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A PUBLICATION OF THE ASSOCIATION OF INDEPENDENT CORRUGATED CONVERTERS

Getting Ready For Atlanta:

With just weeks to go the anticipation is building. INSIDE THIS ISSUE:

SINGLE-PASS CORRUGATED EMBOSSING AND DIECUTTING THE INTERSECTION OF FACE TO FACE COMMUNICATION AND SOCIAL MEDIA AICC VOLUNTEERS ROLL UP THEIR SLEEVES AND REV UP THEIR PRESSES TO RECRUIT NEW MEMBERS

July / August 2012 Volume 16, No. 4


A PUBLICATION OF THE ASSOCIATION OF INDEPENDENT CORRUGATED CONVERTERS

OFFICERS Chairman: Andrew Pierson, Mid-Atlantic Packaging First Vice Chairman: Chuck Fienning, Sumter Packaging Vice Chairman: Mark Mathes, Vanguard Companies Vice Chairman: Greg Tucker, Bay Cities Container Corp. Vice Chairman: Tyler Howland, Sound Packaging Volume 16, No. 4 July / August 2012

The Association of Independent Corrugated Converters is an international trade association representing a majority of independent North America manufacturers of packaging products and the suppliers to the industry. AICC has 714 boxmaking members and 359 supplier members and offers both segments a full array of membership services, programs and benefits.

Contents: 5

Chairman’s Message

7

Single-Pass Corrugated Embossing and Diecutting

11

Corrugated Industry Makes its Case to Congress

15

The Financial Corner: Volume 5

19

AICC Volunteers Roll up their Sleeves and Rev Up their Presses to Recruit New Members

23

Marketing Column: Innovation, Technology and Design—A Collaboration With Customers

25

Corrugated Industry Trends: PMI—Measuring Manufacturing’s Pulse

27

Paper Check-off: An Investment in Our Future

28

Associates Column: Innovation—Consider the Possibilities

33

TAPPI–AICC SuperCorrExpo 2012 offers ‘Special’ for Box Plant Employees

34

AICC Events Calendar

35

Everyone Sells!

37

Technical Corner: It’s A Small World After All (Parcel Environment, That Is)

39

Call for Entries in the 2012 Innovator of the Year Machinery Category

40

Members in the News

45

New Members

47

Update on the 2011 Long Range Plan

49

AICC Region One Fills the Hall at June 13 Meeting

51

International Corrugated Packaging Foundation

54

THE FINAL SCORE

DIRECTORS-AT-LARGE Brad Albright, Hendricks Box Guy Ockerlund, Ox Box Al Hoodwin, Michigan City Paper Box Jim Nelson, Great Lakes Packaging John Bolender, Niagara Sheets Marco Ferrara, Cajas De Carton Sultana REGIONAL DIRECTORS Region 1: Kim Feterik, Orange County Container Group Region 2: Matt Davis, Packaging Express Region 3: Tony Schleich, American Packaging Corp. Region 4: Jana Harris, Harris Packaging Region 5: Jeff Ramsey, Central Florida Box Region 6: Jay Carman, Stand Fast Packaging Products Region 7: Joseph M. Palmeri, Jamestown Container Region 8: Mark Williams, Richmond Corrugated Region 9: Stuart Fenkel, McLean Packaging Region 10: Peter Hamilton, Horn Packaging Region 11/12: John Franciosa, Packaging Technologies, Inc. Region 14: Isidro Lavin Garcia, Empaques Rio Grande Overseas: James Haglund, Central Container Corp. PRESIDENT A. Steven Young, AICC Headquarters IMMEDIATE PAST CHAIRMAN Dave Urquhart, New England Wooden Ware PAST PRESIDENT COUNCIL Kim Nelson, Royal Containers, Ltd. ASSOCIATE MEMBER DIRECTORS Chairman: Dave Califf, BCM Inks Vice Chairman: Tom Kowa, Huston Patterson Printers Secretary: Kevin Widder, Automaton First Alternate: Brian Kentopp, The Bobst Group Immediate Past Chairman: Lance Head, Latitude Machinery USA

EDITOR

Taryn Pyle, tpyle@aiccbox.org Director of Marketing and Communications

DESIGN

Nick Griffin, Griffin Communications, Inc.

CONTRIBUTORS

A. Steven Young, President syoung@aiccbox.org John Bacot, Vice President of Operations jbacot@aiccbox.org Cindy Guarino, Director of Meetings cguarino@aiccbox.org Maria Frustaci, Director of Latin America mfrustaci@aiccbox.org Laressa Gaitan, Manager, Member Services lgaitan@aiccbox.org Richard M. Flaherty, ICPF President rflaherty@icpfbox.org

SEND NEWS / LETTERS TO:

AICC  PO Box 25708  Alexandria, VA 22313 Phone (703) 836-2422  Toll-Free (877) 836-2422 Fax (703) 836-2795  tpyle@aiccbox.org Website: http://www.aiccbox.org

FOR ADVERTISING INFORMATION CONTACT: Howard Neft, InTheKnow, Inc. (847) 899-7104

BOXSCORE

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CHAIRMAN’S

MESSAGE

The Intersection of Face to Face Communication and Social Media

Andrew Pierson

There are many ways to make a

“Face value” to me is the connective

connection. The endless influx of new

force associated with a face-to-face in-

technology and social media’s evolution

teraction. It is that nuanced sentiment

has facilitated new ways of creating and

that underwrites every word or promise

maintaining both interpersonal and busi-

we say in a conversation: body language,

ness relationships. Arguably, it is getting

eye contact, and finally a handshake. As

Without the

more and more difficult in many people’s

humans, we are herd bound, and need in-

“face value” of

minds where the intersection is between

teraction to survive. This applies in busi-

interpersonal

ness as well. Without the “face value” of

interaction, a

interpersonal interaction, a relationship

relationship loses

loses dimensionality and, most impor-

dimensionality and,

tantly, an element of humanity.

most importantly,

nection before surpassing the effective-

In a world where Facebook, LinkedIn

an element of

ness and authenticity of an interpersonal

and Twitter are commonplace, we must

humanity.

interaction?

not forget that these social media mecha-

interpersonal, or face-to-face communication and modern communication technology like social media. In other words, how far can social media and other communication technologies take a con-

Communication facilitating technologies like social media generate awareness, provide a functional role in business relationships, and enable connections to

nisms facilitate relationships, but we must add our own “face value” to create

“ ”

and solidify a true connection for a fully realized business relationship.

be made at any time. While these technologies are immensely helpful in making connections, they lack what I call “face value”.

Andrew Pierson President and CEO Mid-Atlantic Packaging Chairman-AICC BOXSCORE

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Single-Pass Corrugated Embossing and Diecutting By Patrick Quinlan, Technical Sales Representative, Synergy Tooling Systems, Inc. My initial experience working in the

diecutting industry many years ago was with corrugated diecutting- both Bobst hard anvil and rotary soft anvil. Eventually I discovered Bobst folding carton diecutting and gradually my interests expanded to include that process. Bobst corrugated diecutting appears to be similar to Bobst folding carton diecutting but in reality, it is a world apart in process and objective. It is not common to work successfully in both of these distinctly different worlds. For the last 20 years, I have attempted to bridge these two worlds by integrating folding carton diecutting concepts into Bobst corrugated diecutting as a way to increase diecutting productivity and to produce folding carton performance quality packaging from B, E & F fluted stocks. My goal has been to produce a corrugated box that can do anything that a folding carton can do. So, if folding cartons are embossed to enhance their graphics, why not emboss corrugated boxes? Just the mention of single-pass embossing and diecutting on folding cartons can introduce scores of problems for a package that is routinely embossed in two passes. Improperly prepared converting tools for single-pass embossing may introduce poor quality outcomes and excessive makeready costs to the process. This can occur when the relative heights of the embossing components in relation to the cutting rule are not precisely set. Either the embossing bottoms out before the cutting and creasing is complete, or vice versa. Extended set-up and makeready times result when the pressure from the embossing bears off on nearby cuts and creases. Cutting press pressures will be excessively increased when cutting and creasing is incomplete because the embossing is bottoming out or when the embossing image lacks detail or depth even

though the cutting is complete. Excessive cutting pressures will cause the cutting press operator to chase the makeready all over the platen during the run driving up downtimes as well as having a negative effect on nicking, cutting press speed and the cutting knife life. The additional set-up time that is required to achieve print-to-emboss registration must also be included in the makeready. Even if all the embossing dies are positioned in register, the actions of cutting and creasing will introduce sheet draw into the process. Sheet draw will have an effect as great as makeready on the overall set-up time. Success is achieved in both folding carton and corrugated single-pass embossing and diecutting when the converting tools control the height and position of the embossing components while minimizing sheet draw. At this point, we need to agree on the uses of the following words and phrases:

Embossing occurs when the printed

surface of a package is raised in either a printed or unprinted design.

Debossing occurs when the printed surface of the package is depressed.

Occasionally, embossing can be a raising of the surface in multiple steps or a combination of both raising and then debossing or lowering within that raised area. The more complex the design, the more expensive the embossing components. Throughout this presentation, the word deboss may generally be substituted in any place where the word emboss is used.

“

Improperly prepared converting tools for single-pass embossing may introduce poor quality outcomes and excessive makeready costs to the process.

�

Cutting toward the print side occurs when the cutting knives strike the printed surface of the sheet as is common in folding carton converting. Cutting toward the inside occurs when the cutting knives strike the continued on page 9

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Single-Pass Corrugated Embossing and Diecutting continued from page 7

inside surface of the sheet as is common in brown box corrugated converting. A folding carton is primarily a paper box that folds precisely the same, every carton every time, to be used on high speed gluing and filling equipment. A corrugated box is primarily a package that protects a product or cartons of products during freight transport and warehouse storagefrequently stacked on a pallet. Box performance is judged by bursting strength and stacking strength attributes. A corrugated sheet that is singlepass embossed and diecut will suffer flute crush during that process which will impact its stacking strength. Embossing may not be suitable for all corrugated packaging. It may need to be limited for use on corrugated boxes that are being used only in folding carton style applications. If embossing without flute crush is desired, consider first embossing the top sheet then laminating it to single-face stock. Besides the cost of the additional operation, the resulting embossed image will be flattened during the lamination process resulting in a loss of embossing detail. In general, press crews that are involved in diecutting have no experience with the embossing process. Customers who are embossing for the first time need to be aware of these three areas of concern: 1) Debossing is always a more expensive process than embossing. This is important because all B-flute jobs must be cut towards the inside of the sheet. To achieve an embossed image, the single-pass tool will actually deboss and diecut. Debossing on the inside of the sheet will result in an embossed image on the print side. E and F-flutes can be diecut toward the print side with great success so single-pass

embossing works quite well for those stocks. 2) Embossing components are expensive whether they are used in two-pass or singlepass applications. Most diecutting departments are not accustomed to seeing the cost of the embossing added to their usual converting tool expenses. Corrugated embossing dies are more expensive than folding carton embossing dies because their components are thicker and the required engraving is much deeper. 3) There must be a digital artwork file available in either .eps or .ai format besides the usual diemaking cad structural design files. With first time customers, I try to refrain from providing any preliminary embossing quotes from fax drawings or samples. My experience has proven that unless the first time customer learns immediately that digital art files are a necessity, those files will have a tendency not to materialize in a timely manner while a looming press date rapidly approaches. Digital art files are a firm requirement for embossing tool preparation. These embossing art files should be prepared with the embossing image and the dieline in the same file as different layers. Such art files should show the embossed image as a solid black shape. If the art file only shows a black line around the area to be embossed, the end result could be an embossed outline around that area on the package. Only after a customer understands that the having a digital art file is a firm requirement will I consider providing rough pre-quotes on projects.

Of course, there are the standard considerations such as the type of stock, the side of the stock being struck, whether the image is an emboss or deboss and the expected delivery date. Tools including embossing require several more days of delivery time than tools without embossing. What will be the desired profile of the embossed areas? There are a variety of industry standard embossing profiles from which to choose. Engraving companies publish charts for their customers that list the most popular embossing profiles along with samples of each. Raised round, raised flat and raised roof are some typical profiles. They can be used in single-level and multilevel combinations of embossing and debossing. Some embossing is sculpted to show fine details like fur or the veins of a leaf. Embossing customers should be ready to specify what embossing profiles they desire. This last question is very important. How close does the embossing come to any nearby cuts or creases? Occasionally, customers request embossing designs that even run completely through a crease or cut line. Folding carton embossing requires a minimum distance of 3/16� away from nearby cuts and creases. Corrugated embossing continued on page 10

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Single-Pass Corrugated Embossing and Diecutting continued from page 9

requires a minimum distance of 5/16�. Distances less than these are possible but greatly complicate the single-pass embossing and diecutting process and the solutions are expensive. When the embossing is placed too close to a nearby cut or crease, there is a dramatic increase in surface tension and sheet draw. The forces of cutting and creasing move in the opposite direction than the forces of embossing. It is very important to maintain the integrity of the crease channels in the embossed package to insure proper folding during gluing and filling. Generally, the plastic embossing counter is transferred directly to the cutting plate within a cut out area of the phenolic counterplate. The closer the embossing is positioned to a nearby crease or cut, the greater the amount of stress that is exerted on the sheet. Too much stress will result in distortion and fracturing of the sheet coating in the area between the embossed image and the crease or cut. To emboss closer to nearby creases, a reduction in the sheet tension between the cutting die components and the embossing components is required. This can only be accomplished by integrating a 1mm milled steel counterplate into the tool mix. This milled 1mm steel counterplate must include the addition of cut out areas that can be used to inset the plastic embossing counters. These cut-outs can be placed very close to the creases while still maintaining the integrity of the crease channel walls as required for proper package folding. This lowering of the embossing components will minimize the combined effect of the opposing forces of cutting and creases versus the embossing tools thus reducing surface tension and sheet draw. Using this technique will result in an emboss that comes very close to a

10

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crease before the standard creasing bead begins to form. If an embossed area passes through a cut or creased area, this technique must be utilized on both sides of the obstruction. In general, all embossing projects, no matter how far the embossing is positioned away from a nearby cut or crease, will benefit from being mounted within a recessed pocket in the cutting surface. The resulting reduction in surface tension and sheet draw will greatly improve diecutting efficiencies on every embossing job. As in most production situations, embossing projects that are close or run through a nearby cut or crease can utilize a cost-benefit analysis to determine the best course of action. When is it better to run a job in two passes using two sets of less expensive tooling versus the added cost of single-passing a job with more expensive tooling? Obviously, shorter runs will be two-passed and longer runs will be single-passed. But what about shorter runs that frequently repeat? In a two-pass situation, a standard dieboard may be used for the first pass that includes the embossing components mounted in print

register at the proper height without any cutting or creasing. The second pass would use a standard cutting die with all the cuts and creases but without any embossing. If the two dieboards are properly prepared, they should run one after the other on the same cutting press with minimum feeder adjustments. Converters of premium corrugated packaging would do well to consider folding carton techniques for their diecutting operations such as singlepass embossing with enhanced graphics. The resulting improved converting effectiveness and quality of the finished product will give those converters a competitive advantage in their marketplace. ď Ž Patrick Quinlan is a Technical Sales Representative for Synergy Tooling Systems, Inc. in Amherst, NY and Memphis, TN. With more than 40 years of experience in corrugated and folding carton diemaking and converting, Quinlan also holds an MBA from SUNY at Buffalo. He has written several papers for an assortment of trade journals and has given technical presentations for the PPC and IADD. Patrick can be contacted at paq@synergytsi. com.


AICC/FBA Corrugated Industry Washington Fly-in

Corrugated Industry Makes its Case to Congress A spirited group of 25 corrugated industry members marched to Capitol Hill on Tuesday, June 5, for the 8th AICC/FBA Corrugated Industry Washington Fly-in. Covering 50 offices over the course of the day, members visited with their elected representatives in the House and Senate to push for legislation favorable to manufacturing and the corrugated industry. The day opened with a briefing breakfast where members got an inside look at the political climate and heard about specific, manufacturing-friendly issues pending in Congress. Mark Williams, President of Richmond Corrugated and Chairman of AICC’s Government Affairs Committee, introduced AICC President Steve Young and FBA President Dennis Colley to lead the session, with Colley providing industry statistics which members could use in their discussions. Donna Harman, President of the American Forest & Paper Association, discussed issues specific to the paper industry and Paul Hartgen of the National Association of Manufacturers discussed his group’s manufacturing agenda on the Hill.

likely to happen in an election year. He encouraged members to keep up the fight with regard to what the business community needs to provide jobs and create wealth.

Congressman Patrick McHenry (R-N.C.) also spoke about the political climate on Capitol Hill as it related to manufacturing issues, and noted that nothing significant was

In one meeting with Senator Sherrod Brown (D-Ohio), George Sickinger of Color Resolutions, Dennis Colley of FBA, Steve Young of AICC, and Steve Schmitt of Jet

In a Washington Fly-in tradition, members pose in front of the US Capitol before resuming their visits to House and Senate offices.

Container, urged the Senator to support a permanent extension of the R&D tax credit. Brown agreed, pledged his support and introduced a bill to do that the day following the Fly-in. For more information about this year’s Fly-in, contact Steve Young at 703-535-1381, or syoung@aiccbox. org. 

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Over 200 Exhibitors A.G. Stacker, Inc. 2440 A-1 Packaging Solutions, Inc. 1540 Absolute/Technoflex 2417 Adheso Graphics (AGI) 2352 ADI/PDM Trade Group 2740 Advanced Dynamics Corp. Ltd. 2450 Air Systems Design, Inc. 1349 Alar Wastewater Treatment Systems 2947 Albany International 2916 Alignment Services of North America 1761 Alliance Machine Systems International , LLC 2130 Allison Systems Corporation 2745 American Corrugated 1748 American Inks and Coatings 2057 Ammeraal Beltech 1630 Amtech Software 1316 Anilox Roll Cleaning Systems, Inc. 1116 Apex North America 2616 Appleton Mfg. Division 2248 ARC International 2830 Arden Software North America 2844 Autobox Machinery Ltd 2148 Automatan Inc. 2430 Automated Conveyor Systems, Inc. (ACS) 2340 Automation & Control Inc. (ACI) 1416 Avista Solutions International 1216 Balemaster 947 Baumer HHS 1122 Baumueller-Nuermont Corp. 2048 Baysek Machines Inc. 1602 BCM Inks USA Inc 1716 BCN/Corrugated Today 1452 Bekaert 2644 BGM Bahmueller & Gopfert 2852 Roll/Adhesive Mixing Equipment/Function Control 1200 BloApCo 2040 Bobst North America Inc. 2900 Bowman Hollis Mfg. 3117

Boxmaking-Machinery Gmbh 2360 BP Agnati SRL 2652 BSP (B-S Piping, Inc.) 2240 C & M Conveyor Inc. 2022 C.U.E. Inc. 1222 Capital Adhesives 2841 Cargill 1648 Cascade Corporation 1835 Cascades Sonoco 3317 Cav Com 1847 CEL Chemical & Supplies, Inc. 1312 Channel Creasing Matrix 3136 Chicago Electric Company 2630 Chuen Huah Chemical Co. Ltd. 3413 Cimex Corp. 1852 Color Resolutions Intl. LLC 3000 CONPRINTA GmbH & Co. KG 2746 Consult It All 1954 Container Graphics 1322 COPAR Corporation 1652 Ingredion 1720 CORRFLEXO e. K. 2744 Corrugated Chemicals 2157 Corrugated Equipment Leasing 1812 Corrugated Gear and Services Inc. 2922 Corrugated Replacements 2349 Corrugated Technologies Inc. (CTI) 2030 Cristini Corrrugated Belts 1217 CST Systems Inc. 1218 Deublin 1817 DICAR Inc. 1740 Dieco 2941 Diversified Electronics 1856 Donahue & Associates Intl. Inc. 2113 Double E Company, LLC 1448 Doyle Systems, Inc. 906 Dreamworks Coating Solutions 1007 Duo-Technik GmbH 3012 DuPont 2354 Eaglewood Technologies 1116 EAM- Mosca Corp 1802 EMBA Machinery AB 2420 Exhibitor List as of 6.14.12

Emmepi Group Srl Empire Corrugated Machinery Inc. Enerquip, LLC Environmental Pneumatics, Inc. Erhardt & Leimer Inc. Escada Stystems Inc. Esko Factory Intellligence Network – FIN FARO Bearings USA, Inc. Felins USA, Inc. Feltri Marone Flexo Concepts FlexoCleaners Flint Group Fosber America Fox Company- Aeronaut Automation Friese Corrugating Rolls George M. Martin Company Gerber Innovations Gingdoa JUSTU Packing Machinery Co., LTD Global Equipment USA, LTD. Globex USA/Eagle Strategies Graphics 2 Press Guangdong Sky Dragon Printing Ink Group CO. LTD HAECO Haire Group - Dong Fang Harper/Love Adhesives Hawthorne Systems, Inc. Henkel Corporation HITEK Equipment Inc. Honeycomb Products, Inc. Hycorr LLC, a Kolbus America Company IADD ICPF, International Corrugated Packaging Foundation IGI Enviro-Coatings Independent Corrugator Inc.

1730 2153 1456 913 1212 1130 3320 1416 1317 2260 1217 2316 2848 3100 1512 3041 2748 2712 2730 3130 1822 902 2941 1003 2012 2000 2460 1853 2330 2634 2050 1406 3507 2845 2640 1955


The latest in Packaging

Innovation and Technology InkSpec Integrated Paper Services (IPS) Intertape Polymer Group INX International Ink. Co. Isowa America J.M. Fry Printing Inks J.S. Corrugating Machinery Co., Ltd JB Machinery Inc. JiuFeng Cartons & Machinery Co., Ltd. JJC Services LLC JML Services Jonco Die Co Inc. Kadant Johnson Inc. Kiwiplan Inc. Kohler Coating Korutest Limited Lachenmeier Laserflex Matrizes Grรกficas Ltda. Lathrop Latitude Machinery Company Lewisburg Printing, Inc. Lincoln Coders, Corp. Lorentzen & Wettre USA Inc. Lubcon Turmo Lubrication, Inc. Magna Products Corp. Mainline Conveyor Systems Inc. Malintech, Inc. MarquipWardUnited Matrix Suppliers Maxcess MaxDura International Co., Ltd. Mercury Plastics, Inc. Michelman Mikowen Industries, LLC Mitsubishi Heavy Industries America Moist Tech Monroe Rubber & Plastic Montalvo MoveRoll Oy Muhlen Sohn Industries LP Multicell Packaging, Inc. Nantai Precise Machinery & Tech. LTD., Foshan

3212 2250 2334 1813 3112 2254 1230 3222 2016 1953 2749 2940 3313 2230 1650 2747 3206 3243 1319 3240 2642 1545 2413 1213 3016 2648 908 2412 2652 3245 2348 2052 2612 3116 1830 2445 3218 3035 2450 2735 3037 2149

National Steel Rule National Wire Fabric and Corrugated Belting Nitta Corporation of America Nye Lubricants OBM/ Paperboard Packaging Oce North America Ohio Blow Pipe Company OM Partners OpSigal Pace Punches, Inc. Pamarco Global Graphics Peoples Capital & Leasing Corp. PLEXPACK Corp. PolyChem Corp Polytec, Inc. Poteet Printing Systems PowerHandling, Inc Precision Industrial Contractors, Inc. PRI Technologies Printron Proden Enterprises PRP Flexo PRUFTECHNIK Service Inc. Qualitek-VIB Quest7, Inc. Quickfab, Inc. R&B Splicer Systems, Inc. Racing Communications, Inc. Rayner Die Supply Reed Huayin (Shanghai) Co. Ltd Ringwood Co. Sage Automation Inc. Samuel Strapping Systems Sauer Systems Shanghai Liuxiang General Equipment Co., Ltd. Shanghai Lunshun Packaging Machinery Co., Ltd Shanghai Mediaprint Shanghai Srpack Machinery Co., Ltd. Signode Packaging Systems

2252 2055 931 3022 2054 3312 2646 2912 1746 3144 1848 2713 1854 1400 2717 2622 3236 2741 2435 3017 2840 3015 1557 3106 2160 3116 2353 1442 3216 1454 3030 3509 1000 2312 1248 2948 3239 2112 2720

Solarsoft Vantage Point Systems Southern Graphic Systems Southern States Packaging Company Stafford Corrugated Products Inc. Stafford Cutting Dies Stickle Steam Specialties Co. Inc. StraPack Inc. Stratis Plastic Pallets SUN Automation Group Sun Chemical Systec Conveyors Taiwan Endurance Co. Ltd. Talleres SERRA S.A. T-Buck, Inc. Techlabs Systems Technoflex, Inc. Tecsia Lubricants PTE LTD Tengxuan Technology Company, Ltd. Terdeca CMG Group Inc. Testing Machines Inc./ A TMI Group of Companies Thacker Industrial Service Co. The Arnold Company The Box & Carton Blue Book Tien Chin Yu Machinery Mfg. Co, Ltd Tiruna Tribco Inc. Valco Melton / ClearVision Voith Paper Fabrics SAS W H Leary Walla Walla Environmental, Inc. (W2E) Waraltec Wells Printing Materials Co., Ltd. Wexler Packaging Products Wisdom Adhesives WSA USA, LLC Young Shin USA Limited Zefco Inc. Zenith Cutter Zund America, Inc.

1422 3122 1855 2834 2834 2461 1534 1549 3330 2322 1430 2117 2930 3116 3119 2417 1541 2415 2344 1440 2448 1112 1353 2140 1530 3018 1348 2847 2934 2356 1950 2945 2260 2846 3307 2402 1106 1412 1249


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FINANCIAL CORNER

The Financial Corner: Volume 5 By Mitchell Klingher, Klingher Nadler, LLP

When AICC invited me to write “The Financial Corner,” their mandate was for me to comment an all things financial. Up until now, I have focused my efforts on financial reporting concepts and issues. However, in light of the recent Supreme Court decision on The Patient Protection and Affordable Care Act (“PPACA”), commonly referred to as Obamacare, it is time for me to switch gears and weigh in on this important discussion. The main issues facing the court were: • Whether Congress acted within its powers under the Commerce Clause or its taxing power in enacting the mandate to buy health insurance or face a “penalty” • Whether the remainder of PPACA would be viable if the mandate were struck down • Whether PPACA’s Medicaid expansion is coercive in that non participating states would lose all of their Medicaid funding In a 5-4 decision with Chief Justice Roberts joining the “liberal wing” of the court it was decided that the individual mandate was constitutional under Congressional taxing power. In addition the Medicaid expansion was considered to be coercive, although the overall expansion of Medicaid and the conditioning of new funds on the states’ acceptance of the new terms were otherwise upheld. Among the reasons advanced by the court for plausible construability of the mandate as a tax were:

• It is paid into the treasury when taxpayers file their tax returns • It doesn’t apply to individuals who don’t pay taxes because their income is too low • The amount of the payment is based upon such things as taxable income, number of dependents and filing status

Businesses will most likely react • The labeling of the payment in the to these increased PPACA as a penalty and not a tax was not costs by hiring controlling for the Court’s constitutional analysis fewer employees while investors Thus, unless the next Congress and President come up with a legislative remedy and entrepreneurs to overturn the PPACA, it is here to stay. So will react to these let’s take a few minutes to review the major increased taxes by provisions of PPACA. putting less of their • Beginning in 2013 there is an additional hard earned, after.9% Medicare tax for high wage earners tax dollars at risk. • Also beginning in 2013 there is a 3.8% surtax on net investment income of higher income taxpayers

• Beginning in 2014 a premium tax credit to assist low income taxpayers in paying for health insurance

• A small employer health credit which began in 2010 that employers of less than 50 people whose average payroll is less than $50,000 per employee who provide health insurance can benefit from • The mandated inclusion of children under age 27 as dependents for health coverage purposes continued on page 17

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Phone: (858) 578-3550 Fax: (858) 546-1401 Email: info@corrtech.com


The Financial Corner: Volume 5 continued from page 15

• Beginning in 2014 a termination in the use of cafeteria plans to pay for medical insurance premiums that are not qualified under the health insurance exchange requirements

to comment on public policy, but

• Beginning in 2014 a penalty for larger employers that don’t offer minimum mandated coverage to full time employees

many businesses will be to stop

• Beginning in 2018 a 40% nondeductible excise tax for health plan coverage that exceeds $10,200 for single coverage and $27,500 for family coverage.

rather a statement of fact. The core objective to the PPACA is to make certain that more Americans have adequate health coverage, yet one of the key reactions to this law by offering health insurance to their employees and pay the fine, because it will be much cheaper for them to

that we are stuck with a law that is inherently anti-business. Let’s talk a little bit about some of the issues we face with implementing and enforcing this new law. For openers, the newly mandated state exchanges must be certified by the Department of Health and Human Services by January 2013 and must go live in

do just that. The bottom line here is

continued on page 18

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

And the two controversial features that were challenged in the courts: • The individual mandate beginning in 2014 for all individuals to carry minimum essential health insurance coverage or face a penalty • Beginning in 2014 increased eligibility, benefits coverage and funding for Medicaid programs as well as establishing a minimum essential coverage that states must provide. Other than the small employer health coverage credit, which has very limited applicability, this bill will raise the overall cost of doing business for just about every employer and increase taxes for every investor, entrepreneur and potential entrepreneur in this country. Businesses will most likely react to these increased costs by hiring fewer employees while investors and entrepreneurs will react to these increased taxes by putting less of their hard earned, after-tax dollars at risk. This is not a political statement, or any attempt

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

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The Financial Corner: Volume 5 continued from page 17

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October of 2013 so that consumers can start shopping for policies and enroll for coverage in early 2014. So far only 15 states have made strong progress towards this goal. Secondly the states must decide whether or not to participate in the Medicaid expansion pretty quickly, although it will be difficult for them to say no. Finally, the IRS is charged with enforcing the PPCA’s provisions, yet its enforcement powers have been limited by the statute in a very important way. For most tax deficiencies the IRS has the power to put a lien on the taxpayers property and ultimately to levy the taxpayer’s income and assets in the event of noncompliance. In the enforcement of PPACA, they will only have the power to offset taxpayer refunds or credits. Therefore a taxpayer who is in noncompliance can only be compelled to pay the penalties if, at the end of the year, their taxes are overpaid. Many taxpayers who object to this law might consider exposing themselves to a small underpayment of estimated tax penalty rather than putting themselves in a position to get a refund at the end of the year, which could be used to pay the larger PPACA penalties. These limitations raise serious issues about whether the individual mandate in particular will ever be truly enforceable.  Mitchell E. Klingher is a partner in the accounting and Consulting firm of Klingher Nadler LLP. He can be reached at (201) 731-3025 or at Mitch@klinghernadler.com.


AICC CONNECTS

AICC Volunteers Roll up their Sleeves and Rev up their Presses to Recruit New Members The largest group of volunteer recruiters ever

assembled in the corrugated and paperboard packaging industry is pounding the pavement and working the phones in the coming weeks to spread the word on the benefits of membership in AICC. More than 55 AICC Regular and Associate members are reaching out to more than 275 companies on the Association’s target prospect list to invite them to join AICC in advance of SuperCorrExpo, October 1-4, in Atlanta. “It’s really missionary work,” says Chuck Fienning, Chairman of Sumter Packaging, Sumter, SC, and Chairman of AICC’s Membership Committee. “We are going out, calling peer-topeer to help other independents in our industry understand the benefits of being part of AICC.” Going under the banner of “AICC Connects,” the recruitment effort is part of the Association’s longrange of gaining an additional 100 members by the beginning of 2013. “There is a large group of companies still not connected to AICC, and this campaign by our volunteers is designed to reach them,” says Taryn Pyle, Director of Marketing and Communications for the Association. “We owe a lot to our Associate member companies who stepped up to the plate to volunteer to do much of the calling on AICC’s behalf.” AICC’s Associate members, headed by David Callif of BCM Inks and Lance Head of Latitude Machinery USA, have recruited their peers to help in the process. Associate members, who travel throughout the country calling on independents, are what Lance Head calls the “natural ambassadors”

for AICC. He said, “We suppliers can get in to see people, discuss their immediate needs for our products, and then we can say, ‘Oh, by the way, are you coming to the AICC meeting?’ or, ‘Will I see you at SuperCorrExpo?’ It’s a natural entrée into the discussion about the benefits of joining.” According to AICC, all corrugated, rigid and folding carton new members will receive a complimentary registration to one of the AICC meetings held in the coming year – whether SuperCorrExpo, October 1-4, in Atlanta, or AICC’s 2013 Spring Meeting, April 26-28, in Orlando, Fla. Assisting with the campaign are several AICC member companies who designed, manufactured and donated printed pieces for the recruitment effort. Mid-Atlantic Packaging, Montgomeryville, Pa., designed a corrugated folder for mailing membership kits to prospects on the corrugated side of the business, while American Carton, Mansfield, Texas, designed and printed a handsome piece to be sent to manufacturers of folding cartons. Michigan City Paper Box, Michigan City, Ind., and Jessup Paper Box, Brookston, Ind., joined forces to produce the rigid box promotion for rigid box makers, and Frame Packaging, Ashland, VA, Richmond Corrugated, Richmond, Va., did the master shipper on the new member kit which is sent once recruits join the Association. In addition, Huston Patterson Printers,

Decatur, Ill., printed the “AICC Connects” membership brochure. The estimated value of time and materials which were all donated is $75,000. The following AICC members are participating in this year’s campaign, making phone calls and visits to prospective members: n Brad J. Albright, Hendricks Box Company, Seymour, IN n John Bolender, Niagara Sheets, North Tonawanda, NY n David Callif, BCM Inks U.S.A. Inc., Cincinnati, OH n Jay Carman, Stand Fast Packaging Products Inc., Addison, IL n Ryan Chappell, Louisiana Corrugated Products, Monroe, LA n Matt Davis, Packaging Express, Colorado Springs, CO n Stuart Fenkel, McLean Packaging Corp., Pennsauken, NJ n Kim Feterik, Orange County Container Group, City of Industry, CA n Charles E. Fienning, Sumter Packaging Corp., Sumter, SC n John Franciosa, Packaging Technologies Inc., Concord, ON continued on page 21

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AICC Volunteers Roll up their Sleeves and Rev up their Presses to Recruit New Members continued from page 19

n James E. Haglund, Central Container Corp., Minneapolis, MN

n Lisa Chaille, Litho Press Inc, Indianapolis, IN

n Roger L. Poteet, Poteet Printing Systems, Charlotte, NC

n Peter Hamilton, Horn Packaging Corp., Lancaster, MA

n Michael Ciarlelli, J.M. Fry, Richmond, VA

n Rick Putch, Dicar Inc., Pine Brook, NJ

n Jana Harris, Harris Packaging Corp., Haltom City, TX

n Michael J. Ebben, Innovative Packaging Corp., Milwaukee, WI

n Lance Head, Latitude Machinery USA, Kalamazoo, MI

n Edward A. Gargiulo, Equipment Finance Corporation, Alpharetta, GA

n Al Hoodwin, Michigan City Paper Box Co., Michigan City, IN

n Hagai Golan, OpSigal By Oren Technical Services, Glendale, WI

n Tyler Howland, Sound Packaging, Chandler, AZ

n Michael Harwood, Pratt Industries USA Corporate Office (Conyers), Conyers, GA

n Brian Kentopp, Bobst North America, Roseland, NJ n Thomas Kowa, Huston Patterson Printers, Decatur, IL n Isidro Lavin Garcia, Empaques Rio Grande, Brownsville, TX n Mark Mathes, Vanguard Packaging, Kansas City, MO n Jim Nelson, Great Lakes Packaging Corp., Germantown, WI n Kimberley Nelson, Royal Containers Ltd., Brampton, ON

n Lance Head, Latitude Machinery USA, Kalamazoo, MI n Chris Heusch, ARCH Inc., Heber City, UT n Peter Kobrak, MarquipWardUnited, Lake Forest, CA n Udayabhaskar (Baskar) Kotte, Quality Systems Enhancement Inc., Roswell, GA n Kevin Miller, Executive Strategies, Charlottesville, VA

n Guy Ockerlund, Ox Box, Addison, IL

n Scott Miller, BCM Inks U.S.A. Inc., Cincinnati, OH

n Joseph M. Palmeri, Jamestown Container Companies, Macedonia, OH

n Tom Phillips, Bobst North America, Roseland, NJ

n Andrew Pierson, Mid-Atlantic Packaging Inc., Montgomeryville, PA

n Richard J. Pomerenka, Printron, Neenah, WI

n Jeffrey J. Quinn, Haire Group, Merrillville, IN n Keith Reiter, Sun Automation Group, Vernon Hills, IL n Steve Rote, Metsa Board Americas Corporation, Norwalk, CT n Shari Saeger, Automatan Inc., Plover, WI n Patrick A. Szany, American Corrugated Machine Corp., Indian Trail, NC

“This is a wonderful team effort on the part of all our members, and we are very grateful to them for their generosity,” said Andrew Pierson, President and CEO of Mid-Atlantic Packaging and Chairman of AICC. “This recruitment campaign truly shows that AICC connects us all in a common mission and effort to benefit all independents.” For more information about AICC’s recruitment campaign, “AICC Connects,” contact Taryn Pyle at AICC headquarters, 1-877-8362422, or tpyle@aiccbox.org. 

n Jeff Ramsey, Central Florida Box Corp., Lake Mary, FL n Tony Schleich, American Packaging Corp., Hutchinson, KS n Gregory Tucker, Bay Cities Container Corp., Pico Rivera, CA n David L. Urquhart, New England Wooden Ware Corp., Gardner, MA n Steve Warll, Dicar Inc., Pine Brook, NJ n Kevin Widder, Automatan Inc., Plover, WI n Mark W. Williams, Richmond Corrugated Inc., Sandston, VA n Steven Young, Association of Independent Corrugated Converters, Alexandria, VA n David Burgess, JB Machinery Inc., Alpharetta, GA Chuck Fienning, Chairman of Sumter Packaging, Sumter, SC, and Chairman of AICC’s Membership Committee; Steve Young, AICC President; and Mark Mathes, Vanguard Packaging, Kansas City, MO and AICC Vice Chairman.

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MARKETING COLUMN

Innovation, Technology and Design—A Collaboration With Customers By Sandy Klein, Newhall Klein Inc. This issue’s theme is about

Packaging Design, Innovation and Technology. I’m going to share a recent set of experiences that will perhaps lend some insight into each of these points and our experiences at Newhall Klein have been touched by these and how that carries through to the products and services the corrugated industry offers. Inside of two weeks, we were the lucky participants touring four very different manufacturing facilities, in two countries (US and Canada) . All four touch or need corrugated packaging design as well as inner packaging design – doesn’t almost every manufacturer need corrugated?

It All Starts At The Very Beginning

They asked us to get involved at the very beginning of the project since branding is a critical component to the success of their business. We were (and are), of course, eager to participate. As brand ambassadors to each of our clients, we understand the value of getting in on the infancy stage of branding: Understanding the business and the end product or service Taking an inside look at corporate culture Gaining an appreciation for business goals, objectives, challenges and opportunities

Becoming A Part Of A Bigger Team

One of those recent meetings was with a new client who had us come in to collaborate with his packaging engineers, in-line filling suppliers and marketing departments. It’s not very often that we get to be involved before the structural packaging design is completed, and it

was incredibly insightful, and will add so much value to the marketing, branding and eventually the graphics we put on the package for several reasons. 1. We now understand why the structure has to be what it is - from cost, product, filling and consumer perception perspectives. 2. We understand how fast the in line fill machine will work as it relates to just in time inventory and perhaps needing to design for “blanks” so that the product descriptor or “flavor” can be imprinted later as orders are filled 3. Touring the plant gave us an inside view and in-depth understanding of the operation, the product and some of their challenges. 4. We gained a real appreciation for cost decisions that affect packaging, capacity and capacity goals, labor costs associated with the production line, and on and on. 5. How the structure of the container will affect the structure and design of corrugate.

Our Global Economy Can Generate Opportunities

Another meeting took us onto a cattle range in Canada. Here, they revealed a need for a branded product line, shipped in corrugated boxes, marketed to the Asian target market. We needed to understand the culture of the markets we will be addressing – how colors and what they mean impact the brand messaging—the science and technology behind this industry and the importance of adherence and traceability. The structural design of the box and the graphics will be of utmost importance to the successful brand introduction.

As our customers are striving for more innovative, and cost saving solutions, we must be keyed into that as part of their goals and provide innovative solutions that help them achieve those goals.

continued on page 24

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Innovation, Technology And Design - A Collaboration With Customers continued from page 23

Consistent Brand Messaging Is Key

The other facility is a simple coffee roaster (good coffee roasters have created an almost cult-like demand for their coffee). The complexity outside of the individual roasts, is the relationships built over time with customers and farmers in other countries. This company’s principal can tell region and bean location by “cupping” - very similar to what a sommelier does when tasting wine. Ensuring that the brand portrays professionalism, consistency and continuity with every corrugated delivered is mandatory.

We Are All In It Together

And, finally we toured one of your own suppliers’ plants and watched how recycled board is broken down and made into corrugated rolls ready for further processing. To watch the process from end to end was truly amazing. What impressed me about all of these recent tours of facilities is that they are striving for the same things you are as corrugated suppliers: Innovation – As our customers are striving for more innovative, and cost saving solutions, we must be keyed into that as part of their goals and provide innovative solutions that help them achieve those goals. Perhaps it’s one box size with dividers that can accommodate 80% of their varying sized packaging needs. Technology – Without a doubt, technology is driving what manufacturers do and how they get it done. Behind the scenes, tracking every move of every machine, or the medical records of each animal, or the shipment of coffee. Each is also deeply embracing the web and using it as an increasingly effective tool. Corrugated converters need to be willing participants. Packaging Design – When I hear the term packaging design, I think

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of graphics. You think of structure and building the right solution for your customer’s needs. That solution combined with dynamic brand graphics and messaging will bring effective results to your customers.

solutions. Realizing you don’t always have access to the owners or principals of your customers’ companies, asking open-ended questions that bring deeper insight into the business will always prove beneficial. 

Finally, what hit home more than anything, is that the earlier you can get involved in your customer’s process, the more equipped you will be to offer accurate, innovative

Sandy Klein is owner of Newhall Klein Inc., and may be reached at 269-544-0844 or info@newhallklein. com. www.newhallklein.com.


CORRUGATED INDUSTRY TRENDS

PMI – Measuring Manufacturing’s Pulse By Dick Storat, President, Richard Storat & Associates, Inc. Understanding market conditions in the manufacturing sector

of the US economy is crucial for independent boxmakers large and small across the country. Almost all AICC member box shipments end up in the factories and plants of US manufacturers to package goods they sell to downstream customers. Therefore, knowing the vital signs of manufacturing activity is central to understanding current and future prospects for box demand. The PMI, which used to be called the Purchasing Managers’ Index, is the earliest indicator of manufacturing activity, being issued by the Institute for Supply Management (ISM) on the first business day of each month for prior month activity. In use since 1920, the PMI is not only widely used, but is considered by many economists to be the most reliable near-term barometer of change in economic activity. Knowing more about this index and its components can help independent corrugated converters gauge more accurately the manufacturing climate and anticipate changes in the business cycle earlier and more reliably. The PMI is a composite index

for the manufacturing sector of the US economy contained in the ISM’s monthly Report on Business®. Each month survey respondents from the entire manufacturing sector (diversified to reflect each manufacturing industry’s contribution to GDP) are asked to assess their organizations’ performance based on a comparison of the current month to the previous month. They are simply asked if the current level is “Better/Higher,” “Same,” or “Worse/Lower” than the preceding month. The activities included in the survey are: • • • • • • • • • •

New orders from customers Production level Employment Supplier Deliveries Inventories Customer inventories Prices Backlog of Orders New Export Orders Imports continued on page 26

Knowing more about this index and its components can help independent corrugated converters gauge more accurately the manufacturing climate and anticipate changes in the business cycle earlier and more reliably.

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PMI – Measuring Manufacturing’s Pulse continued from page 25

because both rising new orders and declining inventory levels suggest the need to step up production in the future months. The Production Index is a coincidental indicator that correlates with the Federal Reserve Board’s Industrial Production index. On the other hand, the Employment and Price indexes are lagging indicators, since they respond to changes in New Orders and Production.

The PMI is calculated as the equally weighted average of the first five activities listed above. The results of the survey are contained in the monthly Report on Business®, which is released by the Institute for Supply Management at 10:00am on the first business day of each month. The report, as well as detailed information explaining the survey and its results, can be found on the internet at www. ism.ws. The survey results are presented in the form of a diffusion index. Diffusion indexes have the properties of leading indicators and are convenient summary measures showing the prevailing direction of change. The percent response to the “Better,” “Same” or “Worse” question is difficult to compare to prior periods. Therefore, the percentages are “diffused for this purpose. A diffusion index takes those indicating “Better” and half of those indicating “Same” and adds the percentages. This effectively measures the bias towards a positive (above 50%) or negative index (below 50%). For example, if the response is 20% “Better”, 70% “Same” and 10% “Worse”, then the diffusion index would be 55% (20% + (.50 x

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70%)). After conversion to a diffusion index, the data for each activity are seasonally adjusted. For the PMI and each of the indexes listed above, a reading above 50% indicates expansion, while a reading below 50% indicates declining activity. The single exception is the Supplier Deliveries Index, where above 50% indicates slower deliveries and below 50% indicates faster deliveries. While the PMI provides an early signal of the peaks and valleys in the manufacturing sector before they appear in government economic data, individual components of the index are useful to predict future growth or contraction. For example, the Price Index is considered by many to be a good first indication of future inflation or deflation. The New Orders and Supplier Deliveries indexes are both leading indicators, and offer some insight into the likelihood of future growth or contraction in manufacturing production and, consequently, demand for corrugated packaging in the next few months. The difference between the New Orders diffusion index and the Inventory index is a good proxy for future manufacturing production and corrugated demand,

For those who desire a deeper look into the conditions of manufacturing activity, the Report on Business® provides additional data for analysis. Each month, commodities reported up or down in price or in short supply are listed. In addition to the aggregated survey percentage responses, each report lists the manufacturing industries that are reporting growth or contraction in each of the surveyed manufacturing activities listed above, ranked by rate of growth or contraction. In addition to data relating to the component indexes, the monthly report contains response information regarding buying policy. Average lead times for capital expenditures, production materials and maintenance, repair and operating supplies are provided along with percentage of respondents reporting by six time categories. With all this data provided monthly on the manufacturing sector by the ISM, it is very tempting to fall into the trap of believing that one month’s change provides by itself a forecast for the future. Assessing and reacting to the trends, not monthly changes alone, provides the most meaningful interpretation of the available data, and offers independent boxmakers the opportunity to draw independent conclusions regarding the future course of the manufacturing sector and the US economy. 


Paper Check-off: An Investment in Our Future By Donna Harman, President and CEO, American Forest & Paper Association The paper and

paper-based packaging industry has a longstanding history of sustainable practices and successes.

makers on the positive benefits of our all paper products and consequently gain greater traction than each product acting alone.

Paper-based products are renewable, reusable and recyclable. The market growth of corrugated products is stable and they are recycled at a very high rate – up to 91% of corrugated products are recovered for recycling in the United States. Yet the arguments in favor of these products are not well known to consumers.

Check-off programs are industrywide initiatives to promote an overall category of products. Checkoff programs for other industries – from beef to milk to cotton – have proven to be extremely successful in raising the profile of those product categories, enhancing perceptions and sales.

The paper and packaging industry has commissioned research that showed public misperceptions of paper products exist, and that these views tend to be based on incomplete or inaccurate information.

Check-off programs are initiated by the industry, and are administered under the authority of the United States Department of Agriculture (USDA). The Paper Check-off would aim to increase the sales of paper-based packaging and slow the decline of printing and writing papers.

time, allow our industry to use a united voice to promote paper products. While corrugated converters would not be required to invest in the Paper Check-off (as that is only required of manufacturers and importers), they would directly benefit from its results, namely a larger share of the packaging pie. The Paper Check-off would provide a persuasive and sustained avenue to tell our story better, and whether you are a company meeting the criteria or not, Paper Check-off would serve to better the perceptions of the industry atlarge and highlight the benefits our products have to offer.

Paper and paper-based packaging are as sustainable as such products Some of the studies’ participants can get. Our industry has been were unaware of the industry’s a leader in sustainable business If passed, all companies annually sustainable forest management producing or importing into the U.S. practices to make the wonderful practices and thought paper products people depend upon more than 100,000 short tons of recovery rates were much lower the world over. Now is the time paper products would be assessed than they are. for our industry to speak up for 35 cents per ton. Those below the 100,000 short ton threshold, as well paper products and recalibrate the The take away from listening to perceptions held by consumers. as converters, would benefit from stakeholders and consumers is the program, but they would not be They should use our products with that when we present them with pride and understand that choosing required to pay. the facts of how our products are paper is the environmentally manufactured, the amount of paper In the coming months, we are sustainable choice. products recovered for recycling hopeful that USDA will publish the and that more than 3 million trees The support continues to build for are planted each day – their view of order in the Federal Register and a Paper Check-off, and the Paper conduct the referendum vote of our products improves dramatically. Check-off Panel is working to those covered companies. For the gather maximum support for the Paper Check-off to be approved, There is a great story to tell on effort from their industry peers. more than 50 percent of the behalf of all paper and paper-based A vote for the Paper Check-off is covered companies voting and the packaging. That story is ours for total volume of production will need an investment in our future: an the telling, and we have within our investment whose time has come to grasp the means by which to tell it. to vote ‘yes’. make. This investment will go toward A Paper Check-off would empower For more information, visit our industry with a sustained effort a promotional and educational to educate and inform decision campaign that will, for the first papercheckoff.com.  BOXSCORE

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AICC ASSOCIATE MEMBER BOARD

A S S O C I AT E S C O L U M N

Innovation – Consider the Possibilities Innovation is all around us. We see advancements being realized in essentially every industry. There is a tremendous amount of information on innovation and how these processes are being utilized in the business and academic publications. We wanted to share some practical insights on innovation. We re-engaged our virtual roundtable to explore and share these viewpoints on these six questions related to innovation.

David Callif

BCM Inks Chairman dave@bcminks.com

What have been some recent examples of innovation that have been developed within your company? • The introduction of robotics to the corrugated industry -- feeding machines as well as palletizing has increased productivity. Additionally, the revamping of our business computing by adding MRP and ERP, links to the costing system so the company communication and targets are real-time. • The development of several eco-friendly innovations. For example, ink which minimizes volatile organic chemicals. Also, the development of an ink distribution system which minimizes transportation costs, reduces inventory costs, and reduces an account’s carbon footprint.

Tom Kowa

Huston Patterson Printers Vice Chairman tkowa@hustonpatterson.com

• From an organizational perceptive, the development of an initiative to help our employees learn and grow, both classroom and hands-on training. This has also been expanded to both vendors and clients. The result has helped in process improvement, quality assurance, and turnaround time. How has innovation enhanced your organization’s performance? • Innovation is a cornerstone of our companies. We believe innovative products and services and/or processes help achieve sales growth and reduce overall costs. • Our daily tracking of our performance is live and reporting is instant. Our internal understanding of our costs as well as where customer orders are in process is extremely valuable. It enables us to be proactive.

Kevin Widder

Automatän Secretary kwidder@automatan.com

• Innovation with a focus on improved quality will, in turn, drive performance and client satisfaction, while improving the company’s ROI. What has been the risk of innovation to your company? • With tight margins and a focus on cost containment, it is sometimes hard to justify the cost and risk that comes with innovation. • The risk in taking innovative steps is that you don’t know what you do not know. Plans are made and even with experience they are minimized but at times it is not perfect. However, innovation is not really an option. Either you are moving and growing, or you are standing still and others are taking the necessary risk and therefore expanding, or having their company survive where others do not.

Brian Kentopp

Bobst First Alternate brian.kentopp@bobst.com

• There have been times when the market has not been ready for our innovation. This has resulted in our company incurring costs with little ROI. Companies realize that failure is a part of any innovation. One of our jobs is to learn from our failure so we can succeed in the future. How have you inspired innovation within your company? • It’s all about creating an innovative culture. Recognize employees who are innovative and performance driven. Innovation is about learning and understanding the current and future needs of your clients and exceeding their expectations. continued on page 29

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Lance Head

Latitude Machinery USA, LLC Immediate Past Chairman lhead@latitudemachineryusa.com


Innovation – Consider the Possibilities continued from page 28

• Inspire innovation by talking about it constantly. It is included as an agenda topic at every company meeting and correspondence. • See what our new products have done for people and industries, making them more productive, while cutting costs. Also, growing and embracing innovative technology so it is attractive, especially to younger generations. Having motivated people in your company is very important. Everyone is expanding on one another and excited about what they are doing. Does innovation play any role in selecting a vendor or supplier? • It has everything to do with it. We want to work with innovative

companies that are going to challenge and collaborate with us. They need to add value and not just use our ideas. Either they are a positive influence or a negative one. • Innovation definitely plays a role in selecting a vendor or supplier. For example, one of our sustainable products required a different manufacturing process. The vendor who was willing to change their process got our business. In your opinion, is the packaging industry innovating at a pace to compete in the highly competitive market? • There is certainly room for improvement. A lot of people are stuck doing the same thing day in and day out – kind of like the chicken and the egg story. Or who is pushing whom?

We need partners in the industry and entrepreneurs that want to expand with innovations and not do things the same old way. • However, the packaging industry is innovating at a rapid pace. Each week we receive requests from our customers asking us to respond to a unique need. This requires everyone in the supply chain to work together to develop innovative solutions. AICC has been a great resource for highlighting innovations in our industry. Especially, through their “Innovator of the Year” awards program. It showcases the cutting edge ideas and companies who are at the forefront of innovation. To enter the contest or learn about innovation go to www.aiccbox.org. 

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Imagine a world where every box is precisely square, every run is breathtakingly fast, and every customer is perfectly satisfied.

Imagine Mitsubishi.

When you use Mitsubishi box-making machinery your boxes are squarer, your printing is more exact, your production speed is remarkably fast and you can depend on your machines for a far longer production life. And that simply means greater customer satisfaction and greater profits for you.

Out-Thinking. Out-Performing. Out-Lasting.


For the long haul. North American Office 11204 McCormick Road Hunt Valley, MD 21031 Phone: 410.584.7990 Fax: 410.584.1252 e-mail: mhicorr@mhicorr.com website: www.mhicorrugating.com


Introducing AICC’s iWebinar Learning Series for 2012 AICC’s line of educational iWebinar DVDs lets you build a library of training resources for your business. Our iWebinar Learning Series offers a convenient, easy and affordable way to enhance your knowledge and keep up-to-date in the corrugated industry. Titles include: • UNDERSTANDING OSHA PROGRAM COMPONENTS - John Kiefner • STRATEGIES & TACTICS OF MARKETING LIGHTWEIGHT CONTAINERBOARD - Sarilee Norton • GETTING TO ZERO DISCHARGE WITH PROCESS WATER - John V. Kohl & Cassi Rothstrom • RETAIL READY PACKAGING FOR THE SALES PROFESSIONAL - Drew Gilchrist • CREATING A MANUFACTURING BUSINESS PLAN - Jack Keller • SELLING: FROM SUSPECT, TO PROSPECT, TO CUSTOMER, TO CLOSE - John Bacot • WHAT CONVERTERS NEED TO KNOW ABOUT LIGHTWEIGHT CONTAINERBOARD - Sarilee Norton • THE HIDDEN FACTORY - Les Pickering

iWebinar DVDs are $150 each (members) $200 each (non-members). Buy the entire iWebinar Learning Series (set of 8) for only $1000 per set (members) $1500 per set (non-members).

For more information go to:

www.aiccbox.org or call 1-877-836-2422 ❑ I would like to order the following titles:

(If you need more room, please use additional paper for your selections.)

_______________________________________ _______________________________________ $150.00 (member) x (quantity) ____________ = $___________ $200.00 (non-member) x (quantity) _____________ = $___________

❑ I would like to order the entire iWebinar Series $1000.00 (member) x (quantity) ___________ = $___________ $1500.00 (non-member) x (quantity) _____________ = $___________

Billing Information Name__________________________________________________________ Company______________________________________________________ Street Address__________________________________________________ City/State/Zip __________________________________________________ Phone #________________________________________________________ Email_________________________________________________________

❑ Check enclosed (Payable to AICC) Amount $____________________ ❑ Credit Card Amount charged $____________________________ Type of Credit Card___________________________________________ Name on Card_________________________________________________ Card # Exp.Date_____________________________________________________ Signature__________________________________________________ Please complete this form and Mail to: Maria Frustaci, AICC, P.O. Box 25708, Alexandria, VA 22313 Phone: 1-877-836-2422 FAX: 1-703-836-2795 Email: mfrustaci@aiccbox.org


TAPPI–AICC SuperCorrExpo 2012 offers “Special” for Box Plant Employees The 2012 AICC/TAPPI SuperCorrExpo®, the most powerful global hub of corrugated networking, is offering a special discount to box plant attendees. For one price, an unlimited number of employees from the same box plant can attend the show and conference, taking place Oct. 1-4, 2012 at the Georgia World Congress Center in Atlanta. SuperCorrExpo has offered box plant discounts for previous shows, which have been consistently used by many box plants. Several managers are already interested in the deal for the 2012 exhibition and conference. The single price is based on the number of employees attending. Different people can attend on different days. So all box plant employees can experience the TAPPI and AICC joint program sessions, exhibitions, networking, forums, seminars and presentations and become better at what they do. As in past years, there will be a variety of free show floor training opportunities available to all registered attendees. “The box plant deal is attractive to us because we can send people to SuperCorrExpo that normally wouldn’t attend,” said Ed Stuczynski, engineering manager at Menasha Packaging Co., LLC in Neenah, Wis. “We will easily save several thousand dollars on this offer. From my location, we’ll be able to send five or six people to see vendors’ equipment on the floor and learn new technical content to improve our operations.” Don MacKenzie, director of engineering for the Maritime Paper Products Limited facility in Halifax, Nova Scotia, has used the box plant deal to bring multiple employees to previous SuperCorrExpos and will do the same again for this year’s show.

network with the best people and the biggest companies in the industry.” Registration for box plant employees and all other attendees is now available online at www. supercorrexpo.com. Questions about this special offer can be directed to Kristi Ledbetter, corrugated division manager, TAPPI, at 770-209-7319. Occurring only once every four years, SuperCorrExpo is the largest exposition for corrugated solution providers and corrugated solution seekers in the Western Hemisphere. More than 300 industry suppliers gather with thousands of industry leaders from all over the world at SuperCorrExpo. The four-day exposition is hosted at the Georgia World Congress Center by two of the corrugated industry’s leading associations, TAPPI and AICC. For additional information on exhibit space reservations and sponsorships, contact Linda Cohen at 914-944-0135. For exhibition operations questions, contact Grayson Lutz at 678-471-5838. For overall questions contact: Kristi Ledbetter, Converting Division Manager, TAPPI, 770-209-7319 or kledbetter@tappi.org Cindy Guarino, Director of Meetings, AICC, 703-836-2422 or cguarino@aiccbox.org Maria Frustaci, Director of Latin America, AICC, 703-836-2422 or mfrustaci@aiccbox.org. 

“We’ve always found some new learning or networking opportunities at previous SuperCorrExpos to more than pay for the trip,” he said. “We have four plants in eastern Canada, but this box plant deal allows us to be bigger than we really are. Our team is attending to

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AICC Events Calendar Date

Location

s

Region 8 & 9 Business Meeting and Golf Event

August 22 – 23

Borgata Hotel, Atlantic City, NJ

Region 4 Business Meeting & Rangers Baseball

September 13 – 14

OMNI Fort Worth, Dallas/Ft Worth, TX

Region 1 Golf Tournament

September 17

Oak Creek Golf Club, Irvine, CA

Region 10 Golf Outing

September 26

Cyprian Keys, Boylston, MA

Understanding Extended Producer Responsibility (EPR)

September 27

TAPPI/AICC SuperCorrExpo 2012

October 1 – 4

Atlanta, GA

Selling has Nothing to Do With Selling

October 11

SALES WEBINAR

Pack Expo 2012

October 28 – 31

Chicago, IL

Introduction to Flexo Corrugated

November 8 – 9

PRODUCTION/GRAPHICS SEMINAR, Chandler, AZ

New Business Account Growth

November 14 – 15

SALES SEMINAR, Chicago, IL

Developing a Meaningful Sales Measurement Tool

December 4

Atlanta, GA

ICPF 2012 Holiday Weekend in New York

December 7 – 8

The Muse Hotel, New York, NY

Dollars and Sense of Corrugated

December 12 – 13

Alexandria, VA

January 16, 2013

Orange County, CA

February 12

Las Vegas, NV

March 13–14

San Diego, CA

April 10

Dallas, TX

April 23 – 24

Orlando, FL

Developing a Meaningful Sales Measurement Tool

May 8

Columbus, OH

Digital Prospecting: You Finding Your Prospects, and Them Finding You

June 5

Chicago, IL

AICC Canada Golf

June 11

Production Leadership for Profit

TBD

The Art of Sales Negotiation: Getting Past Price and Creating the Perfect Sales Transaction Digital Prospecting: You Finding Your Prospects, and Them Finding You New Business Account Growth The Art of Sales Negotiation: Getting Past Price and Creating the Perfect Sales Transaction Sales Manager’s Conference

FREE WEBINAR FOR ALL

k AICC MEMBERS

New England Wooden Ware Plant, Gardner, MA

AICC offers seminars and webinars for Production, Sales, Finance, Customer Service, Marketing and the Executive Team. For more information visit us at www.aiccbox.org or Contact Taryn Pyle at tpyle@aiccbox.org or at 1-877-836-2422 34

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s

Events


Everyone Sells! By John Bacot, AICC Vice President of Operations

A few years ago I visited a box plant that was located in the heart of an area that was populated by a number of companies with high needs for corrugated boxes and displays. Needless to say, there were other box plants in the area; it was, in fact, a very competitive market. The plant I visited was one of the smaller plants, yet it was one of the more profitable. The larger plants’ sales figures dwarfed those of the plant I was visiting, but ROI figures for the smaller plant were spectacular. The kind of numbers I’m talking about are seldom achieved without either some accounting magic, or some serious over-achievement of the workforce. The owner of the plant convinced me that the books weren’t magical and that the employees were not doing anything extraordinary. He summed up his approach in two words, “Everyone sells.”

The Secret Weapon

This is not exactly a new idea and it’s pretty much the theme of this series of articles. However, his secret competitive weapon was the way he organized his work/sales force. After all, you can’t take a pressman off the line, anoint him/her as a salesperson, and expect them to do what someone whose life work is sales and is able to do. Furthermore, you probably can’t afford the cost and time loss of sending employees to sales training courses. So, rather than sending employees to sales training courses, he brought the courses to the employees. He worked with AICC to tailor a program that

taught the basics of selling to all his employees. And he created a program that compensated employees who contributed to booking specific sales. The compensation part of the program will be described in a future article.

Training is a key factor

The training was done in real time. No one was expected to stay after work. It was a six month program during which different groups spent a few hours a week away from their regular jobs to attend the training sessions. The people doing the training were flexible in that they could re-schedule their sessions if needs at the plant called for everyone to be doing their regular job. The owner told me that he wasn’t looking for instant sales, he was looking long term; he was building a team and a system that would ultimately run itself. He explained that he had always felt it was better to get prospects into the plant to not only see the plant and equipment, but to meet and talk with the people who actually make the boxes and displays. “There’s no substitute for this kind of customer contact,” he said. “Since most of our prospects are relatively near us, it’s not a tough job to get buyers to visit us, especially when word got out that after the visit we always take them to lunch at a well known restaurant. Lunch always includes someone from the plant, too. We want to let prospects know up front that when they work with us, they are not going to be shunted to someone with the title of customer service rep who has no idea of how

corrugated is converted to boxes and displays. All this is pretty straight forward. The tough job was how you turn pressmen, drivers and everyone else in the plant into a virtual team. But when you think of it in sports terms, every sport has a second string made up of people ready to jump in when needed. Whether that need is identified by a special skill or the need to replace or back up a member of the first team is not important. What is important is how you integrate the two teams because in our terms the two teams are made up of the same people, they are just playing a different game when the whistle blows.”

Teamwork is critical

Another important key to integrating marketing in a box plant is seeing that your team works together harmoniously. It’s seldom difficult to spot those who are more comfortable talking with customers and prospective customers than others who can be reticent. You need to ensure that those in your plant who are more comfortable in social situations take the lead and that they and you work with the others who might need some encouragement. One plant owner I talked with found that having his less confident people take part in a local Toastmasters organization helped greatly. “It was more an issue of confidence than one of knowing what to say that they needed,” he told me. “I found this to be more helpful to most than going continued on page 36

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Everyone Sells!

continued from page 35

the route of providing full blown sales training programs. After all, these people were not going to take on a full sales role; they were going to be facilitators, part of a total in-house sales effort.” And this can be just the beginning. Your staff has to be fully informed of everything that they can use when they talk with prospects visiting the plant. The more the team knows, the more confident they will be in their relatively unfamiliar role as sales people. And the more enthusiastic they will appear to prospects. Top sales professional agree that confident and well informant workers can send powerful signals to prospects. Short staff meeting, intershop bulletins, news letters and informal walk-abouts by you and your managers will do a lot to keep this ball in play. And it ensures that messages received by prospects will be consistent. It can be jarring to prospects when they get different stories from different people.

Some Practical Tips to Help You Integrate Your Marketing Efforts • Build support for the program from the top down. When all your senior level people are on board and prepared, then you can take the program to everyone else. This effort must be coherent and must appear important to all. • Make sure that your objectives are shared by all. For example, you do not want shop floor people to try to close a sale. They should know that this is a team effort and that the ball should be handed off to those whose responsibility it is to negotiate the actual sale. • See that all promotional efforts are seen by everyone. New ads, new catalogs, new trade show efforts, magazine articles, presses releases,

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whatever you do to communicate with prospects should be shared with those who will have direct customer contact. • Share results with all. When a sales made, when a prospects becomes a customer, whenever there is news available that will help motivate the team, share it. Do it with pizzazz, not just a notice on the bulletin board. One plant owner I met told me that he buys lunch for all 24 employees when there is something to celebrate. “It’s just AICC onsite training ad.qrk_Layout 1 hero sandwiches from the local deli,”

he said, “but you’d be surprised at how much it is appreciated.” • Be flexible. The one thing you can say for the science of marketing is that its rules must be flexible. Don’t be blind to opportunities that may be at odds with what you may have thought to be the right way to go. With good evidence in hand be prepared to test other winds.

Next time: How to respond to the changing winds of opportunity. We will focus on planning and market 7/31/12 9:24 AM Page 1 research. 

AICC will partner with your company to deliver convenient and effective On-Site Training. We’ll bring our people to your place. You’ll get the same top quality education that we offer in our regional seminars and classes. AICC On-Site Training can be delivered to as many people as you want, where you want, from a 6-member team to your entire organization...during work hours, evenings or weekends. You can pinpoint training in specific departments, like Sales, Customer Service or Production Skills. AICC will customize course content to meet the specific needs of your company. For more information or to schedule training, please contact Taryn Pyle at (877)-836-2422 or tpyle@aiccbox.org AICC Training: Proven Success for the Corrugated Industry 113 S. West Street. P.O. Box 25708, Alexandria,VA 22313


TECHNICAL CORNER

It’s A Small World After All (Parcel Environment, That Is) By Ralph Young

One of our members discovered the following UPS

went about evaluating the fitness of Mullen and ECT in their small parcel environment. Now we know that Guideline a few months ago and we followed-up with several contacts with in their world no two packages are alike and columnar stacking strength the UPS ISTA lab in Chicago. This is a rather obscure concept, so they is the lab and distribution hub that needed to investigate the fitness-forattendees at the second Designers use of corrugated cartons and boxes Workshop visited one afternoon made to a burst specification and during the course. We e-mailed those made to a stacking strength and called several employees at the facility to ascertain the history of the specification. We must remember that all boxes exhibit both Mullen and Guideline and to know for certain ECT. that it is still in effect. Yes, it is still valid even though the work was done Ultra lightweight papers, on combined board around 1995. improvement in the manufacture My understanding from the packaging of containerboards engineered to a engineers and technicians is that UPS cross direction ring crush/SFTI focus, increasing use of more recovered fibre in the early nineties, when ECT as a measurement of box performance was including those from foreign sources, and likely use of more micro flute still in its infancy and ECT was then considered as an “alternative,” the lab corrugated structures will certainly

challenge us as corrugated combiners and converters to produce sustainable packaging for their world. Here are the UPS guidelines: n Whenever possible, use a new box. The more times a box is used, the more it loses its original protective qualities, so a previously used box may not adequately protect your shipment. n If you must reuse a box, make sure it is rigid and in excellent condition with no punctures, tears, rips, or corner damage, and that all flaps are intact. Remove any labels and all other shipment markings from the box. continued on page 38

UPS Single Wall Box Strength Guidelines: Single Wall Corrugated Fiberboard Maximum Weight of Box and Contents (lbs/kg)

Size Limit of Box Length, Width, Minimum Bursting Test (lbs and Depth Added (inches/cm) * per sq. inch/kg per sq. cm)

Minimum Edge Crush Test (ECT) (lbs per inch/kg per cm width)

30/13.6

75/190.5

200/14.1

32/5.7

40/18.1

75/190.5

200/14.1

40/7.1

50/22.7

85/215.9

250/17.6

44/7.9

65/29.5

95/241.3

275/19.3

55/9.8

80/36.3

105/266.7

350/24.6

N/A

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It’s A Small World After All (Parcel Environment, That Is) continued from page 37

n Choose a box strength that is suitable for the contents you are shipping. Weight limits printed on the Box Maker’s Certificate (found on the bottom flap of most boxes) are intended for palletized freight shipments, not for shipments through small parcel carrier environments. Following the UPS Box Strength Guidelines will help ensure your package is of adequate strength to provide sufficient protection. Engineers at the UPS Package Design and Test Lab have developed specifications for box strength after years of testing and analysis. Refer to this chart below for recommendations

so you can determine the proper size and maximum gross weight limit of a box. The above box strengths are only guidelines to help assure the containment and protection of products transported through singlepackage distribution environments. They are not to be considered packaging specifications, and all packaged products should be tested in accordance with the International Safe Transit (ISTA) Test Procedure 3A to ensure the most appropriate level of product protection is achieved. *Notes: Maximum size limit specified on the Box Maker’s Certificate and the box strength guidelines chart is NOT

the same as the UPS combined length and girth measurement. Determine the size limit of the box by adding the length, width, and depth dimensions of the box together. Improper packaging may result in the alteration of a package’s dimensions during transit which can affect the package’s dimensional weight and result in a shipping charge correction. In conclusion what we have know as a 200# Mullen test may have to be a 44# ECT in their environment and a 275# Mullen test may have to be a 55# ECT, not the way we normally produce corrugated cartons. 

UPS Double Wall Box Strength Guidelines: Double Wall Corrugated Fiberboard

38

Maximum Weight of Box and Contents (lbs/kg)

Size Limit of Box Length, Width, Minimum Bursting Test (lbs and Depth Added (inches/cm) * per sq. inch/kg per sq. cm)

Minimum Edge Crush Test (ECT) (lbs per inch/kg per cm width)

60/27.2

85/215.9

200/14.1

48/8.6

80/36.3

95/241.3

275/17.6

51/9

100/45.4

105/266.7

350/24.6

61/10.9

140/63.5

115/292.1

500/35.2

82/14.6

150/68

120/304.8

600/42.2

N/A

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The Association of Independent Corrugated Converters (AICC), Board Converting News (BCN) and Corrugated Today Announce Call for Entries in the 2012 Innovator of the Year Machinery Category The Association of Independent Corrugated Converters (AICC), Board Converting News (BCN) and Corrugated Today, are proud to announce the Call for Entries in the 2012 Innovator of the Year Competition - Machinery category. The Innovator of the Year Competition will be held in conjunction with the AICC-TAPPI 2012 SuperCorrExpo Conference – October 1-4, 2012 in Atlanta, GA.

Competition entry brochure, entry form and criteria is available on AICC’s website at www.aiccbox.org/ innovator

For questions or additional information please contact Cindy Guarino at 877-836-2422 or cguarino@aiccbox.org. 

This year’s competition seeks entries from all AICC supplier members that want to showcase innovations in the Machinery field developed since October 2008 and that are commercially available. The category focuses on innovations of equipment, products or services that are directly related to the mechanical converting process. Innovations should benefit the paperboard packaging industry through enhanced efficiency, quality, productivity, and/or safety of the members of the paperboard packaging community. The deadline for entries is Friday, August 17, 2012. Co-sponsored by AICC, BCN and Corrugated Today, the annual Innovator of the Year Competition provides an outlet for AICC members to showcase innovations they’ve developed to increase plant productivity, improve plant efficiency, and overall, serve as a solution to a specific production or management problem. Since its inception in 1988, the competition has evolved to include AICC’s Boxmaker members, as well as, Associate members in, Machinery, Non-Machinery and Information Technology & Training categories.

Paper and paper-based packaging are

renewable, reusable and recyclable.

Consumers need the facts! Support the Paper Check-off and make an investment in our future.

www.papercheckoff.com BOXSCORE

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Members in the News

AICC and Greif sign set-aside agreement in Ambler, Pa., from left: Tim Bergwall, VP Containerboard Mills; Pete Watson, President, Paper Packaging & Services; Andrew Pierson, President and CEO of Mid-Atlantic Packaging and Chairman of AICC; AICC President Steve Young; and Bill Mordecai, VP of Sales, Greif.

AICC Signs 200,000 TPY Containerboard Set-Aside Agreement with Greif Greif and AICC have signed a set aside agreement in which Greif pledges 200,000 tons per year to the independent market over the next two years. AICC’s Board of Directors approved the agreement Wednesday, April 16, during the Association’s 2012 Spring Meeting in Phoenix. Andrew Pierson, President and CEO of Mid-Atlantic Packaging and Chairman of AICC, and Tim Bergwall, VP of Containerboard, Greif, signed the agreement on Thursday, July 19. The agreement is effective immediately and runs through July 1, 2014. “We are extremely pleased and grateful that Greif has committed this significant volume of containerboard to the independent market,” said Pierson. Ryan Chappell, President of Louisiana Corrugated and Chairman of AICC’s Containerboard, Regulations & Sheet Supply Committee, said, “A major role of AICC has been to help ensure an adequate supply of containerboard to our independent members, and this agreement helps achieve that end, especially in light of continued consolidation in the containerboard industry.” “We’re excited by the opportunity to demonstrate our commitment to the AICC by formalizing a set aside agreement to its membership. We are proud that the independent corrugated segment represents our longest running business relationship. The Greif mill system was established 40 years ago with a mission to serve the needs of the independent box maker. That commitment has intensified as our system and capabilities have evolved.” said Pete Watson, President of Greif’s Paper & Packaging Division.

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AICC developed set-aside agreements with major suppliers of linerboard and corrugating medium to help ensure that independents’ sources of containerboard would remain reliable in times of tight supply, or worse, major shortages. These agreements, which encourage individually negotiated agreements between a supplier and independent converters, are designed to help all independent corrugator operators as well as sheet suppliers and their sheet plant customers. This is the second agreement AICC has signed with Greif and its predecessors, the first being a 50,000 tpy agreement for corrugating medium with Virginia Fibre signed in 1992. AICC has signed two other agreements in this year – with RockTenn in January and with Kapstone Paper & Packaging in May. AICC is also working with other suppliers to complete similar agreements. Set aside agreements do not replace individual supply contracts which independents may already have in place under terms which have been privately negotiated. For additional information on AICC’s set-aside agreements, please review the backgrounder which accompanies this release or contact Steve Young at AICC, (877) 836-2422 or Tim Bergwall, Greif Containerboard Group, 740-657-6532.

draws over 200 entries from around the world. The 2011 Gold Leaf winners represented works from the US, Canada, Australia, Germany, The Netherlands and Taiwan, continuing in the competition’s steadfast commitment to gaining visibility throughout the graphic arts community at large. From foil stamping and embossing to specialty coating, film laminating, laser cutting, diecutting, cold foil application and more, the competition celebrates the quality, added value, shelf presence, security and brand recognition that these finishing processes lend to the printed sheet. Eighty-three gold, silver and bronze winners in 28 different categories were recognized at the FSEA Gold Leaf Awards Banquet during the national conference in Las Vegas, NV this past March. Trade Print Finishing of Salt Lake City, UT, was presented with the Best of Show Award in the category of Best Foil Stamped and/or Embossed Client Promotion and ITW Foils won Best of Show Honorable Mention in the category of Best Foil Stamped and/or Embossed Capabilities Brochure. To view all of the 2011 FSEA Gold Leaf Award Winners or to read the entire story on the Best of Show piece, visit www.fsea. com.

Autobox Machinery and Andrew & Suter—SuperCorrExpo Booth 2148

Autobox Machinery and Andrew & Suter, both divisions of British Converting Solutions Ltd, will feature the latest Autobox “all-in-one” box making and printing system together with an A&S continued on page 41

FSEA Announces 2011 Gold Leaf Award Winners

The Foil & Specialty Effects Association (FSEA), Topeka, KS, proudly announces the winners of the 19th Annual FSEA Gold Leaf Awards Competition – an exciting assembly of color, dimension and eye-catching effects representing the most electric works throughout the graphic arts industry. Judged on design, execution and level of difficulty, the competition consistently

The New Hipak/HiCut Quick Set Box Maker from Autobox Machinery Ltd


Members in the News continued from page 40

MultiNova 2 folder-gluer for straight line or die cut crash lock boxes, during the forthcoming SuperCorrExpo in Atlanta. All machines incorporate Quick Set technology making them suitable for producing short or medium run box quantities. Autobox machines can make boxes from 4” to 103” wide with a typical set time of 60 seconds. Andrew & Suter offer 3 models to suit box plants large, medium or small. Come see us at booth 2148, you will be amazed!

Harper/Love Adhesives associates awarded for their service.

The company has a history of longevity as 20 associates currently have more than 15 years of service.

25-year award recipients, left to right: Lou Cuccia, Pete Snyder and Fred Rekola.

Three Harper/Love Associates Earn Service Recognition At a recent company-wide meeting, Harper/ Love Adhesives presented awards to three associates for service of 25 years. The three 25-year awards recognized Lou Cuccia, Regional Manager; Pete Snyder, National Account Manager; and Fred Rekola, Senior Sales Representative. All three joined the Harper/Love team in 1987 just 9 years after the company was formed and have played key roles in the success of the 34 year-old Joint Venture. Said General Manager Bill Kahn, “We consider ourselves very fortunate to attract and keep good people. Their abilities and service are what keep us competitive. It’s an honor for us to publicly express our gratitude.”

Fourteen Harper/Love Associates Earn Service Recognition

At a recent company meeting for the U.S and Canadian employees, Harper/ Love Adhesives presented awards to 14 associates for service ranging from 5 to 25 years. The awards for the International Division will be presented later this year to Augusto Cavallini (20 Years) and Roberto Vilchis (5 Years).

Said Bill Kahn, general manager, “In today’s business environment, this level of longevity is remarkable. We’re delighted so many good people have made their careers with us. Along with our continuing partnership with Love Starches, their depth of experience helps us deliver consistent, knowledgeable service to our customers over the long term.” Harper/Love Adhesives Corporation was formed in 1978 as a joint venture of Harper Corporation of America and Love Starches, of Sydney, Australia. The company serves the corrugating industry exclusively with products and services designed to produce measurable and sustainable improvements to its customers.

Brausse Group Names Alan Thompson Senior VP of Sales and Marketing

After thirty-two years at Bobst, with a career ranging from Field Service Engineer to Director of Sales and Marketing at Bobst S.A., Switzerland, Alan Thompson has taken the role of Senior Vice President of Sales and Marketing for Brausse N.A. (a member of the Bobst Group) starting from June 1st, 2012. In Alan’s new role, he will be instrumental in driving the sales of the Brausse folder gluer for both the folding carton and corrugated industries. Alan will report to

John Cheng, President of Brausse Group, headquartered in British Columbia, Vancouver. “We are very pleased to have Alan as part of our team and to strengthen the commitment that Brausse-Eterna has to our industry,” says John Cheng. Alan will continue to reside in New Jersey with his wife and children, where he will run the North American operation for sales and post sale support. He can be contacted at alan.thompson@brausse.com.

Cascades Sonoco Facility Earns Award

The Business Council of Alabama has named the Cascades Sonoco facility in Birmingham the 2012 Small Manufacturer of the Year, citing the environmental achievements of the plant and its parent companies. In its 20th year of operation, the Birmingham plant now operates landfillfree, diverting all of its waste through a combination of recycling, composting and the use of waste-to-energy alternatives. Drawing on years of experience in the paper roll packaging industry, Cascades Sonoco in recent years has developed functional barrier coatings, laminations and wax alternatives for environmentally sustainable packaging applications. Makers of corrugated and folding cartons use these coatings to create innovative packages for meats, produce and other products which require a barrier. A joint venture between Cascades and Sonoco Products Company, Cascades Sonoco continues the legacy of its parent companies’ pioneering roles in waste recycling and environmental responsibility. The Birmingham plant is one of four continued on page 42

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Members in the News continued from page 41

Cascades Sonoco locations throughout North America.

Welch Packaging Columbus Names Andrews General Manager

Welch Packaging has announced that Joseph Andrews has joined their Columbus, Ohio business as General Manager. As General Manager, Andrews will provide leadership to all operating functions including sales, design, customer service, production, and transportation. Mr. Andrews is a veteran of the Corrugated Packaging industry with diverse leadership experience across a variety of sales and operations-focused positions. He is a graduate of Grove City College in Grove City, PA with a Bachelor of Arts degree in Business Administration. Founded in 1985, Welch Packaging, headquartered in Elkhart, IN currently operates 7 corrugated sheet plants throughout the Midwest. With a Mission to provide The Ultimate Corrugated Experience, Welch Packaging offers custom corrugated packaging solutions across diverse industries with innovative structural and graphic design capabilities. Welch Packaging Columbus is located at 6969 Alum Creek Drive and can be reached by phone at (614) 491-1500.

North Carolina’s Packrite Adds Bobst Masterfold In just a little over four years Packrite LLC has grown to become a regional leader

for the East Coast micro-flute industry. While a portion of their work is direct with customers, increasingly Packrite operates as a “trade finisher,” providing other packaging companies with a number of complex packaging solutions for their own customers. Now, with their recent purchase of a fully configured Bobst Masterfold 170 G + S folder-gluer Packrite has positioned itself to grow even further. “We wanted to add still more capabilities that few others can offer,” according to company President Michael Drummond. “In fact, we’re told that not only will we have the only machine of its kind in North America, our new Masterfold with the Gyrobox rotator is one of only two like it in the world.” Packrite’s new Bobst Masterfold includes the Accufeed blank aligning device, the Polyvalent pre-breaking module, the patented Gyrobox rotator section, an Aligning module which follows the rotation and the Combi one and two sections before the final folding section. This unique level of folder-gluer technology will enable Packrite to create the widest variety of trays, internal and multi-position dividers, 4 and 6 corner boxes, automatic bottom cartons and many other specialty items. What sets the Masterfold 170 G + S apart from other specialty folder-gluers is the Gyrobox’s ability rotate the blank 90 degrees enabling many jobs which otherwise would require two passes to be accomplished in just one.

This essentially doubles productivity for many of the more technically challenging boxes, pouches and trays. An additional feature included on this folder-gluer is an automatic inserter for adding handles or hard plastic windows. The Bobst Streampack, semi-automatic packer and a Tanner wide-banding machine with non-marking strapping are also part of this new acquisition and will help maximize production speeds and product protection. “We see a marketplace that’s going to higher and higher levels of value-added packaging,” stated Drummond. “Windows, handles, tear strips, folded edges and more creative complexities are part of the future that we are offering Packrite customers. We believe that being able to do more will keep us successful and allow us to continue to expand our trading area from predominately just the East Coast to the whole country.”

K.B. Reiter

K. B. Reiter, LLC to represent JB Machinery in Midwestern US

JB Machinery has announced that Keith Reiter’s newly formed company of K. B. Reiter, LLC will represent its line of dryers, UV curing equipment and the recently introduced KleenPlate™. Reiter’s responsibilities will be for sales and support in the Midwestern US. The long time relationship between John and Warren Bird and Keith Reiter was cited as a factor in the new representation relationship as JB Machinery continues to strengthen its sales team in North America as well as the rest of the world. “With over 25 years of experience in the corrugated industry, an active participant continued on page 43

Michael Drummond of Packrite and Terry Brock of Bobst sign agreement purchasing North America’s first Bobst Masterfold 170 +G +S folder-gluer.

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Members in the News continued from page 42

SMP Group PLC, the large format commercial printers based in Woolwich, London have installed the UK’s first Diecut Goldline.

in Chicago TAPPI and a board member for AICC Region 6, Keith was a natural fit for us,” according to Dave Burgess, North America Sales Director for JB Machinery. “Everyone on the JB team is excited about Keith’s strong market presence and his relationships in the region.” K. B. Reiter, LLC can be reached at 1.847.910.0679 or email kbreiter@ sbcglobal.net.

SMP Group Plc Installs UK’s First Diecut Goldline

SMP Group Plc, the large format commercial printers based in Woolwich, London have installed the UK’s first Diecut Goldline to replace their aging hand fed platens. Bradley Slade, the Managing Director and Rick Bleek, the Operations Director both decided to support Diecut UK with this purchase. Just over 18 months ago, they installed a large format Redline diecutter and based on its performance and Diecut UK’s ability to provide engineering back up and support, they chose to be the first people in the world to embrace this new technology in the manual diecutting field. For the last 90 years, there has only been one option in manual diecutting which is the traditional hand fed platen/clamshell. As, over the years, the sizes of these machines have grown by client’s demands for ever larger point of sales products and packaging. This brought with it, its own set of unique risks because job change overs on this old technology requires whole body access from the operator into what are effectively the jaws of the machine. Unfortunately, over the past few years there have been a series of fatal accidents. This drove Diecut UK to be innovative to its approach to dealing with these unacceptable circumstances. So, through our vast engineering knowledge and our research and development team, together

with feedback from clients and operators, this machine has been two years in the making. We made many small prototypes before talking to SMP and securing their support and order for this range of machine. As Bradley and Rick know, the key to building a successful business and achieving goals is down to the team that work there so it was the logical decision for the director to support any safe replacement of aging machinery and an archaic process. We have had overwhelming interest in this product for three main reasons. Firstly, this machine is designed around safety; the operator cannot gain whole body access. Secondly, the machine cuts with much more tonnage than a traditional hand fed platen and the third reason is it is the same cost as a traditional hand fed platen. We will be holding a series of open days to demonstrate the machines ability to all interested parties. This machine can cut every type of substrate in the market place today. Please call the sales team on +44 (0) 161 955 3665 or email sales@diecutuk. com for more information and to arrange a demonstration. This is not sales hype—this truly is a genuine development in manual diecutting.

• Structure and consolidation (M&A activity) • Imports and exports (trade outlook) • Industry vision, challenges, and trends Data available in the Report is gathered through several industry sources including the FPA members State of the Flexible Packaging Industry Survey, the FPA non-members Industry-Wide Converter Survey, the U.S. Census Bureau’s 2010 Annual Survey of Manufactures, the U.S. Department of Labor, the U.S. Department of Commerce, industry analysts and investment banking reports. Over the past 10 years (2001-2011) the U.S. flexible packaging industry has grown from $19.5 billion to $25.4 billion, with a compound annual growth rate (CAGR) of 2.7 percent per year. The U.S. flexible packaging industry is one of the fastest growing segments in the U.S. packaging industry. The 2012 FPA State of the U.S. Flexible Packaging Industry Report is a benefit of FPA membership and is available in the Members Only section of www.flexpack.org. Hard copies of the Report are available to FPA non-members for $3,500.

U.S. Flexible Packaging Industry Continues to Experience Positive and For more information, visit www.flexpack. Steady Growth org or contact Bob Zaborowski, Director, The Flexible Packaging Association’s 2012 State of the Flexible Packaging Industry Report provides industry converters, suppliers, investors and analysts with insight into the performance (growth, revenue/volume expectations, profitability, capital spending) of the U.S. flexible packaging industry over the past year. This definitive source of data and information also examines several other aspects of the U.S. flexible packaging industry including:

• Materials and processes (printing, expected material usage) • End-uses (end-use forecast, U.S. Census Bureau retail segments data - 2010)

Business and Economic Research, bzaborowski@flexpack.org; or, Lauren Kinard, Communication Manager, lkinard@ flexpack.org, (410) 694-0800.

Compact and Powerful BREAKER FLAT TRACK Debuts at Dedicated BOBST Open House

Over three days in May, BOBST - the world’s leading supplier of quality machinery and services to packaging manufacturers - hosted an Open House event at its Mex, Switzerland facility. The event saw almost a hundred customers discover the benefits of the new BREAKER FLAT TRACK, a compact but powerful layer management peripheral for flat-bed corrugated die-cutters. Arriving from all over Europe, as well as from North Africa, the Middle East and North America, visitors expressed keen continued on page 44

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Members in the News continued from page 43

interest in the BREAKER FLAT TRACK, the compact form of which optimizes production floor space without reducing the productivity of conversion lines. Safely transporting and arranging bundles of blanks as small as 150mm x 150mm, FLAT TRACK sets new standards for ergonomics and versatility, offering users the ability to maximize the performance per square meter of floor space of both new and existing lines. While conventional breakers can separate die-cutter output and, in some cases, arrange batches, the new FLAT TRACK BREAKER forms complex layers ready for palletization, allowing users to totally automate the process. Sitting on a footprint half the size of existing breakers and layer management systems, consequently freeing up valuable shop floor space, the new BREAKER FLAT TRACK forms layers in a programmed routine without affecting the performance of the Autoplaten® die-cutter. Sylvain Rebet, Product Marketing Director - Corrugated Board, said “When it comes to making sure that finished products meet end user expectations, the layer arrangement of die-cut products has become increasingly important, especially as brand owners now demand ever more complex box styles. The BREAKER FLAT TRACK is designed to give box makers an intelligent unit that automates this process.” Created with maximum usability in mind, the Matic system on the production line automatically calculates the optimum layer arrangement for each job and records the necessary settings for later use, while it sets the necessary elements. The unit features high strength synthetic chains which ensure that each batch is transported without deformation, including those as small as 150mm x 150mm, while the quick action of the unit means that there is no interruption to workflow even when outputting 6,000 square meters per hour. With clear visibility of the unit from the platform of the die-cutter, and radar protected safety zones to keep staff safe, the unit is easy to operate. After operator interventions the unit restarts without

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BOBST, the world’s leading supplier of quality machinery and services to packaging manufacturers, hosted an Open House event at its Switzerland facility.

interruption to its cycle, ensuring no production is lost. Using 30% less power and taking only half the time to install compared to existing models, the BREAKER FLAT TRACK can be retro-fitted to any generation of BOBST Autoplaten® for corrugated board, making it ideal for keeping up with the demands of packaging end users. At the open house, the unit was shown quickly and easily being changed between two very different jobs and running with a MASTERCUT 2.1 Autoplaten® and palletizer. Alongside the BREAKER FLAT TRACK. Visitors to the event also got the opportunity to discover the MASTERFLEXHD flexographic printing press which was shown running jobs using five and six colors, with a varnish, and delivering print quality that directly challenges that of offset printing. With its ‘Start and Go’ automatic setting system, highly accurate sheet transport, iQ300 quality control system, and dynamic adjustment of register during production, the MASTERFLEX-HD once again showed the accuracy and advanced technology that is bringing to the market a new standard in high quality flexo postprint.

Also on display, in response to visitor requests to see the pairing which is spearheading productivity in corrugated industry folding and gluing, was a MASTERFOLD 230 folder-gluer shown running at full production speed in-line with a LOGIPACK robotic packer. LOGIPACK delivers high speed, no damage, bundling and strapping of corrugated boxes while the MASTERFOLD range of folder-gluers is the pinnacle of mid- to high-volume production, both in terms of output and versatility. Visitors to the Open House were also able to explore the extensive range of service products on offer from BOBST. Ecology, economy, innovation and user friendliness are key issues that BOBST’s Business Unit: Services addresses when producing new products for existing machinery. As an example, the new Carbon Fiber Chamber for BOBST flexo printers is easy to clean, 66% lighter, and three times stiffer than previous models, while also offering a 15 year warranty against corrosion. Also available for BOBST flexo printers is a new peristaltic ink pump which delivers ink savings of up to 2 kg per job changeover, per print unit, and therefore helps print companies with both their costs and their environmental improvement agendas. 


Please join AICC in welcoming its new members New Regular Members: Corrugated Concepts & Packaging Dennis P. Hoffman, CEO 5050 Campbell Road, Suite C Houston, TX 77041 Phone: (713) 462-5600 Fax: (713) 462-6266 E-mail: dennis@corrcon.com Website: www.corrcon.com

Zund America, Inc. David Tebon, Packaging Market Manager 5068 W. Ashland Way Franklin, WI 53132 414-433-0700 | Fax: 414-433-0800 E-mail: david.tebon@zund.com Website: www.zund.com 

Shamrock Specialty & Packaging Jim Owens, President 2760 Spectrum Drive Elgin, IL 60124 Phone: (847) 836-1115 Fax: (847) 836-5511 Email: jowens@shamrockpackaging.com

Colors so delicious you can almost taste them.

New Associate Members: Escada Systems Alastair Gardner 2752 E. Ponce De Leon Avenue Unit A2 Decatur, GA 30030 Phone: (678) 705 -2945 Fax: (678) 705-2956 Email: alastair.gardner@escadasystems.com Website: www.escadasystems.com Newman & Company, Inc. Bernard Newman, President & Chief Executive Officer 6101 Tacony Street Philadelphia, PA 19135 Phone: (215) 333-8700 Fax: (215) 332-8586 E-mail: bud.newman@newmanpaperboard.com Website: www.newmanpaperboard.com Brenda Frick, Vice President, Sales The ALC Group 219 W. 18th Street Kansas City, MO 64108 Phone: (816) 421-8335 Fax: (816) 421-2041 Email: bfrick@artlithocraft.com Website: www.artlithocraft.com

CRI inks enhance the appeal of your packaging. Now you can achieve vibrant, true-to-life colors for corrugated cartons and printed store displays. CRI can custom formulate flexographic inks and coatings with brilliant high-gloss colors and a durable scratch and rub-resistant finish. Combined with CRI’s unique TrueColorBalance™ color management system for superior process control, your more powerful packaging will keep your customers coming back for more. Best of all, CRI water-based inks are among the most earth-friendly, with extremely low VOC’s and minimal environment impact. Contact a CRI specialist for fast response to your ink and color application questions.

800.346.8570 www.colorresolutions.com

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AICC Long-Range Plan Ramping Up in Short Order!

Update on the 2011 Long Range Plan by Kim Nelson, General Manager, Royal Containers Ltd., Brampton, Ontario, Canada “We are one year into our Long Range Plan and I am extremely pleased to report that 72% of the key initiatives set forth in the plan are on track, on-time and on-budget!” There are a number of reasons that explain how we have been able to achieve this success. First, for those of you who recall the AICC convention featuring a team of US Air Force Pilots, including James D. Murphy, you will recall the system they called “Flawless Execution.” We implemented this system of “PLAN, BRIEF, EXECUTE & DE-BRIEF” for our long range plan.

We have partnered with an online training company who specializes in executing online courses. We have already completed the curriculums for Health & Safety Training. Ralph Young, an industry veteran, is currently knee-deep in writing the curriculums for our Technology of Paper courses . . . just to name a few!

Under our conventions umbrella you may have observed that we Secondly, we enlisted an expert, utilized an enormous amount of George Moretti, to facilitate and technology into our spring meeting, manage our team. We scouted through QR codes, Twitter feeds, many member volunteers back and online purchases – all balanced in March of 2011 and assembled with Andy Pierson’s time-critical our team. Since then we met theme of FACE to FACE. These to brainstorm the results from technologies cannot replace face to our annual survey to conclude face communication, only enhance with a list of key objectives. it. “One convention or two”? Each objective falls under one That is the question! We believe this of the categories; Membership, trend is near, so we are prepared to Education, Conventions, Industry re-structure our regional meetings Relations, Executive Structure and in order to facilitate that end. Sustainability. We presented these This new direction will allow us to initiatives at the Fall Convention in better align our annual theme with Salt Lake City, UT, and since then supplier presence and industry have been busy working on the input. We believe if we can visit execution phase of these powerful the four corners of the US each ideas. year under “lower cost” and “easy Let me share with you a few of access” destinations, in addition, these projects. Under the education we can achieve hosting one annual heading we have proceeded to convention that becomes the develop our AICC University. “Can’t miss event of the year.”

Our Industry Relations chairman says “Keep watching for more announcements in our industry’s trade press about AICC set-aside agreements.” From the survey, our members voiced their belief in further enhancing our relationship with our integrated partners as being an integral part of our future success. Currently, the estimated cost to complete 100% of the initiatives as they appear today is approximately $350,000. However, like our economy, our marketplace and our industry remain volatile; we must therefore be resilient and ready for change. Reviewing the programs every 30-60-90 days for relevancy is the “new normal” and this we are doing. The next report on the Long range plan will take place at SuperCorrExpo this fall. See you there. 

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Available October 2012

2012

Salary, Hourly Wage & Benefit Survey Participate in the Survey Now! AND Receive Complimentary Copy For information please contact Maria Frustaci at toll free 877-836-2422 or by email mfrustaci@aiccbox.org

113 S. West Street, Alexandria, VA 22313

703-836-2422 / 703-836-2795 (fax)

www.aiccbox.org


Session on Retail Ready Packaging Highlights Region’s Revived Meeting Schedule

AICC Region One Fills the Hall at June 13 Meeting Nearly 100 AICC members from Southern California, Arizona and Nevada crowded into the Swiss Park Meeting and Conference Center in Whittier, Calif., on Wednesday, June 13, marking the revival of AICC Region One’s regular business meeting schedule. Kim Feterik, Sales Representative for Orange County Container Group and Regional Director for AICC Region One, welcomed members and thanked them for their enthusiastic attendance. “This is the first meeting we have had in a while and I promise we’ll have many, many more,” she said. shelf stocks, some consumer packaged goods (CPG) companies are resistant to change because RRP may require modifications to existing packing and filling lines. Nevertheless, Gilchrist said, the retailers will likely have the final word, and this is good for the independent market.

Kim Feterik

Highlighting the program was Drew Gilchrist of Gilchrist Packaging, Rogers, Ark., who gave an extensive presentation on upcoming trends in Retail Ready Packaging (RRP). Gilchrist said that RRP represents a great opportunity for independents who are the frontrunners and early adapters in the technology to design and manufacture to RRP specifications. He also said that while retailers are moving to these designs in order to reduce their own labor costs and improve

AICC President Steve Young also spoke at the meeting. He reminded the members about the mission of the Association and highlighted upcoming events such as SuperCorrExpo 2012, October 1-4, in Atlanta. AICC’s Region One has a long history of active local meetings and events, and the June 13 meeting was attended by many past Regional Directors, including Bob Schwarz of Reliable Container; Jim McDonald of McDonald Packaging; Dan Domino of Orange County Container Group; Greg Tucker of Bay Cities Container Corp.; Tyler Howland of Sound Packaging; and Mike Feterik, also of Orange County Container Group.

The Region One meeting was sponsored by Allan Company, Bobst and Automatan. Upcoming Region One events include the Region One Golf Tournament, Monday, September 17, at Oak Creek Golf Club in Irvine, Calif.; and the Region One Ski Meeting, February 2-5, 2013, at the Ritz Carlton Beaver Creek, Beaver Creek, Colo. For more information on AICC’s Region One events, contact Taryn Pyle at AICC Headquarters, tpyle@aiccbox. org, or Carole Kenward at Orange County Container Group, carole@ occg.com. 

Ken Norman and Tyler Howland

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International Corrugated Packaging Foundation

New York Annual Holiday Weekend in

Friday & Saturday December 7 & 8, 2012

Socialize and enjoy the best New York City has to offer during the holiday season. Network and strengthen

your ties within the industry. Invite clients, reward key employees, and get in some holiday shopping and sight seeing... all while supporting the International Corrugated Packaging Foundation (ICPF)!

You Are Invited

Join industry executives and their spouses at ICPF’s host hotel, The Muse for ICPF’s Holiday Weekend in New York, scheduled for Friday and Saturday, December 7 & 8, 2012. Planned as ICPF’s annual fund-raising event to support ICPF’s mission, participants will include integrated manufacturing executives, corrugated packaging plant owners & executives, service & supplier executives, and their spouses. Enjoy the opening Friday reception at The New York Palace hosted by Anthony Pratt, Mike and Renie Harwood, and Pratt Industries. On Saturday, participants will attend a matinee performance of the Broadway hit Once, (sponsored by CEL Chemical), and join executives and spouses for a reception (sponsored by Bobst Group) and dinner (sponsored by Testing Machines, Inc.) at the renowned Le Cirque restaurant. Free time on Friday, Saturday and Sunday for shopping, more restaurants and touring.

Visit www.careersincorrugated.org for more information BOXSCORE and a reservation form, or call 703.549.8580

51


International Corrugated Packaging Foundation

Richard M. Flaherty

International Corrugated Packaging Foundation President

ICPF’s work would not be possible without the donations and pledges made by its corporate partners.

The International Corrugated Packaging Foundation (ICPF) mission is to generate a stream of increasingly qualified students to enter the corrugated packaging and display industry. In this regard, ICPF has created formal partnerships agreements with over 20 institutions of higher education to advance corrugated curricula and to alert students to careers in corrugated packaging and display through design competitions, teleconferences, social media and other programs. ICPF’s partner educational institutions have received equipment and software donations, as well as educational assistance, like text books, online curricula, and corrugated industry advisors or guest lecturers, to advance their level of instruction. Through these partnerships and ICPF programs, ICPF also has developed a broad network of packaging, graphic design, business, sales, marketing, finance & accounting, supply chain management, engineering, environmental science, and related students. This network of students and

new graduates use ICPF’s career portal, resume bank and its social network to access student internships and entry level positions in the corrugated industry. ICPF is supported by the donations from independent manufacturers, integrated firms and suppliers in the industry. ICPF’s Holiday Weekend in New York fundraiser is its principle annual fundraiser, but there are other opportunities throughout the year for making a contribution through special events and other programs, including ICPF’s Circle of Distinguished Leaders where companies and individuals can nominate industry leaders through donations made to ICPF in their names However, ICPF’s work would not be possible without the donations and pledges made by its official corporate partners. It is ICPF’s corporate partners that utilize ICPF’s resources in hiring entry level talent. ICPF’s corporate partners have donated or pledged $50,000 to over $1 continued on page 53

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- Proven Performance - Minimal Operator Interaction - Designed for Operator Safety - Smooth Board Delivery - Highest Productivity - Easy Operation - Simple Maintenance Dick Dargan V.P. of Manufacturing Rand-Whitney Worcester, Massachusetts

Booth 2130 “When choosing a prefeeder, we took our time, researched all available options on the market, and decided the Alliance FeedMAX was the right decision for Rand-Whitney. We’re an independent corrugated plant so it was important that we purchase a prefeeder that can deal with all the different types of loads we

run, with minimal operator intervention. Alliance delivered on time, performed an excellent startup and the staff was professional and easy to deal with throughout the process. Since we had the same experience on our J&L specialty folder gluer, we’ve come to expect no less from Alliance.”

AMERICA 509 535-0356 info@alliancellc.net

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EUROPE

+31 (0)497 362500 info.europe@alliancellc.net Muggenhool 3 5531 RZ Bladel, The Netherlands

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ICPF Update

continued from page 51

million each in support of ICPF’s initiatives and to build ICPF’s endowment. Pledge levels to become a partner are based upon size of company, with similar sized companies requested to make similar size pledges. Pledges can

be paid over time ranging from one year to 10 years, with the average being 5 - 7 years. ICPF is a 501 (c) 3 non-profit corporation and pledge donations to ICPF are tax deductible to the full extent of the law.

I wish to thank all the individuals, corporations, AICC and FBA that support ICPF, and extend a special thank you to ICPF’s following corporate partners. 

• Pratt Industries www.prattindustries.com • RockTenn www.rocktenn.com • Schwarz Partners Packaging in honor of Jordan Nerenberg www.schwarzpartnerslp.com • Sheet Feeders www.freedomcorr.com; www.independencecorr.com; Pinnacle Corrugated; Northern Sheets; www.schwarzpkg-miami.com; www.schwarzpartnerslp.com; • The Strive Group www.strivegroup.com • Vanguard Packaging www.vanguardpkg.com • Welch Packaging Group, Inc. www.welchpkg.com • York Container www.yorkcontainer.com

• Corrugated Supplies Company, LLC www.csclive.com • Coyle Packaging Group* • Dusobox Corporation www.dusobox.com • Englander dZignPak LLC www.englanderdzp.com • Fitzpatrick Container Company www.fitzbox.com • Fleetwood-Fibre Packaging and Graphics www.fibrecontainers.com • Great Northern Corporation www.greatnortherncorp.com • Harris Packaging Corporation www.harrispackaging.com • Independent Corrugator, Inc.* • Landaal Packaging Systems www.landaal.com • Lawrence Paper Company www.lpco.net • Longview Fibre Paper & Packaging www.longviewfibre.com • McDonald Packaging www.mcdonaldpackaging.com . Mid-Atlantic Packaging www.mid-atlanticpkg.com • Moore Packaging Corporation* • Morphy Containers Corporation* • Pacific Southwest Container www.teampsc.com • Royal Containers* • Scope Packaging www.scopepackaging.com • StandFast Packaging www.standfastpkg.com • Stribling Packaging, Inc. www.striblingpackaging.com • Sumter Packaging Corporation www.sumterpackaging.com • TenCorr Packaging, Inc.* • TimBar Packaging & Display www.timbar.com • Triad Packaging of Tennessee www.triadpkg.com • Wertheimer Box Corporation www.wertheimerbox.com

ICPF Corporate Partners Visionary Founder - $1 million • Temple-Inland www.templeinland.com • Weyerhaeuser Company www.weyerhaeuser.com Visionary Pacesetter Supplier - $1 million • Bobst North America www.bobst.com • Martin www.bobst.com • WORKHORSE Industries Founder Plus - $600,000 - $750,000 • Georgia-Pacific Corporation www.gp.com • Smurfit-Stone Container Corporation Founder - $500,000 • Packaging Corporation of America www.packagingcorp.com plus additional Vision 2000 contribution of $200,000 • William Hanan Trust www.bay-cities.com Pacesetter Supplier Founder - $500,000 • Sun Chemical www.sunchemical.com Guarantor - $250,000 • Gerber Innovations www.gerberinnovations.com • Menasha Packaging, Inc. www.menashapackaging.com • Norampac Inc. www.norampac.com Regent - $100,000 • Akers Packaging Service, Inc. www.akers-pkg.com • Bates Container, Inc. www.batescontainer.com • Buckeye Corrugated, Inc. www.buckeyecorrugated.com • Craig R. Hoyt Estate www.buckeyeboxes.com • Green Bay Packaging www.gbp.com • Greif www.greif.com • Jamestown Container Corp. www.jamestowncontainer.com • LACorr • Liberty Diversified Industries www.libertydiversified.com

Pacesetter Supplier Regent - $100,000 • Color Resolutions International www.colorresolutions.com • Corn Products International www.cornproducts.com • Harper Corporation of American www.harperimage.com • Harper/ Love Adhesives www.harperlove.com • Signode www.signode.com • JB Machinery www.jbmachinery.com • KemiArt US, Inc. www.m-real.com • Metsa Board www.metsaboard.com Charter Governor - $50,000 • American Packaging Corporation www.ampackcorp.com • Atlantic Packaging www.atlanticpkg.com* • Bay Cities www.bay-cities.com • Brian Thomas Display & Packaging www.brianthomasdisplay.com • Capital Corrugated & Carton www.capitalcorrugated.com • C & B Corrugated Containers, Inc.* • Central Container Corporation www.centralcontainer.com • Central Graphics & Container Group* • CorrChoice, Inc. www.greif.com

* ICPF Canada Investors

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THE FINAL SCORE

Don’t Be Fooled by Law Firms Phishing for Your Dollars

Steve Young, AICC President

Recently an AICC member was contacted by

2005 and 2010 are collusive and therefore the suit

a law firm saying they would like to represent them

seeks restitution and punitive damages from the many

in collecting their share of a judgment in a pending

named defendants.

corrugated industry antitrust suit. If you receive a similar solicitation, don’t sign it. They’re phishing for your dollars!

Now to the point: I am not an antitrust lawyer, and so I cannot render an opinion on the merits of this case. Whatever the merits, the outcome is still unknown.

Let me explain: It is a sad fact that our industry has a

Certain law firms, perhaps anticipating a significant

“history” with violations – or suspected violations – of

monetary settlement in this case, have been sending

the antitrust laws. The most infamous of these was

solicitation letters to some AICC members saying

the Houston Corrugated Case back in the 70s, which

they will represent them in collecting their share

at that time was the largest civil antitrust judgment in

of the funds. If the case goes to a jury trial and the

the history of US antitrust laws.

defendants are found guilty, or if there is an out of

In subsequent years our industry, not learning from past mistakes, has shot itself in the foot on several occasions, and a notable example of that was the linerboard litigation settled in the Southeast District of Pennsylvania in 2002. In this case, a class action involving corrugated users – meaning our customer base – the plaintiffs said that major integrated companies at that time colluded in restricting linerboard supply which, they claimed, artificially inflated the price of containerboard and thereby the prices of finished corrugated boxes and sheets. A

court settlement, the court will most likely appoint a referee to oversee the distribution of funds. The information to file your “claim” will thus be publicly available – and sent to you by AICC, as we have in the past – so that you can complete the necessary forms and file the backup material. All you will need are purchase records for sheets over the five-year period of the case, from 2005-2010. We’ll provide all the instructions. Of course, you are free to hire legal representation if you so choose; however it is not necessary.

settlement was reached that amounted to more than

So don’t shortchange yourself by agreeing to legal

$202 million and the residual funds distributed among

representation you do not need. And let’s hope that

many parties, independent sheet plants included.

this is the last time I have to write a column about

The most recent case along these lines is called “The

this subject in our industry!

Kleen Products” suit. It was brought by a small Minnesota company, Kleen Products, a manufacturer of janitorial and cleaning supplies, as well as several other plaintiffs. Also a class action, “Kleen” says that pricing policies pursued by major suppliers of linerboard, sheets and corrugated boxes between

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Steve Young President, AICC


SuperCorr Expo Booth # 3222

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Boxscore July 2012 final