Strength in Numbers
Labor Markets It seems that everyone is having trouble finding qualified employees. COVID issues, government support payments, almost zero growth in the population of working-age people, and the lack of any cohesive immigration policy have made this a major problem. Many converters tell me that even if they had all of the paper or sheets they need, they would still have trouble meeting customer demands because they don’t have enough qualified people to operate every machine and work every shift. Investment in Corrugators There are a lot of new corrugator projects underway across the country at both the integrated and independent levels. However, there are a limited number of manufacturers, and lead times are in
the 12- to 18-month area, so it is going to take a while for increased corrugator capacity to affect the markets. This is also a regional issue in that many independent sheet plants still tell me that they cannot get any more footage from the corrugators in their regions, and this has been a serious impediment to their ability to take care of customers and grow. This will continue to be an issue for at least the next 12–18 months and probably longer in some regions of the country. Investments in Finishing Equipment While walking the floor at SuperCorrExpo in Orlando, Florida, last summer, I was struck by how few people seemed to be there. There seemed to be far more vendors than potential customers to my eye, yet most of the vendors who I spoke with indicated that they went home
with lots of orders and good prospects for more in the future. Converters are making money and looking to invest in their plants and equipment. Almost every independent that I am involved with has equipment on order or is planning to order equipment in the next year. Some are also increasing their physical plants. All of this equipment will greatly increase their production capabilities and in many cases allow them to increase their product lines. In addition to allowing them to produce more footage per man-hour, much of it will allow them to reduce overall head counts in the plant. Pre-feeders, robotics, palletizers, and an overall increase in conveyorization are all in the plans for most independents in reaction to the continuing labor shortage. However, as with corrugator investments, they
Digital cutting at an industrial level.
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BOXSCORE March/April 2022
