Sept/ Oct 2018 BoxScore- Your Best Team Members by AICC, The Independent Packaging Association

Sept/Oct 2018 Vol. 22 Issue 5

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A PUBLICATION OF AICC, THE INDEPENDENT PACKAGING ASSOCIATION

September/October 2018 Volume 22, No. 5

YOUR BEST TEAM MEMBERS EDUCATION AND TRAINING ARE ESSENTIAL TO ATTRACT AND DEVELOP GREAT EMPLOYEES

ALSO INSIDE A Worthy Investment Following the Leader AICC Report: Salary, Wages, and Benefits Up AICC Education Catalog

TABLE OF CONTENTS September/October 2018 • Volume 22, No. 5

COLUMNS

50 FEATURES

YOUR BEST TEAM MEMBERS Education and training are essential to attract and develop great employees

A WORTHY INVESTMENT A lot of thought—and money—goes into the process of rebranding, but the commitment is necessary to get ahead

FOLLOWING THE LEADER Family businesses face unique challenges in succession planning

AICC REPORT: SALARY, WAGES, AND BENEFITS UP

AICC EDUCATION CATALOG

58 64

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. ©2018 AICC. All rights reserved.

CHAIRMAN’S MESSAGE

SCORING BOXES

LEGISLATIVE REPORT

MEMBERS MEETING

ASK RALPH

ASK TOM

SELLING TODAY

TACKLING TRENDS

ANDRAGOGY

MARKETING MIX

DESIGN SPACE

THE ASSOCIATE ADVANTAGE

STRENGTH IN NUMBERS

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: Al Hoodwin, Michigan City Paper Box Co. First Vice Chairman: Joe Palmeri, Jamestown Container Companies Vice Chairman: Jay Carman, StandFast Packaging Vice Chairman: John Forrey, Specialty Industries/Krafcor/ NuPack Printing Vice Chairwoman: Jana Harris, Harris Packaging/ American Carton DIRECTORS-AT-LARGE Kevin Ausburn, SMC Packaging Group Matt Davis, Packaging Express Eric Elgin, Oklahoma Interpak Marco Ferrara, Cartones Sultana Finn MacDonald, Independent II Nelva Walz, Michigan City Paper Box DIRECTORS Doug Rawson, Superior Lithographics David DeLine, DeLine Box Company Justin Mathes, Vanguard Companies Mike Schaefer, Tavens Packaging & Display Gary Brewer, Package Crafters Inc. Guy Ockerlund, OxBox Pedro R. Aguirre Martinez, Tecnología de Cartón Joe Hodges, Mid-Atlantic Packaging Larry Grossbard, President Container Group Peter Hamilton, Rand-Whitney Corporation John Franciosa, McLeish Corr-A-Box, Coyle Packaging Group Kim Nelson, Royal Containers Ltd. President: A. Steven Young, AICC Immediate Past Chairman: Tony Schleich, Lawrence Paper Company, American Packaging Division Chairman, Past Chairmen’s Council: Mark Williams, Cauthorne Paper Company

Secretary/General Counsel: David P. Goch, Webster, Chamberlain, and Bean Counsel Emeritus: Paul H. Vishny, Esq.

SUBMIT EDITORIAL IDEAS, NEWS & LETTERS TO: BoxScore@theYGSgroup.com

EMERGING LEADER BOARD DELEGATES Josh Sobel, Jamestown Container Companies Terri-Lynn Levesque, Royal Containers Ltd.

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, Education and Training Manager Laura Mihalick, Senior Meetings Manager Taryn Pyle, Director of Education and Leadership Development Alyce Ryan, Marketing Coordinator Richard M. Flaherty, President, ICPF

ASSOCIATE MEMBER DIRECTORS Chairman: Ed Gargiulo, Equipment Finance Corp. Vice Chairman: David Burgess, JB Machinery Secretary: Pat Szany, American Corrugated Machine Corp. Director: Joe Morelli, Huston Patterson Printers Immediate Past Chairman: Jeff Pallini, Fosber America ADVISORS TO THE CHAIRMAN Kim Nelson, Royal Containers Ltd. Ed Gargiulo, Equipment Finance Corp. Jim Akers, Akers Packaging PUBLICATION STAFF Publisher: A. Steven Young, syoung@aiccbox.org Editor: Virginia Humphrey, vhumphrey@aiccbox.org EDITORIAL/DESIGN SERVICES The YGS Group • www.theYGSgroup.com Vice President: Jack Davidson Senior Managing Editor: Ashley Reid Senior Editor: Sam Hoffmeister Copy Editor: Steve Kennedy Associate Editor: Drew Bankert Creative Director: Serena L. Spiezio Art Director: Jason Deller Account Manager: Brian Hershey

ADVERTISING Information: Virginia Humphrey, vhumphrey@aiccbox.org Opportunities: Howard Neft, InTheKnow Inc. 847-899-7104 • thneft@aol.com 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. WHEN YOU INVEST AND ENGAGE, AICC WILL DELIVER SUCCESS.

Chairman’s Message

Strength in Numbers: It’s More Than Just the Numbers

t’s hard to believe that I’m writing my final column for AICC’s BoxScore when it seems as though a mere six weeks have passed since my first. In the November/ December issue last year, I introduced myself as your new chairman and explained that my theme for the year, “Strength in Numbers,” was an appropriate description of the value AICC delivers to its members. Now that nearly a full year has passed since that first column, I’d like to reflect on some of the “Strength in Numbers” that AICC has brought us. Just as in our own businesses we watch certain metrics, so too does your Association. Here are a few: • 62 new members in 2017–2018. • 94 percent member retention rate or, if you will, member satisfaction rate. • 3,416 e-learning logins, with 1,049 active users—and growing! • 1,000-plus completed e-learning courses. • Eight AICC Associate Member Education Investors signed on. • 10 percent growth in attendance at AICC National Meetings. • 20 percent growth in our regional summits. As I hand over the gavel to my successor, your First Vice Chairman Joseph M. Palmeri of Jamestown Container, I want to say a special thanks to all of you who have welcomed me into your plants and offices. One of the privileges of being chairman of this Association is the ability to be a roving ambassador here and abroad for the independent entrepreneur in our industry. It’s a real pleasure. I also want to thank my fellow officers and members of the board of directors, as well as my advisors, Ed Gargiulo, Kim Nelson and Jim Akers. AICC is blessed to have an active, engaged leadership, and our success as an organization is because of their selfless efforts. And it goes without saying that none of this could be accomplished without the cheerful enthusiasm of AICC’s dedicated staff. One final thought about AICC’s “Strength in Numbers”: The leadership bench for AICC consists of successful, dedicated business owners who will be assuming the chair in the years ahead. They are Joe Palmeri, Jay Carman, John Forrey, Jana Harris, and Matt Davis. This design has meant that AICC’s continuity in leadership is assured. So too is it with our professional staff. Earlier this year, when AICC President Steve Young announced that he will step down in June 2019, your board of directors unanimously chose Vice President Mike D’Angelo as Steve’s successor, thereby ensuring a smooth transition. Thank you again for allowing me to serve, and remember, in AICC there’s “Strength in Numbers.”

Al Hoodwin CEO, Michigan City Paper Box Co. Chairman, AICC

BOXSCORE www.aiccbox.org

Scoring Boxes

The Risk of Increasing Trade Tensions BY DICK STORAT

s the year rolls on, U.S. industrial production is growing rapidly. However, while the manufacturing sector and those independent corrugated converters who make the boxes to protect and deliver those goods are on a roll now, storm clouds are visible on the horizon as the threat of a major trade war looms larger. In January, the U.S. imposed tariffs on imported washing machines, and in April, tariffs were levied on steel and aluminum imports. So far, the administration has imposed duties on $92 billion of imports including washers, solar panels, steel,

aluminum, and a range of other goods imported from China. Already, higher metal prices have put pressure on some manufacturers that use aluminum and steel in their products to cut costs or raise prices. And the component of the Producer Price Index that tracks laundry equipment prices has risen by more than 20 percent since the beginning of the year, a penalty felt by consumers needing new or replacement equipment. In addition, the U.S. Trade Represen tative has published a list of up to $400 billion of additional goods on which a 10 percent tariff would be added. At the

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BOXSCORE September/October 2018

time of this writing, this tariff is currently under review and negotiation, and if approved by the administration, these penalties would go into effect between August and November. Tariffs on imports and exports act as taxes that adversely impact American consumers and businesses. While taxes on imports may increase U.S. producers’ competitive position, the imposition of similar tariffs on exports in a tit-for-tat escalation of trade confrontation can hurt economic growth even more seriously. With the U.S. economic expansion now some 10 years old and inflation already rising faster than wage gains, adding tariffs will erode consumers’ purchasing power even more, perhaps enough to push the economy into recession. According to the U.S. Chamber of Commerce, half of all U.S. manufacturing jobs depend on exports, and 1 in 3 acres of American farmland is planted for international sales. In response to U.S. actions, major U.S. trading partners have published lists of goods exported to their countries from the United States on which identical tariffs would be imposed. The U.S. Chamber of Commerce has aggregated U.S. Census Bureau 2017 values for these identified exports from Canada, Mexico, the European Union (EU), and China. On their website, www.uschamber.com/tariffs, the data is organized so state-by-state impacts can be viewed. The total 2017 value of these targeted exports for all states comes to a whopping $59.4 billion dollars. The table on Page 6 shows the U.S. exports targeted for foreign retaliatory tariffs for the top 10 impacted states and the U.S. totals identified by country. Washington,

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Top 10 and Total U.S. Exports by State Subjected to Foreign Tariffs1 ($ Millions)

EXPORTS FROM STATE Washington Louisiana California Texas Illinois Alabama Ohio South Carolina Michigan Pennsylvania U.S. Total2 U.S. Packageable Total U.S. Packageable as % of Total

CHINA $5,237 $5,725 $3,985 $1,363 $2,117 $2,438 $826 $2,572 $842 $35 $30,578 $3,298 11%

EXPORTS TO COUNTRY MEXICO CANADA $122 $172 $629 $87 $7 $120 $383 $699 $562 $183 $1,648 $659 $144 $454 $1,133 $183 $700 $248 $111 $294 $2,110 $37 $117 $287 $88 $292 $1,125 $368 $156 $1,164 $4,230 $6,769 $17,818 $1,649 $2,688 $6,397 39% 40% 36%

TOTAL $ 6,160 $5,940 $5,629 $3,853 $3,849 $3,569 $3,341 $3,013 $2,347 $1,724 $59,396 $14,032 24%

1 Data on U.S. exports subjected to foreign tariffs comes from official sources of governments of Canada, Mexico, the EU, and China. 2 In some cases, imprecision may arise because some imports are re-exported or because one state's products may be exported through another (e.g., a border state).

Louisiana, and California each account for more than 10 percent of the total. So, what does this mean for box producers? Since many of the products in the initial volley of the trade conflict are steel or aluminum goods that consume little corrugated packaging, boxmakers have so far felt mainly indirect effects, such as reduced sales of laundry equipment in the face of rising prices. To answer that question for all the products identified by major U.S. trading partners, we looked at the detailed data and identified those products that consumed corrugated (e.g., food, personal care items, etc.). These packageable goods are estimated to amount to $14 billion of the total $59.4 billion of 2017 exports, and the tariffs have the potential to erode the sales of boxmakers supplying packaging for the identified products. As shown at the bottom of the table above, they amount to nearly one-quarter of

BOXSCORE September/October 2018

all the goods covered by the proposed retaliatory tariffs. Unsurprisingly, Canada, our largest trading partner, has identified the greatest amount of packageable goods, $6.4 billion. The largest category of Canadian trade items are prepared foods, including bakery goods and personal care items, and include $1 billion of converted paper products, mainly toilet paper. China has proposed tariffs on a set of nondurable goods, of which they imported $3.3 billion worth in 2017. High on the list of packageable goods were $1.2 billion of seafood products and $713 million of meat products. Fruit, vegetables, and tree nuts amounted to $567 million and, if the tariffs are implemented, they will have a major impact on packaging demand in California and other states in the west. Exports of wine, whiskey, and other alcoholic beverages are another targeted sector, as are tobacco

products, of which China imported $163 million last year. Mexico has targeted meat, cheese, prepared foods, and fresh produce for tariffs on goods worth $2.7 billion. Finally, the EU has targeted packageable goods totaling 41 percent of its total package of retaliatory tariffs. Half of that total is aimed at fruits, vegetables, and nuts. The stakes to settle the current trade disputes and achieve a fair balance of trade conditions without prohibitive tariffs are high, since the economic impact of reduced or more expensive trade will be harmful to all in the global economy. Dick Storat is president of Richard Storat & Associates. He can be reached at 610-282-6033 or storatre@aol.com.

E R U S A E M

S S E C C SU

Nearly 20 operators, managers, and directors spent two days learning process improvement tools and communication skills for faster set-ups and higher quality production. This past June AICC members came together for the new Production Measurement Seminar, hosted at Independent II in Louisville, KY. Participants started learning even before they touched down, with two live webinars, two online courses, and an online meeting required to get everyone on the same page and ready to get the most out of the seminar. Hosted at Independent II, the seminar began with a tour of the plant. Then, facilitator, Scott Ellis, Working Well, began the conversation by inviting attendees to discuss what and how they measure their production lines. After a review of successful project planning, the group began to learn how to diagnose potential areas for gain and how to get there. Using

their own company data and information from Independent II, attendees learned how to gather accurate production data, calculate overall equipment effectiveness, and identify waste using TIMWOOD. By observing the machines at Independent II attendees gathered live data, put their new skills into action, and then identified the top three issues and reported out to share their findings and develop plans to improve the issues. Participants left with tools for process improvement and communication to gain speed of set-up and production with greater quality.

You can only benefit from having 18 box makers in-house. The coursework, the connectivity and the camaraderie all stay with you well beyond the training. ~Finn MacDonald, VP Operations, Independent II

AICC offers training for all departments. A well-trained employee can improve your bottom line.

Learn more at www.aiccbox.org/calendar or visit usCorrugated Week booth #849.

Legislative Report

A Good Day on Capitol Hill — AICC Members Get Results BY ERIC ELGIN

was extremely pleased to participate with several leaders from AICCmember companies who joined other printing and packaging industry executives for the 2018 Print & Packaging Legislative Summit in Washington, D.C., June 19–20. (See July/August BoxScore, Legislative Report.) We advocated on a broad range of pending matters before Congress: opposing tariffs on aluminum and paper; tax reform 2.0, including making expensing of capital investment permanent; legislating association health plans (AHPs—see May/June BoxScore, Legislative Report) as a stronger solution to the current executive order; and supporting the reauthorization of the Perkins Workforce Career and Technical Education (CTE) Act. That last bit of legislation is a mouthful, but it is so vitally important to independent manufacturers like us. The aim of CTE is to keep federal money flowing into technical education programs aimed at training students and individuals from other vocations in manufacturing careers, and connecting them with employers who need qualified people in manufacturing operations. Virtually every AICC survey of membership points to the need for finding and retaining qualified labor as priority No. 1. AICC’s education programming—especially online content free to all member companies and their employees—goes a long way in this regard, but having the government money behind additional training and engagement opportunities is very powerful. CTE was passed by the House last year, but it had been stalled in the

BOXSCORE September/October 2018

Senate. I am pleased to report that on Monday, July 23, the Senate voted to reauthorize the Perkins Act. The House adopted the Senate version of the bill on Wednesday, July 25, and sent the bill to President Donald Trump for his signature. Coincidental so soon after we were on Capitol Hill? I think not. I also believe that our voice as an industry was stronger because the actual business owners and leaders were in the Congressional offices speaking on these vital issues face-to-face with representatives, senators, and staff from their home states and districts. No third parties or industry lobbyists conveying the messaging—true advocacy by true believers who see the good and bad effects of national and local policy in their businesses each day. The ability to speak directly with those responsible for policy and lawmaking is crucial to effect the outcomes that our industry needs. AICC President Steve Young was his usual direct self when he said of the Summit, “The business community cannot sit back on its laurels, especially now that we have made progress under this administration and Congress. Our annual Summit is

a chance for our members to become activists on behalf of their businesses and their communities.” An important takeaway message given to the participants in this year’s Summit was the encouragement that they should engage their senators and representatives back home. I am challenging you, the readers of BoxScore, to do the same, even if you were not in Washington, D.C., with us. Invite your senators and representatives to tour your plant. Share with them the fact that your business is an important employer and pillar in the community. Make them aware of how you feel on national issues affecting the manufacturing community, the packaging industry, and the box business, as well as the issues that may be unique to your location. Your influence counts—use it! Eric Elgin is owner of Oklahoma Interpak and chairman of AICC’s Government Affairs Subcommittee. He can be reached at 918-687-1681 or eric@okinterpak.com.

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Welcome, New Members! TORSACOR, S.A. DE C.V. MANUEL SANCHEZ VERA Director General Calle D #23 Parque Industrial Puebla 2000 Puebla, PUE 72225 Mexico Phone: +52 222-286-58-47 direccion21@corpind.com.mx

REISSCO CORP. ANDY REISSMANN President 12720 Banting Terrace Orlando, FL 32827 Phone: 863-206-9554 www.failuremanagement.com andy.r@compa55.com

M & M BOX PARTITIONS CO. JOSEPH MARIELLA JR. CEO 4141 W. Grand Ave. Chicago, IL 60651-1804 Phone: 800-992-3557 Fax: 773-276-8181 www.mmboxpartitions.com jrm@mmboxpartitions.com

ROOSEVELT PAPER CO. DAVID KOSLOFF President 1 Roosevelt Drive Mount Laurel, NJ 08054 Phone: 856-303-4214 Fax: 856-642-1949 www.rooseveltpaper.com dkosloff@rooseveltpaper.com

KAO COLLINS INC. KRISTIN ADAMS Marketing Manager 1201 Edison Drive Cincinnati, OH 45216 Phone: 513-948-9000 www.kaocollins.com kadams@kaocollins.com

MASTER PAPER BOX CO. WILLIAM FARAGO JR. Vice President 3641 S. Iron St. Chicago, IL 60609-1322 Phone: 773-927-0252 Fax: 773-927-8086 www.masterpaperbox.com bfaragojr@masterpaperbox.com

ST. MARYS BOX CO. ALAN HASSELMAN General Manager 109 Jeep Rd. P.O. Box 910 Saint Marys, PA 15857-0910 Phone: 814-834-3819 Fax: 814-781-1964 www.stmarysbox.com alan.hasselman@stmarysbox.com

BOXSCORE September/October 2018

DI PAPEL, S.A. DE C.V. EVA MARIA LARA FRAUSTO Director General Jinete 124 Leรณn, GUA 37450 Mexico Phone: +52 477-712-75-79 www.dipapel.com.mx compras@dipapel.com.mx

CAUTHORNE PAPER CO. MARK WILLIAMS President 12124 Washington Highway Ashland, VA 23005 Phone: 804-798-6999 Fax: 804-798-6466 www.cauthornepaper.com mwilliams@cauthornepaper.com ND PAPER KEN LIU CEO 7777 Washington Village Drive #210 Dayton, OH 45459 Phone: 909-618-7068 kenliu@ndpaper.com

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Members Meeting

1,000 Free Online Courses Completed

ICC, The Independent Packaging Association, began offering free online education to member companies through a partnership with The Packaging School in April 2017. As of this writing, employees of member companies have completed 1,000 courses. These courses represent 455 better-trained employees, $100,000 saved in training costs, and more than seven months of cumulative training time. “I am excited to see 1,000 online courses completed!” says Jana Harris, president and CEO of Harris Packaging and American Carton Co., and AICC Education Committee chair. “This speaks to the fact that training and education are a definite need within our individual companies. AICC has always had the reputation in our industry as being strong in education, but by offering free online courses, this validates the

BOXSCORE September/October 2018

commitment that AICC has for bringing value to its members.” Nearly 50 courses are currently online, with six more expected to be released this year. There are courses available for every department. Brian Strauss, human resource specialist at Michigan City Paper Box, says, “Whether it’s requiring a new hire to watch—and pass—the Safety Basics course or asking management and office staff to enhance their skills by taking courses on topics from leadership and production to finance and sales, Michigan City Paper Box Co. uses AICC Packaging School as a fundamental piece of our training.” To help AICC members make the most of the courses available, AICC and The Packaging School have created development tracks (www.aiccbox.org/ tracks) for production and The Certificate

of Packaging Science, with a track for onboarding and a revamped sales track coming soon. Blake Ward, sales representative at The Lawrence Paper Company, Eric Ockerlund, production manager at OxBox, and Thomas Rybicki, sales representative at American Containers, have all completed one of the tracks. Of his experience, Ockerlund says, “These courses are great for those new to the packaging industry who really want to get their foot in the door and jumpstart their career. The courses contain loads of information, yet they are not at all overwhelming. I really like how the courses provide the student with not only basic knowledge of the different parts of the packaging industry, but an in-depth look into the various operations and machines used. These courses also provide a great understanding of the vocabulary used in the industry. All in all, these

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courses are a fantastic way to gain years’ worth of knowledge in just a few weeks.” Several of the newest and upcoming courses are made possible through the support of AICC Education Investors: Fosber, BCM Inks, Sun Automation Group, Pamarco, JB Machinery, Printron, Absolute, Kruger, EFI, HP, and Bobst. These members offer their time and expertise, along with a financial commitment to create online courses with AICC and The Packaging School. Jeff Pallini, president at Fosber, an AICC Education Investor, says,

“Congratulations to AICC members and their 1,000 completed online courses. Fosber is very excited to be part of this exceptional program. Education and training in our industry are critical for success, and AICC is leading the way.” AICC, with the support of sponsors EAM-Mosca of Mexico; Cartró, S.A.P.I. de C.V.; Cajas de Cartón Sultana, S.A. de C.V.; and Michigan City Paper Box, has also begun the process of translating the online courses into Spanish. Corrugated 101, 102, and 103 are currently available in English, with plans for them to be

translated into Spanish prior to AICC/ TAPPI Corrugated Week, September 24–27 in Indianapolis. Safety Basics will be available in Spanish shortly thereafter. Harris also urges all members to take advantage of this resource: “If you have not gone online yet to see what all is available, I encourage you to do so. There is a variety of categories, offering courses for everyone within your organization.” Learn more about online education at www.aiccbox.org/packagingschool.

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Summer Reading List BY RALPH YOUNG

don’t know about you, but I hated hearing about my reading list during the last week of school. This article is only, at your leisure, to give you a preview of three major educational resources that will be available no later than the Fall 2018 AICC/TAPPI Corrugated Week meeting. They are an e-learning segment, Warp: Its Causes and Remedies, and then two white papers, Microflutes and Paperboard and Score Cracking: Its Causes and Remedies. So, to tease you a bit regarding two of these new resources from your Association and to let you know there has been extensive time invested in these offerings, we are giving you a peek inside the offerings before their release. Here are the questions that will be asked and answered from the section on warp.

or subtracted during the corrugating process?

2 What does washboarding usually indicate?

3 Yes or no? Older corrugators with more heat are better at flattening warp in the combining process. Name some corrugator conditions that can lead to warp. Quiz #3

What is the most common type of warp in your plant? What are the major causes?

2 What are the major remedies? What elements of starch and its application affect warp?

Quiz #1

3 Where is parallelism most critical

in the corrugating operation? Will you contact us if you have more questions or suggestions?

Can containerboard moistures change over time?

2 Am I all alone, or are their resources and people to help us? What is the maximum amount of moisture variation in liners for good bonding and minimum warp potential?

3 Does linerboard expand and contract with moisture changes? What specific data should I seek from my suppliers?

4 Can there be differences between virgin and recycled fibers? Quiz #2

Are corrugator temperatures critical to bonding and warp? Is moisture added

Here is a section from the white paper on score cracking. Paper Physics Containerboard, as we know it here, is a wood-based product made from cellulose fibers, just like cotton. Most of the other portion, hemicellulose, which acts as a natural paper strength additive, is lost in pulping. The first generation of newly pulped wood chips produces virgin long-length fiber with many bonding sites that allow the individual fibers to “stick together” both physically and chemically. Paper is a viscoelastic material with properties much like those of elastic binding or rubber bands. It is ductile, which means it

is able to form around itself up to a point. It can be stretched and returns to its original shape and size unless it is broken or ruptured in the process. This is the stretch-to-break value. Virgin fibers are generally more pliable than recycled fibers, white-tops, and clay-coated boards. The formability of linerboard is also impacted by the applications of starch coatings and the low freeness of the pulp in the top ply. To the extent that paper properties are responsible for score cracking, the key factor is stretch. Any factor that reduces paper stretch adversely affects score cracking. Stretch is a function of fiber length, width, degree of fiber entanglement, fiberto-fiber bonding, and moisture content. Score cracking can be caused by high-density papermaking and the use of recycled fibers. Highly pressed wet fiber mats of fibers, when dried, have less room to flex and bend. We use the term “tension stress” to describe the ultimate strength that the containerboard sheet (strip) contains when it is pulled end-to-end, both MD and CD; its elongation (strain) is the percentage it will stretch until the point of failure. Both of these properties should be obtained from your linerboard suppliers, although sometimes not easily, but they are very good predictors of score cracking potential. Most mills have adjusted the MD/CD strength ratios over the years, but more MD than the CD, while the CD has about twice the elongation to failure as the MD. The key factors related to paper cracking are stretch and moisture. Paper properties and corrugator temperatures are the most important elements to address to minimize score cracking.

BOXSCORE www.aiccbox.org

Ask Ralph

Those 140 paper machines out there have an average chronological age of more than 40 years, but a technology age of less than 25 years. Once again, these are averages, and every printer and converter needs to ascertain as much about possible unique paper properties each machine imparts to its products. Of course under TAPPI testing methodology, all labs operate at 72 degrees Fahrenheit and 50 percent RH. Both combined board moistures below 5.8 percent and RH below 50 percent create conditions for score cracking. Papermaking processes include Fourdrinier vs. gap formers, single-ply vs. dual or multiple-ply, recycled vs. virgin, and brown vs. white, to which, under scoring pressure, ply separation can occur. Traceability of cracking issues must be specific to a mill and

then to an individual machine. There are 140 of them out there! Suppliers can also provide certificates of analysis comparing actual physical properties to agreed-upon specifications. A plant needs to know any changes that the doubleback liner supplier makes to its processes. There has to be open and constant communication. All participate in the end result. What happens with increasing moisture is that papers swell, expand, and relax. I am a large proponent of the use of heavyweight and stronger mediums to build cost-effective structural combined board. However, they can add to score cracking if they contribute too much rigidity to the board construction and score profiles have not been changed. Dual-arch constructions can be converted without fracturing, so it can be done.

Please get your hands around all the variables we have discussed in this paper. As we recycle more and more, additional types of fibers, both domestic and foreign, enter our â&#x20AC;&#x153;recoveryâ&#x20AC;? stream, making it more challenging to produce a uniform and consistent linerboard and, therefore, combined board sheet for laminating or direct converting. Score cracking will morph going forward. R alph Young is the principal of Alternative Paper Solutions and is AICCâ&#x20AC;&#x2122;s technical advisor. Contact Ralph directly about technical issues that impact our industry at askralph@aiccbox.org.

BOXSCORE September/October 2018

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Ask Tom

Why You Should Consider Hiring High School Interns BY TOM WEBER

hile some companies might not even realize it’s possible to hire teens as interns, others might be hesitant to do so due to some common misconceptions related to these types of programs. Some misconceptions are that high school students are too young, they aren’t ready for this type of experience, they aren’t capable of the work involved, or they don’t have enough to contribute to the internship experience. Companies have noted the following benefits that interns bring to an organization: Valuable work. Students at this age are learning things earlier and at a faster rate than many adults. They have a keen interest in and experience with different areas of technology and can pick up new things quickly. New ways of thinking. Having input from varying ages and levels of experience

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can help improve the energy in your company and add to the diversity of thought and actions your company takes. These younger workers can help improve your brand awareness and appeal to a younger audience. Management opportunities. Having high school interns on staff can be a great experience for your college interns. It can give them the opportunity to take on a management and mentorship role when it comes to working with the younger students. Workforce development. Your high school intern could very well become a part-time employee while they work their way through a local college program, and then potentially become a full-time employee with solid work experience. Community partnerships. When you begin an internship program for

high school students within your company, you have the potential to create long-term sustainable partnerships with valuable organizations and schools within your community. How to Create a High School Internship Program As companies begin to consider creating a high school internship program, it’s helpful to understand how schools are preparing their students for internships. Many schools offer opportunities to focus on specific industries such as culinary arts, health care, and more, so that students can acquire hands-on skills they will need in the real world. Schools are also bringing in companies to do activities such as mock interviews, résumé writing, and job shadowing. These partnerships can be invaluable for not only the students, but also for the schools and the

Ask Tom

companies themselves. When creating a program, consider: • holding orientation in a more relaxed setting that appeals to and better engages younger workers; • conducting separate trainings for each high school intern to establish a connection and ensure they have a thorough understanding of expectations and have their specific questions answered; • realizing that, for paperwork purposes, younger students may not have a photo ID, a driver’s license, and other documentation that is more commonly expected from older hires; • understanding that transportation can be a challenge and helping ease this issue by providing bus passes, allowing remote working opportunities, or creating ride-sharing options; • connecting the interns with specific employees who are excited about working with high school students and who are not biased against younger age; • helping interns build their “soft skills,” such as the importance of being on time, how to communicate in a professional setting, how to take constructive criticism, how to dress, and other practices that usually come with experience; • ensuring you have clearly defined projects for the interns to work on and clearly identified time frames in which they will conduct their work; and • checking in with your high school interns one-on-one on a regular basis, and providing “lightweight” performance reviews periodically so that they have an understanding of that part of the job process,

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as well as regular feedback on their performance. Top 10 Key Points to Know About Gen Z They’re social, educated, digital natives—and they are just entering the workforce. Have you heard of them yet? They’re the newbies on the block. The newest generation to enter the workforce: Generation Z. Generation Z is identified as individuals born after 1995, making them 23 years old or younger today. They are just entering the workforce and are vastly different from generations that have come before them. They are described as being optimistic with high expectations. They grew up in a generation in which the internet, laptops, and everything else has been at their fingertips. New things that have come out with this generation include apps, social games, and tablets. So, who are they, and what might define them? I think it is important to note that, like any prior generation, not every member of this generation will fit into the stereotype that is being created for it. However, I’ll share some of what the data is showing from sources such as Forbes and the Huffington Post.

They are a social generation. They spend a lot of time socializing with friends and family each day.

2 They are multitaskers. They thrive off utilizing multiple screens and devices to accomplish their work.

3 They have an entrepreneurial spirit. Nearly 75 percent of them want to start their own businesses one day.

4 They are educated. They want to constantly learn, and 50 percent will have a college education.

5 They want to do good. They are philanthropists at heart.

6 They are the first true natives of the digital era. Thus, they spend more than 15 hours per week on their smartphones.

They want to interact with people. They enjoy face-to-face conversations despite being so digital.

8 They are tech-savvy. They depend less on books and information from advisors and instead use the internet to answer any questions that might arise.

9 They lack focus. Their attention span is eight seconds long, so they require constant stimulation. They have been connected since birth. Some 40 percent state that they are fully addicted to their smart devices.

They are cautious. They spend less and save more as a result of growing up during the Great Recession.

Lastly, whether your interns are from high school, college, or both, cherish them, listen to them, and they will help you and your business become more tech-savvy, relatable to their generation for your workforce growth, and relevant to them now. Tom Weber is folding carton advisor for AICC. Do you have any questions? Ask Tom at 440-221-3103 or tweber@aiccbox.org.

AICC DELIVERS SUCCESS AICC will deliver trainers with real-world experience into your plant to lead a personalized training seminar based on your company’s needs.

What are your company’s pain points? Production • Machine Efficiency • Controlling Color • Maintenance & Troubleshooting • Maximizing Old Equipment Customer Service • Managing & Exceeding Customer Expectations • Negotiating • Building & Maintaining Relationships • Managing Difficult Accounts Design • Differences between Structural & Graphic Design • Printing on Different Substrates • Understanding Color Theory • Creating Retail Ready Packaging Leadership • Appropriate Costing of Materials & Staffing • Measuring Production • Identifying Waste in Time, Dollars & Effort Sales • • • •

Closing Deals Building & Maintaining Relationships Selling Digital Print Figuring Out Customers' Business Drivers

AICC listens to your needs and pain points and creates training just for your company. For more information contact Taryn Pyle at tpyle@aiccbox.org or 703.535.1391.

Selling Today

Is Your Salesperson Really Selling? BY TODD M. ZIELINSKI AND LISA BENSON

f you aren’t seeing a steady stream of new opportunities in your sales pipeline, it might be time to determine whether your sales team and the processes they use are properly configured for success. Your salesperson may be wearing too many hats—or the wrong hat—which can have a negative impact on sales productivity. Since the Industrial Revolution, the concept of division of labor—breaking down a process into separate tasks that are performed by those who are or will

become specialized in that task—has been widely used in production processes as a means to increase efficiency and spur growth. In addition to creating a specialized workforce, the production processes that encourage efficiency and growth tend to be measurable, repeatable, and scalable, and provide a method for ongoing process improvement. Although the concept of the division of labor has been successfully implemented in production operations since Adam

THE FRAGMENTED SALESPERSON

Smith coined the term in The Wealth of Nations in 1776, more than 240 years later many company leaders have failed to consider applying this concept and these production processes to their sales teams. The Traditional Model of a Salesperson After interviewing business-to-business company executives who have a direct hand in sales growth, including vice presidents of sales, sales executives, CEOs, and business owners, we found that typically

28%

Solution Development

16%

Opportunity Management and Clerical

40%

of time spent in activities leading up to the active sales cycle

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24%

Account Management

12%

Social Activities

12%

Prospecting

NBD Active Cycles

Selling Today

40 percent of a salesperson’s time is spent in activities leading up to the first active step of the sales cycle. The growth of a company depends on closing sales, yet a salesperson’s time is highly fragmented. Salespeople are also required to retain customers, find new opportunities, network, and perform many other activities not directly related to closing a sale. In fact, we have found the time a typical salesperson spends on various tasks breaks down as follows: • 12 percent social activities (networking, trade shows, golf outings, etc.); • 12 percent prospecting (looking for and qualifying new opportunities); • 16 percent opportunity management and clerical (list building and cleaning, follow-up, etc.); • 24 percent account management (maintaining and increasing shares of current accounts); • 28 percent solution development (active accounts—fielding RFPs, RFQs, estimating, working with sales engineers or SMEs internally to develop a quote or proposal); and • 8 percent new business development (active sales cycle). The focus of the salesperson is to be in active selling mode, but they have all these other activities going on that can impact and limit the amount of time that they can spend working on new business development opportunities. On top of it, there is no defined process around the activities. The salesperson is just an autonomous agent out there selling. Their priorities are likely defined by what is most pressing at the time. Potential new opportunities aren’t likely to be screaming for attention, so seeking them out will take a back seat to current customers and other tasks.

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Suffering From a Mismatched Skill Set Targeting new opportunities (often called the hunting) takes a different skill set, and personality, than maintaining and growing existing customers (the farming). Hunters tend to be driven, persuasive, flexible, independent, and solutionoriented. Farmers are team-oriented and detail-oriented, are good listeners, and tend to be more risk-averse. Hunters and farmers are both needed. You may get lucky and find one person who can fill the roles of both hunter (new business development) and farmer (account management), and do it well. But it’s not likely. If your salesperson is better at account management, they might not have the necessary skill sets, capacity, or structure to crack the right type of new account. If you have only one good hunter, your rate of growth is going to be dependent on their capacity, which, as we have already discussed, is greatly diminished by them having so many other responsibilities. If this person leaves the company, your rate of growth can come to a halt. Taking a Different Approach To be successful, you must create an organizational process that can transcend one person—a process for which the pipeline will continuously be filled with opportunities that meet your specific criteria for qualified leads. This can be achieved by using the division-of-labor concept within your sales team. Through the division-of-labor concept, you can create a separate process-focused front-end sales and marketing team whose goal is to find the right opportunities, educate them, and qualify them based on your specific criteria so that the lead is ready to actively engage in the first step of the active sales cycle when handed off to the salesperson. This team will

continually generate a measurable flow of qualified opportunities. The salesperson’s responsibilities now are to consume those opportunities, retain them long-term, and grow them. The goal is to make the salesperson as productive as possible and allow the systematic approach to feed them over time, while allowing others to take on the responsibilities that take them away from actively selling. Benefits to the Bottom Line To expand sales capacity, instead of hiring more salespeople, who tend to have a much higher salary, implementing division of labor within your sales team may be a less costly approach. Using a front-end sales and marketing team with structured processes gives you the ability to have a greater touch than a salesperson would have on their own. If done correctly, the process can easily be scaled up or down as needed. As a bonus, the cost per sale may also go down, leaving more money for the bottom line. Todd M. Zielinski is managing director and CEO at Athena SWC LLC. He can be reached at 716-250-5547 or tzielinski@athenaswc.com. Lisa Benson is senior marketing content consultant at Athena SWC LLC. She can be reached at lbenson@athenaswc.com.

Tackling Trends

Searching for the End of the Circle BY JOHN CLARK

ost of us have strong memories of our childhood education. You made your first friends outside your family and your neighborhood, you had your first authority figure beyond your extended family, and likely for the first time in your life, you had to adhere to some sort of discipline—getting to the bus stop on time, sitting still in class, and being held accountable for your performance. All those years ago, education was a linear path to adulthood—high school, college, and perhaps graduate or professional school was a very straight line to becoming a productive citizen. But it was still a path, a direction with an end in sight. That is not the world we now inhabit. The growth and sustainability of your company are now controlled not so much by the machines and the strong backs of the workers, but by the brains and initiatives that make it all come together. Let’s take a look at the training and expectations of classic schooling as compared to your plant, focusing on the investment in assets. In your primary years, the first and most critical step is to master the basic skills demanded of you and to keep up with the coursework, so you can advance to the next grade. On the converting side, in the many converters spend the morning selling and the afternoon making the orders for the next day. In primary school, you master reading, spelling, and arithmetic, which keeps your parents proud. In the young converting plant, you learn to sell, manufacture, and deliver products so you can do it again the next day, and you can keep your family fed. At the secondary level, you are now among a more robust group of peers. The

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group is smarter and more industrious, and the work is more demanding and broader. For the first time in your scholastic life, you have to select which courses to take and which not to. You now have to master more complex problems, and the quality of your work has to improve greatly. You now stay up late working and, probably for the first time, you worry about the work you are delivering. Some of your peers could not keep up. At the plant level, you are now faced with your first major decisions on capital investments and the direction of the company. You assuredly have sleepless nights worrying about the quality of your products and the payment patterns of your customers. Your competitors are smarter and more aggressive, and you have to build your staff to be smarter and become managers rather than supervisors. Some of your staff could not keep up. When one goes off to college, the options and possibilities seem endless, but success is found through focus, direction, and commitment. For all the possibilities a major university offers, the decisions you make to study one career path over another has a major impact on the direction of your life. Choosing to be in pre-med takes you down a path of hard science and long nights studying. The challenges are greater, but so are the potential rewards. Some of your friends could not keep up. Back at the plant, selecting the right machines to purchase has a critical impact on the direction of your company’s future. Every purchase expands your options to service your costumers. Every new hire has the potential to build or damage your company. Decision-making becomes

more complex, and the risks and rewards increase in magnitude. Some of your competitors invested unwisely or did not have the fortitude to fight through the challenges. As one begins graduate school, your peers are smart and ambitious—some bordering on ruthless. Your workload is backbreaking, time constraints are always an issue, and the delivery of your work is due at a specific time or it is rejected out of hand. The margin for error is minuscule, and the demands are relentless. Some crack under the pressure. In today’s converting plants, the pace is unrelenting, the demands often unreasonable, and the number of excuses acceptable is a tiny fraction of zero. Those who cannot keep up will soon be gone. Today, no matter your level of education or experience, school is still in session. The learning never stops. Smarter systems built by smarter people help plants run more efficiently, and analytic tools provide a richer and broader set of data points to keep the plant and company on track. The educational process goes on; it must for your company to be successful today and tomorrow. Smart systems need smarter people. Find the staff, find the vendors, and find the suppliers that have the smarts to keep up with you. In a world of narrow margins and nonexistent margin of error, you have no choice. John Clark is director of analytics at Amtech Software. He can be reached at jclark@amtech software.com.

Upcoming AICC Events A well trained workforce increases your productivity.

OCTOBER AICC West Coast Annual Golf Tournament & Business Meeting 10/9/2018 » 10/10/2018 Irvine, California Digital Printing on Corrugated Seminar 10/10/2018 » 10/11/2018 Glen Arm, MD Rotary Die Cutter & Flexo Seminar: Getting the Most Out of Your Equipment 10/17/2018 » 10/18/2018 Fox Valley Technical College Appleton, Wisconsin Sales Strategies for Today's Market Seminar 10/23/2018 » 10/4/2018 Chicago, Illinois Corrugated Fundamentals Seminar 10/24/2018 » 10/25/2018 Fort Worth, Texas

NOVEMBER Production Leadership Seminar: Next Level Supervision of People & Process 11/6/2018 » 11/7/2018 Location TBA Productive Machine Measurement Seminar 11/8/2018 » 11/9/2018 Location TBA School for Financial Manager’s Seminar 11/13/2018 » 11/14/2018 Tinley Park, Illinois

Learn more at www.aiccbox.org/calendar When you invest and engage, AICC will deliver success.

Andragogy

Packaging Gold BY R. ANDREW HURLEY, PH.D.

ou could argue that gold is the basis of value. It’s an element that has commanded the attention of our species since we first laid eyes on it. We learned something interesting about gold in the 16th century, when Europeans discovered South America and its massive gold deposits. We mined it so fast that it inflated the value of the entire marketplace. Chemists classify gold as a “noble metal.” You could also argue that gold has an impact on our behavior, information processing, perceived value, trust, and confidence in objects that contain the material. When we figured out how to smash gold into microscopically thin sheets, it quickly found its way onto officiating documents, adorning seals, and certifying accomplishments. Gold physically represents many marriages and commitments, and it can be traded for another human’s full attention, money, and time. So, does gold change the way we behave in a marketplace? A U.S. retail supercenter contains more than 140,000 packaged products—an incredible battle ground of products fighting to attract and retain shopper attention. When applied to consumer packaged goods, does the inclusion of gold influence our attention and decision-making? Do we find products with gold accents faster, look at them longer, and associate them with a higher value compared to identical products without gold? With the generous support of API, my graduate and undergraduate students prepared a social experiment to test the impact of gold on packaging. To answer these questions, we developed an experimental design that leverages eye-tracking glasses to collect attention data at 50

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times per second while shoppers make selections in a retail grocery store. Shoppers are recruited, screened, and segmented into groups in which they have the opportunity to view packaging that contains either gold foil accents or a close gold color print match. The attention data across the groups will be analyzed to see whether the gold foil influences shopper behavior. First, a new brand, Higher Manna, was developed to remove any potential brand bias during the retail experiment. Students formulated real food products in a commercial kitchen. Three mushroom- based products were developed: lip balm, a chocolate sampler, and infused water. The resulting food products won an award in a student competition, CAFLS Cultivate, through Clemson University’s Creative Inquiry program. Next, API extended an incredible opportunity to our team: They provided our physical package designs as if they just came off a well-tuned printer with absolutely luxurious gold foil. They also created the second sample set—identical designs without the foil, but a close print color match to gold. With production samples in hand, the research team extended our social experiment to an online marketplace, adjusting the method to explore gold’s impact in e-commerce. We took pictures of the pack and created an Amazon.com simulation on a computer, where shoppers will see a digital

representation of the two packs—one with gold accent and the close gold print color match. With a full, in-context competitive retail planogram and e-commerce pages built, our team is ready to start the experiment. But first, I want to know your thoughts: Do you think gold will influence shopper behavior? Take the short survey at rahurley.typeform.com/to/ Iuxk6n to let me know your answer. By participating, I’ll make sure you are one of the first to know our final results! I have to thank API again for allowing this experiment to be possible. Their gift to my research program allows my students and me to explore ideas and curiosities while providing a highly differentiated classroom experience— allowing students to interact and network with industry professionals. I feel the best way to unveil innovations and develop competitive advantages is to stay in student mode—always testing, always learning to advance our industry. Do you have a research question that needs an answer? Send me@drandrew hurley.com a note. R. Andrew Hurley, Ph.D., is an associate professor of packaging science at Clemson University. He can be reached at me@ drandrewhurley.com.

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Marketing Mix

Paper Sells BY JOAN SAHLGREN

arketers and sales teams everywhere are often on the hunt for new information to tip the selling scales in their favor. This year’s research on consumer attitudes, conducted by the Paper and Packaging Board, shows that paper remains a strongly preferred material. Of consumers who have seen Paper & Packaging— How Life Unfolds advertising, 55 percent note more favorability about the paper industry’s materials over other industries, particularly plastics, coming in at 39 percent. And, what about products packaged in paper? Seventy-five percent of these consumers agree that paper-based product packaging is an essential part of everyday life. Sixty-eight percent agree

that products that come in paper-based product packaging feel more premium. These numbers are high by any measure! This means that paperboard presents products in a better light—one that consumers value. Though our industry knows that we continually innovate and that paperboard has unique properties for graphics, we wonder, do consumers care? When surveyed, 7 out of 10 consumers rate the industry as offering innovative products. The statistic that brings it home for me? Since the start of the campaign, there has been a statistically significant improvement among this same audience around the following statement: “I think more highly of companies that package their products in paper-based packaging.”

In 2015, this number came in at 44 percent. Now? Sixty-eight percent agree. As we all work to make our industry successful, we can walk in the door to talk to customers, retailers, and consumers knowing that we stand on a good playing field—one that may even tilt in our favor. A consistently high reputation score for paper versus other packaging materials provides a more positive selling environment.

Source: “Consumer Attitudes and Usage Toward Paper and Packaging: Wave 7” Isobar, 2018, on behalf of the Paper and Packaging Board. N = 698

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Joan Sahlgren is senior director of public relations at the Paper and Packaging Board. She can be reached at jsahlgren@ paperandpackaging.org.

SUCCESSFUL LEADERS DON’T DO IT ALONE

Leadership Advisory Groups As a leader in an AICC member company you face challenges that most others do not comprehend—the pressure to succeed, to make the right decisions, and to create a positive future for yourself, and the company. EACH LEADERSHIP ADVISORY GROUP: • Meets on dates adjacent to AICC’s two National Meetings. The group will meet at least one additional time at a location that offers education and recreation to the members. • Maintains confidentiality. • Explores topics of mutual interest for leadership development and awareness of industry trends. • Creates a strong support network. • Allows members to share personal goals and issues for insight and accountability to speed progress. Questions? Contact Taryn Pyle, typle@aiccbox.org or 703.535.1391. When you invest & engage, AICC will deliver success.

Design Space

Collaborating Through the Process BY JEFF HOMAN

of folded corrugated. As the years went was sitting at my desk finishing up prep by, I became more and more ambitious, work for a flexo plate order when one of emboldened by studying the structures our structural designers dropped three that crossed my desk every day and cut and scored pieces of corrugated, fresh learning enough about the CAD software off the cutting table, on my desk. They to design and fold the shapes on screen looked more like Rorschach test designs to get them close to the final shape I cut out of F flute than anything that could then illustrate and send off to we might want to eventually show to a be manufactured. customer or potential customer. That brings me back to the car-flowerOnce the order was sent off to the plate blob sitting on my desk. No matter how maker, I busied myself with folding and much time and effort I put into learning nesting the pieces together. I wound up how to create a structure, I will always be holding in my hands the facsimile of a a graphic designer first and foremost, and miniature car. When I put the folded I value the structural designers who allow unit down on my desk, it burst open like us to create highest-quality work without a misshapen flower. It was a product of compromise. I’ll take the in-progress the dozens of areas where my tolerances “car” and show it to our structural design were a bit off, where I missed how layers team—holding it together so they can of material would rest one on the other, see what it’s supposed to look like—and and where tabs, slots, and folds might they’ll refine what I started into someadd a bit of structure and strength to the thing that we can reliably manufacture. assembled unit. Once the structure is finalized and Every year, our company has created a illustration work is done, it’s off to the self-promotion piece intended to give our printer. If you’re a designer and you’ve sales force talking points to demonstrate the range of capabilities we have in design, never been press-side when one of your designs is being printed, that’s a missed printing, die cutting, and assembly of opportunity. There are so many variables complex corrugated structures. Over the last few years, following a successful series to putting ink on paper, whether a flexo or litho press, that spending a few hours of train cars, our theme has been cars observing a job being run can save you a and trucks, each designed to simulate old lot of time, headaches, and disappointdie-cast toy cars, with a story and history ment on that job and all the ones that related to our company and its founders. follow it. These designs have won several awards After the printing, it’s over to die over the last few years on local, regional, cutting and assembly. These poor people and even national levels—achievements bear the brunt of my ambition in designwe are very proud and grateful to ing projects like this. Tight tolerances have earned. need to be held, and complex assembly Each successive year I’ve tried to procedures need to be repeated over and do a bit more of the structural design over again. component of the project. The first train As a graphic designer, I can’t stress was a loose pencil sketch of a shape I enough the importance of learning thought it would be possible to make out

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everything you can about each process up and down the manufacturing chain. Learn what the sales staff get excited to show to existing and potential customers. Graphic and structural teams need to work closely together and meet often to elevate the quality and appearance of designs. And following projects, especially ambitious ones, through each stage of the manufacturing process will help you develop a real sense of when to push the envelope or dial things back in the design stage. If you see your role as a designer as a collaborative one—part of the overall manufacturing process—you’ll have a much better chance of having more quality finished designs on your desk than misshapen corrugated “flowers.” Jeff Homan is a senior graphic designer at DS Smith. He can be reached at jeff. homan@dssmith.com.

GOOD FOR BUSINESS

AICC TOOLBOX ................................................ 37 LEARNING POWER ....................................... 38 AICC INNOVATION ......................................... 41

BOXSCORE TIPS, TRICKS, AND SOLUTIONS TO BETTER BUSINESS

AICC Toolbox

The Packaging School en Español

ICC, The Independent Packaging Association, has launched a new online course, Conceptos Básicos de Corrugado 101, 102, and 103 (Corrugated Basics 101, 102, and 103) in Spanish. These courses cover the history of corrugated and discuss the construction, configurations, and types of board, and how it is made. Specifications

of linerboard, medium, and finished combined corrugated board, as well as tests that assure quality, are also reviewed. Finally, the course explains the most common forms of corrugated packaging, box terminology, and box blanks before they have been formed. An explanation of the size and scope of the corrugated industry is also part of this free online course.

The translation for these courses was sponsored by EAM-Mosca of Mexico, Cartró, S.A.P.I. de C.V., and Cajas de Cartón Sultana, S.A. de C.V. “The priority for Latin American Spanish translations set by AICC’s board of directors just makes sense in today’s competitive job market,” says AICC Vice President Mike D’Angelo. “AICC’s support of the ability to successfully train workers from throughout the hemisphere is another part of our value proposition to the independent converter and their suppliers.” With more than 45 free courses currently online and 10 online courses to be translated into Spanish this year, AICC is the leading educator for independent corrugated, folding carton, and rigid box converters. AICC also offers classroom seminars and webinars, in addition to free online training to meet the needs of a rapidly changing industry.

BOXSCORE www.aiccbox.org

Good for Business

Learning Power

Add Undeniable Value Through Education BY ALLIE O'BRIEN

n Good Will Hunting, Will Hunting (Matt Damon), comes to the aid of his best friend, Chuckie (Ben Affleck), when a pompous undergrad attempts to demoralize him in a bar. The arrogant student’s efforts to impress the surrounding crowd backfire when Will calls him out for quoting excerpts from his last history exam. Although the trust-fund baby was always assumed intelligent by his peers, he didn’t have an original thought in his body. He had never been challenged or questioned, simply regurgitating the ideas of those before him. Because Will was educated, he proved the bully wrong. In the real world, being educated is like a super power. It arms an individual with the ability to make their own conclusions and decisions based off of facts and data. This is particularly important today, when we are bombarded by the media’s skewed motives and half-truths. Education empowers individuals to distinguish entertainment from reality. Why act like the most knowledgeable person in the room when you can be? Although the saying “fake it till you make it” is common, people will become aware of the façade. Once that front is apparent, the validity and credentials of an individual come into question. Chances are, he or she will not be the go-to person any longer. Checking the reliability of a source is an important lesson to learn. There are two types of education: formal and informal. Formal education involves a curriculum. Examples include education through universities, seminars, training programs, and webinars.

BOXSCORE September/October 2018

AICC offers these programs, as well as the e-learning platform—home to dozens of free courses that are available to all members. Last fiscal year, there were 3,416 e-learning logins, 1,049 active e-learning users, and 698 completed e-learning courses. As part of the Educational Development subcommittee, our goal is to focus on the quality of courses and an increase in the participation and completion ratio. The committee has created a timeline through 2020 in order to bring the most value to members. Although informal education does not have set criteria, it is just as beneficial as formal education. Informal education includes taking plant tours, meeting with decision-makers, or asking an operator questions. Informal education gives us real-world experience from those who understand it best. An educated employee is a value-added employee. Many positions have a job description that lists the necessary functions and skills in that role. If an individual takes the time to master these operations and then further their industry knowledge, they have the potential to offer more than the initial expectations. One of the most advantageous initiatives one can take is to understand as much about the supply chain as possible. The supply chain, however, is not just a trunk; it is a tree with many branches. Whether you work in papermaking or continuous improvement; sell anilox rolls, strapping materials, or tooling; create ink sets or software; or have mastered the art of being a press operator, it’s just as important to learn about the entire

process. If we are able to learn the different facets of creating a finished product, we can be a better resource to those around us—even if it’s not a prerequisite. Opportunities have a way of presenting themselves when we are prepared. It may even be the driving factor for your next promotion. Learning allows us to go into situations with an open mind. With an open mind, we can observe in an unbiased manner. We can face challenges with a fresh approach. Innovation stems from education. Education promotes curiosity. Curiosity promotes questions. By questioning the way that things have always been done, we can begin to think outside the box. Innovation stems from empowerment. Innovation stems from intelligence. “Back to school, back to school, to prove to dad that I’m not a fool,” says the titular character in the film Billy Madison, proving it’s never too late. “If you are not willing to learn, no one can help you. If you are determined to learn, no one can stop you,” says KUSHANDWIZDOM, a popular Tumblr account. We can all take advantage of educating ourselves to be an undeniable positive asset to our team and to our customers. What’s next on your list? Allie O’Brien is a sales associate at KemiArt US Inc. She can be reached at 843-606-2333 or alexandra@kemiart.net.

T S A E H T U O

S S E C C SU

AICC Summits bring converters and suppliers together from across the country. Over 100 representatives of AICC member companies came together in Charleston, SC for the AICC Southeast Summit, July 31- August 2. With the support of AICC Director Gary Brewer, President, Package Crafters, members were in-depth look at industry ERP systems and current information technology systems that can improve their business operations. Participants also enjoyed a tour of the Boeing South Carolina Facility, networking opportunities, and the annual golf tournament. Respresentatives of Advanzware, Amtech, Arden Software, EFI, and Kiwiplan, came together on a panel to share the latest advancements for the industry. Rounding out the morning was Corey Babka, a small business technology consultant from The Marks Group. Babka discussed

a range of general business technologies that can help small businesses and cautioned about various ransomware attacks. Following an ERP trade fair, the group departed for a tour of the Charleston, S.C., Boeing facility where the 787 Dreamliner is produced. The tour was arranged by Chuck Fienning and Ted Fienning of Sumter Packaging. Charlestonâ&#x20AC;&#x2122;s program and panel of ERP suppliers was a prelude to the 2018 Corrugated Week in Indianapolis, when the same panelists will convene to discuss trends in ERP systems and their own innovations with their user groups.

It was great reconnecting with friends in the industry while at the same time learning about ERP solutions and other technologies that can help take our businesses to the next level. ~Mark Williams, President, Cauthorne Paper Co.

This is just one example of the valuable information shared with AICC members. AICC hosts Summits around the country throughout the year.

Learn more at www.aiccbox.org/calendar or visit us- Corrugated Week Booth #849

Good for Business

AICC nnovation

Download the AICC/TAPPI 2018 Corrugated Week App Get the information you need, when you need it—fast and easy. • In the Apple App Store or Google Play, search for the CrowdCompass/ AttendeeHub app. • Tap download/install. • The icon will appear on your home screen.

• Open the AttendeeHub app, enter Corrugated Week in the search. • Tap Corrugated Week and install/ download. You’re done!

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Member Profile

Coastal Container BY VIRGINIA HUMPHREY

COMPANY: Coastal Container ESTABLISHED: 2007 JOINED AICC: 2014 PHONE: 616-355-9800 Photo courtesy of Coastal Container

WEBSITE: coastal-container.com LOCATIONS: Holland, Mich. OWNER: Brent Patterson

hat would your corrugated box or packaging company look like if you had the opportunity to build it from the ground up? That’s the question that Coastal Container’s founders asked in 2007, when they came together to create the Holland, Mich.-based company. Owner Brent Patterson was the former co-owner of Shoreline Container, a nearby company his father had started that he and his brother eventually bought out. Then in 2005, Patterson split from his brother and Shoreline, and hired Bill Baumgartner. Together, the two of them hatched the plan to come up with Coastal Container, starting with buying a landmark 235,000-square-foot building in Holland, the old Sligh Furniture building. “We were starting from scratch; we had zero customers when we started up,” says Baumgartner, president of Coastal

BOXSCORE September/October 2018

Container. “We had a blank canvas to work with in this facility. I had been in packaging my whole career, just as Brent had. We said, ‘If we could start from scratch, what would a very efficient operation look like from a product flow standpoint? Secondly, how could we build a culture that would attract the best employees, that we could be really proud of?” From an industrial standpoint, he says the West Michigan region offered a lot of growth opportunity. It was growing, and it allowed Coastal Container to also grow swiftly. Most of their customers are in West Michigan, though they also ship as far north as Cadillac and east into Detroit, and have a customer over the border in Indiana. Most of their customers are office furniture and automotive manufacturers, though they also serve building

construction and sports and leisure, and have several food producer and agriculture accounts. Baumgartner says they also recycle nearly everything, with very little going to the landfill. All their paper scrap goes back to the paper mill, and they recycle their office waste. They’ve upgraded all their space lighting to high-efficiency fluorescent bulbs. Their machinery has energy-efficient variable-frequency drives. They even explored creating their own electricity, but to date the expense associated with that has been prohibitive. “I think we fell into [our sustainability practices] as much as anything,” Baumgartner says. “We moved into this facility, and it was the former Sligh Furniture facility. It was a manufacturer of wood furniture, and they had a really robust fire boiler that they would use to get rid of all their scrap.”

Member Profile

INCREASING EFFICIENCY WITH 5S Having powerful, state-of-the-art equipment is important in the corrugated industry, but so is having the right processes in place. At Coastal Container, team members from operators to executives have been working to reduce setup time and create more efficient processes. “An area we’re really proud of is that we’ve reduced our setup on our rotary die cutters by about 100 percent—and we did it over the course of two months,” says Bill Baumgartner, president of Coastal Container. The commitment they’ve made has even included letting go of some of their advanced technology machines. They once had one of the largest flexo folder gluers with inline rotary die cutters in Michigan. They recently sold it because the setup time was an hour and 45 minutes. “We went with something more nimble that had more flexibility,” says Baumgartner. The focus on the rotary die cutters was a strategic approach that allowed them to break down every step in the process to find more efficient and better ways of

setting up the machines. Coastal has two rotary die cutters that are right next to each other, and the team was determined to standardize the product and have everything in the same spot. To find increased efficiency, they used the 5S process, an organization system that translates into: • Sort • Set in order • Shine • Standardize • Sustain The system was developed in Japan and was considered one of the precursors of just-in-time manufacturing, something that Coastal prides itself on. The 5S steps are a process that organizes the work space for efficiency by cleaning an area, maintaining all the equipment, removing things that don’t belong, and properly storing everything that is used. While the goal is standardization, that goal is achieved through dialogue among all employees about how they should do the work.

there, and we would hold weekly meetings with the teams. They would have daily huddles, and then they would report on a weekly basis how their development was taking pace. I would in turn ask questions. We played that kind of touch ball for a few weeks.” He says at first the operators were getting frustrated because they were spending so much time cleaning their areas and not seeing any gain in efficiencies. He says it took about a month before they started seeing improvements and two months before the numbers really started looking good. “We’ve been able to sustain it since then,” says Baumgartner. “I’m looking at our smaller die cutter, and for the first quarter of last year, we averaged 43 minutes per setup. This past quarter, we averaged 14.8 minutes per setup. So, it’s been a drastic improvement.” Now their plan is to take that same methodology and apply it across the floor to other pieces of equipment.

“The idea is basically that if you don’t have a clean area, then you’re going to have waste,” Baumgartner says. “We started

BOXSCORE www.aiccbox.org

Member Profile

The wood-fired-biofuel boiler allowed them to heat their entire building by burning the wood scrap and dust that they create and that their largest customer, Haworth Furniture, creates. Haworth used to ship its scrap and dust across the state to a place in Flint where it would be burned. Now, when they donate it to Coastal Container, it provides a boost to both of their bottom lines. “We go over and pick up the scrap they create in making their desktop,” says Baumgartner. “We have a boiler, and that’s what we run in the cold weather months to heat our building. From that standpoint, we are pretty self-sufficient.” He says before they even made a box, they were looking at the boiler and trying to figure out what to do with it. When they learned what Haworth was

doing with their dust, things began to click on a better way to do things for themselves and their customer. “We put two and two together—we could heat our building for free, in essence; it is going to cut down on the use of natural gas, and it is going to save Haworth from trucking scrap across the state. It seemed to make sense.” Coastal Container is also dedicated to living out its core values and purpose every day. Baumgartner says that is something they talk about all the time with their employees, their managers, and their customers. “We guarantee the integrity of our customer’s product from dock to destination,” he says. “Not only do we have to provide them with a quality product on time, but by doing so, it is

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BOXSCORE September/October 2018

going to help their reputation with their customers.” He says they live by their core values where all their stakeholders are concerned: • Teamwork • Achievement • People Matter • Partnership “That is the backbone of the company,” Baumgartner says. In practical terms, this gets applied by having a plant with a great number of different types of equipment so that they can do large or really small runs. They’ve invested in their design team and their service platform. As part of their service platform, they’ve set aside 80,000 square feet for their customers’ finished goods that they can deliver just in time with their fleet of 21 semi-trailers. Baumgartner also says the way Coastal Container goes about strategic planning stands out from others in the industry. “In our industry, we have a lot of entrepreneurs who call all the shots. In a lot of companies of our size in our industry, it is more one guy running the whole thing and telling people what to do. We’ve got a management team of about six people, and we meet routinely,” Baumgartner says. “We huddle every day. We have a very inclusive strategic planning process.” Now, 11 years after their founding and after experiencing a decade of rapid growth, Baumgartner predicts the growth, now under the leadership of CEO Paul Doyle, will continue with the company being double its current size in five years and potentially expanding into a new location. Virginia Humphrey is director of membership and marketing at AICC. She can be reached at 703-535-1383 or vhumphrey@aiccbox.org.

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BOXSCORE September/October 2018

YOUR BEST TEAM MEMBERS

EDUCATION AND TRAINING ARE ESSENTIAL TO ATTRACT AND DEVELOP GREAT EMPLOYEES By Scott Ellis, Ed.D.

cross the United States, the owners and managers of packaging manufacturers and their suppliers have listed the challenges faced in the current state of efforts to attract and retain talent.

A shortage of applicants who are both willing to and capable of doing the work.

Competition for applicants from other manufacturers, as well as fast-growing logistics companies.

3 An existing workforce that is aging and having difficulty transferring the benefits of their knowledge and experience to the next generation.

4 An accelerating need for technical and management prowess. In past articles (BoxScore, May/June 2017 and 2018, Leadership), I have outlined alternatives to the traditional methods utilized by the industry at large. Here I will report insights of exemplary employees, innovative employers, and education providers.

Education is a key factor, whether the focus is attracting or developing exemplary employees. What Attracts Exemplary Employees?

If I were starting a new company (and I am not), those I interviewed for this article would be high on the list of those I’d want on my team. They are all gainfully and happily employed and would reject solicitation, so kindly resist that urge. J. Ryan Zambon, information systems manager at Weber Display and Packaging, offers that he has been interviewing many potential employees of late. Zambon says: “I ask candidates to describe their perfect next job, and there is one common desire that can be summarized with one word: culture. A culture that makes someone feel at home— friendly and supportive with teamwork, helpfulness, and respect for each and every person. Just as people enjoy coming home at the end of the day, people want

to enjoy going to work at the beginning of the shift. A culture that breeds success by making people successful with the right training and opportunities for personal and professional growth. Hiring people for their skills is less than half the battle—the real work is hiring people with alignment to the company’s culture. There’s no motivation to work in a deadend job, and without the right company culture, every job is dead-end.” Terri-Lynn Levesque, office manager at Royal Containers, adds her personal wish list, which includes many of the programs offered by her employer. She says highly motivated people like her desire the expected competitive compensation with excellent health and retirement plans. She adds that attractive companies have employee assistance programs, tuition reimbursement, and child care options.

BOXSCORE www.aiccbox.org

“The most appealing company is the one that rewards performance over all other factors. I want the management to value my work and to see me as more than employee No. 452,” she says. “Knowing them and being known, I can be considered for new challenges, and just as importantly, I will know that they care about my family and me. “Another key attraction is a flexible schedule. I am going to get the work done, and I appreciate working for a company that puts a high priority on work-life balance.” Levesque also emphasizes, “The company has to be a good fit with my values. I want to know that continuous communication is priority. This would include feedback on performance for both good and bad outcomes. I want to know that they deal with underperforming staff who are a drain on the departments they work in. Finally, there is a lot to know and much that is changing, so commitment to continuous education is also a value.” Daniel Brettschneider, operations manager at CST Systems, says, “I would be most interested in a company that viewed their staff as a high-functioning team and protected them in the internal and external trenches as their most important

BOXSCORE September/October 2018

business factor.” He echoes comments above on the value of flexible hours, worklife balance, clear job requirements, and timely performance feedback. In addition, Brettschneider speaks to the importance of continuous improvement: “They would show a dedication to developing and streamlining processes, removing redundant areas, and consistently seeking out new ways of doing/ managing their business so that staff can focus on the next big challenge.” He also agrees that continual education matters: “They would cross-train employees in as many areas of the company as possible, and especially in the application of the core business.”

What Are Innovative Employers Doing?

Education is a key factor, whether the focus is attracting or developing exemplary employees. For some time, President Container Group has offered a full on-site math class with emphasis on application to packaging manufacture. Successful completion of the course guarantees the student priority access to applicable jobs at the company. This proactive initiative was developed to deal with the inability of most applicants to complete measurement

and data entry tasks required for the job. The results have benefited both the company and the community. Manufacturing is seen by many as a secondary career alternative. Bill Nolan, president of Standard Printing Co., is intent on fighting that perception and staying an employer of choice in Canton, Ohio. “It has been advantageous to develop relationships with local high school teachers who have toured our facility,” he says. “They are motivated to help place students into an internship program and ultimately full-time employment once they graduate.” At Pacific Southwest Container (PSC), I heard from Vice President of Human Resources Blake Steward. The company has made good use of Facebook and other social media sites to broadcast open positions. These sites connect to landing pages that market the company and jobs to prospective applicants, highlighting individual PSC team members who tell their personal stories in pictures, video, and script. This includes an online application portal. Steward describes an education initiative that has been effective in preparing the workforce in their headquarters location of Stanislaus County, Calif. “For

Thank you Education Investors These companies are making a significant contribution to the online education available to all AICC members.

For more information, contact Mike Dâ&#x20AC;&#x2122;Angelo, Vice President, 703.535.1386 or mdangelo@aiccbox.org.

AICC works with schools, supplier members, and other subject matter experts (SMEs) to provide a growing catalog of on-site and online courses for the development of member company employees. several years we have partnered with Opportunity Stanislaus, whose primary mission is to develop the readiness of the county’s workforce and to create opportunities for businesses and prospective employees to connect,” he says. “We have been active as board and steering committee members through the creation of the VOLT Institute. VOLT’s intent is to develop the technical and operational capabilities of the county’s workforce to enable local businesses to hire technically trained employees and close the skills gap that has existed between business and job applicants. Its first class of certified Industrial Maintenance Mechanics graduated on June 27, 2018.” Six of those graduates were PSC employees utilizing the company’s tuition reimbursement benefit.

What Opportunities Do Educators Provide? FOR FUTURE EMPLOYEES Many universities and technical schools prepare students for the packaging industry. The programs are enhanced by the International Corrugated Packaging Foundation (ICPF), whose mission is to generate a stream of increasingly qualified students to enter the corrugated industry. Employers that are active on campus in

BOXSCORE September/October 2018

career days, interviews, and providing internships have the best chance of attracting students. According to faculty in multiple schools, the technological advancement in nonpaper packaging and graphic sciences has resulted in our industry being seen as a backup plan for many students. Some boxmakers have changed that trend by marketing their companies to students and providing a more realistic view of the industry. At California Polytechnic University (Cal Poly), the approach is pragmatic. Instructor Colleen Larkin Twomey emphasizes that the school’s motto is “learn by doing.” Packaging companies are involved in job fairs, internships, and even as members of various committees. This has helped the school to develop the workforce, and it’s improved the company talent pipeline. The type of talent being prepared by a particular school may be seen on their website pages featuring résumés of graduating students. Also of value are the sites that allow alumni with at least a few years of experience to post their résumés. FOR CURRENT EMPLOYEES Online Training. For development of those already involved in packaging, some of these schools also offer online degree programs. Cal Poly’s packaging program

offers certificates aimed specifically at packaging industry professionals that will feature interactive online coursework. Each program takes less than six months to complete. A course is currently focused on Packaging for Logistics and Supply Chains. Another example is Clemson University’s online offerings, including a 30-semester-unit master’s degree in industrial engineering. AICC works with schools, supplier members, and other subject matter experts (SMEs) to provide a growing catalog of on-site and online courses for the development of member company employees. More will be said below about destination workshops and seminars. AICC’s partner in online education development is a sanctioned entrepreneurial outgrowth of Clemson’s curriculum led by Clemson professors and alumni. I asked Sara Shumpert Dunn, managing director of The Packaging School, to comment on the need they fill. “Because demand for packaging employees far outweighs the supply of qualified candidates, we work to provide an efficient solution. Online education can be utilized in combination with personalized apprenticeship programs,” she says. “The Packaging School’s online courses are perfect for staff development. Investing in employee education is key to engagement and efficiency within your organization.” The partnership, known as AICC Packaging School, provides members with free access to our combined curriculum. Recent additions to the list of more than 40 offerings include Essentials of WaterBased Flexo Inks, created with support of BCM Inks. Responding to the new hire’s need to understand the math used daily, Packaging Production Math was developed. Many courses are available on flexography, safety, and corrugated production, and an increasing number of courses pertain to

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folding carton and rigid box manufacture. These are complemented by a variety of courses for leadership development and process improvement. The Packaging School’s certificate programs are available for packaging science and packaging management.

By adopting and amending best practices described by the attractive employers we heard from above, we can grow past the frustrating current state. AICC’s Packaging School makes the online training available when and where it is needed. • A technically skilled employee with ongoing communication shortfalls can complete Communication for Coaches, and then meet with a supervisor to discuss the learnings and develop an action plan. • A sales professional who is new to packaging may be assigned a series of courses to complete a development track to increase practical understanding of our history and best practices. • An HR manager may use the Internal Staff Development Guide to enhance

BOXSCORE September/October 2018

their onboarding of employees for faster productivity and engagement. • Every employee can have a unique login and record of quiz scores and course completions. On-Site Courses. There are times when the best way to learn is to be face to face with instructors and peers for in vivo experiences with people, technology, and machinery. Taryn Pyle, AICC’s director of education and leadership development, and I work with SMEs across our industry to provide destination courses that exceed the value of the investment. We understand that having key employees away from the plant is as expensive as the travel and tuition involved. In addition to such mainstays as Corrugated Fundamentals and Flexographic Printing Best Practices (at Clemson), this past year saw the addition of Understanding the Corrugator, Productive Machine Measurement, and Digital Printing on Corrugated. Beginning this fall, courses will be offered on Rotary Die Cutting Best Practices (at Fox Valley Technical College), Corrugator Maintenance Best Practices, Lithographic Best Practices (at Cal Poly), and a new Sales Managers’ Forum. Over the past two years, significant progress has been made in helping participants transport the best practices learned in these courses into common practices used in their plants. The Future State The challenges of finding, attracting, developing, and retaining talented employees are formidable. When we listen to exemplary employees as they describe the company they aspire to join,

we can prioritize and adapt in order to be an employer of choice. By adopting and amending best practices described by the attractive employers we heard from above, we can grow past the frustrating current state. We can invest the same amount of time we are reacting to turn over problems in proactive workforce development efforts. Finally, we can invest in new and seasoned employees by valuing training. That would include aggressively utilizing the free online resources available to AICC members, assigning development tracks to engaged employees, and incenting long-term employees to share their knowledge with co-workers. In this market, employees manage their careers as both contributors and consumers. Savvy employers are investing in local workforce development, as well as in key education pipelines. They also invest in existing employees with ongoing education and varied experiences to increase their ability and engagement. AICC provides resources for your success in all these endeavors. Scott Ellis, Ed.D., provides the brutal facts with a kind and actionable delivery when a leader, a team, or a company needs an objective, data-based assessment of the current state of operations and culture. Training, coaching, and resources develop the ability to eliminate obstacles and sustain more effective and profitable results. Working Well exists to get you unstuck and accelerate effective work. He can be reached at 425-985-8508 or scott@workingwell.bz.

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Learn more at www.aiccbox.org/store. When you invest and engage, AICC will deliver success.

A WORTHY INVESTMENT

A LOT OF THOUGHT—AND MONEY—GOES INTO THE PROCESS OF REBRANDING, BUT THE COMMITMENT IS NECESSARY TO GET AHEAD By Lin Grensing-Pophal

BOXSCORE September/October 2018

very company—indeed, every individual—has a brand. A brand is an indication of how they are perceived and might be thought of as a personality. People have them. Products have them. Companies do, too. Importantly, while a brand is often considered to be such visible elements as logos, signage, typeface, colors, and tag lines, it is actually the sum of all consumer and customer interactions. Those visual elements are important—they’re a reinforcement and reminder of the brand, a visual way to tie subjective experiences to tangible products and businesses. Consider such iconic brands as CocaCola. When you read that corporate name, chances are you immediately pictured an image of white script lettering on a red background. That’s Coca-Cola’s logo, a part of its brand, but really just a visual representation that becomes connected to experience. That same thing happens in the manufacturing world.

because Bertram kept seeking a word that would encompass the completeness of the services provided. “I wanted something that would tell the whole story,” Bertram says. “I wanted something that says ‘the complete thing,’ ‘the complete story.’ I kept saying the word ‘complete’ and then said, ‘That’s it!’ ” From the start, Bertram wanted to create a company that would be perceived as contemporary and timeless. “Even though we were a startup, I wanted a timeless name and timeless but traditional colors and a contemporary look.” Sixteen years later, Bertram is still confident that his brand conveys the personality of the company and has allowed it to shift and change with the times, “as we’ve evolved, we’re a much different company now than back then—very cutting-edge and state-of-the-art as far as our market goes.” Rebranding over that time, he says, hasn’t occurred as a single event, but organically. A shift to digital technology

“Don’t get too hung up on yourself. Don’t take yourself too seriously. You’ve got to consider the direction the world is going, and you have to adapt. Put the pride aside.” — Howard Bertram, president and owner, Complete Design & Packaging

Photo courtesy of Complete Design & Packaging.

Changing With the Times

Howard Bertram is president and owner of Complete Design and Packaging, a company that he and his wife, Donna, started 16 years ago. Bertram was forward-thinking in the creation of his company. He wanted to create a company—and associated brand—that would stand the test of time. One that wouldn’t be hindered by a changing environment that might be impacted by market changes, changing technology, and even changes in ownership. Choosing a company name was an important part of that and something he considered carefully, brainstorming ideas until an obvious moniker came to mind: Complete Design & Packaging. “Design and packaging” because that’s what the company does. “Complete”

Complete Design & Packaging’s shift to digital is exemplified in its capabilities for clients.

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“ We’re not just here to make boxes. We’re here to provide packaging solutions.” — Richard Wheeler, CEO, Merrill Industries

BOXSCORE September/October 2018

Photo courtesy of Merrill Industries LLC

was part of that process. “We own and installed one of the only digital printers in the world—the first one in the U.S.—not digital only, but in-line, single-pass digital printing.” The brand evolution, he says, has shifted to “incorporate a digital look, digital colors, more digital edginess, if you will.” It’s likely that a company’s brand takes on some elements of its owner’s own personality. That seems to be the case with Complete Design & Packaging. “The box business is pretty stodgy, slow to move, slow to adapt,” says Bertram. “People just don’t like change.” But, he adds: “I’m anything but that. We’re the opposite. My company is very contemporary.” While there are some “movers and shakers” in the industry, he says, he believes the 80/20 rule applies. “In our industry, for some reason, we’re slow to adapt—we always wait for the other guy to do it, or we like to wait and see.” Many, he says, take a “wait, wait, wait” approach to the adoption of new technologies and techniques. In such a fast-paced environment, that hesitancy can be risky from a business standpoint.

Merill Industries’ new tag line, “Packaging Solutions Made Simple,” and three value statements: Mission, Vision, and Shared Values.

Staying Attuned to Trends

While logos and look aren’t the entire brand, they are, as we’ve seen, important visual representations of the brand. As time goes by, those visual representations need to change and evolve to remain current, Bertram says. “Look at language in the late 1800s versus now, look at the words, the shape of the script, the colors.” Over the decades and centuries, things change, and companies need to change along with them. Prudential is a good example of this. Their logo, while still including an image that reflects the Rock of Gibraltar, first introduced in 1896, has seen subtle changes over time—changes that were likely not dramatically apparent to the market, but that are obvious when looking at the original logo and comparing it to today’s more stylistic design. Bertram’s advice for others? “Don’t get too hung up on yourself. Don’t take yourself too seriously. You’ve got to consider the direction the world is going, and you have to adapt. Put the pride aside.”

Recognizing When It’s Time for a Major Change

Richard H. Wheeler is CEO of Merrill Industries LLC, a company that was started in the 1970s. He came to the company about a year ago and immediately identified an opportunity for refreshing the brand. “We really needed to step up our game,” he says. Wheeler contracted with a company that specializes in website development and marketing and began the process of updating marketing materials, beginning with print collateral. “We want to get information in people’s hands that’s hard copy—that they can touch and feel,” says Wheeler. So, the rebranding process started with the development of a brochure that then became the foundation for everything to follow. One big benefit of rebranding, or refreshing the brand, is an opportunity to reach out to make a connection with a market that may not have thought of your company for a while, or that may not have heard of your company.

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With Merrill’s rebranding initiative, the company did an email blast to announce the new website. “Within a matter of 48 hours, we had something like 20 different requests for information in the customer service portal,” says Wheeler. “I guess it worked.”

Selecting a Marketing Partner

Photo courtesy of Merrill Industries LLC.

Wheeler knew that he would need to turn to outside expertise to give his brand the boost it needed. And, because social media and digital marketing are so prominent these days, he wanted a vendor or agency with expertise in that area. He didn’t, though, feel that he had to select a partner that specialized in the corrugated industry. What he wanted most was marketing expertise. And, not just digital marketing expertise, but also the expertise to update print collateral. “We ended up selecting a company that had not only done work in our industry, but for nonprofits, for state government, and for TV and radio stations around the area.”

Merrill Industries placed corrugated chairs emblazened with logo in their lobby for guests.

BOXSCORE September/October 2018

The marketing partnership is a collaborative one, says Wheeler, and requires conversation and interaction to help the agency understand your goals, objectives, and desired image or approach. It’s important for the agency to understand your business and, in this case, the equipment used to provide services to customers. The final materials created must be a combination of technical information to answer potential customer questions while conveying a look and feel that is brand-supportive. Conversations led to insights, which led to ideas about how to best portray what Merrill had to offer. “Somebody in one of the meetings said, ‘Why don’t you just put it in the form of a box?’ and that’s exactly what we did,” says Wheeler. “The marketing brochure actually folds out like you’d see a box being made on a folding carton machine.” Once the brochure was in place, it became the foundation for the development of the website, he says.

Patience

The entire process took more than a year, says Wheeler, but it was time well spent. Time—and money—are two important factors that manufacturers need to consider in a rebranding effort, he says. “It is not inexpensive,” he cautions. “There are always things you didn’t plan on that are going to cost money—redrawing, photo shoots, things like that.” It’s important to budget adequately and to have a clear vision of what you want to accomplish, he says. That vision will drive all of the photos, and composition and content. Without it, he says, “you’re going to be all over the place.” Budget, vision, and target audience, says Wheeler, are the critical components of a succession branding or rebranding initiative. And patience.

“I just can’t stress enough having patience and an unwavering unwillingness to compromise. Know what you want to accomplish, know what you want to achieve, and stick with it.” And, he adds, don’t settle for less than what you want. “You’re going to kiss a lot of frogs before you get there.” “The most important thing for us, as a company that’s been around a while, is just showing that we’re coming into the 21st century with the way we’re approaching the corrugated industry,” says Wheeler. The big message: “We’re not just here to make boxes. We’re here to provide packaging solutions.”

Design Reflects, Delivery Supports

One important consideration to keep in mind with any branding initiative— whether establishing a new brand or refreshing an existing one—is that the brand is the sum of all customer and consumer interactions. A visually appealing website will ultimately fail to deliver the results expected if product service and delivery don’t match the expectations the brand is establishing. In boxmaking, where many players have years of experience serving customer needs, exceptional manufacturing service and customer support provide a solid foundation for creating and sustaining a strong brand. The rest, as they say, is window dressing. Lin Grensing-Pophal is a writer based in Wisconsin. She is a frequent contributor to BoxScore.

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BOXSCORE September/October 2018

FOLLOWING THE LEADER FAMILY BUSINESSES FACE UNIQUE CHALLENGES IN SUCCESSION PLANNING By Robert Bittner

n order to evolve and grow, dynamic converters must keep a close eye on their leadership talent and understand how best to develop it. Succession planning is an essential part of that process. While every management position can benefit from such a plan, preparation is particularly critical when it comes to finding the next company president. In some family-owned businesses, succession simply may be a case of the next generation stepping in once Mom or Dad announces a decision to retire. Often, the younger generation will prepare for that role by spending a lifetime gaining experience throughout the company and observing how their parents have led. Add in the business discussions that can naturally occur during casual family get-togethers, and it’s easy to see how company life becomes an integral part of family life. But not every family-owned converter fits this model. Some family-owned businesses must take a different approach to succession. Maybe there are no eligible family candidates for the president’s role. Or maybe the available family members prefer—or are better suited for—other functions within the company.

When the current leadership chooses to look for a successor from outside of the family, it may make the most sense to start with those candidates who are most like family. Whatever the reason, these companies must navigate the challenges that come with finding, vetting, and fully integrating an “outsider” into a business that was founded with and propelled by a family-driven vision.

Like Family

When the current leadership chooses to look for a successor from outside of the family, it may make the most sense to start with those candidates who are most like family: industry colleagues with whom you have a long history and who know and understand your company. When JB Machinery learned that the owners of its key manufacturer, XericWeb Drying Systems, were retiring, JB bought the company to ensure its manufacturing

going forward. They renamed their acquisition XDS, and then began the search for the company’s new president. It was not long before they found Jeff DeVries. “Jeff was an easy choice for us,” says John Bird, JB Machinery’s founder and president. “We had known him for over 20 years in a professional capacity, as a fellow colleague in the corrugated industry.” After repeatedly working with DeVries as he held positions with various manufacturers, JB Machinery’s need for an XDS president finally aligned with DeVries’ availability. “We initially considered internal promotions and other approaches,” Bird says, “but there was nobody we could see who would be as ideal at leading XDS as Jeff. Our engineering skills are limited,

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so we needed someone to bridge the gap [between our ideas and manufacturing needs]. Jeff is the final piece in the puzzle and the keystone to our success at XDS.” The situation was similar for Michael Gallagher, who succeeded founding president Jim Haglund at Central Package & Display (CP&D). “I had been familiar with CP&D before joining the company,” Gallagher says, noting that CP&D had been a vendor for Print Craft, where he had served as president. “Part of my responsibilities at Print Craft had been acquisitions. I’d been meeting with Jim in hopes that he would sell Central to Print Craft’s parent corporation. After several years, I realized we weren’t going anywhere. But, at the same time, he was looking for someone to succeed him.”

That existing relationship led to Gallagher joining the company.

Presidential Preparation

Royal Containers has taken a different— and remarkable—approach to succession planning. President Kim Nelson, who took over the family company after her father died, has tapped current employee Terri-Lynn Levesque to take the reins once she retires—in about nine years. In the meantime, Levesque is being trained and mentored for her eventual role, even as she continues to handle her normal day-to-day workload. Levesque has already demonstrated her commitment to Royal Containers. “Terri-Lynn started in the business as I did,” Nelson says, “working summers

and working here during high school and college. So we’ve worked together quite a long time. By the end of the summer, we’ll be starting year two of a 10-year succession plan for the president’s role.” That may sound unusually forward-thinking, but, Nelson explains, “This kind of planning is part of our culture here. Every manager, every leader, has to be working on succession planning.” Although a 10-year succession plan might be rare, the approach gives Levesque the time required to “walk in everyone’s shoes, do everyone’s job, and understand everyone’s role,” Nelson points out. “She needs to figure out how to get the best out of all the people working under her and make sure everyone’s engaged. The other part of the process is

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BOXSCORE September/October 2018

kind of throwing her to the wolves and letting her make a lot of bad decisions!” she adds, laughing. “But, of course, she’s not doing this alone. There’s a lot of interaction between us.” Mentoring is particularly important when someone who is not a family member is stepping into the president’s shoes, without the benefit of years of observation and discussions. “How I mentor is pretty flexible,” Nelson says. “If I’m dealing with a very large customer, I’ve had Terri-Lynn come along with me and sit in as we deal with an issue, just for her to have the exposure. We all have to be flexible enough for her to experience different activities. “But Terri-Lynn’s still also the office manager, so she does need to figure out

how to balance her current job with the job she’s training for. I think through just experience and time you get good at balancing those things. We have good communication, though, so if she gets overwhelmed she’ll come into my office and say, ‘This is too much,’ and we work it out.” While a current employee may be expected to share the company’s vision for the future and appreciation for the heritage, those were not the most important criteria for Nelson when choosing her successor. “I’m looking at values first and foremost, what you’re made of. Technology will change. Innovations will take us in different directions. Values remain throughout all those changes.

Mentoring is particularly important when someone who is not a family member is stepping into the president’s shoes, without the benefit of years of observation and discussions.

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Once in the job, a nonfamily president will need to figure out how to navigate the unique challenges that come with family businesses.

“This way of thinking comes naturally to us,” she continues. “We don’t hire skill or experience; we hire based on core values and whether you’ll fit in here and align with the rest of us. Because we can teach you anything. So it’s not about whether Terri-Lynn and I agree on a strategic direction for the future. We know we’ll need to work through that together. Instead, what was most important to me was that her values aligned with my own. “Here’s what I mean about values: TerriLynn is authentic and honest. Employees, customers, suppliers all see through someone who’s just faking it or going through the motions. Authenticity is important. Another core value is responsiveness. You’ve got to have a sense of urgency about the job. You’ve got to be flexible and adaptable, forward-thinking. It’s also good to have a little bit of audaciousness, to push the envelope when you need to.”

The Personality of a President

Overseeing a family-owned business will often require strategies that differ from those of other companies. Gallagher recommends that prospective candidates for the role make the time for an honest personal appraisal and for open communication with the company’s current leadership. “It takes a certain personality type to come in as a nonfamily member in a

BOXSCORE September/October 2018

family-owned company,” he says. “As you work to develop and evolve the company, you have to find a balance, a compromise, with the people who started it. If you were a personality type that had difficulty with that, it won’t work out. There was a period of about 12 months from when we started talking to when I accepted the offer. We had plenty of time to reflect, discuss, and have open conversations. “To be honest, I did say no to the opportunity about halfway through the discussions. I was 48 years old. At that time, you’re nearing the peak of your career. So I reminded Jim—who I knew wasn’t going to be an absentee owner—that I wasn’t wanting to be a backup quarterback and wouldn’t do well sitting on the bench. I needed to be truly involved. We clarified how it could work and focused on the positive. I’m truly amazed that Jim was so willing and open to respect my need for relevance and to do the role. That was very impressive on his part.” Once in the job, a nonfamily president will need to figure out how to navigate the unique challenges that come with family businesses. “I know how to run companies of this size—$40 million—but I didn’t know how to run Jim’s company,” Gallagher admits. “There were cultural and family nuances to learn about. It isn’t always

true with every family-owned business, but here the owner was in tune with every detail. He especially wanted to be involved when it came to personnel issues, because often there were family members and long-term employees involved. “In some ways, this kind of relationship is like a marriage. There have to be the same values of compatibility, respect, caring for one another. I understand Jim, and Jim understands me. You have to be very transparent.”

A True Success Plan

The question of family vs. nonfamily succession can feel highly personal for everyone involved. However, a leader’s lasting success is not ultimately measured by genetic testing. Nelson remembers, “My father said to me that my success will be measured by the success of the next generation. That’s really stuck with me. My job is to make the next generation succeed. That’s incredibly important. The big challenge is figuring out how best to do that now.” Robert Bittner is a Michigan-based freelance writer and a frequent contributor to BoxScore.

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NEWS FLASH: Salaries, Wages, and Benefits Are Up! S

alaries and hourly wages of employees in U.S. independent corrugated converting operations are up by an average of 3.4 percent over a year ago, according to AICC’s 2018 Salary, Hourly Wage & Benefit Report. The survey was conducted in the spring of this year and represents the most comprehensive survey to date of key employee salaries, wages, and benefits being paid by independent corrugator plants and sheet plants in the United States.

SALARY, HOURLY WAGE & BENEFITS REPORT

2018 EDITION

BOXSCORE September/October 2018

For 2018, 22 independent corrugator plants and 63 sheet plants in the U.S. responded to the survey. These companies employed 8,872 workers spread across six AICC geographic regions. Base salary data for 1,089 key personnel were included in the survey, as well as the regular hourly rates for 2,731 employees. The survey collects data on 28 key salaried positions and 39 commonly recognized hourly positions in corrugator plants and sheet plants.

More often than not, median base salaries increased with the type of plant, the number of plant employees, and years of service. For sheet plants and corrugators alike, the highest salaries reported for most positions were in companies located in the Midwest and West, followed closely by the Great Lakes and Northeast regions. The average salaried employee had 12.4 years of service in 2018 and saw an increase of 3.4 percent in base compensation over the previous year. For hourly positions, the average employee had 8.9 years of service, and in 2018 realized a 3.4 percent increase in his or her regular hourly rate over 2017. As with salaried positions, median hourly wages tend to increase with the number of employees and years of service. The highest hourly rates for sheet plants were reported in the West and Midwest; the highest hourly rates for corrugator plants were reported in the Great Lakes and Northeastern regions. Complete data on salaries, hourly wages, and employee benefits can be found in AICC’s 2018 Salary, Hourly Wage & Benefit Report. For more information, or to purchase, scan the QR code on this page or go to www.aiccbox.org/store.

2018 Regular Hourly Rate

CORRUGATOR PLANTS — U.S.

SHEET PLANTS — U.S.

Dry-End Operator

Baler Operator

Stacker Operator

Flexo Folder Gluer Operator

Single-Facer Operator Double-Facer Operator

Assistant Flexo Folder Gluer Operator

Corrugator Take-Off

Folder Fluer Operator

Clamp Truck Driver

Assistant Folder Gluer Operator

Baler Operator

Specialty Folder Gluer Operator

Starch Mixer

Assistant Specialty Folder Gluer Operator

Other (Corrugator Operations) $5

$10 Min/Max

$15

$20

Median

$25

$ 30

Average

$10 Min/Max

$15

$20

Median

2018 Salary Compensation

General Manager (Not as Owner/Partner)

General Manager (Owner/Partner)

CORRUGATOR PLANTS — U.S.

$25

$ 30

Average

SHEET PLANTS — U.S.

Sales Manager

Controller

Plant Production Manager

Controller

MIS/IT Manager

Marketing Director

Design Manager MIS/IT Manager Graphics Manager Maintenance Supervisor

Customer Service Manager

Logistics Manager

Other

Design Manager

Human Resources Manager

Customer Service Manager

Accounting Manager

Other

Maintenance Supervisor

Graphics Manager

Shift Supervisor/ Superintendent $0

$100,000

Average Total Compensation

$200,000

$ 300,000

Average Base Salary

$100,000

Average Total Compensation

$200,000

$ 300,000

Average Base Salary

BOXSCORE www.aiccbox.org

SPECIAL SECTION

AICC EDUCATION CATALOG AICC is the leading educator for independent corrugated, folding carton, and rigid box converters. With nearly 50 free online courses, instructive seminars across the country, topical webinars throughout the year, and informative workshops at National Meetings and Summits, AICC can help everyone in your plant maximize their potential and your company maximize its profit. Encourage your team to participate in the benefits available. Visit booth #849 during Corrugated Week to learn more.

BOXSCORE September/October 2018

Getting Started & Refreshing Your Skills Rigid Box Beginner Operator Training Seminar

Corrugated Packaging Fundamentals Seminar

(Tue.–Fri.) September 18–21, 2018 East Providence, RI

(Wed.–Thu.) October 24–25, 2018

Taught by Emmeci trainers, this 3½-day seminar is designed for beginning operators who have run machines for at least six months and are ready to go to the next level. This course will show how to set up a job from start to finish. Participants will learn how to use a squaring tool, make wooden frames, and adjust forms, fingers, and other basic components of the machines. The session will give operators who frequently need help from more experienced co-workers the tools and confidence to set up and run jobs on their own.

Rotary Die Cutter and Flexo: Getting the Most Out of Your Equipment (Wed.–Thu.) October 17–18, 2018 Fox Valley Technical College, Appleton, WI Learn the best practices to produce quality boxes on your rotary die cutter at AICC’s new two-day course. The seminar will focus on how to safely produce quality boxes at speed on lessthan-three-color machines. Participants learn the “why” behind best practices, and then learn by doing.

This seminar is a comprehensive, interactive exploration of corrugated packaging technologies. It covers everything from raw material choices to packaging design, printing, converting, sustainability, and end use. Attendees will analyze various packaging solutions and examine the performance attributes of containerboard and corrugated board, including appearance, printability, and runability.

Folding Carton Fundamentals Seminar (Wed.–Thu.) March 13–14, 2019 Graphco, Cleveland, OH Examine the entire folding carton process, from raw material choices to package design, printing, and converting, from the paper supplier to the customer. Attendees will discuss the attributes of paperboard substrates—their strength, appearance, and printability. Participants will analyze current packaging solutions, and upon completion, attendees will be well-equipped to make valuable contributions to critical packaging decisions. The training includes a plant tour of Tap Packaging Solutions.

Available Anytime — Free Online Courses »» Corrugated Basics 101, 102, and 103 (English & Spanish available): Learn the history, types of board, construction, configuration, and manufacturing of corrugated products in this three-part series. »» Keeping Score: How to Read Financial Statements: Demystify the four most common financial statements: the purpose of the balance sheet, the income statement, the cash flow statements, and the ratio analysis. This course offers a practical approach for people of all levels of your packaging company to keep score using these tools. »» Essential Principles of Water-Based Flexo Inks*: The course provides the basics needed for printers and suppliers of water-based inks. It was created with the support of BCM Inks. »» Packaging Design Workflow: Course features the overall strategy utilized in developing a packaging system. After a recap on terms and basic design attributes, learn how to develop a design brief, kick off the project, brainstorm packaging ideas, and set up a timeline to production.

BOXSCORE www.aiccbox.org

»» Paperboard Cartons: You will learn how paper is sourced and manufactured, what paperboard grade is best for your application, and the possibilities for creating unique, eye-catching paperboard packaging designs. You will have access to powerful tools that help you select styles, designs, point sizes, print processes, and pricing.

»» Safety Basics (English & Spanish available): This course provides employees with the knowledge and skills required to safely perform their assigned duties, recognize potential hazards, and avoid those hazards.

»» The Corrugator*: This course focusing on the corrugator dives into key sections and systems of the corrugator, including the wet-end, the dry-end, and the corrugator control system. It was created with the support of Fosber.

AICC’S LATEST PUBLICATIONS

SALARY, HOURLY WAGE & BENEFITS

For the Packaging Industry

REPORT

2018 EDITION

2018 Salary, Hourly Wage & Benefit Report

2018 Job Descriptions For the Packaging Industry

The salary and benefit report of AICC’s box plant members represents the only comprehensive report of the key employee salaries and benefits being paid by independent corrugated converters in the U.S. Broken down by region and plant type, it includes hourly wage rates for selected positions, as well as percentages paid by employees for health care and other benefits.

Many roles and responsibilities have changed due to new customer needs, company goals, and available technology. Job descriptions should take into account the expanded skill sets now required. The descriptions included in this publication serve as a starting point or template to develop accurate job descriptions for all major positions in typical midto large folding carton, corrugated, or rigid box converting plants.

Learn more at www.aiccbox.org/store.

BOXSCORE September/October 2018

Capital Equipment Justification Guide Making the correct and best selection of new or used capital equipment begins with a well-informed understanding of your company’s needs and the technology available to meet those needs. This guide provides you with a formula to assess both need and value when considering the purchase of capital equipment as well as a checklist that you can use to evaluate and compare different options. A list of critical questions is also included— the questions we most often forget to ask before the equipment arrives.

Moving Up Digital Printing on Corrugated Seminar

Sales Strategies for Today’s Market Seminar

Productive Machine Measurement Seminar

(Wed.–Thu.) October 10–11, 2018 Hosted at Sun Automation, Glen Arm, MD

(Tue.–Wed.) October 23–24, 2018 Hosted at W.H. Leary, Tinley Park, IL

(Thu.–Fri.) January 10–11, 2019 Location TBA

Created specifically for the packaging industry to address challenges in today’s rapidly changing marketplace, this training seminar is designed to breathe new life into your sales team. Reality requires us to challenge established thoughts, robotic behaviors, and outdated processes. This program encompasses fresh new ideas and concepts to build a solid strategy for today’s competitive landscape.

Today’s workforce is most productive and engaged when trained and equipped, and when it receives consistent feedback. Participants will leave with tools for process improvement and communication to gain speed of setup and production with greater quality.

Learn from knowledgeable developers and users of digital print on corrugated. This course is intended for companies that are starting to use digital print or considering getting into it. The seminar will touch all the concerns and issues with direct digital print on corrugated. Many areas of the course will have hands-on training using a digital printer.

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Flexographic Printing: Raising the Standard Seminar

Best Practices for Corrugated Operators & Maintenance

(Wed.–Thu.) January 23–24, 2019 PrintCon Center, Clemson University, Clemson, SC

(Wed.–Thu.) April 17–18, 2019 BW Papersystems Phillips, WI

This popular seminar will focus on producing clean solids and line work, as well as halftones and spot colors. By balancing classroom sessions and time on press, participants will have a deeper understanding of the concepts and gain experience building standard works. Many troubleshooting issues will be addressed, from dot gain and die cutting to proper graphic design for corrugated to ensure the best results.

This two-day course is focused on gaining a greater understanding of corrugator capabilities, and how to keep it in peak condition. Participants will learn at a state-of-the-art corrugated plant and BW Papersystems’ corrugator assembly facility. Steve Nerney and the rest of the tech team will discuss corrugator controls and maintenance protocols for troubleshooting and quality preventative maintenance practices.

Digital Print Xperience

Total Production Maintenance on the 3-Color RDC & Flexo

(Tue.–Thu.) February 26–28, 2019 Charlotte, NC An event you don’t want to miss, this conference brings the top experts in digital print to one location for three days of training, networking, information booths, and more. Sessions will cover digital operation, sales, machinery, inks, printing, and more. Learn from the best in digital, and meet others who are already printing and selling digital to learn from their experiences.

Litho Press Seminar (Wed.–Thu.) March 20–21, 2019 California Polytechnic State University, San Luis Obispo, CA It’s never been more important to understand the value provided by various types of print technology. Never has effective production been as essential to profitability as it is right now. During this course, the best practices of lithographic/offset printing will be shared at one of the world’s premier packaging schools.

BOXSCORE September/October 2018

(Tue.–Wed.) April 24–25, 2019 Fox Valley Technical College, Appleton, WI This seminar will help managers, maintenance personnel, and equipment operators combine their efforts to prevent equipment problems and losses in safety, time, and money. Expert trainers of Fox Valley Technical College are joined by Craig Gary of Westrock to explore the theory and practice of maintaining healthier machines. Companies will get the most out of a machine of any age.

Available Anytime — Free Online Courses »» Communication for Coaches: Modern management requires coaching skills, and first among these skills is communication. Participants complete a short survey that provides real-world feedback on business.

»» Distribution: In this course, learn all the ways to distribute a package, including space optimization and various green practices to ensure best shipping methods. The complete supply chain overview is taught. »» Achieving Higher Levels of Productivity: This course will discuss exactly what can be done on and around the press to sustain color, reduce changeover, and maintain consistent quality throughout the run—streamlining the process and improving your bottom line. »» Fingerprinting the Flexographic Press: Learn to validate the settings on any flexographic press in order to diagnose issues for improvement and to gain speed, quality, and repeatability of print. »» Faster, Better, Smarter With Value Stream Maps: This course gives an essential understanding of the tools for analysis and improvement of material and information flow. The various uses of Value Stream Mapping (VSM) will be described. Participants will learn to map material flow through the supply chain, production, and warehousing to eliminate bottlenecks and reduce inventory costs. »» Optimizing the Flexographic Printing Process*: This course covers flexo printing, from the beginning of the process to optimization techniques for maximum performance. It was created with the support of Pamarco, JB Machinery, Printron, and Absolute.

T N I PR

S S E C C SU

SOPs, one point lessons, and checklists for clean solids, line work, spot colors and more. Offered annually, Best Practices for Flexographic Printing: Raising the Standard, focuses on how to produce clean solids and line work, as well as halftones and spot colors.

machines, attendees learned to troubleshoot issues with dot gain and die-cutting to proper graphic design for corrugated to ensure the best results.

In May, 19 operators, supervisors, and salespeople spent two days at Printcon at Clemson University learning from each other and industry experts.

They also developed standard operation procedures, one point lessons, and checklists to put their new knowledge into practice. “The combination of both hands on and class room training was the best experience,” said Grant Bingaman, Plant Manger, UniCorr/K & H Container.

Reece Everson, McKinley Operator (trainee), BCI Buckeye Division, said, “I loved that it was very engaging. It helped everyone answer questions on issues at their own plants including the ones I had for BCI. This seminar was fantastic! It gave me more knowledge about every aspect of the machines I work on, as well as the confidence to run them with increased efficiency.” Through classroom training and time on

The seminar will be offered again January 2324.

“I thoroughly enjoyed this class. I got so much new knowledge from this course and I also had the opportunity to share and exchange ideas with other attendees in the same business and industry experts made this training excellent” ~Jose Saad, Production Supervisor, IC Industries.

Seminar attendees build skills, confidence and connections that increase their understanding and efficiency in their plants.

Learn more at www.aiccbox.org/calendar or visit usCorrugated Week Booth #849.

Reaching the Top School for Financial Managers Seminar

Available Anytime — Free Online Courses

(Tue.–Wed.) November 13–14, 2018 Hosted by W.H. Leary, Tinley Park, IL Keep pace with today’s financial realities in the corrugated industry. Our curriculum is designed entirely around case studies. Topics will focus on issues that will give senior management a better understanding of your company’s financial strategy. This course also provides three hours of CPE credit.

Production Leadership Seminar: Next-Level Supervision of People & Process (Thu.-Fri.) January 10–11, 2019 Location TBA Keep your best people, improve productivity, and make best practices become your common practices. With constant changes in the marketplace and workforce, supervisors must be continuously equipped to improve productivity and retain their best people. This course provides any manager in the packaging industry (corrugated, folding carton, or rigid box) education and hands-on experience with the tools of leadership and improvement.

»» Packaging Regulations: Laws and regulations are used to protect people and limit environmental damage that is caused in the packaging process. There is not one sole governing body for packaging regulations, and as such, individual agencies and their pertinent laws are examined.

of material and information flow. The various uses of Value Stream Mapping (VSM) will be described. Participants will learn to map material flow through the supply chain, production, and warehousing to eliminate bottlenecks and reduce inventory costs.

»» Go Team! How to Make Your Team More Productive: Understand the stages of team development so you can lead them to higher productivity. You will learn to build a Team Charter, identify the functional stage, and equip them to accomplish more and enjoy the process!

»» Sustainable Packaging: This course outlines ways that professionals can increase sustainability. This involves increased use of life-cycle inventory and life-cycle assessment to help guide the use of packaging, which reduces environmental impacts and ecological footprints.

»» Navigating Time: Time Management for the Job Shop: This course guides you through the process of goal- setting and scheduling to achieve greater balance and get more done on the things that matter most.

»» Delegation DIY: Learn to be more productive while investing in the knowledge and skill of your direct reports, and learn to evaluate the level of delegation at which others delegate to you.

»» Project Planning: MAPP the Project for Success: This course gives an essential understanding of the tools for analysis and improvement

More courses are available for all levels of experience. Learn more at www.aiccbox.org/packagingschool and www.aiccbox.org/calendar.

*Created with the support of AICC Education Investors

FTA FIRST Certification Through a partnership with the Flexographic Technical Association (FTA), AICC members now have access to the courses to earn FTA FIRST (Flexographic Image Reproduction Specifications & Tolerances) Press Operator, FIRST Prepress Operator, and FIRST Implementation Specialist Certificates at FTA member rates. FIRST supports the methodical approach to process control, optimization, fingerprinting, characterization, and process improvement as outlined in CGATS TR 0122003 (Graphic Technology — Color Reproduction and Process Control for Packaging Printing). Learn more at www.aiccbox.org/first.

BOXSCORE September/October 2018

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The Associate Advantage

You Are Never Too Old to Learn BY DAVE BURGESS DAVE BURGESS JB MACHINERY VICE CHAIRMAN DBURGESS@JBMACHINERY.COM

ED GARGIULO EQUIPMENT FINANCE CORP. CHAIRMAN EGARGIULO@EFC-FINANCE.COM

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

JOE MORELLI HUSTON PATTERSON PRINTERS DIRECTOR JMORELLI@HUSTONPATTERSON.COM

JEFF PALLINI FOSBER AMERICA IMMEDIATE PAST CHAIRMAN PALLINIJ@FOSBER.COM

BOXSCORE September/October 2018

“

ducation, education, education” is a phrase we have heard since our school days, which for some of us was a long, long time ago. But I firmly believe that it is now more relevant than ever in a world that is seeing rapid change and in an industry that has been transformed from a largely unskilled or semiskilled workforce to a multiskilled and flexible workforce, as required by today’s demands. Back in the early days of corrugated, a maintenance supervisor was a person who typically ordered supplies, changed bearings, and oiled and cleaned machinery. Today, the maintenance technician needs to be capable of getting into the new equipment PLCs, changing codes, dealing with robots, etc. All these functions require a higher level of skills or a complete re-education of the existing workforce, which is a daunting task. AICC has always made education a high priority among its numerous industry missions, but in April of last year, AICC elevated this by offering all its online educational courses to its members for free to ensure that these important lesson plans are used and that there is no cost barrier to ongoing learning and re-education. The reaction from the industry to the free education has been incredible. Clearly, AICC members are focusing heavily on training and retraining as a method of recruiting new employees and retaining existing employees, and AICC courses are

clearly becoming an integral part of the curriculum. My message to you members out there is to take full advantage of these courses and make sure that you recognize each employee who graduates through them. Employee recognition is almost more important than a pay raise these days, although a structured system that rewards course completion with modest monetary increases will certainly be attractive to new or existing employees. In addition to AICC’s traditional education courses, there is now a new initiative called “AICC Education Investors,” through which Associate companies are now developing materials that focus on their particular areas of expertise and using third-party groups to translate this into fun and interesting content. There are currently two courses completed in this area and three or four courses currently in the development stage. All of these are from the most highly respected suppliers within the corrugated industry. There is no doubt that an educated employee is a valuable employee and that an employee is far more likely to stay with a company if the company is investing in higher education and wants their employees to better themselves. So, please take full advantage of AICC’s free online courses and help to create a smarter workforce for the future. Dave Burgess is North American sales director at JB Machinery and vice chairman of AICC's Associate Board.

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Strength in Numbers

A Crossroads for the Independent Converter BY MITCH KLINGHER

n 1980, 40 percent of the world’s containerboard capacity resided in North America. As did close to 40 percent of the world’s overall manufacturing, and the containerboard markets were very tight. Almost all of these mills that existed then are still operating. We currently export approximately 500,000 tons a month of paper from North America, which represents about one-sixth of our productive capacity. Supply and demand for containerboard in North America have been kept in equilibrium so far due to this export tonnage. However, there have been lots of major announcements of new containerboard initiatives in almost every market that is currently receiving North American containerboard. Global demand for containerboard has been increasing, but at nowhere near the rate needed to support both existing containerboard manufacturing and all the new initiatives. The bottom line right now is that this export tonnage is not nearly as profitable as tonnage consumed domestically, due to the freight costs associated with exporting and the competitive nature of the foreign markets. While much of our paper is a desirable product in markets that do not have enough “fiber” in their systems, this dynamic will continue to erode over time, causing the export tonnage to be increasingly subject to competitive market pricing, and it will therefore likely be less profitable. If the need to export tons to keep our markets in equilibrium accelerates, and if this tonnage becomes less profitable, how will the domestic producers react? Will mills close? Will prices drop? Will they look for more domestic integration? In 1980, the state-of-the-art corrugator was 87 inches wide and ran at about 500 lineal feet per minute. The state-of-the-art

BOXSCORE September/October 2018

corrugator of 2018 is 130 inches wide and is capable of running close to 1,500 lineal feet per minute. In 1980, the state-ofthe-art flexo folder gluer took 30 minutes to set up and ran 5,000 pieces per hour. Today, these machines can be set up in two minutes and run more than 20,000 pieces per hour. The quality of the print and the box are far superior today as well. Similar gains have been made in rotary die cutters, flatbed die cutters, specialty folder gluers, and almost every other kind of converting equipment. A good-sized corrugator plant in 1980 converted 50 to 60 million MSF per month, and a good-sized sheet plant converted 15 to 20 million MSF per month. The plants are now, on average, three times the size that they were then, so at the end of the day, there are far fewer plants needed to service the needs of our economy. In 1980, the manufacturing sector accounted for approximately 20 percent of gross domestic product (GDP). It now accounts for a little more than 10 percent. The 400 percent-plus increase in converting speeds, as compared to the reduction (as a percentage of GDP) in manufacturing activities, has been a major driving force in the consolidation and elimination of corrugated converting operations. To be fair, there has been a dramatic increase in the distribution businesses that are also users of corrugated packaging that makes up for some of the manufacturing loss. However, what doesn’t show up in the statistics is an overall diminution of the quality of the customer. A manufacturer that is purchasing packaging to protect a relatively expensive product is willing to pay much more for packaging than a food manufacturer or a distributor, which is generally reshipping something that is already packaged. The bulk of the current

growth in corrugated shipments can be attributed to food and distribution. In 1980, flexographic printing became the “gold standard” methodology for printing on corrugated. Printing plates and ink were relatively cheap and accessible, and the image quality was high. Lithography was the standard for high-end labeling. Digital printing was expensive and not really ready for prime time. Things in the world of digital printing are changing rapidly, with a number of serious players developing this technology, and the quality and speeds of the machines are rather impressive. So is the cost to enter this market. Many industry veterans who thought that digital would never approach flexography or lithography in terms of speed and quality are now projecting that digital printing may replace flexography as the new gold standard for printing on corrugated in the not-too-distant future, and that the overall print quality offered by lithography may not be worth the price. The ability to print without the cost of plates and the ability to offer customers highly customized messages on the packaging may give it a decided advantage. In 1980, the biggest issue for most converters was securing their supply of paper and board. While some independent converters still have concerns about securing supply, a big issue I hear about in my travels is finding qualified people, particularly at the plant level. According to the U.S. Bureau of Labor Statistics, the overall unemployment rate has gone from a high of 10 percent in October 2009 to 3.8 percent in May 2018. Those of us who follow manufacturing businesses know that it is very difficult to find factory workers who are motivated and hardworking, and who can pass

Strength in Numbers

a drug test. Productivity, quality, and safety are starting to suffer, and profits have been impacted because of the rise in labor costs. Business cycles generally follow these five stages: expansion, peak, recession, trough, and recovery. From 1945 to 2009, the average expansion lasted 58 months. It is likely that if you were to ask 10 economists which key economic indicators are the best predictors of recession, you would likely get 10 different answers. However, I think that they would all tell you that no business expansion can last forever, and that based upon history, nine years is a very long time. Add to this the uncertainty associated with the recent unprecedented tariffs enacted in conjunction with the Federal Reserveâ&#x20AC;&#x2122;s continued policy of raising interest rates and the potential for a contraction in the U.S. economy in the near future.

The industry has been consolidating at all levels for many years. In 1980, there were more than 50 different companies that manufactured containerboard in North America. Today, five companies control almost 80 percent of all production, and there are only a handful of smaller producers left. Those of us who follow the industry know that the ranks of independent converters have been sorely depleted. Part of this is because of the speed gains in converting equipment, and part of it is because of unprecedented acquisitions of independent converters by integrated producers. The multiples paid for most of these independent converters is at an all-time high. In 1980, interest rates were hovering at 20 percent, and unemployment and inflation were high. The economy was in recession, and the great loss of manufacturing in North America began

Making shortrun better since 1979

to accelerate. Marginal tax rates were 70 percent for individuals and 46 percent for corporations. Today, interest rates are still historically low, and the maximum tax rates for individuals and corporations are 37 percent and 21 percent, respectively. Depreciation lives and rates were very unfavorable in 1980, so the effective cost of investment was taking into account the cost of capital, and the value of the associated tax deductions were astronomical. Today, equipment investments can be fully written off in the year of acquisition. So, you may ask what all of this means to todayâ&#x20AC;&#x2122;s independent. In my opinion, we are at a serious crossroads for many companies. Based upon the desire for integrated companies to become more integrated, the overall enterprise value for most converters is at an all-time high. Many have already sold, and many others are considering â&#x20AC;&#x153;cashing in their

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Strength in Numbers

chips” before the landscape changes. This thinking is further exacerbated by the fear of a recession or the effects of an oversupply of containerboard that cannot be effectively managed with the current export strategy. In addition, the cost of investing in state-of-the-art converting equipment and new technologies can be downright scary. The cost of creating a state-of-the-art plant today is probably 10 times what it was in 1980. And yet, the converting business continues to be lucrative. Most independent converters that I see in my travels are doing quite well right now. The traditional niches of the independent—fast turnaround, smaller order sizes, and a focus on quality and the customer's overall needs—are still there. Despite heavy investments in state-of-the-art converting equipment and lots of talk, the large integrated producers are still motivated

by the tonnage needed to keep their mills at high operating rates. There are fewer independent converters around to take care of the customers whose decisions are more quality- and service-oriented. If you don’t have a good succession plan or are risk-averse, it’s time to consider selling. There is no guarantee that the current high multiples will last forever. If you are thinking about doing this, clean up your plant, straighten out your balance sheet, make sure you have good management in place, and market your company sooner rather later. If you do want to continue to operate, I think that the rewards may be even greater in the future due to the diminished ranks of the independent and the high cost of joining the game. My advice is that now is the time to invest. There are no guarantees that the current interest rate and tax climates will last forever. The Federal Reserve wants

rates to go up, and the political climate is fluid, so the tax landscape could change in two years. In addition, a recession will certainly make financing more difficult. You should all be making plans for how to deal with a recession, so that when it happens, you can calmly execute your plan. The industry is at a crossroads from many perspectives. The past 40 years have shown us that the industry can change dramatically and that new ways of thinking and operating are required. The future will likely be very bright for those of you who decide to stay in the game, but you must plan for it now. Mitch Klingher is a partner at Klingher Nadler LLP. He can be reached at 201-731-3025 or mitch@ klinghernadler.com.

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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

Corrugated Packaging Design Now at Rutgers and Western Michigan University

submitted proposals will receive funding and donations over a four-year period to create or expand curricula. Additionally, all universities across the nation have been invited to annually submit additional corrugated packaging curricula proposals for ICPF’s packaging award assistance. Rutgers Packaging Engineering currently offers two programs, a packaging engineering major and the Packaging Engineering Certificate. The program currently has 200 students enrolled in the two trades. That figure does not include freshman students, since they declare majors at the end of their freshman year. Major students are required to have a minimum of 48 credits in packaging courses, and the certificate students are required to have 12 credits in packaging. The undergraduate curriculum covers a wide range of packaging disciplines, including corrugated board fields. About 20 to 25 students graduate every year with a B.S. degree. Moreover, the program

Photo courtesy of the Rutgers Packaging Engineering Department.

orking with the Rutgers Packaging Engineering Department and Western Michigan University’s (WMU) Department of Chemical and Paper Engineering, ICPF recently launched two new corrugated packaging design labs. The two undergraduate computer design labs were enabled by an Arden Software donation to ICPF that included installation of 80 seats of Impact design software and training for faculty. In conjunction with the launch of the design labs, both universities have committed to expand their curricula to specifically address corrugated packaging. The two new design labs at Rutgers and WMU are part of the ICPF Corrugated Packaging University Endowment Awards program in which ICPF’s 25 partner universities, as well as other colleges around the country, were invited to submit proposals to expand or create new corrugated curricula. Nine campuses that

The Rutgers Packaging Design Lab after installation this past summer.

BOXSCORE September/October 2018

began offering an M.S. degree in packaging engineering in January 2017. The master’s program is projected to eventually produce 10 to 15 graduates annually. WMU’s graphic and printing science (GPS), along with paper engineering (PE) and chemical engineering (CHEG), is located at the Department of Chemical and Paper Engineering. The paper and printing student body represents about 120 students. The program has laboratories equipped with standard pulping digesters, papermaking and paper-testing laboratories, recycling and de-inking equipment, ink-making, and standard-printing pilot plant and laboratory proofing presses for rotogravure, flexography, offset lithography, and digital technologies. The program has equipment to evaluate print quality, such as image analysis, spectrophotometers, and optical densitometers, along with prepress and color management software. GPS students can elect a minor in business or communications, and PE students can elect a minor in CHEG. GPS and PE students can take elective classes in CAD design, industrial design, package goods marketing, advertising and promotion, communications, and graphic design. Working with Geber Technology, Arden, and Esko (which provide discounts and donations through ICPF), ICPF has been instrumental in initiating or expanding 27 packaging design labs at universities across the country. Visit www. careersincorrugated.org for a listing of these ICPF partner campuses.

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

2018 Holiday Weekend in New York Update

n addition to the corporate partner pledges that are made by corrugated packaging manufacturers and suppliers, ICPF relies heavily upon its Holiday Weekend in New York (December 7â&#x20AC;&#x201C;9, 2018) for funding its educational initiatives. Because of the anticipated demand at the time of this writing, the number of tickets for the Saturday matinee presentation of The Nutcracker at the Lincoln Center, rooms at The Muse New York, and space in the restaurants that will be hosting the receptions and dinner on Friday and Saturday have been expanded to accommodate additional couples. The

weekend is a special way to begin the holiday season by socializing and enjoying the best of New York at this special time of the year. For more information on the weekend and to download a registration form, visit www.careersincorrugated.org, or email registration@icpfbox.org. Richard Flaherty is president of the International Corrugated Packaging Foundation.

BOXSCORE www.aiccbox.org

The Final Score

Commitment to Workers: Have You Signed the Pledge?

n July, the Trump administration rolled out its “Pledge to American Workers.” In an editorial in The Wall Street Journal, Ivanka Trump outlined the president’s vision for educating and training a new generation of American workers—workers with the skill sets to meet the demands of our resurgent manufacturing economy. But it will take the participation and commitment of the manufacturing community to make it happen, and this is where you and your membership in AICC enter in. If you scan the QR code at left or go to bit.ly/2A3zAJb, you will find the “Pledge to American Workers,” which your company can complete and post. It tells your workers that you will do all you can to ensure an environment in which they can improve their skills, learn new ones, and in doing so, improve their standard of living. The Trump administration’s “Pledge to American Workers” gives a high-profile nod to the importance of AICC’s role in providing industry education and training. AICC’s online education makes it possible to fulfill your pledge. We are indeed bolstered in our belief that the success of your company in the future is dependent now on your company’s commitment to ongoing training and skills development. And this commitment applies not just to your current workforce, but to those you hope to recruit in the future. To illustrate this, consider that a recent poll conducted by BridgeWorks, a generational leadership consulting firm, reveals that 93 percent of millennials consider ongoing skills development to be essential in the company they work for. AICC Chairman Al Hoodwin, in his valedictory column in this issue, ticks off the many milestones achieved in AICC’s education and training services accomplished this past year. We will continue to grow this vital and important member service. This is our pledge to all AICC members, just as you make your pledge to your American workers.

Steve Young President, AICC

BOXSCORE September/October 2018

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