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OFFICERS
Chairman: Gary Brewer, Package Crafters, High Point, North Carolina
First Vice Chair: Terri-Lynn Levesque, Royal Containers Ltd., Brampton, Ontario, Canada
Vice Chairs: Joseph Morelli, Huston Patterson/Lewisburg Printing Co., Decatur, Illinois
Mike Schaefer, Tavens Packaging & Display Solutions, Bedford Heights, Ohio
Eric Elgin, Oklahoma Interpack, Muscogee, Oklahoma
Immediate Past Chair: Matt Davis, Packaging Express, Colorado Springs, Colorado
Chair, Past Chairmen’s Council: Jana Harris, Harris
Packaging/American Carton, Haltom City, Texas
President: Michael D’Angelo, AICC, The Independent Packaging Association, Alexandria, Virginia
Secretary/General Counsel: David Goch, Webster, Chamberlain & Bean, Washington, D.C.
Administrator, AICC México: Veronica Reyes
DIRECTORS
West: Sahar Mehrabzadeh-Garcia, Bay Cities, Pico Rivera, Califormia
Southwest: Jenise Cox, Harris Packaging/American Carton, Haltom City, Texas
Southeast: Chad Wagner, Peachtree Packaging & Display, Lawrenceville, Georgia
Midwest: Cassi Malone, Corrugated Supplies Co., Bedford Park, Illinois
Great Lakes: Josh Sobel, Jamestown Container Cos., Macedonia, Ohio
Northeast: Larry Grossbard, President Container Group, Moonachie, New Jersey
AICC México: Jorge Ortega, Soluciones de Empaques S. de R.L. de C.V., Hermosillo, Mexico
OVERSEAS DIRECTOR
Kim Nelson, Royal Containers Ltd., Brampton, Ontario, Canada
DIRECTORS AT LARGE
Casey Shaw, Batavia Container, Batavia, Illinois
Stuart Fenkel, McLean Packaging , Pennsauken Township, New Jersey
Josh Sobel, Jamestown Container Cos., Cleveland, Ohio
Jack Fiterman, Liberty Diversified International Minneapolis, Minnesota
EMERGING LEADER DELEGATES
Jordan Dawson, Harris Packaging , Haltom City, Texas
Evan Clary, National Corrugated Machinery, Hunt Valley, Maryland
Cody Brant, A.G. Stacker Inc., Weyers Cave, Virginia
ASSOCIATE MEMBER DIRECTORS
Chairman: John Burgess, Pamarco
Cary, North Carolina
Vice Chairman: Jeff Dietz, Pamarco, Cleveland, Ohio
Secretary: Mike Butler, Domtar Packaging , Fort Mill, South Carolina
Director: Brian Foley, Bobst, Phoenix, Arizona
Immediate Past Chair Associate Members: Tim Connell, American Corrugated Machine Corp. Weyers Cave, Virginia
ADVISORS TO THE CHAIR
Matt Davis, Packaging Express, Colorado Springs, Colorado
Joe Palmeri, Jamestown Container Cos., Cleveland, Ohio
John Burgess, Pamarco/Absolute, Roselle Park, New Jersey
PUBLICATION STAFF
Publisher: Michael D’Angelo • mdangelo@AICCbox.org
Editor: Virginia Humphrey • vhumphrey@AICCbox.org
EDITORIAL/DESIGN SERVICES
The YGS Group • www.theYGSgroup.com
Vice President, Association Solutions: Craig Lauer
Creative Director: Mike Vucic
Managing Editor: Therese Umerlik
Senior Editor: Sam Hoffmeister
Copy Editor: Steve Kennedy
Art Director: Alex Straughan
Account Manager: Jillian Mengel
SUBMIT EDITORIAL IDEAS, NEWS, AND LETTERS TO: BoxScore@theYGSgroup.com
CONTRIBUTORS
Cindy Huber, Director of Conventions and Meetings
Chelsea May, Meeting Manager
Laura Mihalick, Senior Meeting Manager
Patrick Moore, Membership Manager
Taryn Pyle Director of Training, Education, and Professional Development
Rebecca Rendon, Senior Manager, Education and Training
Alyce Ryan Membership Marketing Senior Manager
ADVERTISING
Taryn Pyle
703-535-1391 • tpyle@AICCbox.org
Patrick Moore 703-535-1394 • pmoore@AICCbox.org
AICC PO Box 25708
Alexandria, VA 22313
Phone 703-836-2422
Toll-free 877-836-2422 Fax 703-836-2795 www.AICCbox.org
ABOUT AICC
PROVIDING BOXMAKERS WITH THE KNOWLEDGE NEEDED TO THRIVE IN THE PAPER-BASED PACKAGING INDUSTRY SINCE 1974
We are a growing membership association that serves independent corrugated, folding carton, and rigid box manufacturers and suppliers with education and information in print, in person, and online. AICC membership is for the full company, and employees at all locations have access to member benefits. AICC offers free online education to all members to help the individual maximize their potential and the member company maximize its profit.
WHEN YOU INVEST AND ENGAGE, AICC DELIVERS SUCCESS.
Flying High With Purpose –Lessons From John ‘Gucci’ Foley
For those of you who were lucky enough to join us at the AICC Spring Meeting in early May 2025 in Bonita Springs, Florida, I hope you heard the inspiring message from John “Gucci” Foley, the former lead solo pilot of the U.S. Navy’s elite Blue Angels. The theme of my AICC chairmanship is “Fly the plane. Run your business.” Foley dove in and brought this theme to our meeting in style.
In the high-stakes world of naval aviation, precision, trust, and performance are nonnegotiable. These values aren’t just essential in the cockpit. They’re also the foundation for success in any area of life.
His message was clear: Excellence is a habit, a daily commitment to being just a little better than yesterday. Drawing from years of experience flying at speeds approaching 700 mph just inches apart from his teammates, he emphasized that peak performance starts with mindset. “Glad to be here,” a phrase he used before every flight, is about embracing gratitude as a powerful performance tool, reframing pressure into purpose, and seeing each challenge as an opportunity. He shared stickers of this mantra with the general session audience. I have my sticker on the back of my computer monitor for all to see. Where are you displaying yours?
Foley spoke about the concept of belief. Before you can achieve extraordinary results, you have to believe they are possible. That belief, he says, is what fuels the commitment to preparation, practice, and persistence, whether you’re leading a business or furthering your own personal development.
With belief as a foundation for achievement, Foley added his idea of the “high-performance zone” as the place where clarity, trust, and continuous improvement intersect. High performance is not about being perfect. It’s about being prepared, present, and accountable. It’s about debriefing after every “flight,” celebrating wins, and learning from setbacks.
The best pilots (and business leaders) don’t just fly the plane. They lead the crew, inspire trust among all, and adapt to every situation—building technical skills, creating a team dynamic, demonstrating emotional intelligence, empowering people to do their best work, and always being open to learning lead to high performance.
I was truly honored when Foley shared a challenge coin with me at the close of his remarks. In this military tradition, the challenge coin is recognition of achievement, membership, or affiliation with a certain group. It was a message for me—and all of us—to live with intention and lead with gratitude. Because when we’re fully present, operating with trust, and fueled by purpose, we don’t just perform—we soar.
President, Package Crafters and Creative Packaging
Market Insights
Time for a Change in Pricing?
BY RYAN FOX
Until recently, box buyers and sellers had limited options when choosing a pricing mechanism to underpin their supply agreements. The U.S. corrugated packaging industry’s decades-old benchmark—the open-market price of 42-pound kraft linerboard—still drives adjustments in most box contracts, even though those sales now reflect only a sliver of the containerboard market.
Green Markets estimates around 90% of the industry is vertically integrated, meaning the largest producers make containerboard at their own mills and convert it into boxes at their own facilities. After years of consolidation, the open market for containerboard has shrunk to around 1.5 million tons a year, or less than 4% of total capacity of 40 million
to 42 million tons, according to the American Forest & Paper Association.
This creates a structural mismatch and an opportunity to modernize how contracted box prices change. Integrated producers such as Packaging Corp. of America (PCA) and International Paper say 60%–70% of the boxes sold in the United States are tied to contracts, mostly linked to Fastmarkets RISI’s open-market containerboard price. Any boost in containerboard tends to result in higher box prices.
Yet, recent price increases appear to be defying supply and demand fundamentals. U.S. box shipments fell to 31 million tons in 2024, according to the Fibre Box Association, and global oversupply has reached 30 million tons. Open-market
buyers should have little reason to pay more, since excessive supply of a commodity normally leads to price declines. That feedback loop is absent in containerboard pricing in which indexdriven contract structures continue to push box prices upward, regardless of market dynamics.
Searching for Alternatives
This raises a key question: How should box contracts be structured in a chronically oversupplied market dominated by vertically integrated producers that can transfer internally at any price they choose? In conversations with Green Markets, many boxmakers and buyers have expressed dissatisfaction with the current pricing model.
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Market Insights
PCA President Tom Hassfurther is among industry officials who’ve voiced concerns over the accuracy and relevance of the industry’s benchmark pricing. The company said it implemented increases of $70 per ton on linerboard and $90 per ton on medium, effective January 1, 2025, with customers accepting the moves. It also began paying higher prices for containerboard from suppliers that enacted similar increases.
Yet, Fastmarkets RISI’s Pulp and Paper Week didn’t adjust benchmark prices despite reporting that roughly 90% of major U.S. producers announced increases, Hassfurther said in late January. He also noted some boxmakers had postponed purchases to avoid the hikes, indicating they were being recognized in practice.
The benchmark’s small sample base no longer appears to fully represent the market, Hassfurther said. Under the existing system, commentary on box prices often gets conflated with containerboard pricing, even though the former are highly customized and contract-driven.
“PCA is moving away from [the current index] as fast as we possibly can,” he said.
Keeping Contracts, Updating Methods
Still, that doesn’t mean the industry wants to scrap contracts entirely. Green Markets’ channel checks have found that most corrugated packaging buyers and producers continue to favor stable, long-term contracted relationships, citing operational and financial predictability. For producers, the capital-intensive nature of converting operations and the need to manage containerboard inventories several weeks in advance make demand visibility essential. Customers, meanwhile, prioritize consistency in supply. Combining multiple facilities into larger supply agreements provides scale for negotiating price. Even so, there’s no particular reason why the price of 42-pound kraft linerboard needs to be the standard for those contracts. Its prominence can be traced to legacy
performance standards rooted in the Mullen test. Since the adoption of edge crush test standards in 1990, the industry has shifted toward lighter-weight liners that can meet performance requirements through improved engineering and design.
Most corrugated contracts remain indexed to the grade partly out of inertia; existing agreements, each with unique terms and expiration dates, are routinely renewed or extended without modifying the price adjustment mechanism.
Greater Transparency
A foundational requirement for any contractual price adjustment mechanism is trust in the metric. By incorporating a broader range of input categories beyond raw materials, users can get a more comprehensive view of cost pressures throughout the supply chain. Buyers and
sellers can track the index’s direction in real time and see which components are driving it, reducing uncertainty.
Insights gleaned from the monthly data could strengthen users’ positions ahead of their scheduled price reviews and encourage better-informed discussions. Barring extraordinary events, buyers and sellers shouldn’t be caught off guard when costs shift or when market conditions suggest a need for downstream changes in box prices. There are other options to help with pricing. Feel free to reach out to me if you’d like to discuss them.
Ryan Fox is a corrugated market analyst at Green Markets, a Bloomberg company. He can be reached at rfox93@bloomberg.net
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Welcome, New and Returning Members!
DORAL CORPORATION
SHANE DEFENDI
Director of Business Development
447 E. Stewart St., Suite 100 Milwaukee, WI 53207 414-489-7000
www.doralcorp.net
SCOUT CONCEPTS & CONSULTING, LLC
BILLY KURTZ
Co-founder
5074 N. Woodburn St. Whitefish Bay, WI 53217 414-530-2912
www.scoutconcepts.com
U.S. ADHESIVES
PAMELA CREEVY
President 1735 W. Carroll Ave. Chicago, IL 60612 312-829-7438
www.usadhesive.com
STRECO FIBRES INC.
CARSON HENRY
Domestic Sales Associate
168 Business Park Dr., Suite 200 Virginia Beach, VA 23462 757-473-3705 www.streco.com
VICTORY BOX CORP.
ALEX LANDY
President P.O. Box 842 Cranford, NJ 07016 908-245-5100
www.victoryboxcorp.com
OGC SOLUTIONS LLP
CHRISTOPHER SANTOMASSIMO
Partner
1 Gatehall Dr., Suite 100 Parsippany, NJ 07054 201-268-3170 www.ogcsolutions.com
COLOR HUB
ERIN HOLLANDSWORTH
Sales
4950 Kraft Ave., S.E. Grand Rapids, MI 49512 310-591-7795 www.colorhub.io
HIFLOW SOLUTIONS
MARIUSZ SOSNOWSKI
CEO and President
66 W. Flagler St., Suite 935 Miami, FL 33130
305-646-9933
www.hiflowsolutions.com
SUSTAINABLE CORRUGATED BOBBY HUNTER
Senior Vice President of Corrugated Operations 2852 Five Springs Rd. Dalton, GA 30720
706-529-8101
www.sustainablecorrugated.com
ENGVIEW SYSTEMS
KRIS HANCHETTE
President
2201 Long Prairie Rd., Suite 107173 Flower Mound, TX 75022 469-902-9754 www.engview.com
Members Meeting
2025 Spring Meeting Leaves Attendees Flying High
AICC successfully concluded its highly anticipated 2025 Spring Meeting, held April 30–May 2 in Bonita Springs, Florida. With over 800 attendees representing independent corrugated, folding carton, and rigid box companies and suppliers, the meeting delivered on its promise of high-value education, deep connection, and bold inspiration.
Guided by 2024–2025 AICC Chairman Gary Brewer’s rousing theme, “Fly the Plane. Run Your Business,” the event reminded business leaders that amid constant distractions, they must stay focused and take the controls of their company’s future. “Like pilots, entrepreneurs have their
crew, tools, and resources,” said Brewer, president of Package Crafters. “But the responsibility to lead—to fly the plane—rests with you.”
Keynote Lineup That Soared
The meeting’s general sessions captivated the audience with timely and transformative messages. Attendees were inspired by John “Gucci” Foley, a former lead solo pilot of the U.S. Navy Blue Angels, who delivered a jaw-dropping closing keynote on high-performance teamwork, trust, and precision. His words resonated with the crowd and earned a standing ovation.
Peter Goodman, The New York Times’ economics correspondent and bestselling
Over 800 people come together to connect and learn during the AICC 2025 Spring Meeting in late April in Bonita Springs, Florida.
AICC Chairman Gary Brewer of Package Crafters and Creative Packaging welcomes attendees during the opening night reception.
Photos by Ryan Armbrust, Sniper
Photo, LLC.
author, took attendees deep into the heart of global commerce with his riveting session, “How the World Ran Out of Everything: Inside the Global Supply Chain.” And Diane Wolf, CEO of Carlisle Container Co., offered realworld insights in her opening keynote, setting the tone for the entire meeting with clarity and confidence.
ELs Took the Stage
The future of the packaging industry came into sharp focus during the Emerging Leaders (EL) panel, when rising stars from across the United States shared their vision, challenges, and passion for leadership. Moderated by Joe Morelli of Lewisburg Patterson, the panel featured perspectives from Andrew Bell, Packaging Express; Rob Callif, BCM Inks; Cassi Malone, Corrugated Supply Co.; Tom Murphy, Reliable Container; and Shari Saeger, Alliance Machine Systems International, each offering a unique lens on what it means to build a career and company in packaging today. The leadership development continued as Richard Goldberg’s compelling session on “Data-Driven Decision-Making in the Corrugated Industry” gave attendees tactical tools to make smarter, faster decisions.
11TH ANNUAL
INDEPENDENTS’ CUP CHARITY GOLF TOURNAMENT WINNERS
First Place Team
Rob Melton, Domtar Packaging
Ryan Clark, SUN Automation
Sheldon Gouthro, Maritime Paper
Ken Lawrence, Maritime Paper
On-Course Contests
Closest to the Pin, Hole 5: Ken Lawrence, Maritime Paper
Closest to the Pin, Hole 8: Mike Gentry, Flint Group
Closest to the Pin, Hole 10: Daryl Emery, Straub Design Co.
Closest to the Pin, Hole 15: Payton Cox, Harris Packaging Longest Drive, Hole 9: Trent Halasek, Akers Packaging Service Group
John “Gucci” Foley, former lead solo pilot of the U.S. Navy’s Blue Angels, inspires attendees using his stories as a Blue Angel to show ways to foster innovation and teamwork through a commitment to preparation, practice, and persistence.
The AICC Women in Packaging Breakfast features lively conversation and camaraderie.
Members Meeting
Bold Conversations in Every Breakout, Forum, Focused Session
The meeting’s breakout sessions buzzed with energy as experts tackled the issues that matter most to independent packaging companies. In “Let’s Talk About People,” leaders from Schwarz Partners, the International Corrugated Packaging Foundation, and Oberg & Associates dove into best practices in recruitment and retention. At the same time, “Opportunities & Challenges in Building Expansion” brought veteran voices from Cumberland Container, Akers Packaging Service Group, and
Moyy/Whitebird to share real-world capital investment strategies.
Succession planning was explored through a solo session led by Dan Prisciotta and a panel discussion with leaders from Acme Corrugated, SMC Packaging, Royal Containers, and Welch Packaging—each offering hard-won insights on preserving legacy and preparing the next generation.
Meanwhile, the lively “Print Wars” panel sparked debate over flexo, litho, and digital printing, featuring professionals from McLean Packaging, Peachtree, Lewisburg Patterson, and Kento Digital. In a forward-looking session on technology, Ensilio CEO Mark Kornfilt detailed how digital innovation is disrupting traditional paper trading.
The Sales Management Forum, led by Trent Halasek of Akers Packaging Service Group and Todd Zielinski of Athena SWC, brought a high-energy, data-driven approach to sales strategy with their session “Step Up Your Game: Moneyball Meets Sales Mastery.” Over two dynamic days, sales leaders discovered how to apply analytics, process discipline, and think strategically to boost performance and drive measurable results. Attendees left energized, equipped with new tools, and ready to
This meeting features a focused session that discussed the economy, the second Trump administration, and the next generation of leadership.
Terri-Lynn Levesque, vice president of administration at Royal Containers and AICC first vice chair, and Frank Chilman representing Hood Container, a major donor of the Independents’ Cup Charity Golf Tournament, present Matt Davis, president of Packaging Express and chair of the Foundation for Packaging Education, with a donation to the foundation to support industry education.
AICC members enjoy connecting during numerous networking opportunities at the AICC 2025 Spring Meeting.
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Members Meeting
MEMBERS SUPPORTING THE MEETING
AICC thanks our sponsors who helped to make the 2025 Spring Meeting a success.
Meeting Sponsors
Domtar
Flint Group
A.G. Stacker
Hood Container
SUN Automation
Haire Group
Pacificolor
Stafford Corrugated Products
BW Papersystems
Kao Collins
Oklahoma Interpak
Mainline Conveyor Systems
Amtech
rethink what success looks like on the sales floor.
A focused legislative and economic update from George Staphos of Bank of America Merrill Lynch and Matt Morgan of Barnes & Thornburg rounded out the educational content with timely insights on what the new administration means for business.
Recognition
During the meeting, Chuck Fienning was inducted into the AICC Hall of Fame for his enduring leadership and contributions to AICC and the independent industry.
Through the Member Milestone program, Welch Packaging, American Corrugated Machine Corp., Kongsberg Precision Cutting Systems, and SUN Automation Group were recognized for their longevity in the industry.
MHI
Global Boxmachine
Kolbus
Koenig & Bauer
Stafford Corrugated Products
Lewisburg Patterson
Precision Corr
Landaal Packaging
President Container
Golf Sponsors
Hood Container Corp.
Bobst
Bradford Co.
BHS Corrugated
Equipment Finance Corp.
EMBA
Isowa
Lewisberg Patterson
Cuir
Akers Packaging Service Group
Corrugated Parters Group
A.G. Stacker
American Corrugated Machine
Alliance Machine
Systems International
Bay Cities
BW Papersystems
Clean Print USA
Dicar
Comtar
Engico
Jamestown Container Cos.
JB Machinery
J.M. Fry
M&T Capital and Leasing Corp.
McLean Packaging Corp.
Pacificolor
Pamarco
Calco Menton
Wasatch Container
Chuck Fienning, formerly of Sumter Packaging, is inducted into the AICC Hall of Fame by Gary Brewer, president of Package Crafters and Creative Packaging and AICC Board chairman.
Members Meeting
Also, several locations of Akers Packaging and Jamestown Container Cos., along with Box-Board Products, were awarded the 2025 Independent Safe Shop Award.
Charitable Impact
One hundred thirty-two golfers competed in the 11th Annual Independents’ Cup Charity Golf Tournament at the Saltleaf Golf Preserve, raising more than $10,000 for the Foundation for Packaging Education.
“AICC members make the Spring Meeting,” said AICC President Mike D’Angelo. “They bring their families, their energy, their ideas, and their openness. All that comes together to make for a joyful and memorable experience that people talk about for weeks afterward. It is quite special.”
Connections Everywhere
Beyond the sessions, attendees enjoyed a wide array of networking opportunities—from the Women in Packaging Breakfast to evening receptions and industry-specific socials. The Late-Night Mix & Mingle, EL Networking event, and the 11th Annual Independents’
Cup Charity Golf Tournament created space for meaningful connections and lasting friendships.
Optional excursions such as the Edison & Ford Winter Estates Tour, an Everglades Eco Tour, and a catamaran sailing excursion infused the week with adventure and local flair.
AICC also hosted the first Kids Crafting With Corrugated Social. The event for children ages 5 and older brought together the youngest attendees
to work on corrugated projects and participate in a scavenger hunt.
Community in Command of Its Future
From start to finish, the AICC Spring Meeting celebrated the entrepreneurial mindset that defines independent packaging. It was a reminder that while tools, technology, and trends may evolve, the heart of this industry remains constant, driven by people willing to take the wheel and lead with purpose.
AICC President Mike D’Angelo reminds AICC members of the many Association benefits available to them during the State of the Association address.
Attendees find the workshops engaging and informative during the AICC 2025 Spring Meeting.
Kim Nelson, president of Royal Containers, shares her expertise during the AICC Women in Packaging Breakfast.
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Ask Ralph
Glue Tab Strength
BY RALPH YOUNG
During the 15 years we have responded to questions to Ask Ralph or the 10 years of articles for BoxScore, the issue of glue tab strength continues to emerge.
While the specifics of the dimensions of the glue tab and the adhesive application or placement of the staples are given in Rule 41 and Item 222 in the Fibre Box Handbook, there is no mention of the strength of the bond or the mechanical force necessary to cause failure. Designers often ask if there is an advantage to using a wider glue tab or placing the tab inside the body. Here is the original question we received from an AICC member:
“We have been reviewing glue lap size and glue lap strength, looking to standardize our offering to customers [and glue head sizes]. In doing a modest amount of research, the only definitive information I found for the size of a glue joint is in the Fibre Box Handbook. Under the voluntary standards in Item 222, single-wall (SW), double-wall (DW), and triple-wall (TW) minimum glue joint sizes are listed: 1¼" for SW and DW and 2" for TW. There does not appear to be any information that looks for a correlation between the size (width) of the glue lap to the strength of the glue lap.”
There are no great quantitative glue joint tests that we could easily use to say, “This joint is twice as strong as that one.” There are a few general challenge tests, but while they give the same directional trends, they give different kinds of quantitative results. There isn’t much that would directly answer the question about the inches of the glue tab versus the strength of the joint. Whether it is linear or even matters
past a certain point, we need the joint to be only as strong as it needs to be. What that point is will depend on how the joint is being stressed; bulge or vertical load or panel separation apply to different loads. It will also depend on how the glue is applied; the adhesive should get as close to the scores as possible.
The same width of adhesive coverage that starts far from the score will enable nucleation of failure to begin more easily. And once the glue bond begins to rip the paper on one liner or another, the subsequent propagation of failure occurs much quicker and at lower loads.
These joints also play a large role in the case erecting process by determining how and which case erectors work most cohesively with your existing production line. Converting case blanks into fully erected, bottom-sealed cases may not sound like a difficult process. However, if you’ve struggled to open a package or construct a perfectly square case, you know the joints that support cases and the machines that assemble them are no small part of any case.
No one seems to know the effect of going from 1 3/8" to 2" to 3" glue laps. We suspect an increase in strength. However, a determination of how to measure it has not been made, and the rate of the increase has not been calculated.
If someone has done the work, it has not been made public. When failure is present, it tends to be 75% containerboard-related, then equipment, adhesives, design, internal and external dynamics, and shipping and handling.
While it is relatively easy to determine the Z-directional force per ply bond for strength through the thickness of the bond, shear strength remains elusive. There is no Technical Association of the Pulp and Paper Industry test method. Research has been reported on this topic in the FBA Handbook and in the works by George Maltenfort. We cannot find any published work on this structural issue from Clemson University in South Carolina, which has done wonderful work on printing; or any other packaging schools, except for California Polytechnic State University (Cal Poly) in California, which published a 1969 presentation on adhesive coverage.
We connected with Baumer hhs; H.B. Fuller; Henkel; Advanced Design Technology; Applied Paper Technology Inc.; and Jay Singh at Cal Poly, who wrote the last definitive research paper on glue tab testing, for their input.
Ralph Young is the principal of Alternative Paper Solutions and is AICC’s technical advisor. Contact Ralph directly about technical issues that impact our industry at askralph@AICCbox.org
Ask Tom
Supplier Development in Tariff-Era Supply Chains
BY TOM WEBER
Suppliers are a crucial part of any supply chain, and in today’s world of complex and integrated supply chain systems, the relationship between customer and supplier is more critical than ever.
The days of trying to squeeze every penny of savings out of the supplier are gone, as our procurement teams begin to once again embrace supplier relationships as key to current and future business success.
Identifying New Suppliers
When buyers plan on identifying new suppliers, they are usually tempted to focus on the best price. However, concentrating only on low costs can hurt you in the long term. Shaving a few cents off the price of a product is no help if the quality is below standard and the component or material does not arrive when you need it. So, instead of focusing solely on cost, focus on quality by incorporating these tips into your sourcing strategy.
1. CHECK CERTIFICATIONS
Many buyers have minimal requirements when it comes to supplier quality certifications. However, suppliers do not always make it easy to view and verify their certifications. Discover suppliers that are certified to your quality standards, including the International Organization for Standardization and Current Good Manufacturing Practice.
2. EVALUATE THE GEOPOLITICAL TARIFF
CLIMATE FOR STABILITY
While some overseas resources can provide rock-bottom prices, tenuous labor relations or political upheaval can
leave you without your required product. Take the time to thoroughly analyze the potential for unrest in the areas you will possibly rely on for the success of your supply chain.
3. GAUGE FINANCIAL STABILITY
According to a Thomasnet survey, nearly half of all buyers have worked with a supplier that unexpectedly went out of business. High tariffs will cause more of this, so don’t be caught off guard.
4. ASSESS WEATHERAND TARIFF-RELATED RISKS
We have all seen hurricanes, tornadoes, snow, rain, and drought impact communities across the world. However, the news rarely covers the impact these events have on the supply chain. You do not have the luxury of overlooking this. As you select potential suppliers, identify the
weather-related events that are typical to the region, and evaluate how they could dictate your ability to maintain business as usual. You must also now review your future supply chain addition regarding its ability to weather excessive tariffs—and let’s not forget the possibility of a future pandemic storm, as well.
5. ALIGN MANUFACTURING AND SHIPPING LOCATIONS TO YOUR NEEDS
Depending on your manufacturing requirements, you should determine your need for a multilocation supplier or a single warehouse. Obviously, shipping capabilities and associated costs will differ by the number of locations a supplier has to offer. You may be able to negotiate a better price from a smaller business with a single location or string multiple suppliers together to meet your needs.
6. CAREFULLY REVIEW PRODUCT INFORMATION
Detailed product descriptions and related information will help you determine if a supplier has the right products for your application. If a supplier has taken the time to provide easily accessible product specifications, charts, graphics, and computer-aided design drawings, it shows that the company values your time and is willing to be as helpful as possible to win and maintain your ongoing business.
7. ASK FOR ACCESSIBLE INVENTORY INFORMATION
Having visibility into your supplier’s inventory can be advantageous. It is an indication of the company’s commitment to you as a customer and its ability to provide what you need, when you need it.
8. KNOW THE SUPPLIER’S SCALABILITY
Determine how flexible the supplier is in providing small-quantity and highvolume orders. If you are looking for smaller quantities or prototypes to start out, you will most likely find suppliers that focus on that volume. If you will grow to require extremely large shipments of the product over time, you could easily outgrow your original supplier selection. Knowing what the growth pattern is for the product you are sourcing before you select a supplier will allow you to partner with a supplier that can painlessly scale to meet your changing needs.
9. CHECK THE COMPANY’S COMMITMENT TO CUSTOMER SERVICE
Expect the best and plan for the worst. Evaluate the customer service provided by each potential supplier. If you are working in a 24-hour, lights-out manufacturing capacity that could require a call to a supplier at any time of day or night, work this into your research. A deeper understanding of the contract language
pertaining to the company’s return policy should be uncovered, as well. You do not want to be stuck holding the bag.
10. GET LEAD TIME AND DELIVERY STATISTICS
Delivery performance is a key tenet to industrial buyers. Ask for lead time projections compared against on-time delivery rates. If these cannot be provided, then it is a good sign they are not being tracked or are not very good.
11. READ INTO THE PAYMENT TERMS
Identify the suppliers that are willing to work with your payment requirements. Because the long-term need and delivery timelines can dictate the purchase order or net 30 billing options, ask for what you need to run your business appropriately.
12. CONTACT REFERENCES PERSONALLY
A vote of approval from another business the supplier is working with can speak volumes about its abilities. While nondisclosure agreements can cause some difficulties in this area, a supplier should have a list of happy customers or testimonials available.
Although this is not an exhaustive list of parameters you should review before onboarding a new supplier or two, it can certainly help identify those you can rely on.
Tom Weber is president of WeberSource LLC and is AICC’s folding carton and rigid box technical advisor. Contact Tom directly at asktom@AICCbox.org
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Selling Today
Why Your Sales Pipeline Stalls and How to Fix It
BY TODD M. ZIELINSKI AND LISA BENSON
For most packaging manufacturers, production follows the pace of the sales pipeline. When quoting slows, operations feel it soon after. For many companies, pipeline stalls come from an overreliance on referrals or inconsistent outbound effort. When new opportunities aren’t systematically generated, even experienced sales teams hit dry spells. A structured, measurable front-end process helps ensure that quoting activity—and production—remains steady and reliable.
Hidden Gaps in Relationship-Based Selling
Relationship-based selling, which involves building and maintaining personal connections that lead to repeat work, has long been the primary mode for selling packaging. There’s nothing inherently wrong with that approach until it becomes the only source of new business. Relying too heavily on referrals or repeat business creates a fragile system that puts your sales pipeline at risk.
With this method, qualified lead flow becomes unpredictable. Manufacturers can’t forecast when a customer will have a new project, which creates gaps in quoting activity. Over time, this creates a scenario in which manufacturers work only with the same limited number of buyers, missing opportunities with new or growing businesses that may not be familiar with them.
On top of having a limited number of buyers, there are additional risks from the relationship-based model. If a key customer contact retires, switches vendors, or gets acquired, that customer business can dry up overnight. If the sales team is
accustomed to handling only inside sales or inbound work, they will often lack the structure and skill set required for pursuing new opportunities proactively. And because these deals often happen informally, management loses visibility into the pipeline, making it harder to plan or spot problems early.
Spotting the Signs of a Stalled Pipeline
Sale slowdowns can occur without warning. Often, they show up quietly: a decline in quoting activity, fewer first conversations, or long stretches when reps say they’re “waiting to hear back.”
The sales reps are busy, but most of their activity is reactive, such as following up, checking in, and chasing unresponsive contacts. In packaging manufacturing, where quoting is the bridge between sales and production, these lulls can signal deeper issues upstream.
The root problem isn’t always effort. It’s often a lack of process. Without a structured way to generate, qualify, and advance new leads, even good sales reps run out of momentum. And by the time it shows up in production numbers, it’s too late to fix it quickly.
Structured Front-End Sales Process
When the sales pipeline stalls, most companies look at sales rep performance. While that may play a part if your sales team lacks the skill set required, often the issue is further upstream in how new opportunities are generated and managed.
A structured front-end sales process helps create consistent quoting volume by replacing reactive selling with proactive outreach and measurable steps.
It starts with targeting. Companies that define their ideal customer avoid wasting time on poor-fit opportunities. That could mean prioritizing by industry, order size, geography, or equipment compatibility. From there, a steady outbound effort puts your capabilities in front of decision-makers who may not be actively looking but are open to better options. That outreach must be planned and consistent, not occasional. Sporadic cold calls or one-off emails don’t create traction. For packaging, manufacturers can take between 15 and 50 touches at a regular cadence and from two to six months or more to secure a meeting.
Once a prospect shows interest, further qualification is critical. Not every inquiry deserves a quote. A good front-end process helps your team ask the right questions to focus on real opportunities. For buyers who aren’t ready, a defined follow-up and nurture sequence keeps your company top of mind without depending on chance.
This kind of process doesn’t replace relationships; it supports them. It ensures
sales activity happens every week, not just when someone has time. It also gives leadership visibility into what’s happening in the pipeline: where leads are coming from, how they’re progressing, and where deals get stuck. This data is critical for refining your process to ensure lead flow.
How Process Drives Results
A structured front-end sales process isn’t just about creating more activity for the team. It’s about generating better outcomes for the company by creating a division of labor—ensuring each role has the necessary skill set—so hunting is performed efficiently and sales reps are free from administrative tasks and prospecting, allowing them to focus on qualified opportunities and closing deals. For packaging manufacturers for whom quoting volume directly impacts production schedules and revenue predictability, the effects are tangible.
When the right prospects are consistently entering the pipeline, quoting
activity becomes steadier. That steadiness makes it easier to forecast production needs, manage inventory, and schedule labor. It also shortens sales cycles because when leads are prequalified and nurtured properly, reps spend less time chasing unresponsive contacts, giving them more time to work on closing viable deals.
A defined process also improves accountability. Sales teams know what’s expected each week: how many new contacts, how many follow-ups, and what qualifies as a real opportunity. Sales managers get clearer visibility into performance and can identify problem areas before they affect quoting volume.
Most importantly, companies that commit to structured sales development don’t fall into the feast-or-famine cycle that plagues relationship-only selling. They build a repeatable machine that feeds quoting activity, even when the market softens or referrals slow down.
If you’re looking for practical guidance on building a sustainable sales process, we offer two e-books
that dig deeper into the strategies that drive consistent revenue growth. Setting Yourself Up for Sales Success provides a step-by-step look at front-end sales process development from aligning roles to mapping measurable sales goals. Death of the Traditional Sales Model explains why legacy methods fall short and outlines a modern sales approach built around division of labor, targeted outreach, integrated technology, and team alignment.
Todd M. Zielinski is managing director and CEO at Athena SWC LLC. He can be reached at 716-250-5547 or tzielinski@athenaswc.com
Lisa Benson is senior marketing content consultant at Athena SWC LLC. She can be reached at lbenson@athenaswc.com
Packaging Designed to Chill
BY JULIE RICE SUGGS, PH.D., AND ALLI KEIGLEY
Welcome to year three of our series on summer packaging— the season when store shelves get a serious glow-up. Think bold colors, breezy vibes, and designs that practically scream, “Toss me in your beach bag!” With that in mind, you’d best believe we got ourselves ready for another trip to the store to see which brands would woo us this year with their summer-inspired packaging. From beach beverages to frozen treats and everything in between, we were on the lookout for packaging that not only catches the eye but also captures the carefree magic of summer.
MIZO Hard Juice is basically summer in a pouch and caught our eyes right off the bat (see photo below). With playful palm trees swaying across the packaging and colors that feel straight out of a sun-drenched postcard, it’s an instant invitation to kick back, soak up the sun, and channel your inner vacation mode—no plane ticket required. There’s a definite nod to those childhood afternoons sipping Capri Sun, with a
grown-up twist. This kind of packaging makes you smile and reminisce. And yes, this product is available all year round. Lucky for you because who says those summer vibes have to end in September? Next up, we had to stroll through the ice cream section because, let’s be honest, we’re total suckers for a sweet treat. And really, what goes better with the summer months than a cold, creamy scoop (or three)? This Limited Edition Strawberry Shortcake ice cream is like a scoop of summertime (see left photo above).
Butter crème-flavored ice cream sets the stage with a rich, velvety base, perfectly swirled with ribbons of chunky strawberry sauce that taste like peak-season berries. But the real star? Soft, pillowy squares of shortcake layered throughout, adding just the right amount of nostalgic, bakery-fresh goodness. The carton itself is just as vibrant, with pops of pink and green that immediately transport you to a sun-soaked afternoon, making it as irresistible to the eyes as it is to the taste buds.
And if you’re craving that classic summer bonfire vibe, the Limited Edition s’mores-flavored ice cream is a must-try (see right photo above). It’s everything you love about campfire treats: graham cracker ice cream with gooey marshmallow swirls and rich chocolate ribbons, all packed into one dreamy scoop. Plus, the packaging is a showstopper, designed to
The Publix grocery store chain released Limited Edition ice cream flavors for summertime, complete with bright, fun packaging designs.
This corrugated beverage packaging screams summer with warm colors and clearly communicates the product’s varieties to entice customers.
Photos by Julie Rice Suggs, Ph.D., and Alli Keigley.
look just like a real s’more with its toasty, golden browns and gooey marshmallow visuals. Perfect for the cooler summer nights, it begs to be the star of your next bonfire gathering (without the hassle of building a fire).
Speaking of s’mores, Hershey’s does an excellent job showcasing the different ways to make the bonfire staple right on the packaging, providing a visual representation for every method (see photo at left). Whether you’re roasting marshmallows over a campfire, grilling them, popping them in the microwave, or using a toaster oven, the playful icons on the package make it clear that no matter how you cook them, you’re in for a good time. And did you know that National S’mores Day is August 10?
Stacy’s grabbed our attention with its eye-catching point-of-purchase display
made of corrugated material, showcasing the brand’s delicious range of chips (see left photo below). The tagline, DELICIOUS SNACKS. Endless Pairings, is the perfect reminder that these chips are more than just a snack; they’re the ideal companion for everything from summer barbecues to beach picnics.
SOLO knows how to make convenience and style a priority with its corrugated display, designed not only to showcase its iconic cups but also to make setup a breeze for store workers—complete with easy-to-follow instructions on the box.
Featuring SOLO’s signature More Grips, Less Slip! tagline, this display offers the quintessential summer must-have, perfect for everything from backyard barbecues to poolside parties (see right photo below).
This trip was a welcome departure from our everyday shopping routine, and we had an absolute blast hunting for packaging that truly captures the spirit of summer with its bold colors, nostalgic imagery, and standout designs. We could have easily picked 100 more examples!
But now we want to hear from you— did these brands nail the seasonal vibes with their packaging? Feel free to shoot an email to julie@packagingschool.com and let us know what you think! And happy summering to you all!
Julie Rice Suggs, Ph.D., is academic director at the Packaging School. She can be reached at 330-774-8542 or julie@ packagingschool.com
Alli Keigley, who contributed to this article, is production coordinator at the Packaging School. She can be reached at alli@packagingschool.com.
Focusing on the design, Hershey’s encourages customers to make the perfect s’more.
These corrugated displays boast eye-catching design while giving the food packaging itself space to shine.
Leadership
A Culture Crisis You Can’t Ignore
BY MATT EICHMANN
Irecently came across some sobering statistics from Gallup:
• Only 31% of U.S. workers say they’re engaged at work—the lowest in more than a decade.
• Just 46% clearly understand what’s expected of them.
• And 29% feel someone genuinely cares about them at work.
Let that sink in.
This isn’t just a general workforce issue; it’s a culture crisis. And for manufacturing, it hits even harder. We’re already facing a shrinking labor pool, rising job vacancies, and the steady exit of experienced workers. Younger talent, meanwhile, is quicker to jump ship if the environment doesn’t offer growth, purpose, or connection.
Here’s the kicker: We’ve long been laser-focused on maintaining machines and optimizing production. But we’ve dropped the ball on maintaining our most valuable asset—our people.
As leaders, we can’t afford to ignore culture. We must own it. Yes, competitive wages and solid benefits matter—but those are just the entry fees. What sets companies apart in today’s labor market is the quality of the environment we build and protect every day.
Here’s one simple tool to help you lead that effort, especially when your team is stretched thin. It’s called CAR:
• Connect. Every day, take five minutes to connect with someone on your team. Ask about their day. Listen—really listen. You don’t need to fix anything. Just be present. Most people are heard but not seen. That small moment will stick.
• Appreciate. Show appreciation— genuinely and specifically. Say thank
you. Tell someone how their work moves the needle. It’s free, it’s fast, and it builds the kind of loyalty money can’t buy.
• Recognize and reinforce. When someone gets it right, call it out. Reinforce the behaviors you want more of. We’re quick to flag problems, but the best leaders double down on the wins. That’s how you shape culture in real time.
CAR is especially effective during tough stretches—when you’re short on people, time, or both. It gives your team the clarity, connection, and encouragement they need to stay motivated and keep moving forward.
CAR takes energy and intention, no doubt. But it’s energy well spent. Want to stay accountable? Build a simple scorecard and track how often you hit the CAR marks. You’ll be surprised how quickly the payoff builds team morale, engagement, and retention.
Want to build a workforce that’s loyal, productive, and proud to work for you? Start with the one factor you control every day: culture.
Matt Eichmann is founder of Catalyst Point Leadership Advisors. He can be reached at 614-512-2940 or matt@catalyst-point.com
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Professional Development
AICC Launches BMCP Certificate Program
AICC, in collaboration with the Packaging School, recently launched the Business Management in Corrugated Packaging (BMCP) certificate program, a first-of-its-kind professional development opportunity crafted for professionals in the corrugated industry. Enrollment is now open for the inaugural cohort, beginning in fall 2025.
This immersive 12–18-month program blends core Master of Business Administration-level business principles with specialized instruction in corrugated packaging, empowering participants to lead confidently in today’s marketplace. Through a rigorous combination of in-person instruction, online coursework, and real-world application, professionals will gain the financial, operational, and strategic insight essential for driving meaningful results in their companies.
Why Enroll in BMCP?
Participants will:
• Master business and packaging strategy —develop leadership, finance, and operational skills tailored to the corrugated industry.
• Get a customized learning experience —choose course paths aligned with personal and professional objectives.
• Engage with industry experts learn directly from industry professionals and connect with peers in a small, collaborative cohort of five to 10 participants.
• Solve real-world challenges —apply classroom learning to real industry issues through a comprehensive capstone project.
The BMCP program, facilitated by Julie Rice Suggs, Ph.D., begins with an in-person kickoff at the Packaging School in Clemson, South Carolina, where participants meet their cohort and facilitator, establish personal learning goals, and work with an advisor to select their courses.
Next, they will complete the Clemson Corrugated Packaging Seminar, a two-day immersive event focused on emerging industry trends, material innovations, and cutting-edge packaging design.
Participants will then move into the program’s core, selecting two courses from each of these modules: Leadership & Strategy, Operations Management, Marketing & Sales, Finance & Business Acumen, and Packaging Design & Innovation. The modules cover topics ranging from corporate strategy and project management to lean manufacturing, safety compliance, and financial forecasting.
The capstone project is a signature element of the program. Participants will apply their learning to a real-world challenge in the corrugated industry, culminating in a formal presentation of their solution to a board of industry leaders, AICC executives, and representatives from their company.
Finally, participants will celebrate their success and be recognized at the AICC National Meeting, where they will receive their certificates.
“The BMCP program is a unique educational experience,” said Mike D’Angelo, AICC president. “It’s designed not only to build business acumen but also to deepen packaging-specific knowledge in ways that matter most to independent converters and their future.”
Applications are now being accepted. Space is limited. Sponsorships are available from the Foundation for Packaging Education, upon request.
Learn more and apply at www. AICCbox.org/businessmanagement
Questions can be directed to Rebecca Rendon, AICC senior manager of education, at 571-629-7613 or rrendon@AICCbox.org, or to Taryn Pyle, AICC director of education and training, at 703-535-1391 or tpyle@AICCbox.org
Colorado Industrial Packaging: Beyond ‘a Box for a Penny Less’
BY M. DIANE M c CORMICK
Company: Colorado Industrial Packaging
Established: 2008
Joined AICC: 2019
Phone: 720-339-2706
Website: www.cippack.com
Headquarters: Denver, Colorado
President and CEO: Carl Nickel
The Colorado Industrial Packaging team celebrates its first-ever printed box.
Acall to Colorado Industrial Packaging (CIP) gets a real person on the phone, happy to take a message or track down someone who can help.
It’s all part of CIP’s customer-centric culture. “A lot of people say ‘service,’
but what does that mean?” says President and CEO Carl Nickel. “For us, we want to create a great customer experience. We want to be able to design, quote, and build product for our customers before, oftentimes, our
“I’ve always been a firm believer that it takes an army to be successful. When I was looking at taking over the business, I knew that I needed to find some help and find some people who have done this before and know what they’re doing. That’s exactly what I’ve found with AICC.”
—Carl Nickel, president and CEO, Colorado Industrial Packaging
competitors are able to move a quote out the door.”
CIP dates to 2008, when Brian and Janey Nickel bought a supplier of packaging materials—“stock supplies you’d find in a UPS store,” says Carl, their son.
With the realization that Colorado abounded with niche businesses demanding specialized protection for their high-end, sensitive products, the Nickels bought an AutoBox to develop short-run manufacturing capabilities.
That era launched a transformation that shaped today’s CIP, a custom packaging solutions provider for services including aerospace and defense, medical device, semiconductor electronics, building materials, manufacturing, and—naturally, being in Colorado— outdoor gear.
Photo courtesy of Colorado Industrial Packaging.
Capabilities and services cater to clients’ needs for industry-specific drop-testing, prototyping, military and copy-exact specifications, efficiency maximization, and cost and labor savings.
Carl Nickel joined the firm in 2018, implementing a plan to grow CIP’s Denver facility and upgrade its original Colorado Springs plant. The process stretched from a planned 18 months into four years, culminating with Brian and Janey’s phased-in retirement and Carl’s elevation to the C-suite.
CIP differentiates itself in design and engineering, says Nickel. Solutions are crafted from a toolbox of product capabilities that includes custom boxes, custom foam, custom crates, and heavy-duty and specialty packaging.
With its specialty mindset, CIP has produced packaging that protects everything from circus equipment to airplane seats. The process builds on
understanding how products interact with packaging “from start to finish,” scrutinizing how they’re loaded, handled, shipped, and unboxed.
“There are two modes of selling in our industry,” says Nickel. “One is, ‘I’ll sell you a box for a penny less.’ We just don’t compete that way. We’re looking for how we add value through the entire life cycle of the package.”
Growth projections are positive. The new Denver facility—replacing a space so cramped that the conference room was converted from a tiny office—creates space for new equipment, and new sales reps are being hired.
It’s all geared toward keeping pace with industry trends. “We want to stay in line with supporting the markets we’re already serving and doing more of what we’re already good at,” Nickel says. “I think we’ve done a good job of carving out a good niche. Our objective is to double and triple down around that.”
Colorado Industrial Packaging’s capabilities include custom boxes, custom foam, custom crates, heavy-duty packaging, and specialty packaging.
Colorado Industrial Packaging’s custom foam fabrication is a key capability, allowing for greater packaging security.
Member Profile
Joining AICC in 2019 expanded Nickel’s network of peers, knowledgeable about industry challenges and opportunities. “I’ve always been a firm believer that it takes an army to be successful,” he says. “When I was looking at taking over the business, I knew that I needed to find some help and find some people who have done this before and know what they’re doing. That’s exactly what I’ve found with AICC.”
Before AICC, problem-solving involved Nickel and his father “troubleshooting and trying to figure out how to do it.”
Now, he belongs to an AICC CEO Advisory Group whose members tour each other’s plants and are always available for brainstorming. Whether he’s addressing a new process or product
launch, Nickel knows he can call someone and get a timely response. “Before, something like that might take me months to find a solution, whereas I can find it in a day now,” he says.
His parents also taught him “more than I can remember,” Nickel notes. His father, a veteran of sales, knew how to connect with people and build relationships. His mother “was always looking around the corner at what could go wrong, which was really healthy, because I’m very much a shoot-from-the-hip kind of guy.”
He adds, “Within our relationship, we had a really good dynamic. No one person can make good decisions consistently over time. It takes a team and a team that thinks very differently. Being in that environment gave me a
North Star in what I can create in terms of a team.”
With Brian and Janey in near-retirement, CIP is rebuilding in-house expertise and skills in handling high-level decision-making, developing his existing people and hiring new personnel.
In CIP’s culture, staff can “feel comfortable with taking some swings.” It’s better to take initiative than shy away from innovation.
“It’s OK to make mistakes,” Nickel tells the CIP team. “Just learn from it, and don’t do it again. I’d rather see our staff trying things and actually being agents of change than to be afraid of trying something.”
The CIP teamis excited about the future of the boxmaking and packaging industry and the company’s role in it. While CIP follows market trends that help inform decisions, its focus remains on its distinctive pathways to success.
“It’s really easy to overlook how much goes into making a box,”
Nickel says. “Most of our customers, if they’re designing a missile or satellite component that’s going into space, the box is the last thing they’re thinking of, and that’s OK. That’s why we’re here.
But by looking for how we can add value, there’s a lot more that our industry has to offer than a box at a penny less, and that’s worked really well for us. I think that’s why our customers tend to stick around.”
M. Diane McCormick is a freelance journalist based in Pennsylvania.
Carl Nickel, right, celebrates the retirement of his parents and predecessors, Brian and Janey.
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THE BIG U
Uncertainty reigns as boxmakers navigate the fast-paced nature of the new administration
BY GEOFF WILLIAMS
Any new administration brings change, but when Donald Trump became president again, he was referred to as a disruptor, and everyone would likely agree that he has brought some dramatic changes to the United States and its economy with his focus on tariffs and his push to bring U.S. manufacturing back to its heyday.
So with that in mind, BoxScore asked AICC members what they thought about the current state of the tariff situation, and several stalwart member leaders had lots to say.
“I feel like I’m walking on a tightrope, with a possible recession on one side, … but on the other side is a lot of this move toward reshoring and using U.S. manufacturing, which would be an upside for us.”
—Ian Bernstein, president, Trenton Corrugated Products
What are your customers’ reactions to the tariffs and stock market upheaval?
CUSTOMERS ARE CAUTIOUS
Greg Tucker, chairman and CEO of Bay Cities Packaging & Design, headquartered in Pico Rivera, California, says many of his clients “are taking a wait-andsee approach to understand just what is next. Nobody knows what will happen next on Trump’s Magical Mystery Tour.”
Tucker himself is feeling good about the mystery tour, and he thinks clients are
hopeful. “We have seen, over the past 20 to 30 years, a good amount of brave folks marching into China with folding cartons, corrugated boxes, and displays to create a footprint of a packaging supply chain for all of those that have stripped the U.S. of their manufacturing business. What we see today is great interest in bringing that business home—and very quickly.”
In fact, Tucker says, the phone has been ringing off the hook from existing and potential clients looking to get their packaging needs fulfilled in the U.S.
CUSTOMERS ARE CONCERNED
Bob Cohen, president of Acme Corrugated Box, headquartered in Hatboro, Pennsylvania, says that while many of his clients are in the pharmaceutical and food sectors, “which may be tariff- and recession-proof, our customers remain concerned.”
He remarked that disruptions in the supply chain are making clients edgy. “If products bound for the U.S. are stuck in China because of an ongoing trade war, I think that’s an issue,” Cohen says.
“Companies are rethinking capital projects because of the uncertainty. If you’re an independent thinking of buying expensive equipment or implementing a hiring freeze, you may hold off on those decisions if the business climate is a concern.”
CUSTOMERS ARE BEING PROACTIVE
Ian Bernstein, president of Trenton Corrugated Products, a manufacturer in Trenton, New Jersey, says he is seeing “a range of reactions” from his clients, but some are taking action. Unfortunately, not all of the action is the type you would want your customers to take.
“Some customers are actively looking for reshoring, and many are at least exploring bringing things back to the United States,” he says. “On the flip side, we’ve had some customers who import products, who have pushed off taking deliveries. We’ve got people who are concerned about a recession and are holding things tighter to the vest and stringing out their cash payments a little bit. I think it’s a whole range of reactions.”
How do you see business going for the rest of the year?
BUCKLE UP
“Business conditions will be bumpy for a while as we get more clarity as to what will take place,” Tucker says.
He thinks the year will have ups and downs. “Uncertainty is what has taken the markets down so hard. The speed at which this administration is going is what is creating this uncertainty.”
The speed, though, is important, Tucker says. He feels that if the way the country has been working isn’t changed, “within five years, this country will be in a depression. We are upside down.”
THINGS MAY GO REALLY WELL
Cohen also sees bumps, but he says, “I’m always optimistic. I do think that if we
“Uncertainty is what has taken the markets down so hard. The speed at which this administration is going is what is creating this uncertainty.”
—Greg Tucker, chairman and CEO, Bay Cities Packaging & Design
get past this uncertain period, it could be a good year.”
Cohen says the way the tariffs have been handled so far, or at least at the time of this writing, could have been more coherent. However, he says, “the goals are commendable.”
One thing that will help Acme, Cohen says, is that 60% of their paper comes from Canada, where the former United States-Canada-Mexico Agreement allows for paper products to pass over the border without the announced tariffs. Twenty percent of Acme’s paper comes from Europe, which has a 10% tariff. It could be a lot worse; Acme is fortunate to have little contact with China.
“I don’t fret over a possible recession,” he says, citing the recessions the company has weathered through over the years. “If we have to adjust, we’ll adjust.”
THINGS MAY NOT GO SO WELL
Bernstein sounds like his counterparts. “I’m very uncertain. I feel like I’m
walking on a tightrope, with a possible recession on one side, which would be bad for our business, obviously, but on the other side is this move toward reshoring and using U.S. manufacturing, which would be an upside for us. I’m not sure which side of the tightrope becomes a predominant feature.”
As for the moment, Bernstein says, “it’s, so far, pretty steady as she goes, but that could all change tomorrow.”
How have you been handling the shortage of labor, and what strategies have you deployed to retain good talent?
There is a true labor shortage in the United States in manufacturing, and chances are, AICC members have felt it. For instance, according to Supply Chain Management Review, in the third quarter of 2024, 20.6% of manufacturing plants in the U.S. failed to produce at their full capacity and cited insufficient supply of labor as a main factor.
“If you’re an independent, thinking of buying expensive equipment or implementing a hiring freeze, you may hold off on those decisions if the business climate is a concern.”
—Bob Cohen, president, Acme Corrugated Box
LABOR CLIMATE HAS MOSTLY BEEN PRETTY FAVORABLE
“Labor has not been that big of an issue for some time,” Tucker says, though he adds that the new people he hires need training.
“Looking at the students coming out of colleges and high schools, they are hungry for work and are no longer picking and choosing where they want to go and how much they will accept in wages. This has been noticeable for the past two years,” Tucker says.
“Finding executive-level folks in this market is a problem. The industry, like many others, is going through a shift
where the baby boomers are moving on or should be and those behind them just don’t have the skills and the experience to lead.”
KNOW WHERE TO FIND YOUR WORKERS
Cohen, too, has managed to dodge labor shortage problems, in large part, because he has found an employee supplier.
“I do a lot of charity work,” he says, and that led to his working with JEVS Human Services, a nonprofit that, among other things, helps train refugees for jobs to help them get settled into the country.
“We have 35 Ukraine nationals working at our company, so we have access to a
supply of labor, of hardworking people, and many are highly educated.”
It’s been a boon for the company’s culture, Cohen says. That the plant is highly automated also helps with the labor situation, he adds.
YOU MAY HAVE TO WORK HARDER
Bernstein also isn’t seeing any serious labor shortages on his end. “I think this is one of the easier labor markets that I can remember. Not that it’s easy, but compared with where we’ve been, things are trending toward better on the labor front.”
For one, Bernstein says workers aren’t fleeing for the exits, looking for better jobs. “People seem to be hanging onto their chairs a little tighter,” he says.
For another, Bernstein is happy with the people who are looking for work. “I feel like we’re seeing a better pool of candidates when we’re hiring,” he adds. “The labor shortage to me, at this point, is more related to very specific skill sets. For instance, great maintenance people aren’t the easiest to come by, from a training standpoint. Our education system hasn’t done a great job of producing people with their skill sets. A lot of people want office jobs, and when you’re trying to fill those roles, you have plenty of candidates.”
What are your thoughts on manufacturing returning to the U.S. and the impact that could have on your business?
CAUTIOUS OPTIMISM, PART ONE
Tucker seems very optimistic about what lies ahead. “If Americans can be patient and let things play out, we will witness one of the greatest manufacturing revolutions in our history,” he says. “This will take time and will have some pain as we reestablish our role in the world of manufacturing.”
The way Tucker sees it, “Trump’s ultimate goal is to restore our economy by first leveling the playing field, dropping
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the dollar so we can be competitive, repairing decades of reckless spending by eliminating the debt in our country and reestablishing America as the world’s powerhouse. What that will mean is a tremendous amount of packaging for all of us to enjoy the fruits of.”
He adds that “if we open the hood, we see more than $6 trillion of new investments coming to America that didn’t cost the American taxpayer one penny.”
CAUTIOUS OPTIMISM, PART TWO
Cohen is hopeful, too, though he doesn’t sound quite as confident as Tucker does. “I feel very positive about manufacturing
and get permitting and everything. And if you have a change in the political atmosphere, where things are antibusiness, that becomes a problem. So how do you make plans? That’s my concern. Will we return to antibusiness climate, and all of these ideas will be shortchanged and sidelined by the next administration? I think the goal is great, but some of the ways that the administration is trying to go about it are unrealistic.”
“There are a lot of conflicting issues that need to be figured out, and I don’t know if there’s a political will to tackle all of them.”
logistical problems, recalling all of the supply chain problems his company and the industry had during the COVID-19 pandemic and some of the security issues they’ve seen with supply chains.
But Bernstein says U.S. labor costs will go up, since nobody will work for, say, 75 cents an hour, the way other countries can get away with.
“We all want cheap stuff, but I do think we’ve created a lot of other security and supply chain issues that we need to be thinking about,” he says. “Still, from a selfish perspective, reshoring would be good for us.”
says, but he shares Cohen’s feeling that it’s going to be a challenge to make America
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MAKING THE MOST OF MEETINGS
Taking a proactive approach to networking and educational opportunities
BY ROBERT BITTNER
Despite the high value of Zoom calls, Teams meetings, emails, and webinars, business relationships and industry insight grow most effectively when like-minded professionals come together in person at conferences and association meetings.
“Getting involved in AICC and Association meetings has helped me stay engaged, not just within the industry but also within my role,” says Cassi Malone, vice president of sales for Corrugated Supplies Co. “It keeps me motivated and always learning. It’s also nice to hear different ways of thinking, which encourage me to get a bit more creative in how I
approach problems [and other situations]. I want to go and network, meet new people, and catch up with customers and old friends.”
To maximize the benefits of meeting attendance, Malone has found it pays to be proactive.
Before You Go
Proactivity starts with intentional premeeting planning.
Gene Marino, president of Akers Packaging Service Group, has been attending AICC meetings since 1999. For him, as for many others, preplanning is an important first step. “Map out what
you’d like to accomplish during your time on-site. Spend time looking at the schedule of events prior to a conference so you can strategically plan which breakout sessions you want to attend,” he says.
“Also be aware of classes and meetings that may be happening preconference.”
“I always look at the schedule beforehand to see what’s going to be happening and plan out the sessions I’m going to attend,” says Josh Sobel, account manager for Jamestown Container Cos.
“I always try to connect with friends that I’ve made throughout the years prior to meetings, making sure to set up at least a brief meeting time with them.”
Malone’s approach is similar. “I start looking at the attendee list a couple of months out to see who’s going and who I’d like to try and connect with when I’m there. And then, about a month ahead of time, I’m starting to reach out and set up meetings where I can.
“I put a lot of effort into mapping out my time at a meeting,” she continues, “just because the schedule can fill up so quickly, meeting customers or trying to link up with vendors. That said, you do need to leave some time for flexibility. Once you’re there, things will arise, so it’s good if your schedule is not completely booked from start to finish.”
Starting Small
Unless you have an established circle of contacts and friends in the industry, walking into your first AICC meeting— surrounded by hundreds of others—can be overwhelming.
Marino recommends seeking out any of the smaller special interest groups that meet during the conferences such as gatherings tailored to finance, sales, and other functional areas of expertise as well as those serving CEOs and
“Association meetings give members the opportunity to talk to hundreds of people in multiple different areas and a comfortable setting in which to do so.”
—Josh Sobel, account manager, Jamestown Container Cos.
emerging leaders. These not only are helpful for newcomers, but they also offer everyone opportunities to make the meeting experience more approachable and beneficial. They introduce you to peers who face similar challenges, can share their own approaches to problem-solving, and can introduce you to even more contacts within the industry.
“You go from 800 people showing up at a national meeting to a CEO group of 10, a sales manager forum of 20-plus, or an Emerging Leaders Group of maybe 50–60,” he says.
“These are more nimble group sizes that enable you to build connections early on.”
Marino has been well served as a participant in AICC’s CEO Advisory Groups. Sobel and Malone have participated in Emerging Leaders.
“I spent my first three or four years in the Association as part of that group,” Sobel says.
“I think the Emerging Leader Group does a great job helping you to build connections and preparing you to participate within the larger member group, not to mention giving you the tools to set up success in the industry.”
Malone believes Emerging Leaders and similar groups are where much of the value lies at meetings.
“In these more intimate settings, you’re not only able to meet people, but you can also learn about their operations and spend time with them outside of a networking event or a customer visit,” she says.
“These small groups are where you’re able to share best practices, talk through issues you may be dealing with, and gain different perspectives that can help bring new ideas to your team. It’s really valuable to have those connections. And so many turn into close friends, especially as you’re coming up in the industry together. Those shared experiences really help to create deeper relationships.”
“I put a lot of effort into mapping out my time at a meeting just because the schedule can fill up so quickly, meeting customers or trying to link up with vendors. That said, you do need to leave some time for flexibility.”
—Cassi Malone, vice president of sales, Corrugated Supplies Co.
Fully Present
Within the whirlwind of new information, new names, and new opportunities that typifies an industry conference, it’s easy to be lured into the trap of “maximizing” your time by filling empty moments working on your phone or laptop and responding to emails or texts.
To get the most out of a meeting experience, you must be present.
Consider attending one of the social receptions held during AICC meetings, including the first-timers reception, late night get-togethers, and postevent meetups. And then be willing to initiate conversations. Talk to people you don’t know. Attend keynote sessions and breakout sessions. Ask questions. Share ideas.
Depending on your industry role, you may need to walk a fine line. When Marino first joined AICC, the company he worked for was a corrugated converter that also supplied products to many other conference attendees. “If you’re in that kind of role, it’s easy to look at conference attendees as a potential pool of customers,” he says. “But no one wants to be hard sold. We decided as a company that our attendees would do zero selling in that environment.” Marino believes that was the right call. “People do business with people they like and trust. So, let people get to know you. And take the opportunity to get to know them.”
“Some people are more sales-focused at the meetings,” Sobel acknowledges, “but
I think it depends on their company and how they tend to approach meetings. Some people take a more aggressive approach, and other people are more laid-back. For me, the conservative approach works better, but it’s probably not that way for everybody. I’m sure there are people who don’t mind the aggressive sales approach, but that’s not my focus in attending meetings.”
Instead, Sobel’s focus is primarily on networking and education. “Association meetings give members the opportunity to talk to hundreds of people in multiple different areas and a comfortable setting in which to do so,” he says.
“Every time I attend an AICC meeting, I’m looking to learn something. Whether it’s sales-focused training or general industry information, I am always looking for something to take back with me.”
After the Meeting
Postmeeting follow-up helps ensure the benefits gained from a meeting will continue throughout the following months.
“After the meeting concludes, I always try to gather my notes from any educational sessions and see what I can put into practice within our operations,” Malone says. “Also, I like to follow up with those I met or connected with, just to thank them for taking the time to meet with me. These meetings can be so busy, and I genuinely appreciate
those that are willing to spend their time with me.”
Adds Sobel, “I also go back and do research on each speaker from the sessions that I attended, to learn a little more about their background.”
“I come away with a handful of nuggets from every meeting,” Marino says,
“gained either at a cocktail reception or a breakout session or a main session— whether it is from a speaker or another attendee, a member, or an Associate member. I always find some value in the interactions and come away with some bit of information that I can execute upon or explore for our business.”
“You have to put yourself out there and then make a point to attend future meetings. You’ll see familiar faces. You’ll reconnect and build relationships. It takes time. But I’ve gotten a tremendous amount of value from the folks I’ve met through AICC.”
—Gene Marino, president, Akers Packaging Service Group
Right Choice
For Sobel, the benefits of the networking opportunities alone make attendance worth the time. “Add in the educational offerings, which can be equally important in terms of your role in the industry, and it makes experiencing an Association meeting a must,” he says.
Longtime attendees and industry veterans, however, may feel they’ve reached the point in their career where their network is well established and few new nuggets of information can be gained. Marino encourages such AICC members to reconsider.
“I think there’s a point where everyone, if they remain with an organization long enough, moves from being a newcomer with lots of questions, looking for mentors or leadership examples, to becoming that mentor, that example, and then answering the questions for the next generation that’s new to AICC or to the industry,” he says. “That’s a critical role to fill.”
“I’ve been able to learn a lot from AICC meetings,” adds Malone, “so now I’m trying to help others get the same benefits out of [attending], while I’m also still learning myself. I have some great mentors that I can lean on and learn from. But then, in turn, I’m working to help the next generation and also those new to the industry, the same way others helped me.”
“You have to put yourself out there,” Marino says, “and then make a point to attend future meetings. You’ll see familiar faces. You’ll reconnect and build relationships. It takes time. But I’ve gotten a tremendous amount of value from the folks I’ve met through AICC.”
Robert Bittner is a Michigan-based freelance journalist and frequent BoxScore contributor.
Free Online Education
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AICC Experts
Ralph Young Doug Friel Tom Weber
National Meetings
Hosted twice a year, they o er industryleading programming, speakers, workshops & peer panels, along with networking opportunities and much more!
Seminars/Webinars
A well trained employee is more likely to stay at a company longer and perform better. With 15–20 seminars and webinars each year, we’ve got professional development for all departments.
Summits
With 5–8 regional topical meetings each year, you’ll have the chance to connect with independent converters across the country.
Emerging Leaders Program
Dedicated to providing the rising stars of the industry with the information needed to develop and thrive in the paper packaging industry!
In-House Training
Define your pain points and AICC will develop a course based on your needs, create course materials, and bring industry trainers directly to your plant!
Advisory Groups
These groups allow participants to confide in peers, share ideas, receive honest feedback & give advice to help businesses grow.
The Associate Advantage
JEFF DIETZ PAMARCO VICE CHAIRMAN JEFFREY.DIETZ@PAMARCO.COM
JOHN BURGESS PAMARCO CHAIRMAN JOHN.BURGESS@PAMARCO.COM
MIKE BUTLER DOMTAR PACKAGING SECRETARY MIKE.BUTLER@DOMTAR.COM
BRIAN FOLEY BOBST DIRECTOR BRIAN.FOLEY@BOBST.COM
TIM CONNELL AMERICAN CORRUGATED MACHINE CORP. IMMEDIATE PAST CHAIRMAN TCONNELL@ACM-CORP.COM
Value of Your Network
BY JEFF DIETZ
In an industry built on corrugated board, the most valuable asset we have isn’t made of paper; it’s people.
I’ve come to realize that success in business is rooted in the relationships we build, the trust we earn, and the value we deliver, not just to customers, but to peers, partners, and even competitors. That’s the true power of your network.
Serving on the AICC board of directors has only reinforced that belief. It’s given me a front-row seat to see how collaboration across companies, disciplines, and the country fuels innovation and growth. Whether you’re an independent converter looking for new machinery or a supplier offering a solution, every meaningful business breakthrough starts with a conversation.
Your network becomes your sounding board. It’s where you go for insights on what’s working (and what isn’t), who’s trying a new approach, or what’s around the corner that you haven’t seen yet. It’s priceless to have the ability to call someone you trust for advice, an introduction, or just perspective. And in this tight-knit industry, those relationships compound over time.
That’s why AICC matters. It’s not just a trade association; it’s a network engine. AICC creates the space where relationships form organically, whether it’s at regional summits, national meetings, advisory groups, or education programs. And often, it’s those personal connections that open doors and solve real problems.
I’ve witnessed deals being made at trade shows, strategic partnerships forming over a cup of coffee, and lifelong friendships starting with a handshake at an AICC event. These aren’t just feel-good stories. They’re business-changing moments that come from showing up, listening, and engaging.
So, if you’re wondering whether it’s worth attending that next meeting, joining that committee, or introducing yourself to someone new, just do it. You never know which conversation will lead to your next opportunity, your next innovation, or your next lifelong ally.
The value of your network? It’s everything.
Jeff Dietz is vice president of sales and marketing for North America at Pamarco and vice chairman of AICC’s Associate board.
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KemiTM liners, then known as Kemiart, were launched in the American market in 1991. Innovation continued introducing double coated white kraftliner in 2011. Most recently, in 2023, the Kemi mill underwent further developments to increase its capacity to 465,000 tons, while enhancing energy and water efficiency.
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What the Tech?
Beyond the Firewall: Rethinking Cybersecurity in Manufacturing
BY DAVID WIENS
We talk a lot about clean data and access control in this industry. But who’s watching the watchmen?
Across manufacturing and packaging, conversations around data often emphasize cleanliness, access control, and visibility. But a critical blind spot continues to go unaddressed: cybersecurity as a system, not a feature.
It is time to move past the illusion that multifactor authentication (MFA) and firewalls alone are sufficient. Today’s threat environment has evolved into a complex ecosystem in which criminal networks operate with industrial precision. What is at stake is more than data; it’s uptime, operational continuity, and, in many cases, the financial viability of the business.
Reality of Today’s Threat Landscape
Manufacturing was the most targeted industry for the third year running, according to IBM’s X-Force Threat Intelligence Index 2024. Sophos reported that 65% of manufacturing firms experienced ransomware attacks in 2024, up from 56% in 2023. Alarmingly, 93% of attacks attempted to compromise the target organization’s data backups, with more than half of those attempts succeeding. CrowdStrike’s Global Threat Report shows that artificial intelligence (AI)-enhanced attack methods have fueled explosive year-over-year growth from an already devastating baseline. These incidents or theoretical risks are not isolated. Today, the average cost of a manufacturing breach exceeds $5 million, not including the downstream impact
of reputational harm and compliance violations.
Insurance markets have responded. Premiums surged 80% in 2022 before stabilizing, and underwriters now demand robust security audits, MFA, endpoint protection, and off-site backups. Many organizations risk claim denial if basic measures are not documented and enforced. Small and midsize manufacturers, often running on lean information technology (IT) budgets, face increasing vulnerability in risk exposure and insurability.
Redefining Cybersecurity: From Tools to Systems
Cybersecurity must be reframed not as a checklist but as an operational system. The most resilient organizations treat cybersecurity with the same rigor they apply to quality control, supply chain integrity, and workplace safety. A modern security architecture includes:
• Access management —enforcing least privilege, managing roles, and ensuring identity hygiene.
• Threat detection —using AI and analytics to identify anomalies before damage occurs.
• Attack simulation —conducting red-teaming and phishing tests to proactively identify weaknesses.
• Response and remediation deploying real-time playbooks for containment, recovery, and forensic investigation.
At the center of this architecture is the security operations center (SOC). A SOC is a 24/7 hub for monitoring, threat
analysis, and real-time response. Unlike a traditional IT help desk, the SOC is a mission-critical function built to manage live threats at scale.
Implementation:
In-House vs. Outsourced SOC
In-house SOCs offer full control and deep integration but demand substantial investment that often exceeds $1 million annually for tools, personnel, and operations. For organizations with the budget for an internal team, recruiting and retaining cybersecurity talent remain significant hurdles.
AI-supported tools and platforms such as Microsoft Defender and Sentinel offer scalable solutions for small to midsize enterprises. While they provide strong visibility, they still require internal expertise to manage alerts, coordinate responses, and maintain configurations.
SOC-as-a-service providers present a middle ground. These vendors offer
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24/7 monitoring, threat detection, attack simulation, and compliance-ready reporting on a subscription basis. This model delivers enterprise-grade capability without heavy upfront costs. However, trade-offs include reliance on third-party teams and need for defined service-level agreements (SLAs).
How to Vet a Security Partner
Not all vendors are created equal. Offloading critical tasks to third-party vendors can increase organizational exposure and delay response time. A successful partnership hinges on trust and innovation. Prioritize vendors that:
• Own their threat intelligence infrastructure (data, honeypots, and machine learning models).
• Possess patented technologies, published research, or demonstrable intellectual property.
• Hold recognized compliance certifications (e.g., ISO 27001 and SOC 2).
• Offer transparent reporting, remediation support, and tailored SLAs.
Companies such as Sequretek and Anomali own their detection stacks, contributing to cybersecurity research, and developing proprietary AI models. These markers of deep capability and innovation should serve as benchmarks when evaluating partners.
Proactive Security Is Business Continuity
Cybersecurity is no longer a subset of IT; it is a foundational pillar of business continuity. For manufacturers, the stakes are especially high due to the physical, financial, and operational consequences of breaches.
In today’s world, where cybercrime operates as a service industry, defense must
also be approached as a service. Every manufacturer, regardless of size, should begin with these action items:
• Conduct a formal risk assessment and gap analysis.
• Align security posture with insurance requirements to ensure claim eligibility.
• Map out and routinely test access, detection, and recovery protocols.
The future of industrial security relies on IT staff or technology as well as leadership willing to prioritize cybersecurity as a core strategic discipline.
David Wiens is CEO of BPS AI Software. He can be reached at david@bpsaisoftware.com
PODCASTS
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A weekly update on benefits and upcoming events for AICC members.
Breaking Down Breaking Down Boxes Boxes
New hosts. More Great Stories.
Hear compelling conversations with successful entrepreneurs released on the first Monday of the month.
Strength in Numbers
Focusing on Improvement
BY MITCH KLINGHER
Every couple of years, I teach a financial course for AICC, and I as I write this, I’m preparing for the next one. (By the time you read this, the course, hosted by Acme Corrugated Box, will have taken place on May 14, 2025.) I always take this course preparation as an opportunity to examine how the converter’s finance department can influence and improve the operation as a whole.
Most company owners and general managers come from the sales side of the business or, less frequently, the production side. Very few are financially oriented and have learned the financial side of the business while on the job. They are accustomed to getting “their numbers” in a certain format that they have learned to understand over the years and tend to be somewhat resistant to change. Although this is a great generalization, my 47 years of experience in public accounting tell me it’s true—at least 80% of the time.
The other side of this coin is that most accountants tend to be focused on traditional tasks and the conventional
accounting process and are not looking to reinvent the wheel. Daily tasks that keep the company operating take precedence over new ideas. Without a mandate for change or improvement, accountants tend to go for precision and want to make sure their “books” are as correct as they can make them within the existing system.
Accounting departments often cover many of the other functions such as personnel, employee benefits, and payroll, especially in smaller businesses. Even if the accounting department wants to effectuate change, there is usually no mandate for it, and as we know, most people don’t embrace change—they fear it. What is a forward-thinking, progressive chief financial officer or controller to do?
Here is the action plan I intend to share in the financial course:
1. Give them fast, accurate beans.
2. Focus on materials and material margins.
3. Add key performance indicators (KPIs) and management goals into the reporting framework.
4. Reconcile and integrate cost accounting results and analysis into the monthly reporting.
5. Focus on profit and cost centers.
6. Integrate other company data collected outside of the accounting systems to create meaningful departmental reporting.
Let’s discuss these points in more depth.
Fast, Accurate Beans
For monthly reporting to have any real impact, it must be done as close to month’s end as possible. In my opinion, there is no reason it should take longer than three business days. This is crucial for the following reasons:
• The further you go from the end of the period, the less impactful the information becomes.
• To effectuate change, you need credibility. Fast, accurate data gives this to you, while taking weeks to put the numbers together has the opposite effect.
Strength in Numbers
• You need to close out the accounting period and move on. This gives you more time to be forward-looking rather than backward-looking.
º To accomplish this, you must be willing to make estimates and allow for a little less precision in the monthly close; 95% accuracy is good enough if getting that extra 5% takes two or three weeks.
º The other key to this is to put in good cutoff procedures and adhere to them strictly. Most companies that see wild fluctuations in their monthly profits have sales or purchase cutoff issues, and there is a doubling effect of bills entered in the wrong period; they will lower the profits in the current period and increase profits in the following period by the same amount.
Focus on Materials and Material Margins
Whether you are a corrugator selling truckloads of brown boxes or a digital display company selling relatively small quantities of multipart point-of-purchase displays, the largest expense on your income statement is likely to be materials. The monthly reporting must have a focus on material margins by major category of income. It should also include information about the overall volume by category, the cost of procurement, and the efficiency of usage. Ultimately, if these margins can be linked to the underlying machine hours, a powerful predictor of profitability can be created.
Adding KPIs
If your management team has identified what they believe to be KPIs that predict success for your company, you must add them to the statements. This will help management determine whether they have picked the correct priorities to track and will help management monetize and vet them. If your company has not
formally settled on KPIs in conjunction with discussions with the management team, this is an opportunity to add some and test their validity. While one of the goals of reporting is to be as concise as possible, it is important to have those goals, and there is no better place to show them than the monthly financial statement.
Reconcile and Integrate Cost Accounting Results
The most important daily decisions that companies make have to do with pricing orders and accepting customers, yet the cost accounting system is almost always in a totally separate database from the accounting system. Making money in a manufacturing business is easy; just make sure that your contribution dollars are greater than your fixed costs. That is easier said than done, especially when your costing system is in a separate database, which may or may not reflect the reality of your actual costs. But if you can reconcile the two systems to within a tolerable difference, then you can see that the costing system is based in reality, and you can add some of its results to the financial reporting.
Creating Profit and Cost Centers
Most financial statements start with sales and end in net income, with basically four different expense categories in between: cost of goods sold, shipping, selling, and general and administrative expenses. There may be some additional details of factory overhead items and items of other income and expense. Most companies have readily definable departments, most of which have a manager. Wouldn’t it be better to break the expenses down by these departments? So instead of plant, selling, and general and administrative, you could have plant labor, shipping, maintenance, delivery, sales, customer service, design, accounting, and maybe others depending on how your company
is configured. At least management would have a sense of what each department costs, and each manager could get their own report on their departmental expenses as the year goes on, without necessarily having to see the entire financial statement.
Profit centers can be a little tougher to design, but separating machine-centric work from labor-intensive work from brokerage activities is imperative for understanding the profitability of each. When you have all three of these types of efforts comingled, the results become difficult to decipher.
Integration of Other Company Data
Your company collects a lot of data outside of the accounting system: machine hours run (and not run), plant labor, shipping and delivery, design, customer service, maintenance, etc. One of the keys to profitability in any manufacturing environment is machine uptime, but where does that show up on your monthly financial statement? What about shipping efficiencies or miles driven? The number or orders processed by customer service or design? A tremendous amount of data could be adding powerful analytics to your statements.
I intend to have a good discussion with financial managers about these and other topics relevant to their jobs. My objective will be to inspire them to take on a more active role in helping their companies improve. They say nothing can be improved without measuring it, and I agree. But integrating the measurements within the financial reporting framework can be a powerful tool to help a company improve its profitability.
Mitch Klingher is owner of Klingher Nadler LLP. He can be reached at 201-731-3025 or mitch@klinghernadler.com
Foundation for Packaging Education
Big News!
The Foundation for Packaging Education is putting your donations to work. Since its launch in 2020, the foundation has been receiving pledged money regularly. We are pleased to say that funding has reached critical mass—$3 million.
At the Spring Meeting, the foundation’s board of directors approved the allocation of monies for four initiatives: two related to the support of AICC’s Packaging University and two that will provide scholarships for two newly developed advanced study programs.
AICC’s Packaging University has grown to nine colleges offering more than 150 courses in English and Spanish. As the complexity of the Packaging University has grown, so has the need to better serve the students. The foundation will now fund:
• LMS Administrator— a professional online education resource that will improve quality, check platform performance, resolve issues quickly,
and make recommendations for improvements.
• LMS Course Creator— an educational resource experienced in corrugated and paper-based packaging tasked with course creation, relevance, and implementation.
AICC has also created two “graduate” level courses of study to grow the leadership characteristics of young people in our industry:
• A “Next-Gen” program for those on or destined for ownership and C-suite positions.
• A “Masters of Packaging” program for those on or destined for high-level nonownership tracks.
The foundation will fund scholarships for the launch classes of these two programs.
Building a bedrock base for AICC’s education programming is the mission for the Foundation for Packaging
Education. These first fundings are a small start on the way to bigger and better things. Thanks to your generosity, construction is underway. Watch us grow!
If you are not yet a part of the Foundation for Packaging Education crew, please visit www.packaginged.org or scan the QR code on this page to make your pledge or donation. No amount is too large or too small.
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Launching Fall 2025
Limited Seats Available
Advance Your Packaging Career with the BUSINESS MANAGEMENT IN CORRUGATED PACKAGING CERTIFICATE PROGRAM
Why settle for a traditional MBA when you can learn business through the lens of corrugated packaging?
The Business Management in Corrugated Packaging Certificate Program is a first-of-its-kind education opportunity, designed for rising professionals in our industry. In just 12–18 months, participants will blend insight with corrugated-specific training , equipping them with the skills to manage and lead in a fast-changing market.
Why Enroll?
Master strategy and management skills for success in the corrugated packaging industry
Customize your courses to fit your career path
Collaborate in a small, high-impact cohort (5–10 participants)
Solve industry challenges with a capstone project
Graduates of the program will be recognized at the AICC National Meeting.
Scholarships are available through the Foundation for Packaging Education.
The Final Score
‘Productivity Tip: Stop Moving Your Star Workers’
Harvard University in Massachusetts has been in the news lately—and often for the wrong reasons. Yet, its publications offer many useful insights. For example, the above headline in the Harvard Business School publication Working Knowledge caught my attention.
Jorge Tamayo, Ph.D., accessed hour-by-hour data on 20,000 workers assigned to 120 production lines in six factories to reach this conclusion: Stop moving your star workers. I correlate this to AICC members, independent converters who always say yes. Yes creates opportunities for AICC members while coming with some interesting challenges.
You land a new client or take an order with a tight delivery. Do you move top performers to other lines to better meet schedules or remove bottlenecks?
The research shows that simply moving top-performing employees to underperforming or slower production lines in response to a demand surge can have counterproductive outcomes. Research in operations and workforce management shows that assigning workers based on their specific skills, team dynamics, and line compatibility can significantly boost efficiency compared with blanket reallocation.
Here are a few key insights from the research:
• Moving top workers without considering their interdependence history with teammates and managers can reduce overall output.
• Productivity on manufacturing lines depends not just on individual skill but also on team familiarity and task-specific learning.
• Learning curves vary by worker and task; placing someone on a line they’re unfamiliar with might reduce short-term gains.
• Disrupting established team structures can lower morale and create friction, especially if others feel undervalued or left behind.
• High-performing teams had diverse but complementary skill sets and stable team compositions.
Train certain employees as generalists who can easily shift from one line to another, whether to help with a large order or fill in for absent employees. These floaters can be deployed to slower lines to pick up the slack without needing to transfer faster workers from other lines. The fact that they are known as floaters can reduce the possible friction moving a top performer can create.
Advanced analytics and operations research suggest using historical performance data, individual learning rates, and line-specific challenges to guide staffing decisions. This is known as “smart staffing”—allocating not the best people but the right mix of people.
Harvard is not alone as a source of ideas and research. AICC’s Packaging University, the AICC NOW website at now.AICCbox.org, AICC white papers, and the availability of AICC’s “Ask the Experts” are a keystroke away to support you as you face the challenge of productivity, hiring, training, and retention.
Michael D’Angelo AICC President
Next-Level Corrugated Converting
Bringing together decades of German engineering expertise and industry-leading technology
SUN Automation Group and Kolbus Group unite to deliver precision automation for the corrugated packaging industry. Kolbus’ high-accuracy machinery ensures consistent, highquality converting, while SUN’s parts and service offerings enhance reliability and performance. Together, we advance packaging innovation.
