Mar/ April 2017 AICC BoxScore by AICC, The Independent Packaging Association

Boxes Squared 2

EVOL takes folding to a higher power of squareness ®

EVOL’s folding section is where true box squareness comes together. It starts with EVOL’s ﬂoor-mounted center support supplying a rock solid foundation, steadfastly eliminating vibration for true folding integrity. The 23 sets of progressively tapered gauging rollers deliver a smooth precise fold. Forming belts channel the box panels along the folding rails which assures

EVOL. Exponentially better box making machines.

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the front and rear fold at the same time, eliminating plowing and ﬁshtailing. If you’re looking to produce consistently square boxes to help your operation generate improved throughput and proﬁts, look to Mitsubishi—the higher power of folding perfection. Call us for all the details.

â&#x20AC;&#x153;An investment in knowledge pays the best interest.â&#x20AC;? BENJAMIN FRANKLIN

EFC has been financing corrugated equipment for over 20 years. Our extensive industry knowledge and experience allows us to now offer qualified clients a new 15-year Amortization Finance Program covering 100% of the cost of major items of corrugated equipment. For example on a $2.5 Million purchase, a 15-year amortization program can provide payments which are up to $15,000 per month lower than that of 7-8 year bank term loans. This new program includes early prepayment options, thus providing your operation with both the lowest possible payments and maximum financial flexibility. At Equipment Finance Corporation, we put our knowledge to use for you in ways other financing companies do not. Contact Ed Gargiulo for more information at 800-469-1082 x13, 770-714-0662 or ed@efc-finance.com

A PUBLICATION OF AICC, THE INDEPENDENT PACKAGING ASSOCIATION

March/April 2017 Volume 21, No. 2

KEEPING PACE WITH CHANGING CUSTOMER DEMANDS

CONNECT WITH CUSTOMERS TO MEET THEIR SERVICE, QUALITY, AND COMPETITIVE PRICING EXPECTATIONS

ALSO INSIDE Adding Value to Your Employment Practices Building Competitor-Proof Relationships How to Build Real Accountability Into Your Business

TABLE OF CONTENTS March/April 2017 • Volume 21, Issue 2

COLUMNS

42 FEATURES

KEEPING PACE WITH CHANGING CUSTOMER DEMANDS Connect with customers to meet their expectations PAY IT FORWARD: ADDING VALUE TO YOUR EMPLOYMENT PRACTICES Help mold public policy to better enhance your business and satisfy your employees BUILDING COMPETITOR-PROOF RELATIONSHIPS The margin for error in business today is razor-thin, so why take chances on your relationships?

50 54

BoxScore is published bimonthly by AICC, The Independent Packaging Association, PO Box 25708, Alexandria, VA 22313, USA. Rates for reprints and permissions of articles printed are available upon request. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of AICC. The publisher reserves the right to accept or reject any editorial or advertising matter at its discretion. The publisher is not responsible for claims made by advertisers. POSTMASTER: Send change of address to BoxScore, AICC, PO Box 25708, Alexandria, VA 22313, USA. ©2017 AICC. All rights reserved.

CHAIRMAN’S MESSAGE

SCORING BOXES

LEGISLATIVE REPORT

MEMBERS MEETING

ASK RALPH

SELLING TODAY

TACKLING TECH

LEAN LEARNINGS

LEADERSHIP

MARKETING MIX

THE ASSOCIATE ADVANTAGE

ASK TOM

FINANCIAL CORNER

THE FINAL SCORE

DEPARTMENTS

WELCOME NEW MEMBERS

GOOD FOR BUSINESS

MEMBER PROFILE

ICPF UPDATE

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

BOXSCORE www.aiccbox.org

OFFICERS Chairman: Tony Schleich, Lawrence Paper Company, American Packaging Division Vice Chairman: Al Hoodwin, Michigan City Paper Box Vice Chairman: Joe Palmeri, Jamestown Container Companies Vice Chairman: Jay Carman, StandFast Packaging Vice Chairman: John Forrey, Specialty Industries/Krafcor/ NuPack Printing DIRECTORS-AT-LARGE Jim Akers, Akers Packaging Kevin Ausburn, SMC Packaging Group Matt Davis, Packaging Express Marco Ferrara, Cartones Sultana Jana Harris, Harris Packaging Corp. Nelva Walz, Elegant Packaging REGIONAL DIRECTORS Region 1: Doug Rawson, Superior Lithographics Region 2: David DeLine, Deline Box Company Region 3: Justin Mathes, Vanguard Companies Region 4: Eric Elgin, Oklahoma Interpak Region 5: Gary Brewer, Package Crafters Inc. Region 6: Guy Ockerland, OxBox Region 7: Finn MacDonald, Independent II Region 8: Joe Hodges, Mid-Atlantic Packaging Region 9: Larry Grossbard, President Container Group Region 10: Peter Hamilton, Rand-Whitney Corporation Region 11–12: John Franciosa, McLeish Corr-A-Box Coyle Packaging Group Region 14: Humberto Trevino, Washington Box, S De RL De C.V. Overseas: Kim Nelson, Royal Containers Ltd. President: A. Steven Young, AICC Headquarters

Immediate Past Chairman: Mark Williams, Richmond Corrugated, Inc. Chairman, Past Chairmen’s Council: Greg Tucker, Bay Cities Container Corp. Secretary/General Counsel: David P. Goch, Webster, Chamberlain, and Bean Counsel Emeritus: Paul H. Vishny, Esq. ASSOCIATE MEMBER DIRECTORS Chairman: Jeff Pallini, Fosber America Vice Chairman: Ed Gargiulo, Equipment Finance Corp. Secretary: David Burgess, JB Machinery Director: Pat Szany, American Corrugated Machine Corp. Immediate Past Chairman: Keith Umlauf, Haire Group ADVISERS TO THE CHAIRMAN Gene Marino, Rusken Packaging Jeff Pallini, Fosber America Tom Shallow, Fitzpatrick Containers PUBLICATION STAFF Publisher: A. Steven Young, syoung@aiccbox.org Editor: Virginia Humphrey, vhumphrey@aiccbox.org EDITORIAL/DESIGN SERVICES The YGS Group • www.theYGSgroup.com Editorial Director: Annette Gray Senior Managing Editor: Ashley Reid Senior Editor: Sam Hoffmeister Copy Editor: Steve Kennedy Associate Editor: Drew Bankert VP, Marketing Services: Jack Davidson Creative Director: Serena Spiezio Art Director: Jason Deller Account Manager: Brian Hershey

SUBMIT EDITORIAL IDEAS, NEWS & LETTERS TO: BoxScore@theYGSgroup.com CONTRIBUTORS Mike D'Angelo, Vice President Maria Frustaci, Director of Administration and Director of Latin America Cindy Huber, Director of Meetings and Conventions Chelsea May, Member Services Coordinator Laura Mihalick, Senior Meetings Manager Taryn Pyle, Director of Training, Education and Professional Development Alyce Ryan, Marketing Associate Richard M. Flaherty, President, ICPF ADVERTISING Information: Virginia Humphrey, vhumphrey@aiccbox.org Opportunities: Howard Neft, InTheKnow Inc. 847-899-7104 • thneft@aol.com Folding Carton and Rigid Box Advertising: Taryn Pyle 703-535-1391 • tpyle@aiccbox.org AICC PO Box 25708 Alexandria, VA 22313 Phone 703-836-2422 Toll-free 877-836-2422 Fax 703-836-2795 www.aiccbox.org

ABOUT AICC AICC, The Independent Packaging Association, is uniting and celebrating the success of inspired, independent packaging companies. We are a growing membership association which has served independents since 1974. AICC SERVES: Passionate professionals; The independent and united; The responsive and agile. AICC WILL: Connect and cultivate; Deliver success.

Chairman’s Message

CREATIVITY

reativity [kree-ay-tiv-i-tee]—the ability to transcend traditional ideas, rules, patterns, relationships, or the like, and to create meaningful new ideas, forms, methods, interpretations, etc. This issue of BoxScore is dedicated to the theme of “Value Added,” and while it is very broad on the surface, I appreciate how it fits into yet another pillar of my company’s success—namely, CREATIVITY. We certainly do not have the corner on the creativity market, as evidenced by the amazing designs that are consistently entered into AICC’s design competitions or the incredible innovations that many of our associate members put out year after year. However, we at Lawrence Paper Company’s American Packaging Division developed a deeper meaning of creativity. Namely: “The spirited exploration of intelligent results that WOW!” This speaks not only to developing great packaging designs, but also to how everyone within the company is encouraged and empowered to troubleshoot circumstances that ultimately result in happy customers. In addition, we strive to find opportunities where we may creatively add to the customer’s experience so that they ultimately feel good about doing business with us. As independents, we are constantly challenged to differentiate ourselves from the status quo. In fact, many of us can pin our success on providing creative solutions to “what they have always done.” For us, much of this wisdom has been gained through our involvement with AICC and its many networking opportunities, where we may learn from general and associate members alike. Time is definitely flying, and it is hard to imagine that it has been over four months since I assumed the role as your chairman. Since then, I have had the extreme pleasure of meeting some of you at various events, such as Region Four’s Digital Symposium in the Dallas area, the amazing ICPF New York event, as well as the West Coast Ski Meeting. I certainly look forward to the meetings that are forthcoming—not the least of which is the Spring Meeting in Austin, Texas. This meeting is certainly packed not only with content, but also with plenty of networking opportunities, and I sincerely hope to see you there and learn about your creativity!

Tony Schleich President, The Lawrence Paper Company, American Packaging Division Chairman, AICC

BOXSCORE www.aiccbox.org

Scoring Boxes

2016 RETAIL SALES REACH $5.5 TRILLION BY DICK STORAT

merican consumers continued spending at a healthy clip through last year’s holiday season, with the total retail and food service sales topping $5.5 trillion for the entire year. After a slow start to the holiday season, retail sales picked up momentum. Sales rose by 3.3 percent for the year, considerably faster than the 2.3 percent growth recorded during 2015. December sales alone were up by 0.6 percent. Fourthquarter sales were up about 4 percent from the fourth quarter of 2015. Several economic factors combined to keep spending strong. During the final months of last year, wages were picking up, and the stock market was booming. Because consumer spending accounts for two-thirds of U.S. economic activity,

the rate of retail sales growth is a vital indicator of economic activity. And because corrugated demand correlates closely with the production of these goods, independent corrugated converters not only need to know how rapidly retail sales are growing, but also must keep track of the various sectors through which consumers make their purchases. The chart below shows how retail sales were distributed by type of outlet. Consumers spent more on motor vehicles last year than on any other store category. More than one-fifth of total retail and food service sales went into this sector, which posted record sales in 2016. Motor vehicle sales grew by 3.8 percent last year, besting the 3.3 percent total retail sales growth mark.

Food and beverage stores accounted for 13 percent of retail sales but experienced slower growth of 2.4 percent. Since the last recession, consumers have been favoring food service establishments at the expense of grocery stores’ growth. Food services spending accounted for 12 percent of retail spending and grew at 6 percent last year, 2½ times faster than spending in food and beverage stores. At the present growth rates, spending at bars and restaurants will exceed spending in grocery stores in only a few years. This chart shows the wide range of sales growth rates in several of the key retail sectors. The most disruptive change in consumer spending patterns is the continuing Continued on Page 6

2016 Retail & Food Service Sales Growth by Sector Nonstore Retailers

11.4

Drug Stores

7.4

Restaurants & Taverns

Building Material Stores

5.9

Motor Vehicles

3.8

Total Retail & Food Service Sales Food & Beverage Stores

SOURCE : U.S. CENSUS BURE AU

3.3 2.4

Clothing Stores

0.8

General Merchandise Stores

-0.8

Electronics & Appliance Stores

-3.2 -4

-2

PERCENT

BOXSCORE March/April 2017

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Scoring Boxes

Share of Total 2016 Retail & Food Service Sales by Sector Motor Vehicles

Food & Beverage Stores

General Merchandise Stores

Restaurants & Taverns

Nonstore Retailers Building Material Stores

Drug Stores

Clothing Stores

SOURCE : U.S. CENSUS BURE AU

Electronics & Appliance Stores

2 0

PERCENT

shift from mall shopping to online shopping. On the one hand, Amazon.com Inc. reported 19 percent sales growth last year, while Macy’s has identified 100 stores for closure and will cut more than 10,000 jobs. General merchandise stores accounted for 12 percent of retail sales last year. All types of these stores, including supercenters, warehouse clubs, and department stores, saw sales fall by 0.8 percent last year. Department stores fared the worst, with their sales declining by 5.6 percent for the entire year. Close behind them, though, are nonstore retailers, which last year had increased their share of retail sales to 10 percent. Overall spending at nonstore retailers, which includes mail-order business as well as e-commerce businesses, grew at 11.4 percent, the fastest of any sector. In another year or two, shoppers

BOXSCORE March/April 2017

will be spending more online than in stores for goods, continuing to fuel the shift in corrugated packaging needs from “retail-ready” to “warehouse-ready.” Last year, 6 percent of shoppers’ dollars went to health and personal care stores, including pharmacies and drugstores, a sector in which spending has been increasing at a faster-than-average rate. Sales at these stores grew at 7.4 percent last year, exceeded only by nonstore retailers’ sales growth. Building material and garden equipment/supply stores accounted for 6 percent of 2016 retail sales volume, about the same amount as drugstore spending. Home remodeling activity has been high, and as a result, sales at these stores have grown at a disproportionately high rate. Last year, building materials stores’ sales rose by 5.9 percent.

Finally, electronics and appliance stores find themselves under pressure from online outlets. As a result, sales in this retail category declined by 3.2 percent in 2016. The positive economic factors that supported robust consumer spending last year remain in place for 2017. Consumer spending should continue to grow at a pace of around 3 percent this year, boding well for suppliers of corrugated packaging. Dick Storat is president of Richard Storat & Associates. He can be reached at 610-282-6033 or storatre@aol.com.

ONE OF THE TOP TEN REASONS TO JOIN AICC

STRENGTH 1. YOU BUILD A BETTER BOX,

WE’LL HELP YOU BUILD A BETTER COMPANY AICC represents a majority of the independent packaging manufacturers and their suppliers. We are dedicated to strengthening the independent’s position in the marketplace, empowering our members to compete successfully in a rapidly changing industry and an increasingly competitive and global business environment.

10.

5. KING WOR

GROWTH

NET onnect witrhs to

PARTNERSHIPd

e C memb other row your g ess. busin

Manufacturers ang suppliers sharin 4. information and COMMUNICAT IO knowledge. Be part of a cultu N that allows you tore ask questions an d share ideas.

DEVELOPMENT Learn how to inspire and motivate the next generation of leaders.

Grow your business with best practices and strategic planning.

INFORMATION

Gain the practical know-how to grow and prosper.

KNOWLEDGE Stay competitive with industry information and benchmarking surveys.

N EDUCATcaItiOon you

Get the eduere and need wh ed it: e when you n iversity, n Packaging Ud industry n a , seminars ngs. meeti

LEADE8. RSHIP Join a

C Group EO Advisory to your op maximize excelle erational nc profitab e and ility.

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

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

Legislative Report

MANUFACTURING MOMENTUM IN WASHINGTON? BY JOHN FORREY

ow! What a difference between the “reality” television Donald Trump persona and the presidential “real-life” individual. The Trump administration’s fast-pace agenda has been truly inspiring, at least to those of us who aren’t used to using the words “action” and “Washington” in the same sentence. In the first three weeks of his administration, the president signed 19 executive orders on a number of issues, some controversial, but some dealing with advancing pro-manufacturing policies. Here are just a few examples: • An order directing the secretary of the treasury to review the 2010 DoddFrank financial regulatory law. • An order instructing agencies that whenever they introduce a regulation, they must first identify two others for elimination. • Two orders reviving the Keystone XL pipeline and Dakota Access pipeline. He also signed three other related orders that would expedite the environmental permitting process for infrastructure projects related to the pipelines; direct the Department of Commerce to streamline the manufacturing permitting process; and give the Department of Commerce 180 days to maximize the use of U.S. steel in the pipeline. • An order that directs federal agencies to ease the “regulatory burdens” of the Affordable Care Act (“Obamacare”). As Chairman of AICC’s Government Affairs Committee, I am excited about

BOXSCORE March/April 2017

having a pro-manufacturing administration and Congress in place. And so with all the more enthusiasm do I invite you to attend the 2017 Print & Packaging Legislative Summit (previously known as the Washington Fly-In), June 20–21, in Washington, D.C. This year, we have a great opportunity to join forces as an industry to enact policies that will benefit converters. To illustrate, the Trump administration, working with the House of Representatives, is poised to enact a pro-growth tax plan to help American workers and businesses keep more of their hard-earned tax dollars. The administration is also committed to rebuilding America’s infrastructure— roads, bridges, and highways—the essential elements of a more efficient distribution system, something we can all appreciate in our industry. And I think we can all agree that an overhaul of the Affordable Care Act is in order so that our skyrocketing benefits costs can be brought under control. There is likely to be a new direction for OSHA. Less regulation is certainly something Trump campaigned on, and OSHA presents an area with a great deal of regulation. Worker safety regulations as a general matter are not going to disappear—nor should they— just a reduction or elimination of some of the burdensome and unnecessary rules. Finally, don’t ignore the National Labor Relations Board (NLRB). As President Trump has begun to staff

up the regulatory agencies that have done so much recent damage, a good place to start would be with the NLRB. I could go on a long-winded rant about the negative impact to employers and small businesses caused as a result of the many decisions and rulings done by this overzealous agency during the prior administration. However, I will resist the temptation. Simply stated, while the NLRB may be somewhat obscure to many, the need to restore labor law to its proper role of even-handed adjudication is crucial to reviving business investment and jobs. Please join us this year at the Print & Packaging Legislative Summit. AICC and the Fibre Box Association (FBA) will again join with the Printing Industries of America (PIA) and related packaging industry associations so that our combined efforts can bring about a more friendly manufacturing environment—something we’ve been urging for many, many years. Let’s jump on this bandwagon while we can! Attend this year’s Legislative Summit! John Forrey is president of Specialty Industries and NuPak Printing in Red Lion, Pa., and is chairman of AICC’s Government Affairs Committee. He can be reached at 717-246-4301 or jforrey@specialtyindustries.com.

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BOXSCORE March/April 2017

PRINT & PACKAGING LEGISLATIVE SUMMIT June 20–21, 2017 • Washington DC

s e ne Voice O h t m W u k l a o e p V t S a e ll In Gr a h We S Join your peers in the packaging and print industry as we address our legislators as one industry with one voice. The Print & Packaging Legislative Summit co-hosted by AICC, the Independent Packaging Association, Fibre Box Association (FBA) and the Printing Industries of America (PIA) will take place Tuesday, June 20 & Wednesday, June 21, 2017 in Washington DC. This year we will again partner with the National Association of Manufacturers (NAM) for their 2017 Manufacturing Summit. With the new Administration in power, now is the time to stand united and voice your support for legislation that benefits the domestic manufacturing base, improves the North America competitive climate, puts American back to work and keeps it working. “Power always thinks it has a great soul and vast views beyond the comprehension of the weak” —John Adams

Preliminary Schedule at a Glance * Tuesday, June 20, 2017

3:00–5:00 P.M.

Summit Industry Briefing

5:00–6:30 P.M.

Opening Night Reception

7:00–9:00 P.M.

NAM Congressional Dinner with Keynote Speaker (The Grand Hyatt Hotel)

(Capitol Hill Club) (Capitol Hill Club)

Wednesday, June 21, 2017 8:15–9:30 A.M.

Briefing Breakfast Meeting

9:30 A.M.–12:30 P.M.

Congressional Meetings

12:30–2:00 P.M.

Congressional Luncheon

2:30–5:00 P.M.

Congressional Meetings

6:00–9:00 P.M.

Optional Dinner Event

(Capitol Hill)

(Capitol Hill) (Capitol Hill) (Capitol Hill)

*Schedule is preliminary – events, timing and location are subject to change

Accommodations

Washington Marriott Marquis Hotel 901 Massachusetts Ave NW, Washington, DC 20001 Hotel Room Rate: $292+tax (tax—currently 14.50%) Hotel Cut-Off Date: Friday, May 26, 2017 For Reservations: Call (888) 236-2427 Group Rate Code: AICC Print & Packaging Legislative Summit

Registration Information Available at: www.AICCbox.org/flyin • For More Information Contact: Laura Mihalick at lmihalick@aiccbox.org

Members Meeting

FLEXOGRAPHIC PRINTING: RAISING THE STANDARD BY TARYN PYLE

Photo by Taryn Pyle.

n 2016, AICC launched a new course, “Flexographic Printing: Raising the Standard,” to a sold-out crowd of attendees eager to learn and develop better standards of printing on their flexo graphic press. In January 2017, AICC held its second course to another sold-out group of attendees, and as a participant in both courses, I was fortunate to learn not only about the value and importance of flexographic printing, but also of the need for education and training specific to this extremely important piece of equipment in a box plant’s arsenal of tools for printing better packaging. This two-day course provides in-depth learning in all areas of flexographic printing, from pressmanship and ink to anilox, print plates, die cutting, and color. It uses both classroom-training format and hands-on learning using

Attendees perform a sheet check.

BOXSCORE March/April 2017

“AICC’s Flexographic Printing Best Practices provided hands-on, realworld practices and advice that can equally benefit the naive and the experienced printers.” — David Glezman, sales associate, Weber Display and Packaging

a flexo press at Clemson University in Clemson, S.C. This takes classroom knowledge and puts it into practice on a working machine. Jose R. Lopez Treho, assistant operator, Pratt Industries, said, “I had a lot of areas that I felt I didn’t have much knowledge of, but now after this seminar I feel more confident and able to achieve better success.”

AICC’s course offered two experts— Kern Cox, lecturer and print expert in corrugated from Clemson University, and Scott Ellis, partner, P 2, to help attendees build processes that they can take back to their plant. Industry experts are also on hand for troubleshooting and providing feedback through the two days of training. Sabryna Chase, operator, Northwest Paper Box, said, “It was extremely empowering and validating to get feedback from experienced people in the printing business from all around the country and solutions to similar problems people were having. The contacts I now have from this seminar are priceless.” This year’s trainers included: Roger Poteet, Poteet Printing Systems; Jason Cagle, MacDermid Graphic Solutions; Shane Weber and Katie Graham, Pamarco; Guy Earley, Stafford Cutting Dies; Norm Uress and Brian Sevigny, MeasureColor. Each time we offer this course, AICC selects Associate Members to add value and expertise to the program. Their presentations are always noncommercial and educational. The Associates offer a depth of knowledge that is appreciated

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Members Meeting

Participants learned in the classroom and on the plant floor during Flexographic Printing: Raising the Standard.

by attendees and a spirit of volunteerism that benefits the Association as a whole. What is most intriguing is that no matter the level of experience in the industry—we had participants with experience ranging from less than a year to 29 years—every single participant told me how invaluable the training would be to improving their job performance. AICC’s Flexographic Fundamentals course teaches the process of setting up standard operating procedures (SOPs) and helps each attendee identify the areas of focus, enabling them to get started on raising their own company’s standards when they return to the plant. In the Impression and Registration portion of the course, attendees went through the Linear Problem-Solving Process to review the “anilox to plate” impression, registration from side to side (SS), and circumferential (CIR) and angle. “AICC’s Flexographic Printing Best Practices provided hands-on, real-world practices and advice that can equally benefit the naive and the experienced printers,” said David Glezman, sales associate, Weber Display and Packaging. The details from first sample and testing removed the guesswork and outlined examples of what the plate might look like and how to troubleshoot and fix the problem. I truly understand

BOXSCORE March/April 2017

the meaning of “it’s all in the details.” The first step in the process of printing involves paying attention to the details and understanding the why behind prepress work that is consistent and practiced. This is just one small component of this two-day course, but an in-depth understanding of ink, followed by training on anilox rolls for consistent ink delivery, led to discussions and knowledge-sharing between attendees and experts. One of the most valuable parts of every program is the sharing of information among attendees. This course lends itself to firsthand knowledge of best practices from company to company in addition to a review of them, when an expert shows them a better way or

identifies problems that may occur with the “old” way. When it comes to your best printing, the Flexographic Fundamentals course takes away all the excuses. Alexandra O’Brien, sales associate, Kemiart, said, “By thinking of and making changes and implementing new procedures, first we must suffer through failure before we can see what we need to do in order to be successful. The course I attended has helped me see what is possible.” It’s not always the paper or the ink. Many times it’s the process or the lack of cleaning an anilox roll correctly; it may be the plate and how it was stored, or the treatment used to clean and protect the plate. By now, attendees have returned to their plants and begun implementing processes that are achieving great success, and companies are seeing improvements in printing on a consistent basis. AICC will offer Flexographic Printing: Raising the Standard again, June 20–21. Registration is now open. Visit www.aiccbox.org/production for more information. Taryn Pyle is director of training, education, and professional development for AICC.

AFTER THEY COME HOME Over the years, AICC has been educating members on the need for education in their plants that is consistent and moves education from a “whisper down the line” or “it’s the way I was told to do it” to a strategy that improves a company’s bottom line by developing SOPs and a practices that every employee can follow. After you send an employee to an AICC technical program, you should sit with them and ask them about what they have learned, and support and encourage them to put that learning to work. The course becomes more valuable to your company when they can share their new ideas, then set up systems that every employee can implement.

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WHAT NEW-HIRES CAN USE BY RALPH YOUNG

orrugated packaging is very much a local and somewhat regional business. However, we exist in a global marketplace, so we will be bringing you some foreign ideas. Knowing that we see the import of finished boxes from China into the West Coast, the import of containerboard to that same area from Asia and Oceania, and containerboard imports from Europe and the Middle East on the East Coast makes the world a little smaller. The devaluation of the renminbi allows China further opportunities to export. The FX, or foreign exchange rate, for Europe and Canada is also favorable to those areas, allowing them to export easily today. This is the second installment in a series of six articles on what those new to our industry could use as foundational blocks to build a successful career. The materials covered in this series could also be good encouragement for those who have been laboring for a while and need a fresh perspective. The not-so-old saying states that when the student is ready, the teacher will appear. Your Association is here for you! Recent announcements at the end of 2016 regarding the rapid growth of the e-commerce segment of corrugated packaging have been impressive, especially for those who have chosen to participate. Estimates from Pulp and Paper Week and other security analyses say that approximately 8 percent of all corrugated is on this new edge of packaging. The largest portion of corrugated, which is in food and beverage, is flat. Where will you grow your business? Think beyond the obvious and look to digital printing, customized printing in which an individual’s actual name appears

Think beyond the obvious and look to digital printing, customized printing in which an individual’s actual name appears on their unique package, and printing inside the box, all in one pass. All this is commercial today. on their unique package, and printing inside the box, all in one pass. All this is commercial today. And ponder that digital is so fast that there are now installations in place where one can preprint roll stock in-line with the corrugator. Imagine no converting crush from conventional systems and the opportunity to use components with less fiber! Let’s go back to imports. I have personally seen at least eight European and Middle Eastern containerboard suppliers participate in combined board trials here in North America. While all of these producers of 20.5# recycled linerboard generated the desired ECT levels required with reduced fiber, only one was chosen. This begs the question, “How extensive will your design experiments be going forward?” While 18# linerboard was available from domestic production as early as 1993, it was largely ignored; today, the grade is no longer an anomaly for independents. Growth of recycled linerboard volume in North America is greater than virgin kraft production. This category is generally considered as 100 percent recovered fiber in the marketplace. However, the true definition as defined by the American Forest and Paper Association is any linerboard made with more than 21

percent recycled fiber. RISI’s weekly Pulp & Paper Week newsletter is considering adding a price index for this segment. At the time of this writing, there is an open period of comment solicitation about its inclusion in the monthly Price Watch for containerboard. One of Pack U’s newest e-learning courses is called “Understanding Board Combinations.” In this module, we pointed out the physics of engineering ECT, which is based primarily on the short column test of linerboard and medium, and not on the basis weights of the components. As a combiner and converter, you are buying on the containerboard’s strength and selling on an actual ECT basis, which is a strong predictor of initial and retained box compression. Your customers’ interest in this will depend on where they lie in the supply chain. R alph Young is the principal of Alternative Paper Solutions and is AICC’s technical adviser. Contact Ralph directly about technical issues that impact the corrugated industry at askralph@ aiccbox.org.

BOXSCORE www.aiccbox.org

Selling Today

IMPLEMENTING A MARKETING INFRASTRUCTURE: ‘INTERNAL VERSUS OUTSOURCING’ BY TODD M. ZIELINSKI

s companies continue to find ways to accelerate and improve their sales growth efforts, one growing market trend is the use of front-end business development and lead generation activities to support sales efforts. This approach challenges the traditional thinking that sales reps are responsible for prospecting and lead generation activities, in addition to executing the active sales process, developing proposals and quotes, negotiating and closing new opportunities, as well as account management activities that require customer retention and increase of share within the customer base. The goal of front-end marketing and business development activities is to create a consistent and steady stream of qualified opportunities for the sales team to work. The concept is to create a division of labor model within the sales process that allows sales resources to focus on what they do best—sell and close new relationships. So, what are

the components and requirements of an effective front-end marketing and sales support infrastructure? Let’s take a look: • Develop processes and controls for staff to operate and leadership to manage, too, including: −− Lead generation and lead management (repetitive and multiple contact touches in the form of direct mail, email, and outbound sales calling efforts to introduce/ educate your company and capabilities, identify a specific opportunity or need, and qualify the relationship in order to solidify the first step in the active sales process for the sales team). −− Market awareness programs (relationship touches, social media, case studies, testimonials, white papers, industry articles, collateral materials, etc.). −− Programs required to secure market feedback/intelligence necessary for continual improvements in

Recognizing that this infrastructure approach is a rather sizable investment and commitment, companies might find themselves evaluating options.

BOXSCORE March/April 2017

areas of strategy, target marketing, marketing and sales initiatives, and improving processes. • Development, purchase, or lease of technologies required to integrate with and enable processes, including: −− CRM (customer relationship management) −− Marketing automation software −− Lead management systems −− Email marketing systems • Staffing to develop, execute, and manage the processes, including: −− Experienced and knowledgeable marketers who have the ability to develop processes, integrate technologies, and train staff to execute (in-house and/or consultant fees). −− Staff to tactically execute processes (must be trained to utilize processes and technologies). −− Company management to supervise, develop/retain staff, schedule and supervise staff activity, and manage teams to meet expectations and produce desired results and goals. A key question that companies need to consider is what types of costs are associated with the implementation of this model. Based on my 17 years of experience executing business development processes, I would estimate that firms can invest up to $300,000 over a two-year period to internally implement the model and systems identified above (as a best practice marketing infrastructure solution). Recognizing that this infrastructure approach is a rather sizable

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Selling Today

investment and commitment, companies might find themselves evaluating options, such as an industry outsourcing partnership. A typical investment with outsourcing partnerships can run from $75,000 to $90,000, annually, which can be an attractive price alternative to implementing internally. When evaluating outsourced partnerships, it is highly important to make sure that the provider has good industry experience (including proven results within your specific target markets), provides a complete holistic and high-collaboration solution, as well as measurements and tools for tracking performance, goals, and the ability to continually improve process. So, here are some items to consider when evaluating a front-end marketing and sales infrastructure: a skilled staff member to 1 Hiring execute the process activities can range between $45,000 and $50,000 in total

BOXSCORE March/April 2017

annual compensation and benefits. It can take three to six months to secure the right skill level and another three to six months to train the new staff member adequately. Skill sets compensated at the lower end will typically provide less-than-desired results and can take more time and effort to achieve the learning curve (regarding process, enabling technologies, your business, markets, etc.).

If you are looking to develop and implement a best-practice marketing infrastructure, consider that it will typically take about two to three different skill sets (people) and types of experience to create and operationalize a process similar to what was identified above. This can include resources and skill sets for the following activities: −− Outbound sales phone calling and qualification support.

−− Content development and graphic design capabilities. −− Profiling, prospect research, list development, and list cleaning. −− Technology support for various kinds of IT tool enablement and automation (CRM, lead management, marketing automation, sales pipeline reporting). What’s the value of speed to market 3 and leveraging an experienced staff with all the appropriate skill sets, a proven process model, enabling technologies, and an industry-experienced team that understands your industry and target markets? Todd M. Zielinski is managing director and CEO at Athena SWC, LLC. He can be reached at 716-250-5547 or tzielinski@athenaswc.com.

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Tackling Tech

CLIMBING THE MOUNTAIN BY JOHN CLARK

few years ago, I had the great pleasure to visit the Federal Democratic Republic of Nepal. Most know little about this mountain kingdom, but many do know that it is the home of the highest place on earth— Mount Everest. Nepal is a hard country. Little grows naturally, grazing land is lean, and the logistical and commercial infrastructure is, for the most part, nonexistent. Climbing Everest is a difficult and dangerous endeavor. Every single step is hard, and the costs are crippling. Danger and fatal consequences are inherent in every step. Almost all struggle at some point. Most don’t succeed. On Everest, small miscalculations can have disastrous, even fatal results. No one climbs these heights without assistance. That is why it is critically important that you find the right sardar, or experienced leader, to help you to make the climb without having to learn every lesson the hard way. So, it is not too strained an analogy that having a knowledgeable and experienced guide is just one of the roles that AICC performs for those attempting to climb the mountains of challenges present in the packaging business. For example: • Only 9 percent of U.S. employment is in manufacturing. And many of the people you do know in manufacturing are often your direct competitors. It can sometimes be hard to find anyone you can commiserate with or ask guidance from. Enter AICC, The

BOXSCORE March/April 2017

It is critically important that you find the right sardar, or experienced leader, to help you to make the climb without having to learn every lesson the hard way. Independent Packaging Association— the only association dedicated to the independent corrugated, folding carton, and rigid box manufacturers and industry suppliers. • AICC allows you to meet, share knowledge with, and ask questions of some of the smartest people in the industry in a free and open discussion—people who have been where you are and have done what you do. You can learn from the people who have traveled the path you are climbing. They know where things get tough, what to watch out for, and how get to the top of the mountain. • Just as in mountaineering, your equipment will make or break your journey. Picking the right equipment and using it to its best advantage is critical to success. Having experienced operators discussing the pros and cons of machinery and being able to see actual machines producing actual products is a huge advantage in building your equipment profile. • At every step of the journey, it is always about your people. Learning the best ways to recruit, educate, and

develop your staff is part of the bedrock of building a successful company, and part of the bedrock of AICC. • On those days when you are not sure where to turn, there is someone who has been there before to offer you encouragement and guidance, sharing knowledge regarding machinery, processes, technology, and a host of other issues that are critical to your success. And when things don’t go well, there will be someone to talk with who has been there before, to provide either a friendly voice or a quick kick to get you going again. And if you ever decide to go to Nepal, by all means, go. But make sure you bring plenty of sun screen. It’s hot, the air is thin, the sun is bright—and believe it or not, Mount Everest is at the same latitude as Tampa, Fla. John Clark is director of analytics at Amtech Software. He can be reached at jclark@ amtechsoftware.com.

HUMAN RESOURCE MANAGEMENT GUIDE A comprehensive handbook prepared to assist your HR department an policies and procedures to help establish the company’s expectations. The handbook contains general information and guidelines presented in clear and easy language that can be incorporated into any company’s employee handbook. Over 46 policies are covered including: • Equal Employment Opportunity • Anti-harassment/Anti-discrimination • Americans with Disabilities • Benefits and Compensations • Immigration Law Compliance • Privacy Statement For more information and to purchase visit the AICC Store at: www.AICCbox.org and click ‘Human Resources’

AICC • 113 S. West Street • Alexandria, VA 22314 USA (703) 836-2422 • www. aiccbox.org

Lean Learnings

VALUE-ADDED SERVICE BY MIKE NUNN

elivering outstanding value in the form of high customer-service— aka people-care—levels, in most businesses, is far from where it needs to be. Think about the last time you went out for a meal, shopped in retail, or dealt with a supplier. What grade would you give the service you received? Likely not an A+. We all have the ability to deliver outstanding service, no matter what our role. Here are some examples of things we do at Ideon to deliver the highest level of service possible to our customers.

Just Say Yes—and Thank You How often do your customers hear “no” from your business? Or maybe not “no,” but something like “I’m not sure; I’ll have to get back to you,” or “Sorry, you’ll have to talk to my supervisor about that.” What if, instead of your customer hearing “no” when they phoned, all they heard was “yes”? I fully understand there are a few circumstances where this can’t apply, such as creditworthiness, but in the vast majority of scenarios, a simple and consistent “yes”—followed by the desired result— will put you at the top of your customers’ favorite-suppliers list. Moreover, your

Just put yourself in their shoes and ask yourself what would wow you if you were the customer. 24

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loyalty scores will go through the roof. What’s the worst that could happen from saying “yes”? It will force you to ask tough questions such as, “Whom do we need to get involved to make this request happen for our customer?” or “What is preventing us from accomplishing this request every time and without red tape?” Wow the Customer Internal customers are everyone in your business, and I’ve always said that if all employees simply focused on wowing the next person in the process—aka their internal customer—then wowing the end/ external customer will take care of itself. External customers, on the other hand, are easy to wow. Just put yourself in their shoes and ask yourself what would wow you if you were the customer. Then, do those things. Simple, isn’t it? Unfortunately, as Jim Rohn said, what is easy to do is also easy not to do. Nobody is perfect. The reality is, there’s the possibility that a delivery may be late or we forget to call someone back, but even if these things happen, you still have an opportunity to wow by stepping up to the plate—not hiding—and making the situation right for the customer. Response Time Get fast! I’m not talking about running around like a chicken with its head cut off; I’m talking about removing all the red tape and waste from your processes so you can move as efficiently and effectively as possible. Let’s face it, red tape and waste are put there by you in order to protect yourself. Moreover, it has nothing to do with making your customers’ lives easier, yet that should be one of your top

priorities. If you’re not doing everything you can to simplify the process of buying your product or service, then customers will find someone who is. At Ideon Packaging, the phone is answered in two rings or fewer by a real person (really! 604-524-0524). We return calls within 30 minutes, even if we don’t have an answer or resolution; we just don’t want customers to feel as if we’ve forgotten them. We partner with suppliers who can help us provide this level of service to the market; we have some amazing suppliers. Our business was founded on five-day guaranteed delivery—guaranteed!— all with the goal of providing a level of service that puts us in a category without competition. Kaizen: That’s Not the Way We’re Always Going to Do It Kaizen is the lean word for change for the better, or good change. By focusing on the value-driving service areas above, you will inherently create kaizen. Isn’t that what all businesses want? To improve? Give it a try. Give something— anything—a try. What’s the worst that could happen? As I always tell my teams, if you try and fail, at least you’ve learned what not to do, and then you’ll go and try something else. Mike Nunn is vice president of operations at Ideon Packaging and is Lean Black Belt-certified. He can be reached at 604-524-0524 or miken@ ideonpackaging.com, or followed on Twitter @mikednunn.

Leadership

MUCH-MALIGNED MILLENNIALS BY SCOTT ELLIS, ED.D.

ear Millennial, protected you from failure. However, the I apologize for ignoring tip basis for the millennial self-concept is No. 1 of Paul Agnone’s “Seven Tips no shallower than that of the rest of us. to Engaging Millennials” in my opening We all fail, and most of us have learned line. I realize that I categorized you, but lessons from failure that cannot be gained now that I have your attention I’ll follow elsewhere. Your predecessors just had the tip No. 6 and “get to the point.” Point: I luxury of failing earlier in life, when the think you are getting a bum rap. Every consequences were less costly. By the way, generation was once impatient, entitled, when our generation was less experienced, and undisciplined. What holds you back our resiliency was no deeper than yours. is a need for wisdom and discipline, not In many conversations with you your age. That being said, please allow much-maligned millennials, I have been this boomer to provide context. You encouraged by your dedication to finding want a seat at the table and a voice in balance between work and home life, and the process. Perhaps your goals could be by your desire to make a difference. You accelerated with some give and take. also have a refreshing openness about Old people are in the habit of seeing what you don’t know, and a desire to the next generation as clueless miscreants. learn. I have also noticed that the things Someone said, “The children now love you do that annoy me are not characterisluxury. They have bad manners, contempt tic of your generation alone. Since World for authority; they show disrespect for War II, generations have increased in the elders and love chatter in place of exercise.” same characteristics that millennials wear That was Socrates. People have had short like a badge. Entitlement increases while attention spans for discipline and hard attention span decreases. I say that the work for some time now. major difference between my generation We have been encouraged to believe and yours is that we hide our selfishness, that the different generations currently in impatience, and lack of discipline. You see the workforce are motivated differently. them as normal because we never told you To some extent, I believe this is true. The to hide them. social contexts you and I grew up in We are all entitled and undisciplined are vastly different. I am writing to you until life knocks us down. Some stay because I think it’s time to question the down and call life unfair. Some just keep wisdom of explaining a group’s behavior getting up, which produces character. exclusively by vintage. When we practice this as a group, it In a widely shared YouTube interview, becomes corporate character. There are author and motivational speaker Simon people in every generation who refuse Sinek summarized the difficulty with to settle for worthless easy answers. U.S. managing millennials as a combination Supreme Court Justice Oliver Wendell of entitlement, impatience, and a lack Holmes Jr. said it well: “For the simplicity of toughness. Now, I share this because on this side of complexity, I wouldn’t give I agree with him, and because I appreyou a fig. But for the simplicity on the ciate his point that your stereotypical other side of complexity, for that I would self-image is fragile because your parents give you anything I have.”

BOXSCORE March/April 2017

Our cultural attention span is shorter than it was, and our lack of consideration of the consequences frightens me. We seem to hate uncertainty more. We have become so impatient that we settle for other people’s answers that are easily accessed online. It has become more difficult to engage people in the hard work of reconciling difficult questions through sustained discussion. While our natural-born self-interest is timeless, our impatience may be increasing as a consequence of the overwhelming amount of information we access. Neuroscientist David Eagleman has evidence that our self-imposed overstimulation is rewiring our brains, but there is good news. We can develop new habits that reject shallow and simple answers. We can learn to tolerate the discomfort of uncertainty and find answers on the far side of complexity. We are both motivated to grow as leaders and get stuff done, so how about an agreement? I’ll stop stereotyping your generation by your demographic; I’ll try to listen more closely. You’d like me to cut to the chase more quickly. I will be happy to do that if you will help me trust that you understand the context. I’ll share my experience with you, but please tell me that you know your need for experience. I really want you to succeed, because my future is in your hands. That’s the deal I propose. And now you know how to talk with a boomer—if you must. Scott Ellis, Ed.D., is a partner in P-Squared (P 2). He can be reached at 425-985-8508 or scottellis@psquared usa.com.

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Marketing Mix

MARKETING PAPER AND PACKAGING BY JOAN SAHLGREN

eople say marketing is part science, part art. For the Paper and Packaging Board, charged with supporting the paperboard, containerboard, kraft, and printing and writing papers sectors, marketing means identifying motivators common to consumers of our industry’s products, creating awareness, and then turning that awareness into consumption. How can industry participants do the same?

with research. If you have limited 1 Start marketing funds, research is a great way to help determine what your customers want to hear. Conducting a simple survey, checking feedback on call sheets, or doing quick “desk research” is very helpful. The Paper & Packaging – How Life Unfolds™ campaign used research as a foundation to translate product attributes into emotional stories highlighting product values important to consumers. Research showed us that consumers have an appreciation for how paper helps them achieve at home, at school, and at work—and that boxes and packaging are unsung heroes delivering quality and safety that they value. It’s likely your customers value the same things about your products.

People need a reason to choose one brand over another. Although appealing to their logic—think features and benefits—seems to be a standard sales plea, marketing a brand as a whole

BOXSCORE March/April 2017

can help establish an emotional reason to buy. Combining sales information with a personal relationship helps create that connection. It’s a handshake and a sales sheet. Build on strong product appreciation. 3 Did consumers or customers talk about the brand? Did they recommend it to a friend? Today’s marketers are lucky. We have real-time data available at our fingertips to help us see how customers and consumers appreciate our products. We can measure responses in social media, see whether potential customers click on a paid online ad, or learn if they watch a video with our messaging. We can also measure advertising’s 4 impact on attitudes about our products. The most recent data*, from 2016, about the people who have seen the Paper & Packaging – How Life Unfolds™ campaign shows positive impact on attitudes: −− 82 percent agree that they can rely on corrugated/cardboard boxes to get merchandise shipped/delivered safely (steady since 2015).

−− 77 percent agree that they love finding ways to reuse corrugated/ cardboard boxes (significant improvement, up 10 percent from 2015). −− 68 percent agree that paper-based product packaging is an essential part of everyday life (significant improvement, up 9 percent from 2015). −− 64 percent agree that when a company decides to package its products in paper-based packaging, they think more highly of that company (significant improvement, up 20 percent from 2015). To learn more about Paper & Packaging – How Life Unfolds™, the industry-funded campaign to advance appreciation for and consumption of paper and packaging, sign up for the newsletter at www.paperandpackaging.org. Joan Sahlgren is director of public relations at Paper & Packaging Board.

*Results of Attitude and Use Tracking Data, August 2015 through December 2016

GOOD FOR BUSINESS

AICC TOOLBOX ................................................ 31 VALUE .. ................................................................... 32 ACCOUNTABILITY.......................................... 34 AICC INNOVATION ........................................ 36

BOXSCORE TIPS, TRICKS, AND SOLUTIONS TO BETTER BUSINESS

AICC TOOLBOX

DIRECTORY DIRECTIONS

he AICC iDirectory provides a resource where end users, boxmakers, and industry associates can identify and locate independent boxmakers and suppliers who can meet their needs. Make

1. Log in. 2. Click on your name at the top of the page to view your profile. This is your individual profile page. (You can update your own information at any time on this page.) 3. At the bottom there is a “Company Profile” box. Click the name of your company. This will open your company profile page.

sure your company profile is up-to-date so those searching can see all that you do. To update the iDirectory profile and roster, follow these steps (it seems a bit more complicated than it really is, we promise):

b. Check/uncheck the boxes to add or remove them from your i Directory listing (the box is a bit small). c. Click “Save.” 6. To update the people shown in your i Directory listing:

a. Click any product in the “available” box and click the right arrow to add it to your i Directory listing.

NOTE: You can have an unlimited number of people in your roster and can select up to three people per category (Executive, Sales, Technical, etc.) to show up in the i Directory. Not everyone has to be in a category or shown in the i Directory.

b. Click any product in the “selected” box and click the left arrow to remove it from your i Directory listing.

a. Click “Edit” next to the name of the person you want to add/ remove from the i Directory.

c. Click “Save.”

b. Check the box for the category you want them to show up in.

4. To change your Products:

5. To change your Equipment: a. Click the little pencil to edit your equipment listing.

c. Click “Update” in the left-hand column to save your changes. 7. To remove someone from your roster:

a. Click “Remove” in the left column. Please DO NOT type over their name with someone new. To add a new person, please follow the instructions in number 8. 8. To add a new person to your Company Roster: a. Click “Add Contact” at the bottom of your company roster. b. Fill out their information in the pop-up box. c. Click “Save.” 9. To edit someone’s personal information: a. Click on their name in the roster. You will then be taken to their personal profile page. b. Click the pencil icon in the box you wish to update. c. Update the information. d. Click “Save.” BOXSCORE www.aiccbox.org

Good for Business

VALUE

YOUR VALUE VERSUS THEIR COST BY DAVE EGGLESTON

anufacturers and retailers (read customers) are faced with a unique series of growing challenges: • Product innovation/speed to market: Customers must grow their business and capture market share while meeting corporate financial targets. • Shelf and floor optimization/ retail-ready sales options: Customers are carefully focused on shelf advantage and category dominance, sales revenue per square foot, and the impact of creative packaging design “as the product.” • Inventory efficiency and forecasting: Customers want to accelerate inventory turns, use smaller case or carton sizes, establish POS data management, and focus employee productivity on the customer. • Flexible manufacturing solutions: Customers want to make educated decisions with respect to product manufacturing options. They must innovate without enormous capital equipment outlay, access technical resources as needed, and prioritize both project and product management.

The traditional supply-side “push” economy sales approach no longer works in the world of mass customization and consumer expectations involving an almost endless series of product variations.

BOXSCORE March/April 2017

Understanding the basics of the customer’s supply chain, marketing strategy, competitive landscape, and opportunities to support the competitive position allows your salespeople to become disruptive thinkers and trusted customer resources. Value-added options to consider: • Box options designed for POP and end cap displays: An AICC member grew the relationship with a major retail customer by providing paperboard and corrugated mock-ups of new marketing and promotional concepts. Those creations are now featured as end caps and main aisle displays in the customer’s stores. • Retail-ready box solutions: Custom solutions, price point implications. • Flexible/disposable equipment options: New or like new, rented or leased, requiring minimal cash outlay as the project moves forward. • Vendor-managed box inventory: An AICC member, in conjunction with the customer, produces boxes for an entire quarter and positions that stock in the customer’s yard. The customer knows the required stocks are there when needed and is invoiced as box stocks are used. • New product forecasts anticipating box demand: Ask to take part in new product or promotional forecast discussions. Find out how many new products are in the pipeline, how

The goal is to sell boxes and grow the relationship. they’ll be marketed, and how you can support the marketing effort. • Achieving sustainability goals: Yours and your customer’s. Resources, tools, and questions an AICC member can bring to the customer’s table should be carefully considered. A great deal can be learned and shared from the customer’s home page in terms of brand and product line, acquisitions, new product concepts, and corporate initiatives. Ask how you can be a better business partner. Offer creative marketing and supply-side solutions that help the customer win in the marketplace. Prepare a list of recommended vendors (partners) who can fill performance gaps in the supply chain. The goal is to sell boxes and grow the relationship. The value vs. cost sales approach provides the customer with the opportunity to consider you and your company in a very different light. Dave Eggleston is president of Frain Integration. He can be reached at 630-8895710 or deggleston@ frainintegration.com.

Emba Die Cut Bearing Upgrade

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Good for Business

ACCOUNTABILITY

HOW TO BUILD REAL ACCOUNTABILITY INTO YOUR BUSINESS BY HOLLY GREEN

ccountability is the quality or state of being accountable; an obligation or willingness to accept responsibility or to account for one’s actions. It is a word that gets tossed around a lot in the business world these days. Unfortunately, most of what I hear revolves around the lack of accountability rather than how companies are winning by holding each other accountable. At the organizational level, accountability is all about creating a culture where the right things get done on time, consistently. In cultures with real accountability, people say they’re going to get something done and they do.

Associates expect each other to uphold commitments, and expect managers to follow up on promises with themselves, colleagues, and customers. Making Accountability Work When attempting to restore or enhance accountability, most leaders mistakenly start by defining the tasks people need to be held accountable for. Instead, the first step should always be specifically defining the expectations for individuals, teams, and the company as a whole. This requires defining the target or objective clearly, to minimize room for interpretation of the outcome or result.

So, start by defining the desired outcome or result as clearly as possible. What does your organization’s destination need to be? Where are you going, and what will it look like when you get there (well beyond just the financials)? Get your team focused on achieving the right outcomes and using their brains to ponder, explore, and determine the necessary actions. Next, decide who will do what, by when, with what resources. Then ask, “How does this get us closer to winning as a company or a team?” Make sure someone has clear ownership of every significant initiative or task. Even when a

READY, AIM … WIN! GET CLEAR ON WINNING, AND GET THERE! Are you ready to be insanely successful? Are you sure? If so, sign up today for our Ready, Aim … Win! Program, being offered by AICC for the second year. Holly G. Green, a globally recognized business consultant and behavioral scientist, will spend the year working with you and your team to: • Get clear on winning. • Define and execute what you need to do to get there. • Pause and focus on the right things. • Move fast with focus and flexibility in rapidly changing markets. • Inform, inspire, and engage™ your organization to remain aligned, focused, and winning.

BOXSCORE March/April 2017

Good for Business

team is involved, you still need one person to be individually accountable to create the necessary line of sight, peer pressure, and follow-up. When identifying the target, clarify the current state as well as the end state, as this creates a critical baseline that enables measurement of progress or achievement of milestones. Then assign the necessary resources to get it done. Closing the Accountability Disconnects One of the biggest disconnects in accountability management involves assigning resources and responsibilities when there's no clarity around the outcome. Without carefully assessing the gap between where you are now and where you want to go, it’s impossible to accurately allocate the right amount of time, money, and resources to get things done. When the outcome isn’t clear, organizations often discount what it will take to get there. When things don’t go as planned, they tend to give up, stop following up, and behave in a manner antithetical to accountability.

Accountability also requires ongoing feedback. People need to hear what they’re doing well and not so well, and how to improve. But this rarely happens unless you have formal systems and processes in place for making it happen. To nurture accountability, feedback must become a way of working every day versus a seldom used and often awkward management responsibility. Additionally, effective feedback always compares actual performance to excellence or the desired state, thus reinforcing the importance of defining winning from the beginning. No Secrets! Keeping your definition of winning a secret does not support a culture of accountability. Instead, clarify and constantly communicate it so people never lose sight of it. Make it visual and transparent, and regularly post progress made toward the goal. This ignites the competitive spirit in most people, and it’s a fast way to prompt their brains to think. Get creative! Use bar charts, graphics, logos, icons, internal tag lines—anything

You’ll create a destination model (what winning looks like) for your business. You’ll devise the incremental, substantial, and transformational steps required to get there. You’ll explore how and why you and others think the way they do at work and how you can leverage all the brains in your organization to win. And you’ll determine the key areas of focus for your organization and how to keep everyone on track. You will practice giving feedback, the breakfast of champions, and enable accountability throughout your organization. You will be touched—legally and appropriately, of course—at least two times a month for support and guidance throughout the process. You and your team receive: • Eight learning sessions/webinars.

to keep focus on the goal. Change the visuals every 30 days to continually prompt people’s brains and prevent the message from getting lost in the daily avalanche of visual stimuli. Finally, measure results using both qualitative and quantitative data. This helps to lessen uncertainty while keeping people’s brains focused and engaged on what you want them thinking about. It also helps minimize MSU (making stuff up). Since MSU is usually negative, providing ongoing feedback will fill people’s brains with realistic information rather than unrealistic interpretations. Every business wants a culture of accountability. The difference is that winning organizations don’t just make accountability a priority; they make it a way of life! Holly Green is founder of The Human Factor, Inc. She can be reached at 858-401-9380 or holly@ thehumanfactor.biz.

• Two in-person meetings (one connected to the fall conference and one in regional locations or individually). • Online surveys. • 360-degree feedback for all participants. • Assessments. • Ongoing email prompts. This strategic agility program is offered to AICC members at a significantly discounted rate of $10,000 for the annual program. Sign up during the AICC Spring Meeting, April 26–28 in Austin, Texas, or email Holly, holly@thehumanfactor.biz.

• Individualized coaching and guidance.

Holly will also be presenting during the Spring Meeting during the HR Summit Wednesday, April 26, and an Eye Opener Session Thursday, April 27.

• Workbooks.

Learn more at www.aiccbox.org/meeting.

• Ongoing phone and conference calls.

BOXSCORE www.aiccbox.org

Good for Business

AICC NNOVATION The Value of Professional Development n an AICC member survey, 97 percent of respondents said that they placed high or very high value on professional development for their employees. You, or your boss, want the employees in your company to thrive. However, sometimes it’s hard to know what they need to be their best selves. AICC offers more than 20 webinars and seminars to members every year, in addition to online courses, meetings, and publications. The value of these programs is recognized by all who attend.

BOXSCORE March/April 2017

Jana Harris, CEO of AICC member Harris Packaging, says, “Our company participates in many webinars. It is a great opportunity to spur conversation with over 30 of our employees, and we were able to ‘step outside’ our four walls and see examples of both the good and bad that others are doing. We consistently apply some of the suggestions that are shown. It is invaluable for us to bring this training in-house.” Investing in the development of your team allows you to invest in the potential growth of your company. In the spring,

AICC will be making it easier for you to take part in the educational webinars and seminars that will improve your bottom line by offering education subscriptions. Various purchasing levels will be available to give you the access to education your employees need and want at a discount that will help you easily justify the cost. The subscription will not lock you in to particular dates or programs, but rather give you and your team the freedom to grow. Learn more at www.aiccbox.org.

You may not think your employees need training, but they know they do. Build your team. Build your company. www.aiccbox.org/PackU 703.836.2422 AICC, The Independent Packaging Association, is uniting and celebrating the success of inspired, independent packaging companies. We are a growing membership association which has served independents since 1974.

Member Profile

MOUNT VERNON PACKAGING, INC. BY VIRGINIA HUMPHREY

COMPANY: Mount Vernon Packaging, Inc. ESTABLISHED: 1971 JOINED AICC: 2017 PHONE: 888-397-3221 WEBSITE: www.mountvernonpackaging.com LOCATION: Mount Vernon, Ohio PRESIDENT: Donald Nuce Mount Vernon’s 55,000 square-foot plant in Mount Vernon, Ohio.

ount Vernon Packaging, Inc., one of AICC’s newest members, has built a company around providing superior customer service and developing long-lasting relationships with people who need paper boxes. “We are a company that is willing to go above and beyond to ensure that our customers’ needs are met,” says Tommy Nuce, a Mount Vernon salesperson who is next in the family line to take over the business. “When we are fortunate enough to begin a relationship with a new customer, we work hard to show them that they made the correct decision. We enjoy building relationships that will stand the test of time.” It’s a commitment that has paid off in happy, loyal customers that have allowed the independent corrugated box company to grow over decades and

BOXSCORE March/April 2017

expand capabilities. Their customers are quick to praise them and the relationships they’ve developed. “Mount Vernon Packaging has been our local box supplier for 15 years,” says Kim Comer, the human resource and accounting manager for Replex Plastics. “Their deliveries are always on time, and they provide a very quick turnaround on quotes. ... Our sales representative will stop on short notice to help us create whatever size we need and will bring sample boxes in 24 hours or less. It’s a pleasure to work with Mount Vernon Packaging.” Mount Vernon Packaging was founded in 1971 by Eugene W. Schoenrock. He ran it until 1995, when he passed away. At that point, Donald Nuce, Schoenrock’s son-in-law, took over the business, and he is still the president. During the past

10 years, Tommy Nuce has been transitioning into more responsible roles and learning more about the company to eventually take it over. “It’s all I’ve ever known,” Nuce says. “If it weren’t for our company, I couldn’t tell you what I’d be doing.” Keeping it in the family has allowed Mount Vernon Packaging to develop long-term relationships with the staff. There are some who have been with the company for up to 25 years, making a career out of Mount Vernon Packaging. Longevity among the staff has let them form close relationships and a strong team, which helps them make sure orders are filled in a timely manner. “It’s definitely a family business with a family-type atmosphere, with people who have been with us for so long,” says Nuce.

Member Profile

In 1999, Donald Nuce moved the company to a new 55,000-square-foot facility, which still services their needs and those of their customers. The facility lets them warehouse products to accommodate customers’ last-minute needs. During the year of their move, the Knox County Chamber of Commerce recognized them as the “Small Business of the Year.” It’s a facility that Mount Vernon is always happy to show off to their customers, and one they take pride in maintaining. “We’re definitely proud of our facility, and we really try to take care of it,” says Tommy Nuce. “Nearly every person that tours our plant comments on the cleanliness, and that is something we love to hear.” Being a small, family-owned business lets Mount Vernon do things that larger corrugated companies would find inefficient. They manufacture all boxes to customer specifications instead of doing standard bulk orders. They are able to manufacture any kind of corrugated product, such as regular slotted containers (RSCs), die-cut boxes, partitions, corner protectors, core pallets, and internal packaging. They use single-, double-, or triple-wall board in a variety of strengths. They are able to print multiple colors and plain cartons on standard brown or white board. Mount Vernon also offers reusable and returnable plastic corrugated products such as totes, divider sets, custom dunnage, layer pads, plastic pallets, collapsible bulk containers, and industrial bag systems. The Mount Vernon staff works closely with customers to help design and deliver a product that fulfills their needs at the lowest cost and highest quality. Nuce emphasizes their just-in-time service that keeps customers coming back to them. He is committed to building long-term relationships. “It’s all about the relationship we’re able to build with our customers,” says Nuce.

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IMPROVING EFFICIENCY For years, Mount Vernon forged ahead with their business using letter pressing, something sales manager and company heir Tommy Nuce says is nearly unheard of in the industry. In 2016, they decided to take a leap forward to increase both their efficiency and their capacity by purchasing a two-color, 130-inch Staley rotary die cutter. “It will cut the amount of time [to process items] in half, because we will combine two operations into one,” says Nuce. “We’ve gotten to a point where condensing multiple processes into one made sense to us. It was the right time to go ahead and make that change to increase our efficiency and our capacity.” Because they do a lot of produce packaging, much of Mount Vernon’s work is seasonal. When the winter months hit the Ohio business, their orders often drop. Nuce says he spends a lot of his time trying to find new business to get them through the colder months, when produce isn’t going as strong. The die cutter is something they hope will help them through the cyclical nature of their business. It will let them work at a higher efficiency during their busy months and round out orders the rest of the year. The Staley rotary die cutter has a rotary die circumference of 66 inches and a print surface length of 76 inches. The sheet width is a minimum of 16 inches and a maximum of 67 inches, using the skip feed or the regular feed. The finished blank across the machinery ranges from a minimum of 18 inches to a maximum of 82 inches. Mount Vernon placed the order in November and expects the machine to arrive in June. In the meantime, they are figuring out where to put it in their 55,000-square-foot facility and preparing for its arrival. “We are very much looking forward to its arrival,” says Nuce.

“People really appreciate it. They can call and talk to me like a friend and tell me what they need. If there is an issue, we work through it together. I feel that we really excel at customer service.” Mike Cullers, a sales manager with Ver-Mac Industries, Inc., confirms Nuce’s statements. “From helping us develop new and innovative packaging solutions to helping us solve some of our logistical

challenges, they have been great to work with,” says Cullers. “I wouldn’t hesitate to recommend Mount Vernon Packaging to anyone for their packaging needs.” Virginia Humphrey is director of membership at AICC.

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BOXSCORE March/April 2017

KEEPING PACE WITH CHANGING CUSTOMER DEMANDS

CONNECT WITH CUSTOMERS TO MEET THEIR EXPECTATIONS By Lin Grensing-Pophal

echnology. Globalization. Changing demographics. Increasing competition. All of these factors have come to bear on packaging manufacturers as they work to meet the needs of their customers, so their customers can, in turn, meet the needs of their own customers. It’s a cycle that is becoming increasingly complex—and increasingly fast-paced. Staying up-to-date with these changes—and the impacts on customer expectations—can be both challenging and invigorating, say professionals in the industry. What do today’s customers expect? Personal attention and specialized solutions, quicker response and turnaround times, 24/7 accessibility and person-to-person connections. Here’s how the industry is meeting their needs. Making One-to-One, Not One-to-Many Connections Customer experience in the digital age is personal. Mass marketing or mass communication techniques simply do not serve the needs of the 21st-century customer. There’s no such thing as “standard”

Designers need to think like engineers as they come up with creative solutions to customers’ packaging needs, thinking creatively about structural design. expectations these days. Every customer is unique, with unique expectations. Terri-Lynn Levesque is the office manager for Royal Containers Ltd., an independent corrugated converter with headquarters in the Toronto area that has been in business since 1980. Today’s society, says Levesque, is all about “the personal experience.” What sets service providers apart from the competition, she says, “is the ability to adapt and react to the unique requests and demands of customers and the ability to build strong relationships with them.” Building those relationships, she adds, “is the responsibility of everyone from the front receptionist to the truck drivers delivering the orders.”

Some customers, she says, like to communicate via email, others over the phone, and some in person. Suppliers have to be prepared to meet all of these varied demands if they want to remain competitive. “Everybody can compete with price, but what sets you apart from the rest is, are you adaptable, can you change to meet the demands and requests that customers have—even if they’re totally off the wall?” Customers are also expecting personalized attention when it comes to creating innovative solutions to their packaging needs, says Christie Iacovetti, operations manager for Michigan City Paper Box Company in Michigan City, Ind. The

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Christie Iacovetti, operations manager for Michigan City Paper Box Company, says today’s customers demand personalization.

Continuing to update machinery and infrastructure is a must-do to meet growing demand for faster turnarounds.

company has been manufacturing high-quality retail packaging products since 1904. Much has changed in its more than 100 years of experience. “We have experienced a shift in the colors and patterns that our customers are requesting,” says Iacovetti. “They know they have more options than just buying a white or black box.” In addition, says Iacovetti, customers are more and more interested in eco-friendly packaging options. “Consumers are becoming increasingly aware of how packaging has an impact on their communities and globally. This awareness is driving the demand for eco-friendly packaging.” Technology, notes Levesque, can help to meet these demands. “We have an amazing computer system that gives us the ability to make changes very quickly. That’s an important insight because customers’ brand experiences encompass all of their interactions with a vendor; no touch points can be ignored. Iacovetti notes that Michigan City Paper has invested in space, machinery, and automation to keep up with demands. “We’ve invested in additional warehouse space to store more stock options for immediate shipment. We’ve purchased more machinery in order to allow us to run custom orders more quickly and more cost-effectively. We’re focused on automating our operations to provide a more reliable and available source of production.” Continuing to update machinery and infrastructure is a must-do to meet growing demand for faster turnarounds. A Need for Speed In addition to expectations of faster turnaround time, Iacovetti notes that the periods of downtime that may have existed in the past are no longer. “In the past, we would have periods of time, typically seasonal for holidays,

BOXSCORE March/April 2017

where we were very, very busy, offset by periods of downtime that we used to produce our stock line of boxes. In the past several years, we haven’t had periods of downtime, as customer demand has been consistently high, even in nonseasonal months.” Eric Elgin agrees. Elgin is an owner of Oklahoma Interpak in Muskogee, Okla., a company that manufactures assembled partitions. Oklahoma Interpak was founded in 1980. “One of the main things I’ve noticed in the past five to 10 years is that lead times, at least in my business, have come way down. The turnaround on orders needs to be faster than ever before.” Traditionally, he says, a two-week turnaround was the norm. Today, about one week is common, with some customers looking for even quicker turnaround. “That’s just the way people do business now,” he says. To address an increasing need for speed of delivery, says Elgin, Oklahoma Interpak has turned to technology. “We’ve automated our factory more,” he says. “We’ve purchased more machinery and added to our capacity.” It’s a trend that he predicts will continue. “I think the timelines are going to get shorter. We’ll continue to speed up our lead time and shorten it—I think 9 times out of 10, that’s how I get business.” Michael Drummond is president of Packrite, LLC, in High Point, N.C., a trade finisher for the corrugated and folding carton packaging industries. That same need for speed applies to the quoting process, notes Drummond. “It used to be that we took time to quote and were back to them the next week; that isn’t happening anymore. Today, if it’s within 24 hours, that’s a long time. Quoting a box today is a matter of minutes rather than hours.” In some cases, this process can be automated online, he says, allowing customers

to enter in their specs to generate a quote. That’s the kind of always-on access that customers are more and more often coming to expect. Always-On Access Converters must be able to collaborate at all hours of the day or night, any day of the week, says Levesque. “We have three shifts that work six days a week, seven when required,” she says. Today’s customers demand alwaysavailable access to services and information. “Customers don’t have time to wait on the phone for answers,” says Levesque. “In the age when everyone has mobile devices, customers align themselves with companies that are constantly updating their technology as it changes.” That’s important, she stresses. “Do not throw clunky, alienating technology systems or processes at a customer and expect them to be patient or understanding.” These expectations are driven not only by customer interactions within the packaging industry, but also by all of their collective interactions with businesses that are increasingly online, and that are increasingly improving those online interactions to better address consumer expectations. If their banks, health care organizations, and online retailers can provide a seamless experience, their box manufacturers should be able to as well. Keeping up with the competition, therefore, means keeping up with the sum total of all consumer online experiences. At Royal, says Levesque, record growth over the past year has necessitated the need to review and change certain practices. “We had to shift our mindset to being proactive instead of reactive. We have implemented a new scheduling system, tracking, and mapping of machine uptimes and downtimes.” It’s important, she says, to foresee and anticipate concerns.

Of course, given the need for personalization and demand for innovative solutions, automated quotes aren’t always possible. Having real people available to help with customized requests and collaborative solutions is a must. The Personal Touch Despite the proliferation of technology and the expectation of always-on access, customers still appreciate the personal touch. Increasingly, they demand it. Manufacturers are adding not only technology, but also people, to address the demand. We have a very robust customer service department, and we’re growing it quickly,” says Drummond. “By the end of February, we will have doubled the customer service department just to keep up with people’s demands.” Packrite’s services are highly specialized, notes Drummond. “We’re a trade supplier. When people call in a quote, for us it may involve five to six different machines. We’re a specialty house. As a specialty house, you need to have qualified customer service reps who understand what the particular needs are for the customers.” With so many variables to take into consideration, that type of one-on-one consultation with production experts is key. Because of the type of work that Packrite does, Drummond has also noticed a shift in demand to more highend graphics. “The market is growing exponentially, whether it’s your high-end multiple flexo shops or your single-face lamination, like we provide. Graphics today are selling the product.” He adds that the type of demand he sees is less about the design components than about the actual structure of the packaging solution. “Structure is the weak link in the industry,” says Drummond. Designers need to think like engineers as they come up with creative solutions

Eric Elgin, owner of Oklahoma Interpak, believes leveraging technology is key to keeping up with customer demands.

Michael Drummond, president of PackRite, LLC, says customers these days have a serious need for speed.

BOXSCORE www.aiccbox.org

Terri-Lynn Levesque, office manager for Royal Containers Ltd., recognizes adaptability is the key to customer satisfaction.

to customers’ packaging needs, thinking creatively about structural design. “Tell us what you want to accomplish, and give us your product, or a mock-up of your product, and we’ll design a package that will really show the product or its processes.” But, even when dealing with the basic requirements of customers, making personal connections is important. “In a digital world, people still love to hear a live person on the phone to develop a relationship and a personal connection,” says Levesque. “We have a receptionist, which is a rarity these days.” Maintaining connections on an ongoing basis is crucial for building relationships, says Levesque. Relationships are best built through frequent face-toface visits and calls, especially when there isn’t a problem. “Dissatisfied customers don’t complain; they simply walk away,” Levesque says. “Happy customers are brand ambassadors. In the world of Facebook likes, a referral or customer testimonial is so important.” As companies attempt to better meet shifting customer demands, says Levesque, there’s one key audience that shouldn’t be overlooked, or excluded: employees. They’re on the front line making connections with customers and

Making connections with customers, colleagues, collaborators, and others is a key way to ensure that packaging manufacturers are staying attuned to new expectations, new demands, and new opportunities to better meet customer needs. 46

BOXSCORE March/April 2017

potential customers. “Happy employees are a crucial prerequisite for happy customers,” says Levesque. “It is vital to ensure that employees throughout your company are educated, encouraged, and empowered to promote and enact your customer-retention strategies at all times.” Staying Attuned In a rapidly changing environment, it’s important for manufacturers to stay up-to-date on trends in consumer demand and technology. How do they do it? Participation in AICC is one great way, says Levesque, who points to resources and meetings provided by the organization as a must for those in the industry. “I’ve attended several AICC meetings since I started in the Emerging Leader Program in 2015; that’s a way for me to stay in the loop.” Attending other seminars and staying up-to-date through trade journals is also important. LinkedIn, says Levesque, is another good resource. “I go on there daily to see what everybody is talking about,” she says. Making connections with customers, colleagues, collaborators, and others is a key way to ensure that packaging manufacturers are staying attuned to new expectations, new demands, and new opportunities to better meet customer needs. Thinking of technology as an enhancement to, rather than a replacement for, personalization and personal connections is helping those on the leading edge maintain their competitive position in this fast-paced field. Lin Grensing-Pophal is a freelance writer based in Wisconsin. She is a frequent contributor to BoxScore.

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BOXSCORE March/April 2017

PAY IT FORWARD: Adding Value to Your Employment Practices HELP MOLD PUBLIC POLICY TO BETTER ENHANCE YOUR BUSINESS AND SATISFY YOUR EMPLOYEES By Christine Walters

ave you ever done something for someone who replied, “Oh, you didn’t have to do that”? That is the beauty of doing kind deeds; we don’t have to do them. Otherwise, much less pleasure might be derived from doing the deed. Now apply that to your employment practices. What do you do for or offer to your employees that you don’t have to? Do they know it? Benefits communication is a great way to help employees not just hear, but see all that you provide. I call it a benefits pie. I’m sure that is not the proper name for it, but now you might visualize what I mean. A pie chart shows your employees the value of their total compensation. The pie is composed of not just the wages they earn, but also the costs of everything else: taxes related to FICA, FUTA, workers’ compensation; health care benefits; paid leave benefits, including but not limited to vacation, sick leave, holidays, personal days, jury or witness leave, military leave,

and funeral or bereavement leave; all the in-kind and indirect benefits you might offer, such as education assistance, tuition reimbursement, free parking, health club subsidy … to name just a few. That’s right—it is time to brag. No one else will do it for you. Let your employees know all that you provide on their behalf. Why? It’s a recruitment tool. Especially for smaller employers that may not quite match the market when it comes to base pay, this focuses on total compensation and gives you a chance to showcase all that you have to offer. Next, it’s a retention tool. Employees leave us for so many reasons unrelated to pay. But when pay is a factor, or when work-life balance or professional development is important to an employee, ensure they know the options they have with you as an employer that they might not find elsewhere. Why else? Regulatory pressures squeeze businesses sometimes beyond their means. Legislative mandates drive

some businesses in the direction of unintended consequences. When new laws are enacted that mandate benefits that employers must offer, the market is flattened. You lose your competitive edge when others are made to offer the same

Let your employees know all that you provide on their behalf. great benefits that you already offer. Your value-added propositions are lost. Here are just a few examples. Read 10 articles, and you will have 10 different predictions of what the new presidential administration will bring. In retrospect, select another 10 articles

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on what the 10 issues were in 2016 that most impacted employment practices, and again you will have differing opinions. I find none are right; none are wrong. They are just different perspectives trying to answer the same questions. Of what should a small business owner be aware to enhance compliance and avoid employment practice pitfalls? Here we go. This is just one more author’s perspective, borne from what I have seen and heard from small-business owners as they struggled and speculated about what they should and should not do to comply with myriad and complex mandates.

Board (NLRB), (3) Department of Justice, (4) Department of Labor’s Occupational Safety and Health Administration (OSHA), and (5) Office of Federal Contract Compliance Programs (OFCCP). Then, on January 10, the EEOC published proposed enforcement guidance addressing unlawful harassment under federal employment discrimination laws. As of this writing, the public notice and comment period was scheduled to close February 9. The trends do not stop there. To date, anti-bullying legislation has been

You lose your competitive edge when others are made to offer the same great benefits that you already offer. Beyond Workplace Harassment: Retaliation and Civility On December 10, five federal agencies published a fact sheet, “Retaliation Based on Exercise of Workplace Rights Is Unlawful,” addressing employers’ obligations to prevent various forms of unlawful retaliation. The concept itself is not new, but make note of some less well-known facts: An employee’s right to be free from retaliation includes not just for filing a formal complaint with a federal agency, but for expressing the complaint orally, including to the employer. The right to be free from retaliation applies to all workers, regardless of any individual worker’s immigration status. The agencies that jointly published the fact sheet include the (1) U.S. Equal Employment Opportunity Commission (EEOC), (2) National Labor Relations

BOXSCORE March/April 2017

introduced in at least 30 states—often under the name of “healthy workplace” legislation—that would hold employers liable for a broadened definition of unlawful harassment, including bullying. Fair Pay, Pay Transparency, and Predictive Scheduling From the White House to local jurisdictions, laws are being proposed and enacted with the intent to structure the payment of wages that are fair based on myriad factors. Examples include: Fair pay laws generally go to the old adage of equal pay for equal work, but provide a broader definition. For example, some states have passed laws requiring equal pay for equal work performed by employees at the same location. Maryland, for example, has defined same locations to be those of the same employer located anywhere in the same county. Such laws

may fail to fully account for geographic market variations in pay; census data shows that qualified men or women are available for certain jobs at greater or lesser rates at various locations even within the same county. The result is that if an employer employs two employees with the same job title, performing the same duties, these geographic realities may require that employer to pay those employees differently simply to remain competitive with the local markets. That may set the employer up for having to defend a charge or claim of an equal pay violation. Pay transparency—The National Labor Relations Act (NLRA) already gives all nonsupervisory employees, union or nonunion, the right to talk to one another about their wages, hours, and conditions of employment. Many states have recently enacted laws that broaden those rights and give employees the right to seek remedies and monetary damages in state courts. Some also go beyond federal law by expressly giving employees the right to discuss not only their own wages, but to disclose and discuss another employee’s wages with or without the other employee’s consent. Predictive or fair scheduling—In 2016, at least 13 states and the District of Columbia considered related legislation. Most variations on the theme require that an employer provide to its nonexempt employees their work schedule a specified number of days in advance. Many include a provision that provides that in the event an employer cancels or reduces an employee’s scheduled shift without a specific amount of prior notice, the employer is then obliged to pay that employee for a portion of the scheduled work time that was canceled. This type of legislation can have a big fiscal impact if enacted upon businesses that are regularly

Partner with other business owners and leaders in your industry. Learn from one another—pitfalls to avoid and proactive practices to adopt to enhance compliance.

affected by inclement weather, external events, and other factors beyond the employer’s control that influence staffing and scheduling needs and demands. Paid (Sick) Leave Mandates For many employers, and particularly private-sector small businesses that are covered government contractors, the clamor of paid sick leave mandates has been somewhat deafening. New laws, legislation, and executive orders have come from the federal, state, and local levels. For example, covered government contractors will have to provide paid sick leave to certain employees working on covered contracts in compliance with Executive Order 13706. That same employer may also have to comply with a recently enacted state sick leave law. Then, that same employer may also have to comply with yet another local paid sick leave law—all of which are likely somewhat or significantly different from one another. Just talk to a colleague who is facing this very issue, and listen to the myriad challenges, from redesigning payroll and timekeeping systems to tracking hours worked for paid leave accrual in the required increments for each locale, and then properly administering how that leave rolls over, is paid out at termination, and so much more. Lessons learned? There are many other topics and issues not addressed in this

article, including and not limited to background checks (criminal or credit); legal and legislative challenges to noncompete agreements; new guidance and warning on antitrust violations, as they may arise from participating in salary surveys; worker misclassification (the wage and hour kind related to properly classifying an employee as exempt or nonexempt, as well as properly classifying a worker as an employee versus an independent contractor) … to name just a few. So be aware, be informed, and be proactive. Develop strategic advocacy partnerships. There are lots of organizations that are in the business of lending a hand to shape public policy, including AICC; the U.S., state, and local chambers of commerce; the Society for Human Resource Management (SHRM); and so many

others. You do not have to go it alone. Partner with other business owners and leaders in your industry. Learn from one another—pitfalls to avoid and proactive practices to adopt to enhance compliance. And advocate early and often! Our elected (and appointed) officials need to hear from you. No one knows how a law or regulation will impact your business better than you. Share your stories with them. Pay it forward by shaping public policy, adding value for your business and your employees. Christine Walters is an independent consultant and author at the FiveL Company. She can be reached at 410-848-4721 or info@FiveL.net.

Christine will be presenting at the AICC Spring Meeting, April 26–28 in Austin, Texas. She will give a Keynote Presentation Thursday, April 27, on “What’s Keeping You Up at Night? Employment Laws, Legislation & Regulation Impacting Business Practices.” During the meeting, she will also offer workshop presentations Thursday, April 27: “Employee Handbooks, Read ’em & Weep,” and Friday, April 28: “HR’s Top 10 Headaches.” Christine is presenting a series of three webinars beginning May 25 on “The Latest News in Managing Disability & Leave Issues”; “Social Media and Its Impact in the Workplace”; and “Workplace Harassment: Trends, Tips, and Tools.” Learn more at www.aiccbox.org.

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BOXSCORE March/April 2017

BUILDING COMPETITORPROOF RELATIONSHIPS: The Need for a Disciplined Approach THE MARGIN FOR ERROR IN BUSINESS TODAY IS RAZORTHIN, SO WHY TAKE CHANCES ON YOUR RELATIONSHIPS? By Ed Wallace

Who in the World Is Milorad Čavić?

Born in the United States on May 31, 1984, Milorad Čavić is a retired Serbian champion swimmer. At one time, he broke the 100-meter butterfly Olympic record, finishing ahead of Michael Phelps during preliminary heats at the 2008 Olympics in Beijing. Michael Phelps happens to be the most decorated Olympic athlete in history—winning a total of 28 medals, including 23 gold. During some of the Olympics he participated in, he actually won more than the total number of medals earned by some countries. While Čavić’s feat is noteworthy, he is not as famous for that as for how narrowly

he missed winning the gold medal from Phelps during the Olympic finals—Čavić came in second to Phelps by the smallest of margins—1/100 second in the final 100-meter butterfly event. Let’s reflect on how small a margin of victory Phelps achieved at Čavić’s expense. For perspective, a blink of an eye has been measured at 3/10 to 4/10 second, or 0.3–0.4 second. Now picture watching Phelps’ victory and realizing that it was even faster than the blink of an eye! So, how did Phelps do it? There is no doubt that both athletes endured grueling training since they first began swimming as young kids. As they grew, they

progressed through all of the milestones that are required for them to become top-level swimmers. They probably had special diets, sports science advisers, and all kinds of exotic and crazy exercises to help create that little edge that would someday be called upon. After thousands of hours of training in pools at all hours, coming home with wet hair, and avoiding junk food, Phelps won by the most inconceivable margin. Other than by hundredths of a second, it is difficult to grasp who was the better swimmer in that event. Somewhere along the line during that race, some little thing made the difference. Maybe Phelps

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reached for the wall sooner and had more momentum, because when you watch the replays, it looks like Čavić won until they zero in on Phelps’ fingers. Phelps and Čavić may never be able to explain how the ending unfolded, but more importantly, the takeaway for me is that both competitors left nothing to chance as they went about their preparation and training. As I think about this “reality story” and realize that these tremendous athletes left nothing to chance as they approached their training and events, it strikes me that there are so many similarities to leadership and, specifically, to relationships in business today. First, through my experience working with

Figure 1: The Relational Ladder

BOXSCORE March/April 2017

hundreds of companies and associations and thousands of their professionals, all executives justifiably share their theory of “leadership”—linking this word to other key words such as performance, success, career development, sales, profit, innovation, inspiration, repeat business, and other measures associated with great leaders. Second, companies attempt to hire the smartest and hardest-working people they can find and invest a great deal in leadership development. They assess strengths and soft spots, providing the latest methods for growth, and even include executive coaches, who share their wisdom with these leaders. All the while, they try to unlock the secret leader and

high performer in their charges and create an edge over their competition. Finally, they believe that their companies are built on relationships and the fundamental fact that successful leadership depends on outstanding, trustbased relationships. This fact is no secret. Just think about the most successful leaders you know. There is a very strong probability that one of their strongest attributes is the ability to create outstanding relationships, not only with customers, colleagues, and their teams, but also with just about everyone with whom they come into contact. They believe they are leaving nothing to chance, just as Čavić and Phelps did with their approach.

If you think of all your important business relationships as being somewhere on the ladder, you can then better determine which steps you need to take to advance these relationships at any given time.

A Model for Developing Relationships

Now, the question arises: How, exactly, do you go from being an average relational leader to being a competitor-proof one? What is the process or method by which you can systematically develop the competencies I shared? With this idea in mind, I applied my experiences with hundreds of clients and partner relationships, along with research into client behaviors, to develop the following “Five Steps to Transform Contacts Into HighPerforming Business Relationships”: Common Ground: Launch 1 Establishing the relationship. Displaying Integrity and Trust: Secure 2 the relationship. Using Time Purposefully: Invest in 3 the relationship.

4 Offering Help: Share relational equity. Asking for Help: Realize returns on 5 your investment.

Throughout Business Relationships That Last (Greenleaf 2010), I explain each of these five steps in a way that will allow sales professionals or relational leaders to learn the new skills and processes that go into creating outstanding business relationships. Visually, the five-step process can be represented by a ladder, which I call, appropriately enough, the Relational Ladder® (Figure 1). Even though a ladder is very simple by design, it can be used to model increased levels of learning and relational skill development. You could think of a ladder as a metaphor for advancement, achievement, ascent, and visibility in reaching a goal. If you think of all your important business relationships as being somewhere on the ladder, you can then better determine which steps you need to take to advance these relationships at any given time. Each rung of the Relational Ladder represents a sequential step that moves you toward your most lasting professional relationships. Naturally, each time you move up a rung, you will feel encouraged that such a goal is attainable. Let me

describe each part of the Relational Ladder in greater detail to anchor the image in your mind. THE FRAME

Each side of the ladder’s frame represents your specific skill sets. The right side of the Relational Ladder represents the hard skills, or the “science,” of your business approach; the left side represents your soft skills, or the “art,” of your business approach. We all have developed both to some extent throughout our careers. Beginning with our first part-time jobs as teenagers, we then advanced these skills through higher education and work experience. HARD SKILLS: SCIENCE

The hard skills a client-facing professional needs to be successful include industry knowledge, product knowledge, ability to develop return on investment, technical abilities, sales metric proficiency, and proposal-writing skills. Since most competing professionals can master these to an effective degree, the science component in many careers has largely become

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Your integrity emerges when you deliver on your commitments to your clients time and time again.

an aspect of business in which everyone is versed indistinguishably. In fact, these capabilities are now expected—no, required—for client-facing professionals going into most business relationships. Therefore, emphasizing hard skills provides minimal opportunity for these professional men and women to distinguish themselves in the business relationship. SOF T SKILLS: ART

On the opposite side of the ladder frame are the soft skills, or the art, of your business approach. Quite simply, these are your interpersonal skills and

behaviors. Some of the soft skills required in business include friendliness, approachability, excellent verbal and written communication skills, listening, managing a network, presentation skills, negotiation, and emotional intelligence. Many executives hire for these skills and assume that the client-facing professional can learn the complementary hard skills required to be successful in the new role. When soft skills are the only competency the professional can develop, however, this overemphasized side of the frame causes the ladder to become lopsided and unsteady as well.

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BOXSCORE March/April 2017

THE LINE BET WEEN STRENGTHS AND WEAKNESSES

The challenge we face is that we tend to gravitate toward the side of the ladder where we are strongest. Some of us, including me, exercise soft skills more often, but if someone is best at exhibiting their hard skills, they will tend to emphasize those strengths. This tendency to lean toward where we are most comfortable—thus tipping the Relational Ladder—will eventually make us look to our clients like every other typical client-facing professional. What is the main structural quality of the ladder that you are depending on to keep it from falling to one side or the other? The answer is balance! Developing outstanding business relationships involves carefully balancing science and art, a combination of your hard and soft skills. Neither of these two components should greatly outweigh the other. THE RUNGS

Now that we can visualize our hard and soft skills as the framework for supporting every one of our business relationships, we can think of each of the rungs as one of the steps in the “Five Steps to Transform Contacts Into HighPerforming Relationships.” These steps are the secrets to success in any business relationship. So, when we place the five steps—establishing common ground, displaying integrity and trust, using time purposefully, offering help, and asking for help—onto the Relational Ladder, you will see how each element has a special role to play in moving you upward from one step to the next: • Your ability to launch a relationship and move off the first rung depends on building credibility—becoming

believable so your clients will share their goals and struggles with you. • Your integrity emerges when you deliver on your commitments to your clients time and time again. • Your ability to reach the top rung of the Relational Ladder depends on creating sufficient relational capital with your client by reflecting your worthy intent throughout the process, to the point where they begin to ask for your point of view—even on issues outside of your business together. These five steps represent a repeatable process for business relationship advancement that allows you to build strong enough relationships to balance your hard- and soft-skill tendencies and take you from an acquaintance to a professional peer to ultimately a respected adviser. Realizing that there is an underlying process that orders the apparent

randomness of business relationships is your first step toward gaining—and sustaining—relational fluency. This results in an easy way to create strategies for customer relationships and leave nothing to chance with your sales performance, just like Phelps and Čavić in their Olympic duels. Ed Wallace is president of The Relational Capital Group. He may be reached at 610-574-5799 or edwallace@relcap group.com.

Ed Wallace will be a keynote speaker at the 2017 AICC Spring Meeting, April 26–28, 2017, in Austin, Texas. Visit www.aiccbox.org/meeting for more information and to register!

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The Associate Advantage

FILTERING OUT THE ‘NOISE’ ED GARGIULO EQUIPMENT FINANCE CORP. VICE CHAIRMAN EGARGIULO@EFC-FINANCE.COM

JEFF PALLINI FOSBER AMERICA CHAIRMAN PALLINIJ@FOSBER.COM

DAVE BURGESS JB MACHINERY SECRETARY DBURGESS@JBMACHINERY.COM

PAT SZANY AMERICAN CORRUGATED MACHINE CORP. DIRECTOR PSZANY@ACM-CORP.COM

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

BOXSCORE March/April 2017

oth the election and inauguration of President Donald Trump are over. Just when we thought that it was safe to go back to our normal lives, check the internet for daily news updates, and again relax in front of our TVs at night, we find ourselves inundated with news stories of both euphoria and doom and gloom. How is one to filter it all out and truly evaluate the business environment we will operate within over the next four years? Regardless of your personal political beliefs and whether the constant news stories of what to expect from the Trump administration energize or scare you, both those on the “highest highs” and “lowest lows” may be surprised at the future reality. There have clearly been countless factors throughout history that produced the success of our American social, economic, and political way of life. Arguably, the most important of these are our Constitution and the laws duly enacted thereunder, the “rule of law,” which has protected us from short-term changes in government policy. This stable environment has allowed our society and economy to prosper.

The fact that we have three branches of government to provide checks and balances has rewarded us with a political system that rarely creates sudden and drastic swings in social or business environments. Policy changes, at least those bound to remain in place, typically evolve and are enacted over years rather than months. We must understand that, in addition to the assumed pro-business policies of the Trump administration, we can expect a continuation of the stable political, social, and economic environments established by our founding fathers, under which our country has grown and flourished. That dictates that the time to grow and expand your businesses and their capabilities is at hand. Full utilization of the vast educational resources provided by AICC can both help you determine the best method to establish that growth and enable your employees to have the training to turn that growth into enhanced profitability. This article was written by Ed Gargiulo.

Regardless of your personal political beliefs and whether the constant news stories of what to expect from the Trump administration energize or scare you, both those on the “highest highs” and “lowest lows” may be surprised at the future reality.

Ask Tom

FOLDING CARTON CONVERSION OF E FLUTE LITHO LAMINATED PACKAGING BY TOM WEBER

s an early adopter and manufacturer of N flute folding cartons for high-count Hefty Trash Bags in the late ’80s, I learned quickly what direct six- to seven-color litho printing on a fluted substrate meant on such a high caliper (.036–.040) but very “soft” print surface, side guide, and front edge. Suffice it to say, we produced it successfully, made a lot of friends in our client marketing group, and ultimately sold N flute to them for many years. It was, however, not necessarily a very enjoyable manufacturing experience, as many of our readers might understand with a smile. Fast-forward to today’s world, and check out what has happened in the last couple of decades: • Large format (56–65") litho printing/ coating presses are producing light caliper (.006–.008) SBS top sheets that are then mounted to a single-faced corrugated sheet in-line on machines that are all capable of running 12–18,000 sheets per hour. • The laminated sheets of B, C, E, F, or N flute are then further coated, die cut, and glued with converting equipment that once was used only for folding cartons manufactured from paperboard grades ranging from .012 SBS and CNK up to .038 CCN … and everything in between. Thus, the old days. • The platen die cutters are equipped to handle calipers from .008 up to B and C flute, and everything in between. With the latest technological advancements in both side and in-feed electronic eye sheet registration, you can almost be guaranteed a perfect

BOXSCORE March/April 2017

If you don’t possess this equipment, please consider it as you replace your current machinery. registration on each and every printed sheet that is die cut, stripped, and yes, even blanked. This is all occurring at speeds up to 9,000 sheets/hour, and perhaps even faster, depending on the calipers, job layouts, and specific carton styles. • There has been nothing lost in the gluing department upgrades either. The technological advancements in the last decade have been equally impressive, and perhaps even more so given the extreme flexibility that must be built into the machine for folding and gluing a very specific carton design standpoint. I hesitate to say that at least three major gluer manufacturers have figured out how to deliver machines that can stand up to the rigors of what those high-speed die cutters are pumping out at them. • Am I suggesting that all folding carton converters become corrugated converters? No … but I am suggesting that if you have the equipment that is capable of running these items, it may surprise you how many of your clients purchase such fluted packaging as an adjunct to their folding carton procurement. Once the education and training takes place, this is a growing and particularly profitable segment of the packaging industry for many

years to come. If you don’t possess this equipment, please consider it as you replace your current machinery. The added manufacturing equipment flexibility does not cost much more these days, whether slightly used or new machines are involved. • Finally, the technological investments made by several major companies in both high-resolution direct print digital onto a multitude of high caliper fluted substrates and lower cost litho printed top sheet to single- faced corrugated sheet laminators only further secures the fact that this fluted folding carton market is growing rapidly and definitely here to stay for many years to come. I look forward to hearing from and assisting you regarding your efforts to branch out into the fluted converting arena, and possibly moving your business forward into perhaps yet another key growth niche for your folding carton operations team over the next two to three decades. Tom Weber is folding carton technical adviser for AICC members. Contact Tom directly about technical issues that impact the folding carton industry at tweber@aiccbox.org.

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Financial Corner

THE NEED FOR INTEGRATED INFORMATION BY MITCH KLINGHER

or information to be useful, it needs to be looked at in context with other information that it relates to. In today’s world of “relational databases,” this would all seem to be eminently achievable. After all, your system contains information from almost all your departments—finance, plant, design, customer service, shipping, delivery, maintenance, personnel, and possibly others. By pulling information from all of these areas, we should be able to create the proper context for almost everything that we measure and report. Yet what I often see in my travels is a lot of disjointed data that is generally shown in expedient ways. As we have discussed before, income statements are often dumps of general ledger information that are shown as a percentage of sales or per MSF or per ton, even though this is not the proper context in which to gain an understanding of most of the reported figures. Estimating is often done without any production information on how the order being quoted has run in the plant, and without real-time information on current plant scheduling. Sales reports often lack integrity, because the books and the estimating system are not properly reconciled and adjusted. There is very little information on the design department, the customer service department, the sales department, and maintenance department, because no one has ascertained what information is available and how to present it. In general, operational data is not related to financial data, and financial data is presented with the accompanying operational data. In a prior edition of BoxScore, I wrote an article titled “It’s About Time and Other Dimensions,” in which

BOXSCORE March/April 2017

I discussed the need to get beyond the two-dimensional world that accounting gives us and add such things as time, capacity, efficiency, and other dimensions to make our data more meaningful. Creating a reporting system using integrated information is an operational plan to accomplish this goal of multidimensional reporting. If you embrace the need to improve your reporting systems by integrating the information that is in your system, the question then becomes where to start. In my opinion, you first need to figure out what data you collect, where it resides, and whether it’s searchable, and if so, what programs and/or data bases you must utilize. Some of the older systems in use may be more problematic in this regard, but useful integrated reporting can still be accomplished. Next, you need to decide which areas to focus on. Generally, this becomes a combination of what is expedient and what is relevant. Those of you who have gone through SWOT analysis and some element of strategic planning have set goals and are already measuring key areas that require improvement. Many of you have a sense of the key performance indicators of your company, and these are certainly areas to focus on. Starting with this issue, I will begin offering you some advice based upon what I see in my travels. Key Information Integration Project No. 1: Order Acceptance and Profit Estimate As mentioned earlier, I believe that the best predictor of how an order will run in your plant across your equipment should be based mainly upon how similar orders have run in the recent past. The setup and run times in your estimating system

are purely hypothetical and generally static. In the “real world,” some orders are more difficult to set up and run, and longer orders tend to run faster per piece than shorter orders. At the end of the time, machine hours in every plant are a finite resource. In addition, not every shift can run every order efficiently every day. It may be that the second-shift operators are capable of running only simpler orders. Certain machine centers may be overbooked when an order comes in. The ability to have actual plant data, and real-time production and delivery scheduling can help you improve the order’s profitability, and the efficiency of how it will run through the plant and be delivered to the customer. In addition, if you embrace the concept of variable profit per hour predictions, this information is essential. In future articles, I will examine other key information-integration projects, such as: • Adding people data to financial reporting. • Adding production data to financial reporting. • Adding maintenance data to financial reporting. • Creating managerial reporting for sales. • Creating managerial reporting for design. • Creating managerial reporting for maintenance. Mitch Klingher is a partner at Klingher Nadler LLP. He can be reached at 201-731-3025 or mitch@klingher nadler.com.

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

PACKAGING

CORRUGATED

F O U N D AT I O N

ICPF ANNUAL STUDENT DIALOGUE DINNER

n February 22, the evening before ICPF’s Teleconference on the Business of Corrugated Packaging & Displays and the Career Opportunities, 20 select students from Bowling Green State University, Clemson University, Michigan State University, and Virginia Tech joined Teleconference speakers and local industry executives in East Lansing, Mich., for dinner to learn more about corrugated packaging and display industry careers. Executives with packaging facilities in the region and industry speakers for the Teleconference (where 18 campuses and almost 500 students participated) provided these students, who have

indicated a preference for a career in corrugated, firsthand knowledge of the industry. The students from Bowling Green State University, Clemson University, and Virginia Tech were provided ICPF travel grants for travel to East Lansing as ICPF’s special dinner and Teleconference guests. The visiting students joined the MSU student audience in the public television broadcast auditorium the next day to view ICPF’s Teleconference, gaining additional knowledge on the corrugated industry as well as a unique perspective on the program through observing their fellow

students’ participation from their remote campuses by video broadcast. Many students who have participated in the annual dialogue dinner program in past years have accepted positions in the corrugated industry upon graduation. For more information on the students and executives who participated this year, visit www.careersincorrugated.org. The résumés of these students, as well as those of other qualified upcoming graduates, additionally can be accessed on ICPF’s Career Portal by ICPF corporate partners and potential partners that post student internships or full-time entrylevel openings there this quarter.

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BOXSCORE March/April 2017

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

PACKAGING

CORRUGATED

F O U N D AT I O N

NOW IS THE TIME TO EFFECTIVELY RECRUIT GRADUATES THROUGH ICPF

ow is a crucial time to reach out to recruit students who are approaching spring and summer graduation. For those ICPF corporate partners (and firms considering corporate partner pledges) that have entry-level openings or wish to offer a student internship, one of the most proven tools for recruiting is

ICPF’s Career Portal. Not only do you get direct applications from new or upcoming graduates, the posting of an opening allows your firm to search ICPF’s online Résumé Bank, which has more than 100 résumés. If your firm has an entry-level opening in packaging design, graphic design, sales, business, or engineering,

or you wish to locate a student intern for this coming summer or fall, contact rflaherty@icpfbox.org to get started. ICPF’s Career Portal is a free benefit for ICPF corporate partners and for those corrugated firms or suppliers considering making a partnership pledge this year.

2017 HOLIDAY WEEKEND IN NEW YORK—SIGN UP EARLY AND SAVE!

egistration is now open for ICPF’s Holiday Weekend in New York, scheduled for Friday to Sunday, December 8–10, 2017. To ensure participation, ICPF recommends you register this spring, and by June 30 to save $200 with early bird registration. You can request a registration form from registration@icpfbox.org, or visit www.careersincorrugated.org to download a form. Bring your spouse or guest for the Friday opening reception at the historic Sardi’s, known for its walls of caricatures of visiting celebrities. The next day, participants will enjoy a Saturday matinee of Broadway’s

latest hit and a Saturday night reception and dinner at the renowned restaurant Le Cirque. By popular demand, the host hotel will be The Muse New York again, and there will be free time throughout the weekend for shopping, museums, and touring New York’s holiday season sights—all while supporting ICPF’s educational mission. Richard Flaherty is president of the International Corrugated Packaging Foundation.

BOXSCORE www.aiccbox.org

The Final Score

WHY IS AN ‘INDEX’ NECESSARY FOR OUR INDUSTRY?

y the time these words get past my editor, into print, and into your hands, there may well be another containerboard price hike announced. Rumblings of such an occurrence have been heard since before the end of the year. OCC prices are on the rise, mill operating rates are hovering at around 97 percent, and box demand is brisk, driven by a very strong end-of-year performance. FBA reported on February 1 that shipments in December 2016 were up 5.9 percent on an average weekly basis. And, since the messy implementation of the previous increase in October/November, when few of these normal “drivers” suggested an increase was justified, the talk, talk, talk among our industry’s punditry says there’s likely to be another. Mark Wilde, in a commentary from the Bank of Montreal issued January 27, wrote, “Global containerboard markets have tightened dramatically over the past eight to 10 weeks, making a spring hike appear inevitable.” And it is not just in the containerboard grades, either; the boxboard market has seen similar increases announced of $60 per ton in uncoated recycled board (URB). This time, though, the bigger story is becoming how our industry reports this pricing. Over the many years I have been around this industry, I have heard member after member wonder why we are beholden to one publication’s view of the world when it comes to the pricing of raw material. Like it or not, Pulp & Paper Week’s (PPW) monthly Price Watch has become the final arbiter of what happens in the boxmaker-customer relationship, and it just doesn’t sit well with the majority of independents I’ve talked to. They question the methodology, the sample size, and fundamental reasoning with regard to how they report list prices for 42# linerboard. The October/November increase, cited above, is a case in point, when in October PPW’s Price Watch “recognized” only $40 of the announced $50—hence the description of “messy,” cited earlier. To the many members who’ve voiced their opinion, it does not seem logical in today’s containerboard landscape that a single price point of questionable origin can be the driver of a value-added product such as corrugated packaging. With the number of grades and quality differences available for whatever performance requirements the customer demands, how can a single price point have any relevance? It will be interesting to see how this evolves in the coming year, especially since RISI’s planned addition of a 100 percent recycled linerboard index is in the commentary phase as I write this. AICC members have weighed in heavily, to be sure, and this development is not being embraced as good for our industry. What’s your opinion? Send an email to syoung@aiccbox.org.

Steve Young President, AICC

BOXSCORE March/April 2017

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