraction compared to the majority of its members, it has become clear just how important AICC is to networking within our industry. It is a common theme that independents must work together. In order to compete with the major integrated players, partnerships form to complement each other’s strengths. Few stages give better introductions for this than both the regional and national meetings. On multiple occasions I have witnessed or taken part in conversations about how one plant’s capabilities can create solutions to another’s hurdles. Issues are not limited to material. Opportunities come up for

“On multiple occasions I have witnessed or taken part in conversations about how one plant’s capabilities can create solutions to another’s hurdles.”

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BOXSCORE May/June 2016

many perspectives to be played out on issues. Everything ranging from ways to grow teams to increasing production efficiency is discussed. Dealing with members at every stage of their careers provides unique insight into many of these issues. This is not your normal extra set of eyes helping out—it is a group of well-versed individuals willing to lend a hand. Many times what’s discovered is that in almost any situation, someone, somewhere has dealt with that challenge previously and has either addressed it or is in the process of doing so.

A shift in the generational winds is happening before our eyes. As of a few years ago, a group of upcoming leaders was introduced to this network of professionals. Young in age and diverse in backgrounds, the Emerging Leaders (EL) group—of which I am very gratefully a member—started under Mark Mathes’ watch. All at different places in our careers, with varied levels of leadership, we were invited to take a seat at the adult table. Having such a diverse mix

Good for Business “Having the opportunity to learn from peers who have been in your situation before, building long-lasting personal and professional connections, understanding how high-level relationships address industry-specific issues—these are the invaluable pieces that are provided by AICC.” of experience between the newly minted EL group and the existing members provides an amazing position from which to jump-start the future growth of this industry. We’ve been gifted the opportunity to observe where many projects begin and granted the ability to involve ourselves in those conversations. Not to mention, ELs are given the responsibility to see these plans through. These are the seeds that the industry needs to continue to plant in order to ensure its continued growth.

Growth will take time. Names and faces will change. Technology will surpass our wildest dreams. Markets and customers’ needs will evolve as an effect.

Processes and procedures will need to be tweaked, and sales and marketing plans all built or rebuilt around these changes.

Many of these topics are covered in one of the most helpful resources that AICC has presented us with. Many of the conferences and regional meetings have different workshops that provide members with the opportunity to continue our search for knowledge. While some of these timeless pieces have been passed to us by those who have come before, many messages need to be tailored. Ranging from different accounting approaches to techniques on improving production results, these workshops can help bring many minds together on the same topics.

Even more importantly, many of these workshops explain the topics at multiple depth levels so all members of the EL group can grasp the curriculum.

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BOXSCORE May/June 2016

As workshop leaders talk about the subjects, attendees are always involved.

Ideas are built up. Potential issues are addressed. Bar napkin scribbles are turned into real-time opportunities.

Although it may not be a main takeaway, many of these workshops provide insight into peers who are interested in the same areas, again building up the network. As these continue and more ideas are worked through and brainstormed, not only are problems solved, but opportunities also appear.

All of this networking is for naught if nothing is done with the connections made. Over the last three years, the network that I’m a piece of inevitably has grown. Benefits are already beginning to manifest on all different levels. Learning which contact’s expertise helps in each scenario becomes easier, as we’ve all become more familiar with each other.

Having someone to reach out to for ideas to help out in a sticky situation is always a good thing. As the small benefits grow, the larger, more visible benefits do as well. More direct partnerships start to emerge as needs arise and contacts fill the gap. Regardless of issue, or even if you cannot help directly, being able to turn to a source within your network shows the value of AICC. As much as technology continues to change our industry, this is one aspect that I feel will never be fully replaced.

Social media may change the way we engage on a personal or professional level, but nothing can replace face-to-face

interaction. Having the opportunity to learn from peers who have been in your situation before, building long-lasting personal and professional connections, understanding how high-level relationships address industry-specific issues—these are the invaluable pieces that are provided by AICC. Most importantly, these connections that are made are not just careerlong, but lifelong. Building these connections is not always a situation of instant gratification. Seeing some of these relationships that have grown from casual acquaintances to integrated business partnerships shows that this industry has a proven formula that AICC is an integral part of. After my first National Conference, an acquaintance asked me if I took anything away from the experience, their inflection showing their position on the matter.

Without a doubt, I was able to say that not only did I take away more than I thought I could from an individual conference, but I saw the endless possible benefits of the network that AICC had so kindly laid out. That value, that ability to grow within the industry, to add to a network, is what makes me value my membership within AICC. Bill Kurtz is a sales representative at Independence Corrugated. He may be reached at wkurtz@ independencecorr.com.

Good for Business

AICC NNOVATION Get Educated!

BY VIRGINIA HUMPHREY

R

ecent studies show that offering professional development to employees increases retention and productivity. AICC members are taking this advice seriously. We have seen record numbers of attendees at educational seminars and webinars. In the first quarter alone, AICC has offered four seminars on topics such as fundamentals of folding carton and corrugated, finance, and sales. As many as 115 people have come from across the country to bring this education back to their plants. We have seen two of the seminars sell out— so register early!—and several upcoming

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seminars are trending toward a sellout crowd as well.

We have also offered five webinars on hazmat, safety audits, maintenance, design, and conflict resolution, with 71 companies participating.

Additionally, more than 50 AICC Emerging Leaders learned leadership lessons from the past during the Spring Meeting from author Bob Welsh, as well as acquisition strategies from Tom Andersen, P2. In June, Emerging Leaders will also come together in Richmond for the Chairman’s Field Trip, hosted by AICC Chairman Mark Williams and sponsored by AICC Region 8. Leaders will tour Richmond Corrugated, WestRock, and Altria,

and then participate in an interactive day of learning focused on the “Unwritten Rules of Leadership,” facilitated by Scott Ellis, P2, and “Leading Beyond ‘Good Enough’” by Ryan Chappell, Business Connections. AICC is preparing your next generation of leaders to thrive in the packaging industry.

To grow your employees and grow your business, help your team get the education they need. See all of our upcoming events at www.aiccbox.org/calendar.

Virginia Humphrey is AICC’s director of membership.

Point of View

Q

What measures, practices, or programs does your company have in place to build a close-knit team?

How do you build a team that’s unified, and how do you maintain it?

Wow! All I can say is that this is quite an interesting topic and something that we have discovered may have been neglected for a while—but no more!

At Advantzware, we have brought in a new team of experienced, career-oriented people and have challenged our existing staff to get better every day. This process of evaluation and communication has allowed us to quickly build cohesion throughout our company and allowed us to change some processes and procedures that we have had in place, but they may not have been as formal and documented as they are now. Advantzware has been in business for 25 years, with President Joe Hentz leading our company in multiple roles.

We have now recruited from the best companies in the industry, including EFI, Ricoh, and others, to build a great team that is fixated on the long term and total customer focus. Our new team is built upon the simple motto of “Customers first.

Customers for life.” This is how we rallied our team to think differently and made sure everything we do is focused on

providing our customers with the best solution and customer service in the industry. This simple change in our focus and strategy has allowed our entire company to rally around a single goal and empowered every employee at every level to take action and quickly help a customer, no matter what the issue may be. A focused employee and management team is what we hope will continue to allow us to jell as a group of people and employees, to become a true partner for our customers. We believe in that focus, and our people are determined to deliver on that motto, not just in words, but in actions—follow-up and delivery such that we hear from our wonderful customers that we have been exceeding their expectations.

We hope to maintain this high level of partnership with a combination of customer surveys, direct management contact visits, customer service happiness ratings, and customer feedback to make sure that we are listening to our customers and stay focused on their needs every day. We are not done improving, but we are continuing to get better every day!

— Jay Farr, CEO and partner, Advantzware

July/August Point of View: What are the most common problems you notice in a plant?

What are some simple ways to resolve them?

Please send all responses to BoxScore@theYGSgroup.com.

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BOXSCORE May/June 2016

I dismantled our “management” team and implemented a “leadership” team. We did this in preparation for our enrollment in The Human Factor strategic planning process with Holly Green. We are six months in, and our entire team is jelling better than ever before. By emphasizing leadership development rather than management, we have engaged all employees in a more effective manner.

Communicating to all employees using many different vehicles and on a constant basis has also contributed to the jelling effect.

And finally, we set a goal of having every employee volunteer to be on a “team”—we set up many opportunities—in order to utilize their unique skills, education, and training. This goal was met within one month of its announcement! — Kim Nelson, CEO, Royal Containers Ltd.

At Fosber: 1) We have quarterly manager meetings, which are offsite to allow all departments to give updates and discuss any issues. We invite a professional speaker for a portion of the day. We also have some social activity so everyone can have a little fun together. 2) We have a charity luncheon once a quarter where everyone prepares and cooks lunch, which we serve to local businesses. All proceeds go to the specific charity. It’s typically someone connected to Fosber who is struggling with a hardship. 3) We have a monthly company meeting where all financials and updates are shared for all to review and have a Q&A session. This keeps everyone on the same page. Teams “jell” when they feel involved and heard; also, when fairness rules. — Jeff Pallini, president, Fosber America Inc.

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BOXSCORE www.aiccbox.org

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Member Profile

WISCONSIN PACKAGING COMPANY: Wisconsin Packaging ESTABLISHED: 1986 JOINED AICC: 1989 PHONE: 920-563-9363 WEBSITE: www.wisconsinpackaging.com LOCATION: Fort Atkinson, Wisconsin

T

he story of Wisconsin Packaging begins back in 1986, when a discussion with one of its customers prompted the simple question, “Ya wanna start your own box plant?” With the ball now rolling and the momentum building, President Fred Negus Jr. and his father, Fred Sr., chose to answer this simple question with a resounding “yes.”

Knowing making their dream a reality would prove much more challenging than the customer’s simple idea, these two gentlemen made a commitment to create and build this new business on a foundation that emphasized solid relationships—with their customers, their employees, their suppliers, their market, and even their environment.

Never losing sight of this focus, the family-owned business continues to thrive on this same philosophy.

The varied and extensive list of stateof-the-art manufacturing equipment that

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BOXSCORE May/June 2016

fills the Wisconsin Packaging facility today was once only a shared vision of these company founders. This vision, now realized, is quite a departure from their humble beginnings with a 30,000-squarefoot building full of used equipment. But even then they understood the connection between reinvestment and growth.

Within just eight short years, the Neguses had already more than doubled their manufacturing space and were able to purchase their first new piece of equipment—a two-color rotary die cutter. With their relationship philosophy successful and standing on solid ground, two years later they outgrew their available space and built a brand-new 85,000-square-foot facility. Today, this 148,000-square-foot plant is home to an impressive and varied list of manufacturing capabilities.

The business philosophy of Fred Jr. and Fred Sr. is to always reinvest in your

company, and that your growth should extend well beyond the plant floor and equipment. It guides them in all they do.

There are physical displays of this philosophy, such as the state-of-the-art design lab boasting two cad tables, or the addition of another 50,000 square feet for warehousing and an in-house ink kitchen.

There are certifications, such as their superior rating from AIB International or their environmental pledge and affiliation with the Sustainable Forestry Initiative, that further demonstrate this investment philosophy and continual commitment to their customers. There are programs they’ve undertaken to continually improve their performance and productivity, such as the lean manufacturing process back in 2006. To the people of Wisconsin Packaging, these weren’t just words on paper or something to add to a website; the dedication to the process

During the recent AICC Machine Mastery Seminar, taught using the Flexo Folder Gluer and Rotary Diecutter in an AICC member plant, attendees were put in pairs and tasked with finding lost revenue.

Each team presented their findings to the host’s plant manager, general manager, CFO and production team. At the end of the presentations, the group had found $800,000 that could be added the company’s bottom line with less than $15,000 in needed repair and expenses.

Member Profile

is evident in the resulting 40 percent improvement in productivity.

As impressive as the vast array of equipment, the various certifications, affiliations, and programs are, perhaps none equals the commitment they have to their team. The relationship emphasis used to found this impressive company was not exclusive to their external customers or suppliers. The Neguses believed then, as they still do today, that their people are the driving force behind their success. A whopping 100-plus years of combined corrugated experience provides evidence of the longevity of these relationships.

Described as “filling the bench,” there remains a continual belief in cross-training and exploring new designs of employee roles and structures that are often simply mimicked in a box plant. The care, trust, and mutual

respect of the Wisconsin Packaging team is evident in the laughter and fun they share. Its management team believes the company’s future success lies with being better and faster than last year, and they know they have the skilled bench to make that a reality.

Everyone understands the guiding philosophies behind their behavior and decision-making, the commitment to their customers, and the willingness to reinvest in the company and its future.

Wisconsin Packaging’s focus is on great service—a quick response with a quality product, and delivered on time. Many companies strive for these same goals. The team at Wisconsin Packaging works together to accomplish them with the guiding principle to have every customer say, “You’re always the first person I think of for my packaging

needs.” Trustworthy, reliable, and consistently great service, all combined with the understanding that it’s important to have fun with your customers, ensures that Wisconsin Packaging will be hearing this statement for many years to come.

The Wisconsin Packaging business philosophy remains centered on the importance of solid relationships.

The Neguses’ vision and strategy to continually reinvest in their company and their future cements their path forward, positioning the company perfectly for continued growth and long-term success. im Brown is the founder K of Corrugated Strategies.

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

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BOXSCORE May/June 2016

AICC’s Packaging University doesn’t have a Marching Band, a Mascot, Fraternities, Cheerleaders, or a Football Team.

What we do have is

Corrugated Basics, Safety Basics, Communication for Coaches, Overall Equipment Effectiveness (OEE), How to Read a Balance Sheet, Basic Printing for Corrugated, New Product Development, and Accounts Receiveable and Cash

the only industry-specific, online training courses designed for you and your employees.

on!

Coming So

Flexographic Print Basics, Keeping Score: Understanding Financial Statements, and Maintenance Budgeting

To find out how to get your employees to the top of the class at AICC’s Packaging University, log on to the AICC Packaging University site at AICCbox.org, contact Taryn Pyle at tpyle@aiccbox.org or call 703.535.1391.

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BUILDING BENCH

STRENGTH Preparing employees for leadership positions

BY LIN GRENSING-POPHAL

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BOXSCORE May/June 2016

T

he employment landscape has been shifting over the past few years as the economy begins to show signs of improvement and the baby boomers, as anticipated, begin retiring in large numbers. Box manufacturers, like businesses in other industries, are finding themselves challenged to maintain a strong bench of talent not only to meet current needs, but also to ensure future productivity and success. One good source of potential leaders: employees already on their payrolls. These are the employees who, with the right training, support, and opportunities, will rise into leadership positions in the future. Finding, keeping, and developing them, though, can be a challenge.

BOXSCORE www.aiccbox.org

45

Richard Goldberg is vice president of operations with President Container Group, with production facilities in Middletown, New York. “Staffing and retention are our biggest challenges,” he says. But, he adds: “We believe our training, tracking, and qualification system is a best practice. We gained a lot of practice in hiring early on, initially bringing on 160 people.” The company tailors each training program to the position description and needs of the employee.

Some programs are 30 days; others are 60 days or more. They cover safety and manufacturing skills, concluding with an oral exam and practical test.

turnover has not been a significant issue.

However, he says, hiring can take focus away from critical production activities.

At Rusken, many employees are initially brought on board as part-timers on a temporary basis. Rusken works with a third-party firm to help find and select these employees. “Our practices give us a chance to test them out before offering full-time positions,” Marino says. An HR manager works with the third-party agency to further refine the exact skills needed by potential hires. Rusken also hires college interns to introduce and expose students to the industry.

“We don’t seek out any particular

“Understanding current perceptions and providing opportunities to get a real-world perspective on what manufacturing actually entails can help to change misconceptions.”

Once the training is complete, “the employee is in a position to be able to grow because they have the basics,” Goldberg says. “Then, we continue to work with them through mentoring and interaction with senior staff. Over time, they can truly call themselves a boxmaker.” Goldberg believes the company’s training program, which emerged after startup hiring and restaffing resulting from moving the production facility to New York, is first-rate.

Other facilities have found that the ability to work with staff on a temporary basis can help to ease some of the anxiety that comes with making any new hire.

Testing Them Out Gene Marino is executive vice president of Rusken Packaging, Inc., in Cullman, Alabama. At Rusken, says Marino,

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majors, but we want to give energetic college students a taste of the industry,” Marino says. That taste of the business includes having the interns work on equipment efficiency studies to get comfortable working with managers, software, and reporting, he adds.

Goldberg also works with a local high school’s technology classes to introduce students to manufacturing, engineering, design, and the corrugated container industry. “We make it fun,” Goldberg says, noting that the students use corrugated materials to design a surfboard and sled, for example.

At local high school job fairs, Goldberg helps graduating students sign up for upcoming interviews. “As we work with potential employees, we try to instill a sense of patience,” Goldberg says.

“Sometimes they don’t understand the

concept of ‘paying your dues’ before you can advance. We try to help them realize that in our business, you start out in jobs requiring a lot of labor before you can gain the skills necessary to move into positions that require less labor and more brainpower.”

President Container Group also takes advantage of talent available through local schools to help with staffing.

Appealing to these younger generations is an important area of focus.

Appealing to a Younger Generation Cheryl Wheeler is director of employee relations with The StandFast Group in Carol Stream, Illinois. As baby boomer employees begin to retire, one of the challenges that faces any organization is attracting younger generations. Educating young people about manufacturing is a great place to start, says Wheeler. “We work closely with an organization in the area that helps young people with career planning. When we meet with them, the first question we ask them is, ‘What do you think of when you think of manufacturing?’ ” Their answers reveal some misconceptions. “Typical answers are manufacturing is dirty, old, and run-down, pay is low, and there are no career opportunities,” says Wheeler. “We spend a lot of time with them washing away their negative perceptions and giving them a modernized version of manufacturing. We take them on tours of our facility and have them meet our employees. Seeing firsthand that manufacturing today is nothing like manufacturing of the past is eye-opening.”

Understanding current perceptions and providing opportunities to get a realworld perspective on what manufacturing actually entails can help to change misconceptions. “They see that people have interesting career paths and opportunities for career advancement,” says Wheeler.

“They see that equipment and technology

are state-of-the-art and the average income for manufacturing jobs is actually higher than nonmanufacturing ones.”

To help make manufacturing jobs more appealing to these younger contingents, George Rathman, CEO of The Alternative Board Atlanta Central, an organization that provides executive peer advisory boards serving more than 3,000 business owners worldwide, suggests: • Survey current employees and find out what makes the job appealing and what could make the job more appealing.

• Research best practices of what the manufacturing industry is doing to make these jobs appealing and more engaging for a workforce.

• Develop or refine the career paths currently available.

• Develop a learning—as opposed to a training—program.

• Bring the group together to share ideas on a regular basis to improve current manufacturing culture.

But, notes Tom Armour, co-founder of High Return Selection in Toronto, manufacturers shouldn’t be too quick to assume that there’s a stigma inherently associated with manufac­t-­ uring jobs. “Manufacturing jobs are very appealing, and a lot of people want them. The problem is, many manufacturers don’t market their roles properly,” he says. “When you review job advertisements or job descriptions, they’re often terrible. Rewrite these documents, striking a balance between the company’s needs and the applicants’ wants.”

Once these young employees are onboard, there is much that manufact­ urers can do to help develop them for future leadership roles.

Preparing Staff to Lead Armour suggests that manufacturers have a framework in place to establish leaders.

“To develop leaders, manufacturers need an organizational framework and career paths that outline the requirements both in terms of responsibilities and capabilities.” Over the years, he says, many traditional leadership development programs have been cut. A good alternative, he says, “is to provide individualized training, in a ‘just-in-time’ manner, for each person selected for a leadership role.”

Rathman offers some tips to help manufacturers prepare employees for leadership positions: • Communicate leadership expectations to new employees, and place them in a “junior” role.

• Empower employees to make decisions and learn from them.

• Utilize a mentoring program.

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“To develop leaders, manufacturers need an organizational framework and career paths that outline the requirements both in terms of responsibilities and capabilities.”

— Tom Armour, co-founder of High Return Selection

• Implement short-term assignments in the next leadership role.

• Find out from other industries how they develop and groom leaders.

Leadership development can be daunting. There are, says Armour, “more than 75 leadership abilities manufacturing leaders use.” Rather than attempting to tackle all of them at once, he suggests identifying two, based on highest current needs, every six months and then providing development in these areas. These may include delegation, conflict management, decision-making, directing, hiring, etc.

Establishing a leadership selection process that is transparent and providing opportunities for those not selected to develop the skills and abilities that may be holding them back are also important.

Keeping Staff on Board Retention is critical for leadership and other staff. There is much they can do to help generate the kind of engagement and loyalty that can lead to commitment, productivity, and longevity.

It starts, says Wheeler, with employees’ direct managers. “I definitely believe in the old saying, ‘People leave managers, not companies,’ ” she says. “It’s imperative to communicate on a regular basis with your people. I recommend that leaders sit down with their employees one-onone on a regular basis.” Those meetings, says Wheeler, should consist of setting priorities, goals, and actions, as well as reviewing past performance.

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“I’m also a big believer in setting career development goals and developing career paths,” says Wheeler. “Employees should take the lead in developing their goals, and leaders should coach as needed and support their career development.”

Culture goes a long way toward engaging employees and earning their loyalty. At StandFast, says Wheeler, “we have a team-based culture that empowers our people. Everyone at every level is encouraged to take the lead on their team, make independent decisions, and suggest ways to improve their processes. We ask them to be thought leaders and hands-on decision-makers.”

Time is running out in terms of ensuring the bench strength that will position box manufacturers to address future staffing needs, says Armour.

“Manufacturers need to move quickly,” he says. He suggests considering a “boomers mentor program,” allowing staffers nearing retirement to work part-time and come in to coach and develop the next generation. “Many boomers would jump at these opportunities,” he says. In addition to this type of program, while still on the payroll, boomers can play an important role in nurturing and developing the next generation. “It is incredibly helpful to have existing leaders mentor one or two ‘up and comers’ each year,” he says. “The mentor usually needs training and support, but it also serves to help the novice while reinvigorating the established leaders.”

Wheeler agrees. “Mentorships can be important in both attracting and retaining top talent that is interested in career advancement,” she says. “Mentoring builds skill sets, provides career guidance, and passes on professional and organizational knowledge. Most of all, mentoring shows your employees that you value them and they are an important piece of the company’s future.”

Based on his employee recruiting and retention activities, Goldberg offers the following advice to other manufacturers: • Be patient, especially with employees who are trying to learn new skills.

• Help employees understand the “snowball effect” of being late or not showing up for work.

• Find ways to inspire workers to take pride in what they are manufacturing.

Even a pizza box can be something to brag about to your family.

• Be active in your community to ensure you have a steady pipeline of qualified candidates.

• Provide mentoring and offer growth opportunities through associations such as AICC. • Stay engaged in the process of working with people of all ages and backgrounds. Talk about the time-sensitive aspects of the manufacturing industry. Don’t assume that all generations share the same opinions about the importance of work.

Provide employees the training they need, and encourage them to tackle difficult projects to challenge themselves, says Wheeler. “Being heard, cared for, appreciated, and feeling good about the work you’ve done go a long way in retaining current employees. Hire talented, ethical people, and then give them the tools and resources to succeed.”

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

HIRING LEGAL

IMMIGRANT WORKERS

Hiring immigrants can have big benefits, but employers must tread a fine line to stay compliant

BY DAVID P. GOCH AND JOHN R. STROUT

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BOXSCORE May/June 2016

O

ne of the decisions manufacturers have to make when hiring new employees is whether the advantages of hiring a legal immigrant outweigh the associated risks. While an employer cannot discriminate when hiring a new employee based on national origin or citizenship status, the Immigration Reform and Control Act (IRCA)1 and state laws require an employer to take measures to ensure that it is in compliance with applicable employment laws when hiring new employees.

Hiring immigrants can pose a number of possible advantages and disadvantages.

“To avoid the appearance of discrimination, employers should treat all applicants and new hires—both citizens and noncitizens—the same.”

Disadvantages Legal issues. Federal and state laws place high demands on employers to ensure that workers have all the necessary documentation to work legally in the United States. Failure to comply with the laws can result in harsh penalties.

Advantages Reduced costs. Immigrants may be willing to work for a lower wage than workers born and raised in the United States because of different economic goals.

Discrimination. If there is a demonstrated practice of hiring immigrants over native-born American citizens, there is the risk of being penalized for discrimination.

Business expansion. Immigrant workers may provide insight and a foothold in new markets. Also, your company may gain a broader perspective and knowledge of different cultures.

Employee resistance. Hiring immigrants may be met with resistance from the current workforce, and there may be difficultly assimilating immigrants into the work culture.

Workforce diversity. Hiring immigrants can help a business diversify its workforce and stay on the right side of antidiscrimination laws.

Language barriers. Hiring immigrants may present a challenge to conducting business if there is a language barrier between the management and the workforce.

Filling positions. Immigrants may fill periodic and permanent shortages in the labor force. Immigrants may also perform services that U.S.-born workers don’t want to fill.

Skilled workers. Immigrants may fill high-demand positions that require highly skilled workers.

Legal and accounting fees. Ensuring compliance with immigration laws requires the hiring of lawyers and accountants, which can add costs to the hiring process.

Should an employer decide to move forward with hiring an immigrant employee, IRCA requires verification that employees

are authorized to work in the United States. In addition, state laws may require employers to use certain processes to verify citizenship. To avoid the appearance of discrimination, employers should treat all applicants and new hires—both citizens and noncitizens—the same. Employers should request proof of citizenship or work authorization documents from all new hires. A “U.S. citizens–only” policy is illegal, except in cases where U.S. citizenship is required by federal, state, or local law, or by government contract.

Documents Needed for Authorization to Work Employers should verify all employees through the Employment Eligibility Verification Form (Form I-9), regardless of citizenship. To complete the form, employers must permit employees to present any document or combination of documents acceptable by law. The list includes a U.S. passport, resident alien card (“green card”), or a long list of documents showing identity and authority to work, including a driver’s license, an ID card with a photograph and identifying information, U.S. military card or draft record, Social Security card, or an original or certified copy of a birth certificate. If an employee fails to produce the required document or a receipt for a replacement document within three

BOXSCORE www.aiccbox.org

51

business days of the date employment begins, the employer may terminate the employee. An employee who presents a receipt for a replacement document must produce the actual document within 90 days after employment begins.

Not all immigrants authorized to work in the United States will have a green card. There are various visas workers may obtain to work in the United States, including an H-1B visa and a TN visa.

Employers are also responsible for keeping track of expiration dates on the documents presented.

Employers must examine the documents and, if they appear to be genuine and to relate to the person presenting them, accept them. To do otherwise could be an unfair immigration-related practice. If a document does not reasonably appear to be genuine and/or does not

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appear to relate to the person presenting it, an employer need not accept it. An employer cannot knowingly continue to employ an individual who does not have proper documentation. IRCA also makes it illegal to knowingly hire any alien not authorized to work.

The Facts STATE LAWS

Various state laws may require employers to use specific processes when verifying that an employee is allowed to work in the United States. Employers should check state laws to confirm the process.

PENALTIES

Penalties vary based on the number and severity of the violation, and can include monetary penalties and,

in severe cases, imprisonment. In determining the extent of the penalty to assess, several factors will be taken into account, including 1) the size of the employer’s business, 2) the good faith of the employer (for instance, in attempting to keep accurate and up-to-date I-9 forms), 3) the seriousness and extent of the hiring or record-keeping violation, 4) the involvement of the unauthorized employee in the verification process, and 5) the employer’s history of previous violations.

To avoid penalties, employers should self-audit their I-9 compliance at least once a year to catch problems and establish good-faith efforts to comply with IRCA should the employer ever be audited. In addition, employees should be properly trained in preparing the I-9, and I-9s should be easily accessible.

DEALING WITH AN AUDIT

In the event of an audit, various steps should be taken. Employees should first check the credentials of the auditors. If everything is in order, the employee should immediately contact the head of human resources, the CEO, or other person designated to handle such issues.

The designated person should in turn immediately contact legal counsel. In some cases, the auditors may have served the wrong party, so legal counsel can help to ensure that the employer is the subject of the audit.

Employees should avoid discussing anything with the auditors. Employees should not provide any documentation

1

to the auditors unless directed by the employer’s designated person or legal counsel. Only the designated person and legal counsel should interact with the auditors. If I-9s must be provided, make copies before providing the documents to the auditors. At all times during the audit process, employees, employers, and counsel should be polite and professional with the auditors.

that employers work with legal counsel to help negotiate the process.

David P. Goch, AICC’s general counsel, is a partner at Webster, Chamberlain & Bean LLP (WCB).

He may be reached at 202-785-9500 or dgoch@wc-b.com.

John R. Strout is a senior associate with WCB. He may be reached at jstrout@wc-b.com.

LEGAL HELP

Hiring non-U.S. citizens to work can be a complex process, from hiring a new employee and going through the visa process with a potential employee to surviving an audit. It is strongly advised

The Immigration Reform and Control Act (IRCA), passed in 1986, prohibits an employer from knowingly hiring, recruiting, or referring illegal aliens for work in the United States.

The law also extends to employers who discover that an employee is an illegal alien after hiring.

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BOXSCORE www.aiccbox.org

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BOXSCORE May/June 2016

HOW TO OPTIMIZE THE PERFORMANCE OF YOUR

ANILOX ROLLS Measure, clean, and maintain—it’s that simple

BY GRAHAM RACEY

T

he sole function of anilox is to ensure that a consistent amount of ink is delivered onto the printing plate, time after time. If the anilox rolls are not clean or kept in perfect condition, this will reduce the quantity of ink transferred, potentially causing one of the common flexo printing defects we see today (e.g., low print density, pinholing, mottled print). Also, if you don’t monitor anilox rolls, it is sometimes easy to lose track of anilox specifications, perhaps selecting an anilox roll or sleeve that is not best suited to your printing requirements. Hence, for flexo printers who want to optimize print quality, anilox selection and regular care and maintenance are essential to ensure your anilox rolls are delivering consistent print performance using your unique graphics, inks, and substrates.

Follow these three steps to maximize print performance: • Measure — analysis of anilox roll/sleeve specification and condition.

• Clean — deep cleaning of your anilox rolls.

• Maintain — regular maintenance of your anilox rolls.

BOXSCORE www.aiccbox.org

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“For flexo printers who want to optimize print quality, anilox selection and regular care and maintenance are essential to ensure your anilox rolls are delivering consistent print performance.”

Images courtesy of Pamarco

Microscope: a 200x microscope is an excellent tool for identifying any signs of wear or ink plugging

An example of an effective cleaning solution

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BOXSCORE May/June 2016

Step 1: Measure The first step in the process is to establish exactly the current condition of your anilox rolls. As all flexo printers know, even with careful handling and use, anilox cells can be prone to damage, wear, and ink plugging (a buildup of dry ink within the cells). All of these have a negative effect on achieving consistent print performance. Low print density is often an indicator of low anilox cell volume, demonstrating that the anilox roll could be dirty and subject to plugging. Therefore, it is essential to initiate regular inspection and measurement of the anilox roll. So, what are the most effective techniques?

There are several low-cost methods to measure anilox cell specifications and conditions: • Direct measurement with a microscope.

• Direct cell volume measurement with anilox test strips.

• Remote laboratory analysis.

Using a low cost 200x magnification microscope and a simple inspection guide, printers can not only identify most of the critical selection parameters of the anilox roll—such as screen count and cell angle—but can also highlight whether the anilox cells look worn or have signs of ink plugging. Secondly, by the use of anilox cell volume test strips and a screen/ cell volume selector, printers can also obtain an immediate indication of the current anilox cell volume. Although it can be argued that both of these simple techniques have some limitations of

accuracy, both can be carried out on press or in the press room. They provide the busy printer with low-cost, instant information. This can often be essential so the printer can make prompt, informed decisions about whether the anilox roll is suitable for use in the press or if it needs cleaning or rectification work.

For a more accurate and considered approach to anilox measurement, some companies can provide an anilox audit service and remote laboratory analysis.

These programs often involve taking a direct microfax impression on the anilox surface. This step can be carried out by a technician or by one of your own operators following simple microfax audit training. The microfax takes a perfect impression of the anilox roll surface, which can then be analyzed in the specialist’s laboratory. Once the analysis is complete, you will receive a full inspection report of the anilox roll’s condition, together with recommendations on any next steps for repair or maintenance of the anilox roll to suit your individual needs.

Step 2: Clean At some stage in the lifetime of the anilox unit, it will be essential to carry out periodic deep cleaning. This intensive cleaning routine ensures all ink debris is removed from the cells and your anilox roll remains in excellent condition, performing at maximum potential for the longest period of time. It is recommended that deep cleaning be implemented as part of a regular maintenance schedule

and be carried out on a weekly, monthly, or quarterly basis to suit your individual printing requirements.

Deep cleaning can be carried out using a variety of cleaning methods, including: • Ultrasonic cleaning — an off-press cleaning technique that uses a combination of ultrasound and cleaning solutions to deep-clean single or multiple rolls and sleeves; • Chemical rinse and high-pressure spray — an off-press method generally for cleaning single rolls using a combination of chemical rinse to break down dried ink, followed by high-pressure rinsing using water; • Sani-Blast media system — a versatile and environmentally safe system that can be carried out either on

press or off press using high-pressure sodium bicarbonate; • Lasering — a nonabrasive technique (on- or off-press system) using a defocused laser beam to vaporize dried ink from the cells; or • Manual cleaning — with concentrated solutions; again, this can be carried out on press or off press.

Step 3: Maintain Once you know exactly the condition and specifications of your anilox rolls and you have a good, cost-effective deep-cleaning regime in place, the last important step is to keep the anilox rolls in good condition on a daily basis. This regular cleaning ensures not only the best day-to-day and job-to-job print consistency, but also extends the period between deep-cleaning

cycles. Set up and document daily cleaning routines using the press inking wash-up systems. These regimes can be carried out at color or job changes, or at the start or end of production shift periods.

So, if you are a flexo printer looking to optimize your print performance, save money on press downtime and replacement of anilox rolls, take note of these three key steps to improve print consistency and overall quality. Measure, clean, maintain—it’s that simple.

Graham Racey is the distribution sales manager at Pamarco, Europe. He can be reached at graham. racey@pamarco.com.

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BOXSCORE www.aiccbox.org

57

Folding Carton

WHEN BIGGER IS BETTER Large-format printing is a growing niche for corrugated and folding carton

Courtesy of EFI

BY ROBERT BITTNER

Lewisburg Printing’s digital powerhouse, the EFI VUTEk H2000

W

hen the printing-packaging industry used to speak of “very large format” (VLF) press options and applications, they meant anything over 40 inches. Now, in 2016, as an increasing number of printer-­ packagers are investing in presses and die cutters that can handle more than double that size, yesterday’s “very large format” is looking more and more like the new “large.”

It is not a size that fits—literally or figuratively—on every shop floor. Yet those who have been able and willing to make the investment in 60- to 81-inch presses have discovered new customers, speedto-market advantages, and economies of scale. At a time when packaging customers are installing their own smaller-format digital printers for in-house prototyping and small specialty runs, going big can give any full-service printer-packager a distinct marketing edge.

New Equipment, New Vision feet wet. Fast-forward to 2015, when “I think large-format is a great niche we brought in this flatbed digital press market,” says Kirk Kelso, vice president that will print up to 80 inches. It can of sales at Lewisburg Printing Company print on a wood door! The graphics are in Tennessee. “We’ve invested well over not as high-quality as offset, but we’re $20 million in new equipment, and large-​ getting there. The real downside currently format is now well over 80 percent of our is speed to market; digital is a slower business. We’re selling to corrugated and printing process. The other downside display companies.” is that it’s cost-prohibitive for some Lewisburg’s niche grew out of an customers unless they’re looking at really, acquisition. “We bought a Nashville really small quantities, due to the cost of company in 2004 that got us into the the consumables. But I believe that will large-format litho, top-sheet market. They improve over time.” had equipment, though, that was roughly Despite the downsides, Kelso notes, 20 years old. So we decided to invest “We’ve kept our equipment fairly busy.” in newer technology. Today, all of our One of the reasons is a continued demand equipment is six years old or newer.” for larger displays and retail boxes.

Unlike many of its large-format peers, “You’ve probably seen the push toward the Lewisburg’s largest-format printer is big flat-screen televisions—and they’re digital, an 80-inch-wide, continuous-feed just getting larger and larger. They require EFI VUTEk H2000 Pro. a larger box, which requires a larger sheet “Three to four years ago we bought to print laminate for that box. We’re a small-format digital press to get our seeing more of a call for the larger sheet.

Continued on Page 60

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BOXSCORE May/June 2016

Folding Carton “We’re seeing more of a call for the larger sheet. We’re also seeing larger displays and even corrugated boxes in the market.”

Big-Box Needs Los Angeles-based Superior Lithographics has been committed to large-format printing since it opened its doors more than 25 years ago, now billing itself as “California’s leading large-format packaging printer of litho labels, top sheets, and folding cartons.”

“We started as a packaging printer, not related to folding carton,” says Vice President of Sales Megan Sullivan Simmons. “We started with litho labels and top sheets for the corrugated industry,

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Courtesy of Meredith-Webb

how the corrugated folks feel about this, but there seems to be a trend toward light-weighting materials. I think we may see people start moving away from using corrugated toward folding carton in some situations. With increasing board weights, you can make a more rigid folding carton, — Kirk Kelso, Lewisburg Printing Company which can then go bigger in size.”

While Simmons also acknowledges the needs of big-box stores for larger packaging solutions, her company has chosen We’re also seeing larger displays and and we’ve always been a large-format to meet those needs through traditional even corrugated boxes in the market,” provider; we’ve never had smaller jobs. offset lithography. “We went to the Kelso says.

“In 2006, we decided to pursue folding 81-inch press”—again, the KBA Rapida Lewisburg is committed to covering all carton. So we didn’t start with small-format, 205—“to supply the corrugated industry the bases for its customers. “In addition we adapted our folding carton into the with larger-format litho labels.” She adds, to our digital solutions, we also just large-format arena. For us, the best “The press is absolutely a draw for custompurchased the largest sheet-fed press in kind of work is large-volume, multiple ers. There are not that many large-format the world,” the KBA Rapida 205.

SKUs/‘flavors.’ We have the large presses, printers in our market. Customers want “Our philosophy has been to insource so we can run multiple flavors on one to take advantage of all that real estate, so what we can with an eye on total invest­­sheet and help control sheets that way.” they’ll put a display, a header, a base on ment, but in terms of offering our Superior Lithographics occupies a the same sheet—for cost-effectiveness, for customers the best all-around solutions. unique niche in folding carton—currently color consistency. Our customers try to The investments we’ve made in technol­about 25 percent of their business—by engineer into that press.” ogy translate into reduced costs that focusing on larger packaging rather than For now, the company is remaining we can pass along to our customers. the typical kinds of retail-ready cartons firmly in the analog world regardless of We can output more production runs and displays. Simmons says she believes press size. “Some of our customers, being on the offset side, with higher quality. that market will grow. “I don’t know corrugated converters, have put in their Then, on the digital side, you can shorten your runs and focus on targeted demographic markets and regions. Shorter runs give customers the ability to change their message more frequently.

The digital market is here to stay and will only become more relevant.”

Meredith-Webb staff at work with the company’s KBA Rapida 205

Courtesy of KBA

Folding Carton

The KBA Rapida 205

own digital equipment. But at this point, we don’t want to go down the digital path.

We just don’t have a lot of demand for that right now.”

Large-Format, Quick Turnarounds For Kelly Webb, executive vice president of Burlington, North Carolina-based Meredith-Webb Printing Co., largeformat printing is simply part of offering customers a complete printing-packaging solution, which extends all the way from in-house sheeting for corrugated customers to fulfillment to the end user.

“We were originally a 40-inch shop,” Webb says. “We did a lot of point-of-sale work and convenience-store displays, that type of thing.” A little over a decade ago, he decided to explore the market for larger-format printing, consider the potential, and determine whether it would be a good fit with Meredith-Webb.

It was. “We got our first 56-inch press in 2004–2005, then we went to 64-inch in 2006. Now we’ve got two 64-inches, and we’ve just installed the 81-inch”—not surprisingly, the popular KBA Rapida 205.

Webb realized that servicing large-format customers would require special attention. He brought in Account

Executive Rich Fifield, who came with more than 20 years’ experience in large-format. “Now, we’re using the large-format presses for oversize packaging and display products, or to help corrugated companies maximize what they’re doing on their die cutters,” says Fifield. “If they can, they’d like to get three pieces out on a big press rather than one out on a smaller press. But these days, sometimes the packages are too large even for an 81-inch press, so they’ll go to spot labels.”

For Webb, bigger packaging means an increased emphasis on delivering the highest-quality graphics possible, which is why Meredith-Webb is currently sticking to lithography for its large-format needs. “The customer impulse is for premium graphics,” he says, including all of the ink-based bells and whistles: matte/gloss coatings, UV and aqueous inks (alone or in a combination), textured surfaces, and other “impactful additions to normal printing.”

Another Meredith-Webb hallmark is speed of delivery. “Some people focus on small-format, quick-turn,” Webb says.

“We decided to approach the large-format market by having very quick turns in

oversize sheets. Being able to turn the job very fast is important.”

He acknowledges, however, that large-format is a difficult niche to enter, requiring relatively new equipment— “if you have a 10-year-old press in this market, it’s impossible to compete”— and the ability to meet customer requirements for a range of formats and enhancements. “It’s almost cost-­ prohibitive,” he admits.

Almost is the operative word.

Depending on your current and potential customers, as well as the presence/absence of other large-format printers in your region, it may or may not be a market worth exploring. Yet for some of those who have made the large-format niche their own, the gamble has been worth the risks. As Lewisburg’s Kelso notes, “The first piece we bought paid for itself in its first job of make-ready.”

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

BOXSCORE www.aiccbox.org

61

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The Associate Advantage

MAKE SAFETY YOUR PRIORITY 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

I

have chosen for my third article to write about a topic that is very important to me—and I hope also to you. I lost my hand in a paper machine accident in 1985, so I have experienced personally the impact a serious accident has on the injured and those around them. In our machinery-intensive industry, safety must be a priority.

I had the honor to recently do a safety presentation at President Container in Middletown, New York. I met with each of the crews to share my personal testimony of my accident, how it changed my life, and how it could have been prevented. It is true when they say all accidents are preventable. In my case, if I would have followed the simple lock out/ tag out (LOTO) procedure, my accident would have never occurred. I thought it would be helpful to remind us all of the very obvious but critical points of LOTO: 1 First and foremost, safety is everyone’s responsibility.

NOTE: Most accidents can be avoided if a co-worker speaks up about previous safety concerns or violations.

2 Never enter a machine without first following proper LOTO procedure.

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

3 There are no exceptions to item two.

4 LOTO should be quick, easy, and routine.

5 Just because a machine has been locked out does not mean it is completely safe.

NOTE: Other energy sources may still remain.

For example: • Pneumatic • Steam • Stored energy • Gravity

6 It is critical to know the proper lockout location for each machine. For example, locking out a double facer doesn’t ensure the rotary shear is also safe.

7 It is important that you understand and follow your individual company procedure in order to assure your safety and that of others around you. LOTO can vary from plant to plant.

In the 30 years since my accident, I have had the opportunity to meet and speak with many people who have had an accident or a close call. While everyone’s story is a little different, one thing remains common: Today, we would do whatever it takes to avoid the accident happening again. Accidents are irreversible, and they change lives. Please do your part in protecting yourself and the people around you. It is our professional and moral obligation.

This article was written by Jeff Pallini.

NOTE: Locks should be on your body or close by at a lock station.

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

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BOXSCORE May/June 2016

“In our machinery-intensive industry, safety must be a priority.”

Financial Corner

DEVELOPING KEY PERFORMANCE METRICS FOR THE CEO

BY MITCH KLINGHER

I

get asked about key performance indicators (KPIs) on a fairly regular basis, and it is usually in the context of “please print me out a list KPIs for the converting business.” When I say this requires a little homework, I often get strange looks. I mean, how tough is it to compare sales and margins and that kind of stuff, anyway? As in most things, the devil is always in the details, isn’t it?

I’ve spent a lot of time in the pages of BoxScore and in my travels talking about how all sales are not equal and how, although most of you convert paper into packaging, there are many variations in how this is done—using different machinery and methodology. To simply print out a bunch of sales, margin, labor, and plant statistics and call them KPIs just doesn’t get it done for me. So, what’s a converter to do?

I have decided to come up with a top 10 list of things to do to develop a system of key performance metrics (KPMs) that will help you keep your finger on the pulse of your business. They are as follows: • Keep your buckets pure.

• Know your number.

• Keep track of time.

• Learn to be a profit predictor.

• Take steps to unbundle the sale.

• Understand the difference between a profit center and a cost center.

• Be open to alternative reporting systems.

• Keep it simple and concise.

• Measure the same things the same way every day.

• Incorporate all of the measurements into your regular reporting system.

I will delve into each with more detail in future issues of BoxScore, but for now, let’s discuss the first two.

in a manner that treats variable costs as the incremental costs to the organization of accepting an order. It shouldn’t include any allocation of costs that the Keeping Your Buckets Pure organization will incur whether or not All of you are in a number of different they accept a particular order. If you businesses. Almost all of you have can set up your systems in that fashion— machine-intensive operations, labor-­ i.e., don’t commingle the fixed and intensive operations, and brokerage variable cost buckets—then your operations. If you are going to understand “number” is simply the sum of all of the key profitability drivers of your the fixed costs. This is possibly the most business, you must, at a minimum, break important number of all, because it your operations down into three buckets lets you know what the dollar figure of of revenue and costs. Within these areas, contribution is that you must generate there may be other separate functions. each day to break even.

For instance, your manufacturing operSo, instead of looking at how many ations may include elements of corrugated, sales dollars you booked or how many chipboard, foam, wood, single-face, and square feet you shipped, you can simply labels. Your labor-intensive work may look at how many contribution dollars include gluing, assembling, and packing, you booked or shipped in comparison and you may broker both corrugated and to your number and instantly know noncorrugated products. whether or not you made money.

The most important thing you can If you have your business segment do to understand the profitability buckets pure, and your fixed and of your company’s various businesses variable cost buckets pure, then you is to keep all of these buckets as pure can start to look at contribution by as you can. A little bit of care and business segment as well. You can start due process when purchasing items to look at the contribution generated and booking orders will go a long way by each business segment as compared toward helping you make sense of to the fixed costs associated with your financial results. If you are able operating that segment. At the end to organize your books and records to of the day, you will have a much accommodate the various businesses better idea of where the profits are and business segments that you are in, coming from. you will be more than halfway to the promised land of creating key perforMitch Klingher is a mance metrics. partner of Klingher Nadler LLP. He can be reached at Knowing Your Number 201-731-3025 or mitch@ I write and lecture extensively on the klinghernadler.com. importance of calculating contribution

BOXSCORE www.aiccbox.org

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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

RECRUIT ENTRY-LEVEL CANDIDATES THROUGH ICPF

W

hile graduation season is already upon us, it is not too late to recruit upcoming spring and summer graduates for packaging design, graphic design, business, and sales openings through ICPF. For those ICPF corporate partners that have entrylevel openings or wish to offer a student internship, one of the most proven tools for recruiting is ICPF’s Career Portal, located at www.careersincorrugated.org.

Not only do you get direct applications from new or upcoming graduates from ICPF’s university partners, the posting of an opening allows your firm to search ICPF’s online Résumé Bank, which has more than 100 résumés. Additionally, through ICPF’s social media network, more than 700 students and upcoming graduates who have indicated they wish

to pursue corrugated packaging careers are referred to openings on the Career Portal. Therefore, ICPF annually has many more graduates and students to place than there are entry level and student internship openings in the industry.

ICPF’s Career Portal is a free benefit for ICPF corporate partners and for those

corrugated firms or suppliers considering making an ICPF partnership pledge.

Posting each position takes only minutes and offers immediate access to qualified candidates. Contact info@icpfbox.org to get started today!

NINTH ANNUAL HOLIDAY WEEKEND IN NEW YORK — REGISTER BY JUNE 30 TO SAVE $100!

E

arly Bird Registration is now open for ICPF’s Holiday Weekend in New York, scheduled for Friday through Sunday, December 9–11, 2016. Register by June 30, 2016, to save $100. Bring your spouse or a guest for ICPF’s Friday opening reception at The View for 360 degree panoramic views of the Manhattan skyline. Then, join us for the Saturday matinée of one of the latest Broadway

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BOXSCORE May/June 2016

hits, An American in Paris, followed by the Saturday reception and dinner at the renowned 21 Club. Additional free time is available for socializing, holiday shopping, touring, and dining, all while supporting ICPF’s educational mission.

Corporate sponsors this year include Bobst North America, Equipment Finance Corp., Fosber America, Gerber Innovations, MarquipWardUnited, and Pratt Industries.

In addition to saving by registering

by June 30, ICPF’s New York holiday event is always an early sellout. Space is limited! ICPF recommends you register as soon as possible—certainly no later than August 15. Request a registration form by emailing registration@icpfbox.org, or visit www.careersincorrugated.org to download a form.

STUDENT PACKAGING JAMBOREE HELD IN WISCONSIN

T

his past month, an estimated 90 students from half a dozen campuses joined together at the University of Wisconsin–Stout for a Packaging Jamboree completely managed by students. The Jamboree, which has traditionally largely promoted the operations and careers within consumer goods manufacturers and is often challenged in attendance due to scheduling conflicts among campuses, was extensively assisted this year in promotion and program development by ICPF and its partners.

All of ICPF’s university and college partners were encouraged by ICPF to participate, UW–Stout graduate Jerry

Frisch (Wasatch Container) was recruited to address students about the “Innovative Business of Corrugated Packaging & Displays,” and FBA’s Rachel Kenyon highlighted the industry’s sustainability during the Jamboree’s closing remarks.

ICPF’s program manager, Bari Zimbrick, also promoted corrugated careers and provided tutorials to students on the use of its career portal for applying directly online for corrugated packaging openings.

Computer stations were available during the tutorials to enable students to upload their résumés to ICPF’s Résumé Bank right on the spot.

Due in large part to the generous sponsorship support of ICPF and its partners (Fibre Box Association, Green Bay Packaging, Great Northern Corporation, ICPF, Landaal Packaging, and Menasha), it was reported that this year’s Jamboree was the most well-funded, exceeding revenue goals for operations and student travel grants.

Richard Flaherty is president of the International Corrugated Packaging Foundation.

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BOXSCORE www.aiccbox.org

67

The Final Score

WHAT WILL DRIVE YOUR OWNERSHIP SUCCESSION PLAN?

A

s of this writing, there have been six announcements in the past month of acquisitions of independent converters—AICC members all—by other companies in the industry. Sound Packaging, Excel Displays, Empire Container & Display, Drake Container, Omaha Box, Scope Packaging, and H.P. Neun are now owned by other entities. Now, nothing about this is extraordinarily unusual, except that this latest flurry of activity follows a particularly active two years for company consolidations, mergers, and acquisitions. It causes me to wonder: Why the sudden surge and appetite for independent companies?

Is there a common thread to be found in this list of acquisitions? Our industry analysts will tell us that a familiar dynamic is at work in the industry: Successful companies are looking for strategic growth opportunities in certain market areas. This can certainly be said about Smurfit Kappa Group, whose acquisitions in the Southwest border states are a natural complement to its holdings in Mexico. Or Atlantic Packaging, whose moves in Ohio and Illinois give the Canadian company an outlet for its mills in the Toronto area. But the overtures made by these companies would not be answered were it not for another dynamic—that of many independent owners looking for an exit plan.

A survey done by AICC of its member base last year showed that independent corrugator plants have been in business an average of 67 years, with 58 percent run by second- or third-generation owners. For sheet plants it was 43 years. Two-thirds of these (67 percent) are in the second generation of ownership and close to handing off to the third, the point at which the chances of success drop dramatically. According to the Family Firm Institute, only about 30 percent of family businesses survive into the second generation, and only 12 percent are still viable into the third generation. Beyond this, only about 3 percent of all family businesses operate into the fourth generation or beyond.

What I would propose is that all members start thinking about their business as an entity unto itself. This is what our immediate past chairman, Greg Tucker, was talking about when he proposed that members jettison the “lifestyle company” and instead focus on the “professionally run company.” The latter will not only allow the owners to build wealth, but also drive them to have a plan for its transfer—whether to the next generation of family, or employees, or to reap it in a sale where the company’s value is maximized for the benefit of the ownership group.

Where does your company stand in this process? If you want to know more, I suggest you check into a program offered by Holly Green, called “Ready, Aim… Win!”

Steve Young President, AICC

68

BOXSCORE May/June 2016

M i t s u b i s h i

B o x

M a k i n g

M a c h i n e s

Introducing

The largest EVOL ever!

330 boxes per minute (BPM) 45" x 115" size means more capacity and options

115"

Same 2-minute set-up time as its smaller EVOL brothers

45"

The EVOL family just got even bigger, 45" x 115" big! ®

The new EVOL 115/330 is a titan of a box making machine and a marvel to behold and to operate.

This big guy effortlessly works though units of corrugated sheets at a nimble 330 BPM - 30 percent faster than similar-sized machines!

Versatility and quality are also in its DNA, as it can produce panel sizes as small as 3.5 inches as well as skip feed to 53 inches and achieve the smoothest fold ever, thanks to the advanced engineering of its folding section.

4 Color 330 bpm FFG 45" x 115"

EVOL 115/330 – the bigger EVOL brother with the brains and beauty to go with all that brawn.

The EVOL family is growing. And helping you grow your business.

Call us for a preview of our newest family member.

3 or 4 Color 350 bpm FFG 37" x 100"

3 Color 400 bpm FFG 34" x 84" North American Office • 11204 McCormick Road • Hunt Valley, MD 21031 Phone: 410.584.7990 • Fax: 410.584.1252 • mhicorr@mhicorr.com mhicorrugating.com

TRUe CONTROL New eXPeRTFOLD 145 | 165 Featuring class-leading folding control, superb ease of use and access to the latest quality assurance systems, the new eXPeRTFOLD 145 and 165 deliver both high productivity and excellent box quality.

Modular in design, with advanced feeding, highly accurate pre-breaking and folding systems that minimize fishtailing and gap, these eXPeRTFOLD models are perfect for growing your corrugated or litho-laminated box business.

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What new market opportunities could coated and laminated papers open for you?

Imagine what new markets you could serve knowing you can offer them cartons or boxes made with extruded polymers, aqueous coatings or special substrates—coatings and laminations that give your products a wide variety of functional and barrier properties. A growing number of folding carton manufacturers as well as corrugated producers and converters are rolling out new products that ™ feature innovative SurfSHIELD coatings and laminations: PET, metalized PET, poly coated boards and papers and much, much more.

Ask the people at Cascades Sonoco what they can do to help you get your share of these markets.

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Leading the way in coating and lamination innovations

888/203-6548 • cascades-sonoco.com