Sept/ Oct BoxScore: Welcome AICC Chairman Gene Marino by AICC, The Independent Packaging Association

A PUBLICATION OF AICC, THE INDEPENDENT PACKAGING ASSOCIATION

September/October 2021 Volume 25, No. 5

WELCOME, AICC Chairman Gene Marino As the industry continues to grow, this boxmaking leader aims to build an even stronger Association community

ALSO INSIDE Guiding Right With Mentorships Tomorrow’s Take: ELs on Workforce Development Special Section: Sales Compensation Trending Upward

TABLE OF CONTENTS September/October 2021 • Volume 25, No.5

COLUMNS

CHAIRMAN’S MESSAGE

SCORING BOXES

LEGISLATIVE REPORT

MEMBERS MEETING

ASK RALPH

ASK TOM

SELLING TODAY

ANDRAGOGY

LEADERSHIP

THE ASSOCIATE ADVANTAGE

FEATURES

STRENGTH IN NUMBERS

THE FINAL SCORE

32 WELCOME, AICC CHAIRMAN GENE MARINO As the industry continues to grow, this boxmaking leader aims to build an even stronger Association community

GUIDING RIGHT Mentoring can play a vital role in identifying and empowering your company’s rising stars

TOMORROW’S TAKE AICC looks to its Emerging Leaders for insight into how to attract and retain workers

SPECIAL SECTION: TRENDING UPWARD Sales compensation rises in 2020, per AICC survey

DEPARTMENTS

WELCOME, NEW & RETURNING MEMBERS

AICC INNOVATION

FOUNDATION FOR PACKAGING EDUCATION

INTERNATIONAL CORRUGATED PACKAGING FOUNDATION

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. ©2021 AICC. All rights reserved.

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: Gene Marino, Akers Packaging Service Group, Chicago, Illinois First Vice Chairwoman: Jana Harris, Harris Packaging/ American Carton, Haltom City, Texas Vice Chairmen: Matt Davis, Packaging Express, Colorado Springs, Colorado Gary Brewer, Package Crafters, High Point, North Carolina Finn MacDonald, Independent II, Louisville, Kentucky Immediate Past Chairman: Jay Carman, StandFast Packaging Group, Carol Stream, Illinois Chairman, Past Chairmen’s Council: Joe Palmeri, Jamestown Container Cos., Macedonia, Ohio President: Michael D’Angelo, AICC Headquarters, Alexandria, Virginia Secretary/General Counsel: David Goch, Webster, Chamberlain & Bean, Washington, DC Administrator, AICC Canada: Renee Annis DIRECTORS West: Jack Fiterman, Liberty Diversified Industries, Minneapolis, MN Southwest: Michael Drummond, Packrite, High Point, NC as Southwest Director Southeast: Ben DeSollar, Sumter Packaging Corp., Sumter, South Carolina Midwest: Casey Shaw, Batavia Container Inc., Batavia, Illinois Great Lakes: Josh Sobel, Jamestown Container, Macedonia, Ohio Northeast: Stuart Fenkel, McLean Packaging, Pennsauken, New Jersey AICC Canada: Terri-Lynn Levesque, Royal Containers Ltd., Brampton, Ontario, Canada AICC Mexico: Juan Javier Gonzalez, Cartró, S.A.P.I. de C.V. (CP), Tepotzotlán, Mexico

DIRECTORS AT LARGE Kevin Ausburn, SMC Packaging Group, Springfield, Missouri Eric Elgin, Oklahoma Interpack, Muscogee, Oklahoma Guy Ockerlund, OxBox, Addison, Illinois Mike Schaefer, Tavens Packaging & Display, Bedford Heights, Ohio

EDITORIAL/DESIGN SERVICES The YGS Group • www.theYGSgroup.com

EMERGING LEADER DELEGATES Cassie Malone, Corrugated Supplies Co. LLC, Chicago, Illinois Lauren Frisch, Wasatch Container, North Salt Lake, Utah John McQueary, CST Systems, Atlanta, Georgia

Copy Editor: Steve Kennedy

ASSOCIATE MEMBER DIRECTORS Chairman: Joseph Morelli, Huston Patterson Printers, Decatur, Illinois Vice Chairman: Greg Jones, SUN Automation Group, Glen Arm, Maryland Secretary: Tim Connell, A.G. Stacker Inc.,Weyers Cave, Virginia Director: John Burgess, Pamarco, Roselle Park, New Jersey Immediate Past Chairman, Associate Members: Pat Szany, American Corrugated Machine Corp., Indian Trail, North Carolina ADVISORS TO THE CHAIRMAN Joseph M. Palmeri, Jamestown Container, Macedonia, Ohio Al Hoodwin, Michigan City Paper Box, Michigan City, Indiana Joseph Morelli, Huston Patterson Printers, Decatur, Illinois PUBLICATION STAFF Publisher: Michael D’Angelo, mdangelo@aiccbox.org Editor: Virginia Humphrey, vhumphrey@aiccbox.org

OVERSEAS DIRECTOR Kim Nelson, Royal Containers Ltd., Brampton, Ontario, Canada

Vice President: Serena L. Spiezio Content & Copy Director: Craig Lauer Managing Editor: Jessica Price Senior Managing Editor: Sam Hoffmeister Art Director: Alex Straughan Account Manager: Max Lalwani SUBMIT EDITORIAL IDEAS, NEWS & LETTERS TO: BoxScore@theYGSgroup.com CONTRIBUTORS Maria Frustaci, Director of Administration and Director of Latin America Cindy Huber, Director of Conventions & Meetings Chelsea May, Education and Training Manager Laura Mihalick, Senior Meeting Manager Patrick Moore, Member Relations Coordinator Taryn Pyle, Director of Training, Education & Professional Development Alyce Ryan, Marketing Manager Steve Young, Ambassador-at-Large Richard M. Flaherty, President, ICPF ADVERTISING Taryn Pyle 703-535-1391 • tpyle@aiccbox.org Patrick Moore 703-535-1394 • pmoore@aiccbox.org AICC PO Box 25708 Alexandria, VA 22313 Phone 703-836-2422 Toll-free 877-836-2422 Fax 703-836-2795 www.aiccbox.org

ABOUT AICC PROVIDING BOXMAKERS WITH THE KNOWLEDGE NEEDED TO THRIVE IN THE PAPER-BASED PACKAGING INDUSTRY SINCE 1974 We are a growing membership association that serves independent corrugated, folding carton, and rigid box manufacturers and suppliers with education and information in print, in person, and online. AICC membership is for the full company and employees at all locations have access to member benefits. AICC offers free online education to all members to help the individual maximize their potential and the member company maximize its profit.

WHEN YOU INVEST AND ENGAGE, AICC DELIVERS SUCCESS.

Chairman’s Message

Grip It and Rip It!

y first order of business is to tell you how honored I am to be your AICC chairman. This Association not only means a great deal to me, but most people reading this as well. It is an honor to represent such a phenomenal group of people. I am grateful to Akers Packaging, not only for their support of my chairmanship, but their support of AICC and of our industry. It is wonderful to be a part of an organization like Akers. As we exit a very challenging year, which Jay Carman successfully guided us through, it’s time now for us to reevaluate and rethink what we’re doing in our business to create a sustainable enterprise. The dynamic of living off the energy and enthusiasm of the owner is robust, but how do you build a sustainable enterprise on a go-forward basis? What I would like to focus on during my chairmanship marries my passion for strategy and execution with my love for golf. Simply put, it’s a “Grip It and Rip It” philosophy. In golf, preparation, practice, and focus all are handled prior to the shot. When it comes time to hit the golf ball, it is time to stop thinking and execute. So when preparing strategically, first ask what can be done in your organization to bring your team together. Expanding on the concepts discussed by Pete Watson, CEO of Greif, during his SuperCorrExpo keynote, this is culture and core values. What are you doing inside your business to create a clear set of core values that you can hire, fire, reward, and recognize your people by? The result will be a consistent, solidified team that will help you get to that next level. Next comes focus. It is time to put a stake in the ground so that everyone in the organization understands where they are going and how they are going to get there. Finally comes the practice, or in this case the execution. When the team can focus on the three to five things to realize the vision course of the next year, five years, and 10 years, the team spends time working on the big things that get you where you need to go and less time on the small things that get in the way. There are so many analogies with golf; it is interesting to me. In that sense, success comes in the form of one thought or philosophy that we can drive in the business as leaders, similar to one swing thought when you are heading out for your round for the day, keeping it simple. I am personally partial to a certain strategic model, but it’s more about using any model in your business that can help bring focus, alignment, and, importantly, results. As the leader of your organization, that’s your ultimate responsibility: Develop talent, identify and live by your core values, and drive strategic growth and execution. People tend to misconstrue the well-known phrase, “Culture eats strategy for breakfast.” What that means, and what that does not mean, is an important distinction. Without culture, you cannot execute. Conversely, a “no strategy is required” philosophy does not work simply because you have a good culture. How this phrase should truly be interpreted is that with a great culture, you can successfully create, develop, and execute a clear strategy far more successfully than a business with no clearly identifiable culture or core values. I want to thank my wife, Megan, and my children, Emma, Grace, and Claire, for their support. I’m going to enjoy this year getting to know many of you a lot better. I appreciate the partnership of my fellow board members, the AICC staff, and most importantly, you, the members of AICC. Thank you very much. Gene Marino Executive Vice President, Akers Packaging Service Group Chairman, AICC

BOXSCORE www.aiccbox.org

Scoring Boxes

The Growing Packageable Goods Trade Deficit BY DICK STORAT

BOXSCORE September/October 2021

U.S. Packageable Goods Trade Deficit

$60 $55 $45

30%

$40

25%

$35

20%

$30 $25

15%

$20

10%

$15 $10

$5 $0

40% 35%

$50

($ Billions/Month)

he COVID-19 pandemic has reshaped the U.S. economy in many ways. The generous provision of deficit-financed cash and unemployment benefits is among the most important. As a result of this and reduced spending for services such as travel, entertainment, and dining out last year, U.S. consumers have amassed an excess of savings of some $2.2 trillion compared to the pre-pandemic savings rate. Much of this will continue to support the record levels of consumer spending that started last year and are continuing into 2021. While the most rapid growth has been for durable goods, spending on packaging-intensive nondurable goods has also soared. Through the first five months of this year, spending has remained 10% above prior-year outlays. The result should be record-setting domestic production of these goods. That has not been the case, however, as industrial production of nondurable consumer goods has risen by a much smaller 3.2% over the same five months of this year. Imported consumer goods, and especially the excess of imports over exports, are the main explanation for this disparity. We have assembled a list of nondurable trade products requiring corrugated packaging and examined the trends over the past several years. Imports of these goods have been running at a level of almost $100 billion per month, while exports of the same products have amounted to less than half that amount. As a result, the trade deficit for packageable goods exceeded $50 billion and had risen by 32% through May of this year. The top chart

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2019

Source: Census Bureau, RSA Inc

2020

2021

Percent Change Year-to-Date

Trade Balance for Food and Kindred Products ($ Millions)

$4,000

$3,194

$3,000 $2,000 $1,000 $0 –$1,000

– $911

–$2,000

– $2,221

–$3,000 –$4,000 –$5,000 –$6,000 –$7,000

– $5,810

2017

2018

at right shows the trend of the packaging trade deficit over the past three years. The deficit has exceeded its prior-year level every month since May 2020.

2019

2020

Looking more closely at foods, products that consume a disproportionately large share of corrugated packaging, we see that the trade data depicts an even worse

Scoring Boxes

situation for domestic producers and their paper packaging suppliers. In 2017, exports of food products amounted to $64.1 billion, while imports were $60.9 billion. The result was a positive trade balance of $3.4 billion. That meant that U.S. corrugated producers had the opportunity to sell more packaging than was available from only the production for domestic use. However, as the bottom chart on the previous page depicts, that situation has deteriorated steadily and rapidly during the past three years. By the end of 2020, the trade balance descended to a deficit of $5.8 billion. In only three years, the market for packageable food and kindred products available to domestic converters declined by $9.0 billion. Last year, exports of these goods rose by a fractional 0.9%, while imports grew by 6.1%. Produce, including fruits, vegetables, and tree nuts, consumes a significant amount of corrugated packaging. The chart at right shows recent trade data for these products. Last year, exports of these products totaled $17.8 billion, a decline of 0.9% per year on average since 2017. Over the same period, imports grew, rising by 2.0% per year on average. As a result, the trade deficit for produce items increased from $11.8 billion to $14.2 billion, further reducing the amount of product available to be packaged in domestically produced corrugated containers. Packaging of beverages, both alcoholic and nonalcoholic, is a third category of interest to independent producers of paper-based packaging. In this category, the trade deficit amounted to $15.3 billion at the end of 2017 and had deteriorated to $17.5 billion by the end of last year, as shown in the chart on the next page. Exports of beverages declined by 1.6% last year but were unchanged, on average, since the end of 2017. While exports declined, imports continued to grow, having increased by 2.2% last year and having averaged an annual growth of 3.0% per year since 2017.

Trade Balance for Fruits, Vegetables, and Tree Nuts $0

2017

($ Millions) 2018

2019

2020

– $2,000 – $4,000 – $6,000 – $8,000 – $10,000 – $12,000 – $14,000 – $16,000

– $11,783

– $12,446

– $12,998

– $14,152

BOXSCORE www.aiccbox.org

Scoring Boxes

Trade Balance for Beverages – $14,000

($ Millions) 2018

2017

2019

2020

– $14,500 – $15,000 – $15,500

– $15,329

– $16,000

– $15,972

– $16,500 – $17,000 – $17,500

– $17,455

– $18,000

– $17,886

– $18,500

The result of these changes was that the trade deficit increased by $2.2 billion, or 14.4%, since 2017. While numerous other factors affect the size of markets available to independent producers of paper-based packaging, imports and exports of packageable goods are major factors contributing to the persistent lag between the regular growth in domestic consumption of food, produce, and beverages and the consistently less rapid growth of domestic production of these goods. Dick Storat is president of Richard Storat & Associates. He can be reached at 610-282-6033 or storatre@aol.com.

See How You Stack Up

Learn more at www.AICCbox.org/Store

BOXSCORE September/October 2021

It’s time to revolutionize The new CorruCUT rotary die-cutter pushes what is possible

The CorruCUT is designed for high-performance rotary production of die-cut corrugated products with ultimate flexo post-printing quality. You will achieve paramount performance from the latest embedded technology with a brand new operating concept. It is available with the industry's shortest lead time from our factory to your floor. The CorruCUT has a maximum production output of 12,000 boards per hour, including setup while running, integrated remote maintenance for the ultimate uptime, and the easiest machine to operate – the CorruCUT will increase your profitability.

Call us to set up a custom demonstration. Koenig & Bauer (+1) 214 790-8801 jurgen.gruber@koenig-bauer.com koenig-bauer.com

Legislative Report

AICC Signs Letter to Congress Opposing Limits to Interest Expense Deductions BY ERIC ELGIN

few months ago, AICC President Michael D’Angelo wrote in his “Final Score” column about your Association’s ongoing work with business coalitions to advocate on behalf of small and medium-size companies such as AICC members. (See “The Accidental Advocate,” BoxScore, September/October 2020, p. 72.) Since AICC is not large enough to have a dedicated government affairs presence before the federal government, it just makes sense to work in coalition with larger business groups that do. A recent example of this work concerns a critical provision from the 2017 tax reform law that will expire at the end of 2021, potentially increasing taxes on businesses and making it more expensive to finance equipment purchases and other capital-intensive projects. I’m referring to the provision that allowed companies to take a tax deduction of up to 30% of their earnings before interest, taxes, depreciation, and amortization (EBITDA). Starting in 2022, the limit will be 30% of earnings before interest and tax (EBIT) only. By excluding depreciation and amortization, the stricter EBIT standard will limit the size of the potential deduction, which will increase taxes on businesses and make financing equipment purchases more expensive. According to an analysis conducted by the consulting firm PwC and commissioned by the National Association of Manufacturers, the average business impacted by the change will see a three-fold increase in their incremental tax obligations. I’m not an accountant, and so I’ll leave the technicalities to the professionals. But as I see it, when the EBIT standard takes

BOXSCORE September/October 2021

effect in 2022, capital-intensive businesses such as ours will see an increase in their tax liability and financing costs. The lowered limitation will make it more difficult for those of us who own businesses to raise capital, hire new workers, and grow. The reduction in flexibility and liquidity caused by the change will also harm businesses’ ability to recover from the economic damage caused by COVID-19. All of us are seeing rising costs across the board, from raw materials to labor, as we struggle to attract workers to our businesses. Do we really need our government adding to this increasingly heavy burden? The letter to Congress signed by AICC and more than 110 other associations says, “We respectfully encourage you to support

investment and job growth at capitalintensive businesses across the country by permanently preserving an EBITDA standard for business interest deductions.” I encourage you to do the same. You can find the contact information for your U.S. senators at www.senate.gov and your representatives in the House of Representatives at www.house.gov. 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.

New Members

Welcome, New Members!

ADAMS CONTAINER CORPORATION MASON ADAMS President and CEO P.O. Box 1270 Toccoa, GA 30577 706-886-2239 www.adamscontainer.com

KONGSBERG PRECISION CUTTING SYSTEMS LEAH MOON Senior Marketing Manager 8535 Gander Creek Dr., Suite B Miamisburg, OH 45342 937-800-2169 www.kongsbergsystems.com

PARA USA CORP. EMANUELE PARA Sole Director 225 Peachtree St. NE 1100 South Tower Atlanta, GA 30303 +39-055-870-5550 www.parausacorp.com

TRESU NICK GEROVAC Head of Sales – Ancillary Americas 635 Westport Pkwy., Suite 300 Grapevine, TX 76051 214-774-1600 www.tresu.com

THE GILMAN BROTHERS COMPANY INGRID SKINNER Communications Leader P.O. Box 38 Gilman, CT 06336 860-889-8444 www.gilmanbrothers.com

MACHINECOMPARE.COM LIMITED BENJAMIN FINDLAY CEO MachineCompare, The Express Building 9 Great Ancoats St., Manchester M4 5AD United Kingdom +44-0-161-513-5907 www.machinecompare.com

BOXSCORE September/October 2021

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STILL the Industry Experts 580 Sylvan Avenue, Suite M-A Englewood Cliffs, NJ 07632 (201) 731-3025 • Fax: (201) 731-3026 info@klinghernadler.com

Members Meeting

AICC Members Reach, Relate, Resonate at SuperCorrExpo

ICC and TAPPI were pleased to bring together nearly 3,000 attendees for SuperCorrExpo®,

August 8–12, in Orlando, Florida. Attendees came together for networking, educational and inspiring keynote

speakers, and informational workshops, in addition to a collection of 226 exhibitors on the show floor.

“AICC/TAPPI 2021 SuperCorrExpo successfully brought together dynamic exhibitors, motivated buyers, and learners eager to take on a broad education program on the important topics of the day. It was a tremendous experience, and the AICC team and our members were proud to be a part of it.” —Michael D’Angelo, president, AICC

BOXSCORE September/October 2021

Members Meeting

AICC/Board Converting News/Corrugated Today Innovator of the Year Award

The AICC/Board Converting News/Corrugated Today Innovator of the Year competition is designed to recognize innovative solutions created by both AICC box plant and supplier members that enhance the efficiencies, productivity, product quality, and bottom-line profitability of the independent box plant. 1st Place • AutoWash™ Automatic Plate-Washing System • JB Machinery 2nd Place • HP PageWide C500 Top Feeder • HP

Photos courtesy of AICC

3rd Place • DigiFlex™ High-Speed Variable Imager • JB Machinery We also thank Alliance Machine Systems International and C&M Conveyor for their entries: Raptor RDC Automatic Loadformer and Tetris Automated Dunnage Placement, respectively.

“It means so much to us to be selected for this award by our peers on both the converting and machinery manufacturer sides. We thank everyone who voted for our products and stopped by to visit with us at SuperCorrExpo.” —John Bird, CEO, JB Machinery

AICC Champion Award

The AICC Champion Award is given annually to recognize an AICC member that has made outstanding contributions in furthering the Association’s membership. These efforts can include recruiting new members, retaining members who may need encouragement to maintain their membership, or contributions in helping member companies increase their engagement levels with the Association.

“I am very appreciative of this award, but there are a lot of people who contribute their time and are deserving as well.” —Pat Szany, president, American Corrugated Machine Co.

BOXSCORE www.aiccbox.org

Members Meeting

AICC/Fastmarkets RISI Hall of Fame

2021 Box Manufacturing Olympics For the first time ever, AICC and TAPPI combined their packaging competitions at SuperCorrExpo to become the 2021 Box Manufacturing Olympics.

170 Entries Recieved | 46 Categories 2021 SuperCorrExpo Attendees’ Choice • Employee Appreciation Connect 4 • Sumter Packaging Corp. Best of the Industry Corrugated Structure • Remington iLightIPL3500CDN for Costco Canada • Vanguard Cos. Best of the Industry Corrugated Printing • John Macy Cheese Crisp Club Tray • McLean Packaging Corp. Best of the Industry Folding Carton • Frozen 2 • Utah PaperBox Best of the Industry Rigid Box • Hawaiian Host • Utah PaperBox See all the winners at www.supercorrexpo.org/bmo. The AICC/Fastmarkets RISI award annually recognizes those who have made a significant contribution to the independent sector of the corrugated packaging industry through active membership in AICC and broad-based involvement in the industry.

“To be inducted into the Hall of Fame by my peers is both a tremendous honor as well as very humbling. I am proud to have made so many great friends in the industry largely through participating in the AICC national and regional meetings.” —Doug Muller, president, The Haire Group

BOXSCORE September/October 2021

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Members Meeting

SPONSORS PLATINUM

GOLD

SILVER

Special Event at Universal’s Islands of Adventure • • • •

AG Stacker Alliance Machine Systems International, LLC Air Systems Design, Inc Inspire Automation

Badge Lanyard Sponsor • Harper Love

Golf Cart Sponsor

• The Haire Group

• Fosber

Thursday Keynote Breakfast & Break

See a full list of sponsors at www.supercorrexpo.org/exhibit-sponsor/sponsors

• Mitsubishi

Event Bag Sponsor & Registration Pens • Stafford Corrugated Products

Welcome Reception Sponsors

—Greg Jones, executive vice president, SUN Automation Group

• TRESU

Monday Keynote Breakfast & Break

Monday Networking Sponsor & Tuesday Lunch Sponsor

“We were excited to support TAPPI and AICC during SuperCorrExpo. The show had a great turnout with over 2,500 attendees. It was wonderful to be able to connect with so many people at our booth.”

Mobile App Sponsor

• • • • • • • • • • • • • • • • •

AES Scrap Conveyance Systems ADI/PDM Trade Group Alliance Machine Systems International Boiler and Steam Performance BW Papersystems EAM Mosca Georgia-Pacific Hummingbird The Haire Group Hurst Boiler Innoveyance JB Machinery Kiwiplan Kohler Coating Lamina Systems Mitsubishi Signode SUN Automation Group

“SuperCorr 2021 was my first SuperCorr, and the experience was one I will never forget. Being able to walk around and learn about new equipment for the machines we use was very eye-opening. On top of learning more about machines and the tools they need to continue to perform, I was able to talk to vendors and peers about today’s market. Hearing the positive news from everyone was very encouraging, and I can’t wait to see what the future holds for our industry!” —Jordan Dawson, customer service representative, Harris Packaging Corp.

BOXSCORE www.aiccbox.org

Ask Ralph

Expected Values of Domestic Containerboard Grades: 4th Edition BY RALPH YOUNG

e first researched the data and published the first edition on this subject in the March/April 2009 issue of BoxScore. Many variables have changed over the last 12 years. See the updated spreadsheets in this edition. Looking back now, it seems as if we update and republish this information about every three years. One reason for this latest edition is that we have seen millennials and Generation Z enter the industry possibly not being aware of this technical information. A second reason is that an Associate member asked us recently for some customized Zoom webinars on edge crush test (ECT) and right-weighting, and this material is foundational to those subjects. A third reason is the increasing use of microflutes and double-wall combinations, like E/E and E/F. The fourth reason is new corrugator technology aimed specifically at

small flutes, graphics, and even laminating. And maybe the fifth reason is the rapid growth in trade finishers’ shipments of small flutes, with and without labels. The following table will list a few of the critical properties of containerboard. For a much more advanced understanding on this raw material, we point you to the digital brochure Understanding the Key Characteristics of Linerboard and Medium and Their Impact on Combined Corrugated Board. Other important characteristics of linerboard that can impact the obtainment of ECT strength are burst, short-span compression test (SCT; especially in the lighter weights), coefficient of friction, slide angle, moisture, MD/CD tensile, MD/CD tear, soft caliper, density, and porosity. Note that we offered the strength ranges of the properties, so that you

will not be misled into thinking there is only a typical average. While we originally listed the top quartile of the more common cross-direction ring crush values as the key indicator of ECT and box crush test, the industry today has overwhelmingly moved to SCT (formerly STFI). When this data was first published, recycled linerboard was just making its entry into the market, and substances below 26# were rare, but not today. Ralph Young is the principal of Alternative Paper Solutions and is AICC’s technical advisor. Contact Ralph directly about technical issues that impact our industry at askralph@aiccbox.org.

EXPECTED VALUES OF CONTAINERBOARDS MEDIUM (FLUTING)

LINERBOARD GRADE SUBSTANCE #/MSF 18 21 23 26 31 HP 33 35/36 38 42 45 HP 52–55 HP 69 74 HP 90

26–29 28–32 23–35 34–38 NR 41–43 42–48 54–58 67–69 69–75 88–91

CALIPER mils

CDRC #/lin

MULLEN

6.7–8.4 7.4–10.0 8.7–10.7 8.7–11.4 NR 10.2–12.6 11.0–13.9 13.6–16.4 16.8–20.4 18.1–21.7 22.5–26.1

25 31 41 45–46 56–58 59–71 72–80 NR 71–98 93–108 120–136 127–153 153–168 162–197

N/A N/A N/A 63–86 75–81 74–104 71–100 N/A 93–125 90–116 107–151 136–162 147–163 161–193

*Other important characteristics of linerboard that can impact the obtainment of ECT strength are burst, STFI, coefficient of friction, slide angle, moisture, MD/ CD tensile, MD/CD tear, soft caliper, density, and porosity. Source: AF&PA Containerboard Continous Baseline Study

BOXSCORE September/October 2021

GRADE SUBSTANCE #/MSF 18 20/21 23 26 30 33 33 HP 36 40 45/47

N/A N/A 22–24 25–27 NR 31–34 33–41 36 39–41 N/A

CALIPER mils

CDRC #/lin

CONCORA

CFC

6.0–7.2 6.5–7.0 6.6–10.4 6.6–11.1 NR 9.0–13.3 8.8–13.8 12.1–13 12.5–15–6 N/A

18–21 20–32 22–36 26–43 39–55 41–61 60–82 50–75 71–82 N/A

29–35 37–53 42–59 43–71 50–75 57–80 52–85 56–80 70–82 N/A

N/A N/A 49–63 52–80 NR 70–97 NR 85–92 NR N/A

POWERFLUTE GRADE 26 29 31 34 41

UNK UNK UNK UNK UNK

55 69 75 86 105

73 88 96 109 131

Ask Tom

Data Management, Part 3 BY TOM WEBER

he following is a recap of the third session in a four-part series surrounding data management. The session, which covered methods, was hosted by your AICC education team and moderated by me. I thought you might find this third recap both relevant and compelling toward finding a better way in 2021 and beyond! The fourth and final session will cover materials and will be recapped in the November/December issue of BoxScore. I encourage you to read ahead by obtaining all four of the recorded versions. The recordings are available through your outstanding AICC education contacts, Chelsea May and Taryn Pyle. To begin our recap of the session on methods, our goal was to gain valuable insights into real and perceived quality issues and to learn how to tell the difference in your operations. The top three methods explorations are listed below, and even more were identified by AICC members during the session. They were explored in some detail by our AICC Associate member panel, which included technical and industry experts from Amtech, Advantzware, EFI, Kiwiplan, and OMP. • Drive continuous improvement in reliability, efficiency, and end-product quality. • Focus on mission-critical methods and reduce costs with key performance indicator (KPI) data. • Analyze huge quantities of data using predictive modeling and analytics.

Drive Continuous Improvement in Reliability, Efficiency, and End-Product Quality Predict problems in advance with machine sensor data that feeds into analytical models. When there is an issue, diagnose it with

BOXSCORE September/October 2021

root-cause analysis tools so you can take corrective action quickly and accurately. Don’t expect your machines to deliver top performance without the aid of advanced analytics. For instance, with artificial intelligence and analytics doing the heavy data lifting, a company might analyze profit-per-hour factoring in as many as 1,000 variables and 10,000 constraints to help manufacturers figure out what to buy, what to make, and how to make it to yield the most profit in each period. Worth noting once again: The digital universe is doubling in size every two years. By the end of this year, the data we create and copy annually will reach 44 trillion gigabytes, according to International Data Corp.

Maximize Throughput All methods should be directed toward problem-solving, process improvement, and profit generation. You may get a fresh perspective on a variety of processes or business challenges. Status dashboards and automatic alerts can notify operations staff of impending failures so you have time to correct issues in advance. The use of KPIs and dashboards can move a company toward predictive and preventative maintenance strategies to address known sources of failure without driving up costs. Avoid costly just-in-case strategies by using leading indicators that tell the entire story.

Focus on Mission-Critical Methods and Reduce Costs With KPI Data By offering your employees various methods to test and measure data—and helping them to understand data’s critical importance—you help get them invested in the data-driven culture. A self-service culture of missioncritical data, utilizing KPI dashboards, will present the trends and snapshots necessary to manage your entire conceptto-consumer product delivery process.

Improved Root-Cause Analysis Using Your Machine KPI Data Generation Quickly and accurately identify root causes using your generated data to mine, drill down, and ultimately detect hidden patterns. KPIs will facilitate more data-focused, permanent corrections. This third session recap was intended to create the thought that perhaps there is a better, faster, and smarter way to do tomorrow what we have been asking our most valuable team members to do for our most critical clients each and every day past. If I have piqued your interest, please request the complete session recording from your AICC education team or me. It might well trigger one novel useful thought for you and your team to utilize yet in 2021!

Analyze Huge Quantities of Data Using Predictive Modeling and Analytics When a manufacturing firm adds the right software technology, it can accurately and reliably find patterns hidden in the data that may indicate an impending failure or significant performance degradation. By providing employees the software methods to test and measure data, you, again, help get them invested in this new culture. A self-service culture of data visualization along with KPI dashboards will present the information necessary to manage the entire process.

Tom Weber is president of WeberSource LLC and is AICC’s folding carton and rigid box technical advisor. Contact Tom directly at asktom@aiccbox.org.

Machinery and Handling for the Corrugated Board Industry

Selling Today

They’re Back: As Trade Shows Return, Don’t Forget About ROI BY TODD M. ZIELINSKI AND LISA BENSON

rade shows, how we’ve missed you! The networking, the excitement, the face-to-face interactions—it is great to see trade shows happening again. For many companies, trade shows were their primary method for getting in front of prospects, so the return couldn’t come soon enough. As exciting as they are, trade shows can also consume a big chunk of your marketing budget. Between the booth, displays, literature, giveaways, travel, hotels, expenses, entertaining, and the staff to run the booth, the costs can add up quickly. After all the challenges created by the COVID-19 pandemic, driving traffic to your booth to see a positive return on investment (ROI) is even more critical. You can’t rely on organizers to drive traffic to your booth. You need to take matters into your own hands.

PRE-SHOW PREPARATIONS There is prep work that must be started several months before the show. Just as you prepare your booth, literature, and travel arrangements well ahead of the trade show, you also need to start preparing to drive traffic to your booth. List Building Prepare a list of prospects that you are interested in speaking with. Create the list from your current database of customers that may have greater spend potential and dormant accounts that you would like to reengage. Trade shows will often supply a list of attendees from previous years that can be used to build your list. If you have companies in mind that would be ideal to work with, do a little research to find contacts to add to your trade show outreach list.

BOXSCORE September/October 2021

Communications Prospects and customers won’t know you are there unless you tell them. Email campaigns are a great, inexpensive way to communicate. Include a relevant, eye-catching headline, the event’s name, the dates, place, your booth number, and why they should visit you. Many of your competitors will be there; tell visitors why they should stop by your booth. If you have a new piece of equipment or a new service, promote it. If not, consider having a show special—an offer or discount that is hard to pass up. If the show is large, include a map with your booth highlighted. If you are doing a presentation, provide the details but keep the summary short. Don’t forget to include your contact information and a link to sign up for the show. Some shows provide vendor codes to give out for free admission. If you are doing this, don’t forget to include it. Some shows also provide pre-formatted emails. Use them if you must; however, you risk looking like everyone else and getting lost in inboxes. Send out several emails leading up to the show. Put the information on your website. Push it out through social media channels several times leading up to the show and while you are at the show—this can be scheduled through an app or software ahead of time. Tag the show in your social posts or use the show’s hashtags, so followers will know you are there. Targeted social media ads can help you reach a particular audience and entice them to visit your booth. You may want to send out postcards to your top prospects. It can be expensive,

but since direct mail is used so much less than it used to be, your postcard may stand out more than electronic communications, which sometimes can become white noise. Set Up Meetings Before the Show It is great to go into the show knowing you have meetings scheduled. If you have a large enough booth to section off a private meeting area or the show offers areas for meetings, take advantage of those by scheduling as many meetings as possible. For your top prospects, calling and personally inviting them to meet with you can be effective. You can also send them a personal email. Usually, people won’t schedule more than a week or two in advance, so keep that in mind. DURING THE SHOW You’ve created a booth with great graphics, and you are ready to go. It should be clear to visitors who your staffers are, especially if there are many visitors to the booth. For big shows, you might want to have an employee act as a host or hostess to greet people, scan badges or collect business cards, and get visitors a beverage or otherwise acknowledge them until a sales staff member can speak with them. You don’t want to lose an opportunity because everyone was busy. Make a note of what you discussed and any other relevant information you might need to refer back to. This will be critical when you or another member of the team is following up after the show. If the contact doesn’t have an immediate need, try to get a time frame for when you should reach back out.

Selling Today

Be careful about doing pricey fishbowl drawings or giving away swag to lure people to your booth. You will end up with a lot of useless contacts that don’t fit your target audience. If you are giving away branded gifts, consider keeping them under the table and handing them out personally to people you speak with. POST-SHOW FOLLOW-UP After the show, categorize your leads into immediate needs, near-future needs, and no immediate needs. Immediate needs are actively looking for corrugated packaging, and you should establish a follow-up plan during the show. If not, contact them as soon as possible to set up another meeting, obtain an RFQ, or close the deal. Send a thank-you email to everyone who visited your booth. Those who scheduled meetings and those with strong potential for sales should be sent a more personal email that references the conversation you had. For those who didn’t attend or visit your booth, send a “We missed you” email and invite them to contact you with any needs they might have. For the near-future-need prospects, plan to call them at the agreed-upon time. You should also set up an email campaign to nurture the near-future and no-immediate-need leads. A nurture email campaign comprises emails with educational information, industry news, or other areas of interest to your prospects, sent out in a specific time frame—every two weeks or once a month, for example. Avoid sending exclusively promotional emails. The idea is to be seen as an industry expert and be top of mind when a packaging need arises. However, don’t let your touches end there. Plan on calling periodically to check in with them. If they gave you a time frame for when they might have a need—remember, you asked for one during the show—put it on your calendar so you don’t forget. When they do have a need, you want your company name to be first to mind. 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.

BOXSCORE www.aiccbox.org

Andragogy

Teamwork: Seeking the Best for Your Company BY JULIE RICE SUGGS, PH.D., AND ALLI KEIGLEY

ver notice the stereotypical teamwork poster on the walls of your high school math class or gym teacher’s office? I am sure you did, but did you pause to really read the quote before assuming it was just a cheesy one-liner about working together? I recently came across one such poster that grabbed my eye that read, “Teamwork is the ability to work together toward a common vision. The ability to direct individual accomplishment toward organizational objectives. It is the fuel that allows common people to attain uncommon results.” With my high school days far behind me and a current job in the field of continued education, this poster has much more meaning to me now than it would have had in my school days. The simple, yet impactful words made me ponder the idea of teamwork in the workplace today. With a majority of training migrating to the virtual world in the past year, how can teamwork reach its full potential through the confines of a computer screen? Speaking of teamwork and training, how do you view employee training? Do you see it as a risk—a potential loss of profit if employees advance themselves and then choose to leave? Shift your perspective to consider this: What may be an even greater risk is the employee who stays in your company without training. There is so much to say here, but it boils down to the simple fact that untrained employees have no sense of teamwork, common goals, or ownership in the success of the business as a whole. Without these qualities, they often lack the motivation to put forth their best effort. If you’re still not convinced of the merits of team training, let me tell you in just

BOXSCORE September/October 2021

two words how easy it is to implement: online education. AICC’s partnership with The Packaging School allows for member companies and all respective employees to receive the value-add of training programs free. And with more than 80 online courses in both English and Spanish, all related to the packaging industry and the manufacturing environment, you’re sure to find something that suits the current needs of your employees. Sounds too good to be true, right? But even more exciting is the news that AICC and The Packaging School have recently started a program that takes this online experience one step further. This new program, Administrator Training for the Learning Management System (LMS), gives any company looking to raise the bar for its employees a seamless team training process. Setup, training, support of the LMS platform for one employee (who becomes the designated admin), and courses are available for this customized group of employees. Companies utilizing this service can access their group within the larger AICC branch to keep track of coursework, groups of learners, or even specific employees across all of their global groups and offices, helping companies stay ahead of everything training related—from attendance and test scores to certificates awarded. If it sounds too complex, don’t worry; we’ve got you covered! The Packaging School holds two training calls with each participating company for onboarding needs and any other questions. A recent member company utilized this service and quickly onboarded more than 50 learners to the platform, all with

the autonomy of the admin/manager in charge of training being able to oversee user progress, assign pertinent courses to address specific needs of the individual user, and assign course deadlines. By incorporating this program into your work culture, you and your company can make training a team effort, define specific goals and learning outcomes for your team, and train with purpose. A side benefit comes with the designation of an enthusiastic and supportive admin who acts as coach for the team at large. With back-end access to the data and progress of each learner, the admin can better provide instruction, tools, resources, and encouragement to help employees reach their full potential. The ability to take these courses simultaneously and on set schedules also allows employees to collaborate more effectively and share their knowledge more efficiently. After all, two heads are better than one. What’s it going to be? Are you ready to drive change within your organization and reach those uncommon results? Julie Rice Suggs, Ph.D., is academic director at The Packaging School. She can be reached at 330-774-8542 or julie@packagingschool.com.

Alli Keigley, production coordinator at The Packaging School, contributed to this article. She can be reached at alli@packagingschool.com.

Leadership

A Different Way to Hire BY SCOTT ELLIS, ED.D.

n recent issues, I have used this column to encourage and cajole employers to abandon the hiring practices of the past. Efforts to attract and retain willing people to manufacturing will fail if the primary workforce supplier is a temp agency. As of this writing, manufacturers are facing immense backlogs and inadequate numbers of candidates for employment. I have proposed a three-part plan to attract willing candidates and to grow their capability on the job. An essential part of that plan is to dedicate at least one person in your company to local workforce

BOXSCORE September/October 2021

development. Given the changes in the workforce and prevailing wages, this position should pay for itself many times over. What might this job description entail, you ask? Excellent question—here is a draft. To equip member companies in their efforts to attract and retain the right employees, AICC’s Packaging School is continually developing resources. These include education, assessment, and reference materials. Education AICC’s Packaging School now has more than 100 courses, with more than 20 in

Spanish. At least 10 new courses will drop this fall, on subjects ranging from sales to production to innovations in technology. As travel restrictions are lifted, destination courses have also resumed. Worker Preparation While there are too many to list here, a few have been mentioned above. I believe every member could benefit by using a quiz and two courses prior to sending a person to the work center: 1) The Packaging Math Test is an online quiz; 2) the Packaging Production Math Course

Leadership

teaches the basics; and 3) Corrugated Basics is an introduction to the industry and prepares the candidate for the work environment. A new resource has been added to the AICC Packaging School to plan and track training in every department. Designed in Excel for use in companies that have not invested in a training database, this free resource helps plan and track education in procedures, safety and quality protocols, and online and in-person training. The Training Tracker is available through AICC’s Packaging School and includes an

introduction and demonstration, as well as written instructions.

hiring practices, we are also working to provide the tools to aid your progress.

Resources Additional resources in development include a Machine Primer, which will allow the curious to click on any packaging-related machine to see a description, a depiction of its major sections, and a video of it making product. Also in development is a catalog of carton styles rendered in 3D and described according to their primary use. All of this is intended to say that while I will continue to cajole members to improve

Scott Ellis, Ed.D., delivers training, coaching, and resources that develop the ability to eliminate obstacles and sustain more effective and profitable results. He recently published Dammit, Learning Judgment Through Experience. His books and process improvement resources are available at workingwell.bz. AICC members enjoy a 20% discount code: AICC21.

POSITION TITLE: • Workforce Development Coordinator Reports to: • Human Resources (HR) Manager SUMMARY: • Responsible for community outreach to raise awareness of career opportunities in packaging manufacture and services. Develop programs, alliances, and resources that will help qualified workers to see manufacturing as a fulfilling employment option. Work with community workforce development groups (e.g., county, community colleges, and tech schools) for today’s employees, as well as provide educational experiences and assistance to those educating the workforce of the future. DUTIES AND RESPONSIBILITIES: • Coordinate resources of the company and those of the community to remove obstacles to our company being the employer of choice in our area. Toward this end, the Workforce Development Coordinator (WDC) may work with the HR manager to : ° Set standards for pre-screening of all potential employees (both temp and direct hire), including at least exposure to online demonstration of the packaging manufacture work environment and assessment of job-related math abilities. ° Identify and offer to serve local workforce development groups. ° Identify and support local literacy and English-as-a-second language resources. ° Facilitate the translation of essential work documents to equip non-English speakers to work safely and productively in our company. This may include adding bilingual supervisors.

° Offer internships for high school, tech school, and MBA students completing projects. ° Explore local high school academies (e.g., technology, graphic design) and specialty colleges that prepare workers for the industry. Develop a strategy to recruit from these programs. ° Identify and support current employees from various departments who may speak to students about the value of working for your company, including answering these types of questions: > What are they learning, and how do they use their skills? > Do they use anything they learned in high school? > Are they making a difference? > Is it possible to achieve work-life balance in this field? ° Work with HR Manager to improve the hiring process, ensuring that candidates understand the value of long-term employment with the company. ° Work with HR manager to improve the onboarding experience and to ensure that workers know how to do the work and why it matters. ° Work with HR Manager to develop career paths for all employees. ° Work with HR Manager to develop a social media strategy to reach potential employees and referral sources. QUALIFICATIONS: • Excellent verbal and written communication skills. Knowledge of social media is a plus. • A degree in marketing or communication is preferable but not required. • Success in this role will qualify the WDC to be considered for broader roles in marketing and sales.

BOXSCORE www.aiccbox.org

WHEN YOU INVEST & ENGAGE FREE ONLINE COURSES Over 90 free online courses to help your employees build their industry knowledge & skills! (Spanish and English available.)

ADVISORY GROUPS

ACCESS TO THREE INDUSTRY EXPERTS

AICC HEALTH CARE VIRTUAL SEMINARS/ WEBINARS AICC has hosted more than 70 industry specific virtual seminars and webinars this year.

Unlimited access to our three technical advisors in folding carton, corrugated, and safety & risk management!

VIRTUAL PLANT TOURS Hundreds of AICC members have already gone on virtual plant tours of Dusobox, Wasatch Container, The BoxMaker, Utah PaperBox, and Packrite, with more on the way!

DELIVERS SUCCESS RENEW YOUR COMPANY’S AICC MEMBERSHIP AICCbox.org/Renew

Professional Development

50-Plus Webinars for All Your Employees

ICC is offering more than 50 industry-specific webinars from September 2021 through July 2022. To help members lower training costs and improve employee retention, the Association is once again offering the All Access Pass. When you invest in professional development, you invest in your organization’s potential. You equip your team with shared knowledge that helps them perform at a high level, and you position your organization to attract and retain top talent—professionals who value continuous learning and career growth. For one payment of $1,695, participating companies are given a code that all employees can use to register for every webinar. With more than 50 webinars scheduled, the All Access Pass represents a savings of more than $10,000. This exceptional opportunity will help seasoned workers and when on-boarding new employees. The All Access Pass gives participating companies: • Flexibility in choosing education offerings and which team members take them.

• Simplicity and accuracy in budgeting for professional development. • The best available price for AICC webinars. • An easy way to leverage the value of your AICC membership.

See all upcoming webinars at www.aiccbox.org/calendar. To purchase the All Access Pass, contact Taryn Pyle, AICC’s director of education and leadership development, at 703-535-1391 or tpyle@aiccbox.org.

BOXSCORE www.aiccbox.org

AICC Innovation

Leadership

Who Are Your Champions? BY BEN BAKER

veryone needs a hero in life, someone to learn from and emulate. That is how we grow as people and become leaders in our own right. Unfortunately, most of us never actively seek out people who can guide us and teach us what we do not know. Instead, we have an overwhelming desire to be independent and not rely on others, to our own detriment.

Why? Why do we take the more challenging path and become the worst obstacles in our path to success? Why are we unwilling to acknowledge that others have been down the path that we are embarking on and can provide insights and guidance that could make our lives easier? Why are we unable to say, “I am not sure” and ask for advice from those who would be happy to provide it, if they were only asked? Is it pride? Possibly. Is it not wanting to look foolish in front of people we consider to be authority figures? Probably. Is it a culture of self-dependence in which we rely on the wisdom of Google and YouTube rather than ask for help from those we know and trust? Most likely! The challenge is that when we rely on Google and YouTube and base our search patterns solely on the questions we know how to ask, we only make decisions synonymous with our preconceived view of reality. We do not know what we do not know, and because of this, our discovery is limited by our blind spots. We possess the inability to formulate the right questions

BOXSCORE September/October 2021

or discover answers that will lead us to a broader view of the world. For this reason, all of us need champions in our lives—people who can help us become the best version of ourselves; those who can challenge our sense of reality and provide perspectives that are outside our comfort zone. This is how we grow, and this is how we become more valuable members of society. So, who are your champions? Who are the people you can turn to who enable you to move beyond your comfort zone? Who are those you trust enough to allow you to be vulnerable without being exposed? Who are those who will allow you to broaden your viewpoints, become a better version of yourself, and become more valuable to those around you? These people may not be who you think of first. They are not necessarily your boss or your boss’s boss. They may not even work in the same company or industry as you. They may not live in the same city, state, or country. However, they are out there, and it is up to you to find them. How? First, understand what you need and why you need it. Each of us has to look internally and decide who we are and who we want to be. (A free chapter of my book,

Powerful Personal Brands: A Hands-On Guide to Understanding Yours, is available at www.yourbrandmarketing.com/ebooks— it may help.) We need to understand our wants, needs, goals, desires, and fears. We need to know what we do well and what we do not, and why. (This discovery tool may help, too: whyinstitute.com/ discover-your-why; use code “BenBaker” to get a discount—no affiliate fee provided to me.) From there, we need to determine what is keeping us from achieving our goals. Do we require insights, strategies, or skills, or a combination of all three? Then we must look first to our network. Who has the skills and expertise that we lack, which keep us from succeeding on our terms? Those people are your first conversations. Those are people you know, like, and trust, and you believe that they have your best interests at heart.

AICC Innovation

Ask them for help. This is a sign of strength and not weakness! Tell them your goals and your challenges, and ask them what they think. Now is the most crucial part of the exercise. Be quiet and listen! Do not interject. Do not try to show how smart you are, and most importantly, do not take what they say as attacks on your character; they are there to help. All of these will be to your detriment. Your goal is to find not one champion, but many. A number of people can help you with specific issues, and sometimes you need more than one for the same problem. Take what they have to say and incorporate it into your own set of beliefs; contemplate, think, test, evaluate, and then go back and ask more questions. This is not easy and may be a little uncomfortable, and it is meant to be both. This is how we grow. This is how we get better. Communication is far more about understanding and internalizing than it is speaking. Oh, one last thing: Someday, someone will come up to you and ask you to be a champion for them. Do not take this lightly; it is an important step in both your and their growth. Ben Baker is president and CEO of Your Brand Marketing, an employee engagement consultancy designed to help you communicate your brand’s value effectively inside your organization. He is the author of two books: Powerful Personal Brands: A Hands-On Guide to Understanding Yours (2018) and Leading Beyond a Crisis: A Conversation About What’s Next (2020). Ben also hosts the iHeartRadio and Spotify syndicated YourLIVINGBrand.live show with more than 265 episodes. How can Your Brand Marketing help you achieve your goals? Book a free 30-minute conversation at bit.ly/3e5bbo3.

The Perfect Combo

Get Peak Performance From Your Equipment with Matched Component Sets

Nothing’s more rewarding than a couple made for each other. That’s why the engineers at ARC International have focused their skills and talents on crafting perfect matches between the components that must work in tandem on your flexo folder gluers and die-cutters: • Anilox Rollers and Ink Chambers • Anilox and Wiper Rollers • Feed and Pull Rollers • Glue and Meter Rollers You can achieve the press speeds and print quality you need to fill your most demanding orders by pairing your team with The ARChitects of Flexo. Contact ARC today to learn how these engineered matches of flexo folder gluer and die-cutter components (new or reconditioned) can help you achieve a more perfect union of production and profits. The ARChitects of flexo

ARCInternational.com 800-526-4569 ARC.5pBxScor_AnlxCmbr.indd 1

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BOXSCORE www.aiccbox.org

BOXSCORE September/October 2021

WELCOME, AICC CHAIRMAN GENE MARINO As the industry continues to grow, this boxmaking leader aims to build an even stronger Association community

o say the COVID-19 pandemic changed everything would be an understatement. It not only transformed people’s lives on a personal level, but also changed how and where they worked and interacted with customers and colleagues alike. It tested organizations in ways they had never before been tested. It even led AICC’s incoming chairman to take on an exciting new opportunity, a bit closer to home, as the executive vice president of Akers Packaging Servicing Group. Before joining Akers last August, Gene Marino worked at another independent packaging firm. In fact, unlike many previous AICC chairpersons, Marino isn’t a family member in the family business, so commonly found in this industry. He came into his packaging career as many often do: kind of by accident. And within this industry, full of passion, he has always felt welcomed with open arms.

As we do whenever a new chairman takes over, BoxScore spoke with Marino about his path into the industry—and about what he hopes to accomplish while overseeing AICC. But before we get started, a few items of biographical note: He is celebrating his 28th anniversary with his wife, Megan, this year. Together, they have three daughters—Emma, 26; Grace, 23; Claire, 21—and live just outside of Chicago, the city where Marino was born and raised. In 1991, Marino earned a B.S. in finance at Northern Illinois University, which took him into banking, working at the American National Bank and Trust Co. of Chicago (now known as J.P. Morgan Chase). During that time and shortly after getting married, Marino decided to attend graduate school at the University of Chicago Booth School of Business. He secured an MBA in strategic management in 1998.

BOXSCORE www.aiccbox.org

Photos courtesy of AICC.

By Geoff Williams

The Akers Packaging Services Group in Chicago, IL.

BoxScore: A lot of AICC chairmen have historically come from family businesses that have been in the industry for generations. You, however, did not. How did you find yourself in the packaging industry? Marino: I was a banker working in Chicago. Innerpac was a customer of mine at the time, and they were looking for someone to head up sales and marketing. One partner suggested they speak with me. That partner just happened to be Francis “Fran” Mentone, who is greatly admired and really beloved at AICC. I am forever grateful for his support in putting my name in the hat. The rest is history, so to say. In 1998, I joined Innerpac, then a private organization. But in 1999, they were sold to private equity firm, National City Equity Partners, in Cleveland. BoxScore: That must have been quite an adjustment. Marino: It was an intense time, where you had a rapid learning curve at a midsize packaging business. National City Equity Partners ran our company until 2006, at which time we were sold again to Evolution Capital Partners. The plan was to execute a specific strategy for the next five years and then sell the company again. We were successful in that effort, exiting to RTS Packaging, a joint venture between WestRock and Sonoco. Then, in 2011, with nowhere to go and nothing

BOXSCORE September/October 2021

to do, I joined Evolution as an operating partner. BoxScore: So, you were out of the packaging industry. Marino: Yes, although I stayed actively involved with AICC doing speaking engagements and facilitation exercises at regional and national meetings. [Former AICC President] Steve Young was instrumental in keeping me involved in the industry, and I am grateful for that. Around 2015, I joined a company in Alabama, Rusken Packaging. My

role there was to help grow the business through an acquisition strategy and to work with owner Greg Rusk and Chief Operating Officer Joey Jackson to drive the strategic plan—getting everybody on the same page, rowing in the same direction, with the right focus to drive successful growth. Navigating Life For the next five years, Marino worked at Rusken Packaging and would fly back to his home and family on the weekends. It was not an ideal situation, but Marino

Marino has served AICC in many ways, including previous board service and as a popular speaker at AICC summits.

had hoped that at some point, he would move his family to Alabama—and that his widowed mother and father-in-law, also a widower, would follow suit. But as the years went on, it became clear that his mother and father-in-law had no intention of moving. Meanwhile, Marino liked working at Rusken, and he had no plans to leave. So, he was in kind of a lifestyle limbo; he enjoyed his work but didn’t enjoy being away from his family. And then the pandemic happened. Flights were grounded, everybody was working out of their homes, and people had a lot more time on their hands (as if you didn’t know all of that already). Marino had a lot more time to think, and one of those thoughts was: Do I really want to spend the balance of my career flying back and forth across the country and seeing my family part time? He realized the answer was no. Marino began thinking about his options, and he started exploring Akers, a company that was founded in Middletown, Ohio, in 1963. It was a company that started off small but had become quite large, with 12 facilities spread over six states. Marino had known President Mike Akey for nearly 25 years, as well as Jim and Bill Akers for close to 20. He admired the people, their business philosophy, and how the company was run. He approached Akey to explore the possibility of joining Akers, and in August 2020, that’s what he did. Marino didn’t exactly meet Akey in person, of course—or anyone else. It was amid the pandemic; the job interviews were all via Zoom. BoxScore: You’ve been involved in AICC for a long while—about as long as you’ve been in the packaging industry, right? Marino: Yes. In fact, when I was at Innerpac, I was on the board for the Association, and I was due to be the

“Participating in the advisory group gives you the opportunity to learn and grow as a leader, fostering an environment of continuous improvement. I can’t speak highly enough about what I gained from that experience.” chairman of AICC in September 2010. However, that was right around the time that Evolution Capital Partners sold the company to RTS Packaging. At the time, the bylaws said you couldn’t be owned by an integrated company, and I had to resign from the board in August 2010. This is actually my second stint at becoming the chairman of AICC. BoxScore: Wow. So, how has AICC changed over the last 20 years or so you’ve been involved with the organization? Marino: Oh, it’s changed a lot, especially when it comes to training and development. It’s really progressed,

offering online and in-person training to develop talent. This allows businesses an excellent opportunity to take advantage of personnel development. The online format also affords an on-demand option that is valuable in smaller, fast-moving businesses. BoxScore: Can you give some examples of how AICC has helped you over the years? Marino: The CEO advisory group format is one of many examples. Participating in the advisory group gives you the opportunity to learn and grow as a leader, fostering an environment of continuous improvement. I can’t speak highly enough

Marino joined Akers Packaging in August 2020.

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about what I gained from that experience. It’s just very impactful, even more so if you own or work at a company that doesn’t have a board. You’re put into a group of CEOs who don’t compete in the same market but who face—or have faced—similar challenges. The ability to tap into that knowledge network is extremely valuable. BoxScore: Right now, we’re in this weird zone where the pandemic is definitely not over, but it can feel like it is at times. How was AICC helpful for you during the pandemic? Marino: We were doing weekly Zoom calls, available to all members. They were in a Q&A format, where we were talking about what people were doing right, best practices, how to manage and maintain clean equipment, and discussing what people were doing for distancing. It was a great resource for all of us. At points

Marino with AICC President Michael M. D’Angelo.

BOXSCORE September/October 2021

“Regardless of what framework you are using, you must have something in place to align the goals, team, and processes to create a system that goes beyond the energy of the entrepreneur/ founder and becomes sustainable.” during the pandemic, we would have 100 people on these calls. BoxScore: Can you elaborate on any other ways AICC has been helpful? Marino: Well, the relationships you build are simply tremendous. One specific recent example was my regular calls with John Kochie with Acme Corrugated. When the pandemic was at its worst, we talked a few times about the actions

Acme was taking to maintain a safe work environment. We discussed what Acme was doing with machine cleaning, plant disinfecting, and distancing in their facility to keep people safe and virus-free. Everyone was scrambling, trying to react quickly; it was good to have this network to reach out to for advice and confirmation of our action plans. So many of my longtime professional relationships can be credited to AICC. I

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vividly remember after Fran Mentone retired, I was attending my first national meeting solo. He suggested I introduce myself to Jeff Quinn and Jack Fiterman. They welcomed me with open arms and made further introductions without hesitation. This is a great example of the many impactful relationships (both professionally and personally) that began through my active participation in AICC. There are countless other instances like this—far too many to mention—but relationships for which I will forever be grateful. BoxScore: Obviously, going forward, helping AICC members manage the pandemic will still be a priority, but what other challenges in the industry will you be working on in the next year? Marino: There are challenges in our industry that we’re going to need to face down, with respect to the availability of paper and labor and the stresses on the supply chain, particularly transportation. It’s going to be a challenging time in the next few years as some of the residual aspects from the pandemic and supply bottlenecks continue to manifest themselves in our industry. My theme for the upcoming year is “Grip It and

Marino’s theme as chair combines his passion for strategy and execution with his love of golf. He will share his “Grip It and Rip It” philosophy.

Rip It.” Are we providing the right foundational vision for our business, putting the right people in the right seats, creating clarity in our message, and focusing on our priorities to achieve sustainable success? While I am a fan of the strategic framework created by Geno Wickman (EOS), regardless of what framework you are using, you must have something in place to align the goals, team, and processes to create a system that goes beyond the

energy of the entrepreneur/founder and becomes sustainable. BoxScore: And do you have any advice for AICC members who may not be utilizing all that AICC has to offer? Rather than focus on advice, the important message I want to convey is that over my 21 years in the Association, I cannot count how many times I picked up the phone, sent an email, or shared a cocktail with a member or Associate member and learned something new. To be a part of a group of people willing to share their experiences and raise the bar in our business is an amazing gift. I have yet to encounter a member or Associate member unwilling to share, contribute, or participate when asked. That makes me a better operator, leader, partner, and colleague, affording me the opportunity to willingly pay it forward for those around me. Geoff Williams is a journalist and writer based in Loveland, Ohio.

Marino believes with a great culture, you can successfully create, develop, and execute a clear strategy far more successfully than a business with no clearly identifiable culture or core values.

BOXSCORE www.aiccbox.org

GUIDING

RIGHT

BOXSCORE September/October 2021

Mentoring can play a vital role in identifying and empowering your company’s rising stars By Robert Bittner

“I

was wanting to grow my position into more of a leadership role,” recalls Terri-Lynn Levesque, vice president of administration at Royal Containers, “but I had only ever worked at Royal. I wanted to learn more about the industry, about how other companies function. I wanted to learn what I needed to know to take the next step in my career.” For Levesque and many others, a vital step on the path to professional growth is mentoring—typically, formalized one-on-one relationships between a mentor with experience and knowledge and a mentee eager to learn. Employees who invest themselves in being mentored develop their own careers while also helping to ensure their company’s forward momentum. And companies that support mentoring programs—whether internal or through industry associations—enhance succession planning as they prepare leaders for the future. Managing Mentoring Productive mentoring doesn’t happen just because an industry veteran shares insights with a younger

professional. It takes planning and oversight. Otherwise, both mentor and mentee may come away frustrated. Scott Ellis, Ed.D., owner of business consultancy Working Well, partners with companies and organizations—including AICC—to help oversee their mentoring initiatives. “When it comes to managing a successful mentoring program, the key is to match the expectations of the parties,” he says. “If that isn’t done properly, then both the mentors and the mentees may be expecting the other person to take the initiative. Or maybe there isn’t a match between the amount of time available or the level of effort each party will invest. Clarifying the expectations upfront is very important. As a facilitator, that’s where I spend most of my time.” Prospective mentees should have a clear idea of what they want and expect from a mentoring relationship. Do they want to learn about a specific topic from a subject matter expert? Are they expecting a short-term relationship, or are they looking for an ongoing mentorship of perhaps a year or more, where there are regular check-ins and specific goals for which the mentor is holding them accountable?

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“Take the time to have those conversations, listen, and learn from others. That’s going to help you better understand how to improve the overall experience for both your customers and your company.” —Cassi Malone, customer service manager, Corrugated Supplies Co. Mentors, too, should be upfront about partnered with mentor Julie Elgin from their own expectations. Are they open Oklahoma Interpak. “We clarified our to once-monthly phone calls or weekly expectations of each other right from the emails? Are they comfortable discussing start,” Levesque recalls. “I asked if she was broader career goals, or do they prefer OK with a monthly email and with meetanswering questions about specific work ing for coffee during AICC’s spring and fall situations? How much time are they meetings. Having that understanding of willing to give—and for how long? our expectations really set us up for success.” Ellis recommends starting with Elgin was also mentoring another EL mentorships that focus on specific issues at the time, and the three would see each or specific career goals to help mentor and other at AICC’s in-person meetings and mentee get to know one another. After discuss some of the challenges they were a few months of regular discussions, sit facing. “We’d have check-in meetings down and discuss the relationship, asking, every couple of months, just to see how “‘Was it helpful? Was it sufficient? Are things were going. Julie was always we going forward?’ That conversation is available,” Levesque says. important, because endings are very difAlthough her experience has differed ficult for people in mentoring situations,” from Levesque’s, Cassi Malone, customer Ellis says. “Unless you address an end service manager at Corrugated Supplies point or agree on moving forward, they Co., says that the EL program has been can just drag on. When that happens, similarly beneficial for her career. either both parties end up dissatisfied or “I’ve never had one specific mentor one is satisfied and the other is wondering, from the EL program,” Malone says. ‘How do I get out of this?’” “Instead, the program as a whole has been a mentoring experience for me, as I’ve Nurturing Emerging Leaders built a strong network of other young Levesque gained her mentoring experiprofessionals that can share best practices. ence by being part of AICC’s Emerging Thanks to my EL network—and the Leaders (EL) program, which is designed confidence and knowledge I’ve gained to provide young professionals with from being a part of the program—I have industry training, networking, and also expanded my network outside of the leadership opportunities for professional EL group and have been able to take plant development through workshops, field tours, ask questions, and have genuine trips, roundtables, and an emphasis on conversations with some incredibly networking and mentoring. knowledgeable—and friendly—people Levesque found the mentoring element that I’ve learned a lot from. of the program to be especially beneficial. “The EL program has taught me that During her time as an EL, she was you need to ask questions and try to

BOXSCORE September/October 2021

learn as much as you can about all of the different processes within your business and how they connect,” Malone adds. “Take the time to have those conversations, listen, and learn from others. That’s going to help you better understand how to improve the overall experience for both your customers and your company.” Taking Charge Not every employee will have an interest in being mentored or a mindset tuned to professional development, Levesque acknowledges. “They just want to work their 9-to-5.” And that’s OK. There is nothing wrong with having employees who, while dedicated and effective, are satisfied with the status quo. At the same time, Levesque points out, “Companies need to be able to attract, identify, and grow leaders if they’re going to be successful in the future.” So, how do you identify those employees likely to benefit the most from mentoring? Look for the ones who are already beginning to act like leaders, Malone says. “More than anything, initiative sets an EL apart from an average employee,” she says. “An EL seeks out information and tries to get involved in whatever they can to help improve their company and their customers’ experience. Even the EL group is only as valuable a resource as you decide to make it. It’s up to each specific person to take initiative in the training, building a network, and utilizing the resources they have.” Keep an eye out for young professionals in the company who are actively listening, learning, and willing and eager to take on more responsibility. “These are the people you want to keep engaged,” Malone adds. Consider, too, those employees who are already involved in mentoring relationships that might be occurring organically within your company. They may be excellent candidates for the EL program. For example, even though Malone has worked for companies without formal

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mentoring programs, valuable mentoring was still happening. “As a kitchen manager at Robert Morris University School of Culinary Arts, I had a wonderful supervisor that spent a lot of time teaching me the ‘why’ behind certain processes,” she says, “including me on particular projects and helping me learn to communicate more effectively with the chefs and faculty we worked with. At Corrugated Supplies, my supervisor is a fantastic mentor as well. He takes the time to help me think through how to solve certain problems, gives suggestions for improving my communication and clarity, and keeps me engaged with projects that help me learn and develop my skill sets.” In addition, she says, “My co-workers are very knowledgeable and are happy to share information about their processes, best practices, and advice.” Avoiding the Pitfalls For companies overseeing their own mentoring initiatives, Ellis has some words of caution. “Not every successful professional makes a successful mentor,” he says. “Folks who are called upon to mentor are usually pretty busy; otherwise, no one would be interested in them. So, they have to be particularly motivated to want to mentor and invest the time and energy required. They also need to want

to share the knowledge and insight they have without feeling like they’re giving away their secrets or putting their own careers at risk.” It is also important that mentors understand the differences between mentoring and, say, teaching or a collegial friendship. Effective mentoring relationships are unlike these other relationships in that they work best when information and guidance flow one way. “Other relationships are supposed to be mutual,” he says, with a natural give-and-take that flows between parties. That’s not the case when it comes to mentoring. “With mentoring, the mentor is there to support the mentee. As a mentor, you might divulge something about yourself—just like a coach or therapist might—but you never forget that you’re there for the sake of the one you’re mentoring.” Because of the nuances involved in managing this kind of relationship, Ellis believes it can be helpful to bring in a third party to work with mentors and mentees. “In part, that’s what I do for a living—and it’s a significant part of my work with AICC’s EL program,” he says. “I’m not trying to lead the relationship. I just want the participants to consider things they might not have thought about if they’ve never been involved

in mentoring before. If they haven’t mentored somebody or been mentored themselves, they don’t know what can go wrong, how to establish boundaries, and what will help it to be effective.” Empowering Future Leaders Malone believes one of the best things mentors can do is to share their vision with the people they mentor and provide opportunities to become more involved. “Include mentees in meetings, projects, and tours whenever possible, so they can listen,” she says. “Just being involved and observing the way particular discussions or projects are handled goes such a long way and helps mold their own skill set. Also, it’s key to listen to their goals and interests and identify ways to help incorporate those within their job function.” For those seeking to get the most from being mentored, she advises, “Listen, take notes, ask questions, and don’t be afraid to ask to get involved. The worst answer you can get is no, and I think you’d be surprised at how rarely that happens. At the end of the day, initiative is what will set you apart. If you are willing to listen and learn, you will see a lot of value out of mentoring.” In the end, mentoring—no matter how it’s accomplished—can be a valuable differentiator for any boxmaker. “Retaining good talent is a challenge,” says Malone. “Empowering your young professionals to learn more about the industry, participate in industry networking and training events, and expand their network will be a win both for the employee and your company.” For information on the AICC Emerging Leaders program, visit www. aiccbox.org/page/leader. Robert Bittner is a Michigan-based freelance journalist and a frequent BoxScore contributor.

BOXSCORE September/October 2021

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BOXSCORE September/October 2021

TOMORROW’S TAKE AICC looks to its Emerging Leaders for insight into how to attract and retain workers By Steve Young

Chase Haddon, Packaging-Atlanta

Jordan Dawson, Harris Packaging

Alex Cohen, Acme Corrugated Box Co.

Lauren Frisch, Wasatch Container

Tom Murphy, Reliable Container

Brock Welch, Welch Packaging

Andrew Bell, Packaging Express

Drew Breier, Jamestown Container Cos.

recurring theme has been repeated in our industry in the first half of this year: “I can’t find workers for my production floor.” Indeed, in a survey of AICC members conducted last November, 51% of respondents reported having six to 10 vacant positions in their companies, while another 25% reported 11 or more openings. In an industry seeing demand for its products grow by more than 5% year over year, the scarcity of workers is straining the ability to keep up with customer demands and on-time deliveries. According to the Manufacturing Institute, an arm of the National Association of Manufacturers (NAM), as of June 30, there were 851,000 unfilled manufacturing jobs in the United States. What’s more, the institute projected that between 2021 and 2030, 4.1 million manufacturing jobs will become available, but only 2.1 million will be filled at current employment rates. These alarming statistics are provoking serious soul-searching in both boardrooms and lunchrooms around the country and prompting many people in the box business to ask, “What can the corrugated industry do to attract and retain more workers?” To help answer this question, BoxScore turned to representatives of AICC’s Emerging Leaders (EL) group to get their take on how to address this issue. After all, if the Manufacturing Institute’s figures are correct, it is our industry’s up-and-coming leaders who, in the years ahead, will be at the forefront of recruiting workers to our industry and implementing company culture and policy to retain them. We asked a series of questions to establish a simple premise: The corrugated and related paper-based packaging industries are interesting and necessary to our distribution system, and they provide stable, rewarding career paths for those who work in them. If this is true, what should the industry be doing to entice more workers, and how will we retain them? Here are the questions and responses we received.

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Why do you like working in the corrugated/folding carton/rigid box industry? Jordan Dawson, customer service representative at Harris Packaging in Haltom City, Texas, says, “I love how there is always something new to learn. It seems like every day there is something new that I learn, whether it’s a new style of box, a finishing process, or even machine capabilities.” Chase Haddon agrees. He’s in sales service at Packaging-Atlanta in Canton, Georgia, and says, “It is a very interesting industry, and not one day is ever the same. The opportunities are endless.” He also likes that he’s working in a family business: “I also get to work alongside my family, which, of course, has its ups and downs, but it keeps things fun!” “Relevance” resonates with Brock Welch of Welch Packaging in Elkhart, Indiana. “As the world innovates, consumer patterns shift more toward e-commerce;

BOXSCORE September/October 2021

we’re still working in a relevant industry and one that will be required,” he says. Tom Murphy, director of marketing at Reliable Container in Addison, Illinois, says, “It is an ‘under the radar’ industry; I would go so far as to say that it’s an ‘eccentric’ industry, which fits my personality.” Murphy laments that “not too many outside the industry understand or appreciate [the process] that [delivers] a package to your front door. To the normal citizen, boxes are ubiquitous, but the packaging industry is invisible.” At Acme Corrugated Box Co. in Hatboro, Pennsylvania, Alex Cohen appreciates the family nature of the business and the environmental advantages of paper-based packaging: “For me, corrugated was the family industry. I believe my passion revolves more around the idea of manufacturing in general; taking relatively basic and sustainable raw materials and then turning them

into a profitable product is very rewarding and thought-provoking to see.” Stable, rewarding careers are what animate Lauren Frisch’s excitement about working in the box business. “I love working in the corrugated box industry due to the endless career opportunities. Any position within the business—finance, design, manufacturing, sales, marketing, and executive leadership—are all available in the packaging industry,” she says. Frisch, who is general manager of Wasatch Container’s Box Essentials division in North Salt Lake, Utah, also serves as an EL delegate on AICC’s board of directors. She cites the satisfaction of seeing a packaging project through from beginning to end: “The excitement of producing packaging from the initial design phase, seeing it being manufactured through your plant, then physically seeing it in the grocery store is one of the most rewarding aspects of my personal job.” Drew Breier, account manager for Jamestown Container Cos.’ Cleveland division in Macedonia, Ohio, likes the diversity of business within the industry. “One of my favorite parts of this industry is seeing and learning all the other industries we serve and are vendors for. Sometimes it amazes me the customers we serve,” he says. Finally, as senior account executive at Packaging Express in Colorado Springs, Colorado, Andrew Bell likes the people aspect of the business. “You can’t sell a box over the phone! I enjoy meeting with our customers and colleagues in person every day,” he says.

What do you wish everyone knew about our industry? If the corrugated and paperboard industries are largely “under the radar,” as Murphy explains, what would our group of AICC members want others to know about it?

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“I wish everyone knew that manufacturing is sexy!” says Cassi Malone, customer service manager at Corrugated Supplies in Bedford Park, Illinois. “I’m kidding, but really, while manufacturing and the corrugated industry can get a reputation for being ‘stale’ or an ‘old boys club,’ that is changing. Young professionals, both men and women, are rising up and bringing new technology, ideas, and management styles with them and are looking to foster a culture of innovation, collaboration, and growth.” Malone, who also serves as an EL delegate on AICC’s board of directors, praises the stability of the industry: “Even though other industries such as hospitality and technology can seem enticing, manufacturing offers a stability that was especially evident throughout the pandemic. With the e-commerce boom, corrugated packaging is essential!” Frisch, for her part, says, “Manufacturing is financially rewarding! You can have a phenomenal career and work-life balance in the packaging manufacturing industry. It is always changing and progressing as an industry, as new technologies and machines are always being invented to make our plants more innovative and efficient.” Cohen also appreciates the role plant automation plays in making the industry an interesting place to build a career: “I wish more people knew about the intricacy of making a box. How far the industry has come in terms of technology is quite amazing. If you walked through a plant 20 years ago, it was a much more manual process on all fronts. Today, so long as the owners are willing to innovate, the advancements are there: automatic pre-feeders, robotic load-formers, safety-blue mesh conveyors, high-rack automatic work-in-process systems, etc.” “I wish everyone knew how much work, time, and effort goes into packaging,” says Haddon. “I don’t think everyone

realizes that packaging is a science and how much goes on behind the scenes to produce a good-looking product, even if it is recycled after a one-time use.” Welch thinks the diversity of the industry’s products is little understood among the industry’s customers and

consumers. “The different facets of our industry make it ‘diverse,’” he says. “From supply chain challenges to the more attractive aspects of single-face laminating, litho labels, and POP displays, to digital printing, our industry is very diverse and broad in scope.”

“I wish everyone knew how much work, time, and effort goes into packaging. I don’t think everyone realizes that packaging is a science and how much goes on behind the scenes to produce a good-looking product.” —Chase Haddon, sales service, Packaging Atlanta

BOXSCORE www.aiccbox.org

What should the corrugated and related paperboard industries do to attract motivated and dedicated workers? Understanding why people like working in this industry and what they wish others knew about it, we asked what the industry should do to attract dedicated and talented employees. Referring to enhanced unemployment benefits that have been part of various pandemic-related economic stimulus programs, and the wage competition from other industries, Bell thinks the industry’s job diversity is attractive to people. “That’s a tough one when we compete with unemployment benefits and rising wages in the food services industry,” he says. “However, I think we can do a better job showing that each day is different in the box business. We give people the opportunity to work on different machines and projects day in and day out.” “Modernize the work environment,” says Welch, who also notes the importance of appealing to younger generations of workers. “Identify more with what the incoming generations value—open, collaborative workspaces, work-life balance, flexible hours, idea generation, and feedback sessions.” Dawson echoes this sentiment: “I feel we need to reach out to the up-and-coming generations early. So many people don’t even realize this is an industry! Reaching out to high schools and colleges and talking to those students about the industry just might spark an interest to at least try an internship or summer job.” “Get involved with your local community colleges, trade schools, and colleges,” Frisch says. “Create an attractive work environment—if you wouldn’t want to work in a specific environment at your plant, why would someone else? Advertise at local events to get your name out there!” Keeping with the generational theme, Haddon says, “I think our industry needs to educate more of the younger generations on the importance of packaging. It is not

BOXSCORE September/October 2021

“Create an attractive work environment— if you wouldn’t want to work in a specific environment at your plant, why would someone else? Advertise at local events to get your name out there!” —Lauren Frisch, general manager, Box Essentials, Wasatch Container something that will ever disappear, and people need to know you can make a great career in the corrugated industry.” He suggests social media platforms as a way to reach them: “It would be awesome to create TikTok videos or be an Instagram influencer for your career. The corrugated industry has endless opportunities!” Cohen also addresses the generational issue: “This is becoming more and more of a generational gap,” he says. “As veteran boxmakers are retiring, the number of millennials willing to work in a plant has declined. The younger generations are much more focused on work-life balances, and computer sciences have taken over their educational focus. I think something that can attract the younger generation is better automation to test the mind, and some increased flexibility in work hours.” If these strategies are successful, how will the industry then retain these workers? Breier says, “The more you can make plant employees feel valued is key—offering

some sort of bonus incentive for quality, running a certain number of orders in a certain amount of time in exchange for a bonus or extra vacation days, etc.” Murphy says, “Retention is easy if you have a great atmosphere and create an environment where employees feel appreciated. More financial incentives will also create more retention. Money talks.” Having a “great atmosphere” gives Frisch the last word: “We are a family-run plant with a great culture. We are always going above and beyond for our employees,” she says. “We treat everyone as an individual—the top management team takes time to learn every employee’s name and story. You are not a number at our plant; you are our most valuable asset.” Steve Young is AICC’s ambassador-at-large. He can be reached at 202-297-0583 or syoung@aiccbox.org.

TRENDING UPWARD Sales compensation rises in 2020, per AICC survey

ICC has released its 12th Independent Sales Compensation Report. Based on a survey conducted this past spring, it is the most comprehensive look at key sales compensation salaries and benefits being paid by independent corrugator plants and sheet plants in the United States. This report received data from 62 independent corrugator and sheet plants. These companies employ nearly 5,700 full-time employees spread across the country. In aggregate, these plants sold approximately $2.1 billion of corrugated products in 2020. AICC President Michael D’Angelo remarks, “Knowing where you stand is vital information in the competition for people—and especially vital when looking at the sales function. This report allows independents to benchmark themselves against others in the industry and in their region. It is a critical way for AICC member companies to ensure best practices and leadership.” As of January 1, 2020, the mean base salary for sheet plant salespeople in the U.S. was $76,621, which is 5.6% higher

BOXSCORE September/October 2021

than reported in 2019. This represents an increase substantially smaller than that observed between 2017 and 2019 (19%), but closer to increases seen between 2015 and 2017 (3.3%), between 2013 and 2015 (1.5%), or between 2011 and 2013 (7.5%). Total compensation, which adds actual commission/bonus paid in 2020 with the January 1, 2021, base salary, averaged $141,310—almost identical to the average reported in 2019 ($141,517). The mean base salesperson salary at responding U.S. corrugator plants as of January 1, 2021, was $87,101, which is a 31.7% increase over the average reported in 2019 ($66,140). However, the average reported in 2019 was 17.7% lower than the average reported in 2017 ($80,339). Total compensation averaged $213,475, which is an increase of 2.6% over the average reported in 2019 ($208,053). Both figures are much higher than those reported in previous years. The report offers detailed information on sales objectives, base salaries, bonus basis, customer relationship management (CRM) usage, social media activity, and more, from both a national and regional view to allow

independent sheet plants and corrugator plants to benchmark their companies. The report also reveals the responses to COVID-19-related questions about vaccination requirements, travel restrictions, and more. While these responses represent a snapshot in time, they still provide valuable insight into the sentiments of the industry. All responses to this survey were collected and compiled by Association Research Inc. in Gaithersburg, Maryland, and have been held in strictest confidence. None of the data received has been seen by any AICC member or staff member. All participants in the survey received a complimentary copy of the report. The full report is available for electronic download for $225 for AICC members and $415 for nonmembers. If you have any questions about the 12th Independent Sales Compensation Report, contact Maria Frustaci at 703-836-2422 or mfrustaci@aiccbox.org. To order the full report, visit www.aiccbox.org/store or contact Patrick Moore at 703-836-2422 or pmoore@aiccbox.org.

Average Total Compensation – January 1, 2021 U.S. Sheet Plants

Annual Sales Less than $10 million

$93,498

$10–19.9 million

$108,575

$20 million or more

$160,682

Industry Experience (Years) $84,706

Less than 5 5–9

$94,899

10 – 19

$164,851

20 or more

$167,875

All Respondents

$141,310 $0

$25,000

$50,000

$75,000

$100,000 $125,000 $150,000 $175,000 $200,000

Source: 2021 AICC 12th Independent Sales Compensation Report

Average Total Compensation – January 1, 2021 U.S. Corrugator Plants

Annual Sales $75 million or less

$201,201

More than $75 million

$224,091

Industry Experience (Years) Less than 5

$67,509

5–9

$135,282

10 – 19

$250,536

20 or more

$252,900

All Respondents

$213,475 $0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

Source: 2021 AICC 12th Independent Sales Compensation Report

BOXSCORE www.aiccbox.org

The Associate Advantage

Labor Shortages Enhance the Need for Automation BY GREG JONES

GREG JONES SUN AUTOMATION GROUP VICE CHAIRMAN GREG.JONES@SUNAUTOMATION.COM

JOE MORELLI HUSTON PATTERSON PRINTERS CHAIRMAN JMORELLI@HUSTONPATTERSON.COM

TIM CONNELL A.G. STACKER INC. SECRETARY TCONNELL@AGSTACKER.COM

JOHN BURGESS PAMARCO DIRECTOR JOHN.BURGESS@PAMARCO.COM

PAT SZANY AMERICAN CORRUGATED MACHINE CORP. IMMEDIATE PAST CHAIRMAN PSZANY@ACM-CORP.COM

BOXSCORE September/October 2021

ighteen months ago, our industry was identified as “essential,” and many suppliers and box plants are having great success as a result. However, as demand continues to rise, the labor to meet it has decreased dramatically. This has been a movement for years now, and the complexities of acquiring and retaining talent have only compounded the need for companies to look for greater automation solutions. The shortage of available labor is something I have not previously witnessed in my 30-year career. This sentiment has been confirmed in conversations with fellow AICC members, who’ve also said there seems to be no end in sight. In talking with those managing box plants, one organization shared that it had 300 job openings in their plants across the country. Another individual in the Pacific Northwest shared that they are experiencing an average of 26 call-outs a day at their plant. It’s already difficult to schedule production with a shortage of people; additional call-outs make it almost impossible to plan and cause greater disruption. Most owners were already experiencing challenges pre-COVID to find individuals willing to work in the physically demanding environment of a box plant. When coupled with fears of the pandemic and additional government incentives, the difficulties have only increased. It’s no longer a matter of having an already small talent pool; it’s an industrywide shortage of interest from the available labor force. Many states have tried to incentivize workers by cutting additional federal funding, but this strategy has run into its own legal challenges. That said, there are still many operations that maintain dedicated and skilled employees worldwide. Those willing to stay,

though, have demanded greater work-life balance. In many instances, they would prefer to keep their 40 hours a week and not take on overtime work at enhanced pay. The work-life balance is much more important to them than the additional money. I am not saying they do not “have it right,” but it is something we all must manage, as we are already short staffed. Similarly, a customer visiting our operation said employees have no problem leaving if they have a personal obligation that conflicts with work, because they know they can go down the street and get a new job with a signing bonus. This has ultimately led many in our industry to relax everything from workfrom-home policies to pre-employment drug screening and modified background checks to get enough bodies in to operate equipment to meet demand. One AICC Associate member in a large metro city on the West Coast said his company had great success bringing in talent after posting their open positions in Spanish in outdoor advertising to attract skilled workers who might have otherwise not applied due to language barriers. This strategy may have worked well for them due to their geographic location, but it was also made possible because they had internal programs to support training and management tools. However, while the human talent pool shrinks, automation has taken rise. Operating 24/7/365, automation has allowed for the industry engines to continue—exceeding the scales of human-based production. The future of our industry looks to be reliant on the few with the power of many—robots. Greg Jones is executive vice president at SUN Automation Group and is vice chairman of AICC’s Associate board.

A.G. Stacker, Inc. * Abbott-Action, Inc. * Acme Corrugated Box Company, Inc. * Adams Container Corporation * Advantzware * Air Conveying Corporation * Air Systems Design, Inc. * Akers Packaging Service * Alliance Machine Systems International, LLC * alliantgroup * Alma Container Corp. * Alpha Packaging Corporation * Alpha Packaging, Inc. * American Box Co. * American Carton Company * American Containers, Inc. * American Corrugated Machine Corp. * Amtech * Anilox Roll Cleaning Systems * Apex North America LLC * API Packaging Solutions * APPI - Affiliated Power Purchasers International, LLC * ARC International * ARCO/Murray National Process Solutions, Inc. * Arden Software North America * Arrow Box Co. * Arvco Container Corporation * Athena SWC, LLC. * Atlas Container Corp. * Atlas Packaging Inc. * Axis Corrugated Container * B & B Box Company Inc. * Baldwin Technology * Barberan Corrugated US * Batavia Container Inc. * Baumer hhs Corporation * Bay Cities * Baysek Machines Inc. * BCI, Buckeye Corrugated Inc. * BCM Inks U.S.A. Inc. * Bell Container Corp. * Berenz Packaging Corp. * BGM - Bahmuller Gopfert * BHS Corrugated - North America, Inc. * Bio-PAPPEL International * Blackhawk Corrugated * Blue Ridge Packaging Corp. * Board Converting News * Box Express Mfg. * Box-Board Products Inc. * Bradford Company * Brausse Group * BW Papersystems * California Box II * Canusa Corporation * Capitol Carton Co. * Carlisle Container Co. * Cauthorne Paper Company * CellMark Packaging * Central National - Gottesman Inc. * Central Package & Display * Chief Container Company, Inc. * CL Rabb * Coastal Container Corp. * Columbia Container Corp. * Commencement Bay Corrugated * Commonwealth Packaging Corp. * Compass Packaging * Complete Design and Packaging * Connecticut Container Corp./ Unicorr Packaging Group * Container Graphics Corp. * Copar Corp. * Corporate Image * Corrugated Chemicals, Inc. * Corrugated Gear & Services Inc. * Corrugated Solutions * Corrugated Supplies Co., LLC * CST Systems, Inc * Cuir * Cumberland Container Corp. * Danbury Square Box Co. Inc. * Danhil Containers * Delta Packaging, Inc. * Dicar Inc. * Dixon Container Co. * Domtar * Ducker-Ringwood Automation LLC * Durst North America * Dusobox Corporation * Dynamic Dies Inc. * EAM-MOSCA Corporation * ECOCHEM (Clean Print Solutions) * Elitron America Inc. * EMBA Machinery Inc. * Emmeci USA, LLC * Equipment Finance Corporation * ESKO * Evergreen Fibres, Inc. * Felins USA * Ferguson Containers * Ferguson Supply and Box Manufacturing Company * Flint Group * Forest Packaging Corp. * Fosber America Inc. * Fruit Growers Supply Co. * Fujifilm North America Corp. - Graphic Systems Division * Geo. M. Martin Co. * Georgia-Pacific Corp. * GF Puhl * Global Boxmachine LLC * Global Printing Solutions * Great Little Box Company Ltd. * Green Bay Packaging Inc. * Greenbridge * Greene House Group * Griffin Communications, Inc. * Gulf Packaging, Inc. * H.B. Fuller * Haire Group * Hampton Industrial Services Inc. * Harris Packaging Corp. * Headway Industries * Henkel Corporation * Hitek Equipment, Inc. * Hood Container Corporation * Huston Patterson Printers * Ibox Packaging Ltd. * Illinois Valley Container * Independent II, LLC * Independent Paperboard Marketing * Innovative Packaging Inc. * Innovative Packaging Solutions * Innoveyance (Ohio Blow Pipe Co.& C&M Conveyor) * Inspire Automation â€“ Systec & Automatan * Inter-Continental Corp. * Interpack * Inter-Papier Handelsgesellschaft MbH * INX International Ink Company * J.M. Fry * JaMar Packaging * Jamel Containers LLC * Jamestown Container Companies * Jamil Packaging Corp. * JB Machinery Inc. * JD Engineers * Jet Container Co. * JHF Capital LLC * Johnson Kendall and Johnson, Inc. * Kao Collins Inc. * Kelly Box & Packaging Corp. * Key Container Corp. * Klingher Nadler LLP * Koenig & Bauer Inc. * Kolbus America- Hycorr, LLC * Kongsberg Precision Cutting Systems * KPI Incorporated * L & M Corrugated Container Corp. (West Location) * L.D. Davis Industries, Inc. * Lakeside Container Corp. * Lanco York, Inc. * Leaman Container Inc. * Lewisburg Printing Company * Liberty Diversified International * Litho Press Inc * Lone Star Container Corp. * Longreach International, LLC * MACARBOX * MachineCompare.com Limited * Manroland Inc. * Mark Trece, Inc. * McElroy Packaging Inc. * McLean Packaging Corp. * Metsa Board Americas Corporation * Meyers * Michigan City Paper Box Co. * Mid-America Paper Recycling * Miller Valentine Construction LLC * Miller Weldmaster Packaging * Moonlight Packaging * Mount Vernon Packaging Inc. * National Fiber Supply Company * National Steel Rule * ND Paper * Nelson Container Corp. * NewCorr Packaging Ltd. * Newman & Co. Inc. * NEWW Packaging & Display * Niagara Sheets, LLC * Northwest Packaging Inc. * Northwest Paper Box Mfrs. Inc. * Oklahoma Interpak * Olympic Wire and Equipment * OMP * Ox Box * Pacific Southwest Container LLC * Package Crafters, Inc. * Packaging and Pads-R-Us, LLC * Packaging Atlanta * Packaging Design Corp. * Packaging Express * Packaging Logic Inc. * Packrite LLC * Paige Packaging, Inc. * Palmetto Packaging Corp. * Pamarco/ Absolute * PARA USA CORP. * Parry Machine Company, Inc. * Patriot Packaging * Peachtree Packaging * People`s Capital and Leasing Corp. * PhilCorr LLC * Philipp Lithographing Co. * Philpac Corp. * Phoenix Packaging Inc. * Phoenix-Veteransprint * Precision Digital Printing * Precision Industrial Contractors * Preferred Packaging Solutions, Inc. * President Container Group * Price & Pierce International * Prime Converting Corporation * Printers401k * Printron * Pro Services * Professional Image, Inc. * Progress Container & Display * Pro-Pak Industries * PSL USA 1 LTD * Quadrant 5 * Quality Systems Enhancement Inc. * Quantum Ink Company * Quest Graphics LLC * Quest7, Inc * R & R Corrugated Container Corp. * Rand-Whitney Group LLC * RapidBond, Inc. * Recycling Associates * Reliable Container Inc. * Rengo Packaging Inc. * Rex Carton Co. Inc. * RigPark * Riverdale Packaging Corp. * RJR Consulting LLC * Roaring Spring Paper Products * Roberds Converting Co., Inc. * Romanow Container * Roosevelt Paper Co. * Roxcel Corporation * S & S Packaging Products, Inc * S.E. MO. Box Co. * Sauer System * Schwarz Partners, LLC * Screaming color * SGS * Sharp International; Friese Corrugating Rolls * Smurfit Kappa North America * Solema USA Inc. * Sonoco Products Company * Southern Carton Company, Inc. * Southern Missouri Containers, Inc.; SMC Packaging Group * Specialty Adhesives and Coatings, Inc. * St. Worth Container, LLC * Stafford Corrugated Products Inc. * Stafford Cutting Dies, Inc. * Standard Printing Company of Canton * StandFast Group, LLC * Stickle Steam Specialties Co., Inc. * Sumter Packaging Corp. * SUN Automation Group * Sun Chemical * Sutherland Packaging Inc. * Tap Packaging + Design * Tavens Packaging & Display Solutions * TCY Machinery Mfg. Co., Ltd. * Thacker Industrial * The ALC Group * The BoxMaker * The Gilman Brothers Company * The Lawrence Paper Company * Tilia Labs * Tilsner Carton Company * Torosian Tech Services * TranSouth Logistics LLC * Trenton Corrugated * TRESU * Tri-State Container * Tyler Corrugated Box, Inc * Tyndell Photographic * Tyoga Container Co. * U.S. Specialty Packaging * Utah Paperbox * Vail Industries * Valco Melton, Inc * Valley Container Inc. * Vanguard Packaging * Viking Industries Inc. * Vineland Packaging * Volk Packaging Corp. * VT Graphics, Inc. * W. H. Leary Co., Inc. * Wasatch Container * Watertown Box Corp. * Webcor Packaging Corp. * Weber Display & Packaging * Welch Packaging Group, Inc. * Wertheimer Box Corporation * WestRock * Wexler Packaging Products, Inc. * Working Well LLC * WSA USA, LLC * Wunderlich Fibre Box Company * XDS Holdings Inc. * York Container Co. * Zund America * as of August 23

THANK YOU

T hank you t o t he A IC C member s t ha t hav e alr ead y r enewed t heir compan y ’s member s hip! We ar e g r a te f ul to be par t o f your s ucce s s . I f your compan y is n o t on t his lis t , plea s e r enew today a t A IC Cbox . or g /Renew.

Strength in Numbers

Tax Bites BY MITCH KLINGHER

ith all of the talk about what the Biden administration intends to do to Title 26 of the U.S. Code (Internal Revenue Code), there are things that are already a part of the code that are either changing or are important enough for us to keep our eyes on them. Let’s take a look.

BONUS DEPRECATION The Tax Cuts and Jobs Act (TCJA), enacted at the end of 2017, increases first-year bonus depreciation to 100%. The 100% bonus depreciation amount remains in effect from September 27, 2017, until January 1, 2023. After that, first-year bonus depreciation goes down as follows:

BOXSCORE September/October 2021

• 80% for property placed in service after December 31, 2022, and before January 1, 2024. • 60% for property placed in service after December 31, 2023, and before January 1, 2025. • 40% for property placed in service after December 31, 2024, and before January 1, 2026. • 20% for property placed in service after December 31, 2025, and before January 1, 2027. Property qualifies for bonus depreciation only if it has a useful life of 20 years or less. This includes all types of tangible personal business property

and software you buy, but not real property, and you purchase it from someone who is unrelated to you. Under prior law, you could use bonus depreciation only for new property. The TCJA has changed that rule, and now you can use bonus depreciation for purchases of new or used property. However, bonus (and regular) depreciation is available only for business property you placed in service during the tax year. Property is “placed in service” when it’s ready and available for its assigned function in your business. As long as it is available for such use, you don’t have to actually use the

Consistency gives you an edge Brands require consistent packaging. Our DiamondTopTM white linerboard grades deliver reliable performance in strength and visual appearance run after run. Produced with a focus on manufacturing excellence and adherence to strict quality standards, DiamondTopTM helps you increase your efficiency, produce high quality packaging and deliver exceptional graphics. Give yourself the competitive edge; choose DiamondTopTM for efficient converting and superior print across flexo and digital presses.

Strength in Numbers

property for business during the year to take depreciation. So, considering how busy all of the equipment manufacturers are, get your orders in soon, since you must place the assets in service prior to the end of next year in order to get 100% bonus depreciation. BUSINESS INTEREST EXPENSE DEDUCTIBILITY The TCJA limited interest expense deductions to 30% of adjusted taxable income (ATI; 50% in 2019 and 2020 based upon a change made in the CARES Act) for most businesses with average annual gross receipts for the previous three years of greater than $26 million. From 2018 to 2021, ATI included adding back depreciation expense, but starting in 2022 that will no longer be an add-back. So, for many of you, some or all of your interest expense may no longer be currently deductible (it will be carried forward), particularly if you are availing yourselves of bonus depreciation. MEALS AND ENTERTAINMENT As part of the Consolidated Appropriations Act, signed into law on December 27, 2020, the deductibility of meals is changing for 2021 and 2022. Here are some examples: • Entertaining clients (concert tickets, golf games, etc.): 0% deductible • Business meals with clients: 50% deductible • Office snacks and meals: 50% deductible • Companywide party: 100% deductible OTHER SUNSETTING PROVISIONS (SET TO EXPIRE DECEMBER 31, 2025) Estate and Gift Exemptions For estates of decedents dying and gifts made after December 31, 2017, and before January 1, 2026, the TCJA

BOXSCORE September/October 2021

doubles the base estate and gift tax exemption amount from $5 million to $10 million. So even if President Joe Biden is unable to change this, the exemption goes back to $5 million. Business Loss Limitations The TCJA provides that excess business losses aren’t allowed for the tax year but are instead carried forward and treated as part of the taxpayer’s net operating loss carryforward in subsequent tax years. A taxpayer has an excess business loss if the taxpayer’s losses from all trades or businesses exceed income from the trades or businesses by more than $250,000 ($500,000 for taxpayers who file joint returns). Charitable Contribution Deduction Limitation Increased The 50% limitation for cash contributions to public charities and certain private foundations is increased to 60%. Contributions exceeding the 60% limitation are generally allowed to be carried forward and deducted for up to five years, subject to the later year’s ceiling. Mortgage and Home Equity Indebtedness Interest Deduction Limited The deduction for interest on home equity indebtedness is eliminated for 2018–2025, and the deduction for interest on “acquisition indebtedness” is limited to underlying indebtedness of up to $750,000 ($375,000 for married taxpayers filing separately). Acquisition indebtedness is generally debt a taxpayer incurred in acquiring, constructing, or substantially improving the taxpayer’s home or second residence. For tax years beginning after December 31, 2025, the prior $1 million/$500,000 limitations are restored, and a taxpayer may treat up to these amounts as acquisition indebtedness regardless of when the indebtedness was incurred. The prohibition on deducting home

equity indebtedness interest also ends for tax years beginning after December 31, 2025. State and Local Tax Deduction Limited Subject to the exception described below, state, local, and foreign property taxes, and state and local sales taxes, are deductible only when paid or accrued in carrying on a trade or business or income-producing activity. State and local income, war profits, and excess profits aren’t allowable as a deduction. However, a taxpayer may claim an itemized deduction of up to $10,000 ($5,000 for a married taxpayer filing a separate return). New Deduction for Pass-Through Income Generally for tax years beginning after December 31, 2017, and before January 1, 2026, the TCJA adds a new section, Code Sec. 199A, “Qualified Business Income,” under which a noncorporate taxpayer, including a trust or estate, who has qualified business income (QBI) from a partnership, S corporation, or sole proprietorship is generally allowed a deduction equal to the lesser of 20% of QBI (not including net capital gains) or 50% of W-2 wages paid by the partnership, S corporation, or sole proprietorship. But the deduction can’t exceed the taxpayer’s taxable income, reduced by net capital gain. Gambling Loss Limitation Modified The limitation on wagering losses is modified to provide that all deductions for expenses incurred in carrying out wagering transactions, and not just gambling losses, are limited to the extent of gambling winnings. 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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Foundation for Packaging Education

There’s Still Time to Be Part of the Inaugural Donor Class!

t is hard to believe that we are already well into the third quarter of 2021. Slightly more than a year ago, AICC’s board of directors authorized the creation of a second 501(c)(3) education foundation. AICC’s staff did the research, got the requisite attorneys involved, filled in countless forms, and launched the Foundation for Packaging Education. Now, in a little less than a year from that launch, the response has been overwhelming. The foundation is well on its way to success, with more than $2.4 million in donations pledged or received, including the “million dollar match” approved by the AICC board of directors. That match would not have been possible without the foresight and commitment of the following inaugural donors to the foundation: Michigan City Paper Box; Bay Cities; Jamestown

BOXSCORE September/October 2021

Container; Oklahoma Interpak; SUN Automation; Standfast Packaging Group; DeLine Box; Harris Packaging; Package Crafters; Packaging Express; Wasatch Container; Central Package & Display; BCM Inks; Buckeye Boxes; L.D. Davis; Welch Packaging Group; Adducco Communications; McLean Packaging; Ox Box; JB Machinery; Kolbus; Haire Machinery; Arvco; Equipment Finance Co.; Southern Missouri Container; Akers Packaging Service; Tavens Container; Pamarco/Absolute; Royal Containers; Athena SWC; A.G. Stacker; and Viking Industries. It’s not too late to join the inaugural donor class, an opportunity that will close on November 15. Yes, the foundation will continue to receive pledges after that date, but the bedrock of the foundation will be deemed completed that day. Then

we will endeavor to add stories to the edifice, building a solid construction that will ensure the continued development of AICC education programming for those already employed in the paper-based packaging industry — namely, you and your team members. Any donation made toward your pledge is tax-deductible. You will receive a very nice lapel pin that identifies you as a supporter of the Foundation for Packaging Education and a champion of independent boxmaker education. You will be responsible for the continued creation of materials and programs that will continue to educate and elevate machine operators, accountants, maintenance personnel, supervisors, customer service reps, sales reps, and the full range of labor in box plants and supplier operations. Invest in your future.

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

In Their Words

hroughout the years, we repeatedly have heard from executives who have attended ICPF’s dialogue dinners, teleconferences, and other events that after meeting the participating students, they are very excited about the bright future for the industry. The following is the first part of an article on the corrugated packaging industry from the perspective of a recent graduate. This two-part article is the first in a series of articles written by new hires who express the passion that we hear daily from the latest generation of students and upcoming graduates. We hope these periodic articles will remind and encourage ICPF Corporate Partners to use ICPF’s student intern and new graduate recruiting resources for their needs in 2022 and beyond.

Kelsea Potthast My name is Kelsea Potthast, and I recently graduated from the University of Florida (UF) with a bachelor’s degree in business administration, majoring in marketing and minoring in packaging science. I am pleased to share with you a brief history on the beginning of my ongoing success story with the corrugated packaging and displays industry. As a result of my sewing hobby interest, I first connected with packaging in high school while taking an international baccalaureate class in design technology. When I entered UF, I quickly became even more enamored by packaging science. My first and favorite packaging class at UF was Principals of Packaging, taught by Dr. William Pelletier. Despite my being one of two students who was not an engineer, Dr. Pelletier encouraged my interest and participation in the subject. I then discovered the UF Packaging Club. I joined immediately and pursued any type of club competition, event, or leadership opportunity.

BOXSCORE September/October 2021

It was around this time, during my junior year, that I realized all my friends already had accepted internship positions. Due to my late realization of this requirement, I began trying to get interviews and attend career fairs in search of an internship opportunity. I tried to demonstrate my passion for combining the business principles of marketing with the engineering sciences of packaging in my elevator speech to anyone who would listen. However, company HR representatives would repeatedly respond with, “So, do you want to be on the technical or business side? We don’t have a need for that type of blend.” Despite the challenge to find this fit in the packaging industry, the Packaging Club continued offering support by encouraging me to take on other leadership positions and to participate in packaging-related events. I was informed of an opportunity to apply for an ICPF travel grant to Michigan to attend ICPF’s 2020 Student Dialogue Dinner and its Teleconference on the Business of Corrugated Packaging & Displays. Although I was struggling to redesign my future career plans, I applied on a whim. Once more, I wrote in my application to ICPF about my dreams of combining marketing or business with packaging. After sending in this application, I decided I’d better also start applying to established internship programs, even if they weren’t exactly what I wanted to do. Within a week or so of applying to the ICPF travel grant, I received a phone call from Richard Flaherty, saying that he had reviewed my travel grant application. Although I was preparing myself for him to explain that my unique passion of blending my marketing interests with packaging was not what the industry is seeking, he sounded excited and optimistic. He continued to say that

Kelsea Potthast

what I believed to be my unique passion in combining marketing and sales with packaging is precisely what the corrugated packaging industry is often seeking for packaging sales representatives and future managers. For once, someone not only reciprocated my enthusiasm but validated what I had been seeking. I had a purpose, and it began with this one phone call. I was awarded the ICPF travel grant, and a month later, in February, I was flying to Michigan on my way to the Dialogue Dinner and Teleconference. On the way there, I received a call from a consulting firm, which had earlier interviewed me, offering a summer 2020 internship. I was thrilled. It might not have been my dream internship, but it was the required internship needed on my résumé and transcript. I arrived in East Lansing and excitedly joined the 35 talented students from across the country, as well as the dozen industry executives who were participating in ICPF’s Dialogue Dinner. After introductions, I sat at one of the half-dozen or so roundtables with about seven students and two corrugated packaging executives. At first, the students, who reintroduced themselves, seemed a bit nervous and quiet. Due to my confidence from the

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

PACKAGING

consulting internship offer, I convinced myself that I had nothing to lose by jumping into the dialogue. The room’s atmosphere quickly shifted as I learned that the students and executives were genuinely intrigued and supportive of not only my own packaging interests and questions, but of each other’s. From design to business, to packaging and chemical engineering, everyone’s background and perspective was vastly different. But all collided in an inspirational way around our shared interest in corrugated packaging. This nurturing and expressive environment was the opposite of the many career fairs and interrogation-like interviews from my past.

The next day we all attended ICPF’s Teleconference, broadcasted live from WKAR public television studios that included an additional 500 students from across the nation. A panel of executives, which included Bryan Hollenbach of Green Bay Packaging and Rich Ford of Packaging Corp. of America, spoke and answered questions to help students learn about the business side of corrugated, its unique sustainability, new developments, and its career opportunities. I learned that over 90% of products in North America are delivered or displayed in corrugated packaging at some point in their life cycle. It is the most frequently used shipping material because it is cost-effective,

CORRUGATED

F O U N D AT I O N

lightweight, functional, innovative, versatile, and sustainable. With over 1,153 corrugated manufacturing and design facilities worldwide, there are endless locations to pursue a career. I felt like this industry was exactly where I was supposed to be. It was like I found a career path that seemed to be a no-brainer.

This is just the first part of Potthast’s story. Be on the lookout for part two in the November/December issue of BoxScore, in which you’ll read about Kelsea’s journey from intern to ICPF’s Student Advisory Board and beyond. Stay tuned!

It’s Not Too Late to Register! ICPF’s Holiday Weekend in New York, December 10–12

s projected, it appears this year’s Holiday Weekend in New York will sell out even earlier than in past years. However, it’s not too late to join the celebration of ICPF’s return to New York and to enjoy the best Manhattan has to offer during the holiday season! Capacity remains for five to seven more couples. To ensure participation, ICPF advises registering for this special event as soon as possible. Registration is on a first-come, first-served basis. ICPF’s Holiday Weekend in New York (Friday, December 10, through Sunday, December 12) will begin with a Friday evening reception, sponsored by Pratt Industries. On Saturday, ICPF guests will attend a Saturday matinee of The Christmas Spectacular at Radio City Music Hall, sponsored by BW Papersystems. Saturday night, participants will be treated to a reception and dinner at the renowned Lattanzi restaurant. The reception is sponsored by Fosber America, and

BOXSCORE September/October 2021

the dinner is sponsored by the WestRock Corp. Greif and Kiwiplan also are sponsors for the weekend. Bring your spouse or guest for additional holiday shopping, sightseeing, dining, Broadway plays, and enjoying New York’s holiday season. All while supporting ICPF’s educational programs and student outreach. Many participating executives (manufacturing executives, box plant owners, and service and supplier executives) invite clients and reward key executives from their companies with this special holiday weekend event. ICPF chairman Greg Hall, president and chief operating officer of Hood Container Corp., says, “It is a special opportunity to reunite with peers in an informal social environment. ICPF’s Holiday Weekend in New York is one of the most unique events in the industry.

Your participation supports ICPF, an important resource for our future.” Visit the News & Events section at www.careersincorrugated.org to download a registration form, or email registration@icpfbox.org for specifics. Richard Flaherty is president of the International Corrugated Packaging Foundation.

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The Final Score

Community Counts!

write these words from the AICC office on the Monday after a jam-packed week at SuperCorrExpo. As you all know, SuperCorrExpo is jointly owned by AICC and TAPPI. I want to thank the staffs of both associations for their tireless work in staging another successful trade show, under more demanding circumstances than ever before. If you were there, thank you for joining us. It was an experience. AICC’s team began arriving the Thursday before the show. Exhibitors already had teams on the floor getting booths ready for the Monday opening at the Orange County Convention Center. The mood on the floor pre-show was one of great anticipation and, honestly, some uncertainty. But the enthusiasm for being there was readily apparent and contagious! The Box Manufacturing Olympics setup was a massive undertaking given the 170 entries. The AICC and TAPPI volunteers, under the direction of the ever-passionate Cordes Porcher, put together a fantastic exhibit that showed so well the dynamism and creativity of the corrugated industry. Many thanks to the judges who spent their time evaluating and seriously considering the merits of each entry. Congratulations not just to the winners (see p. 14) but to all who entered. As we saw with AICC’s Spring Meeting in April in Amelia Island, Florida, all those who came to SuperCorrExpo were happy just to return to a semblance of normalcy. Those who were there as attendees and as exhibitors all shared the “isn’t this great?” vibe. Several exhibitors brought full line machines or major components to the show floor. Others brought augmented reality presentations of equipment or live-feed presentation capabilities. Just as the entrants in the Box Maker Olympics were creative, so too were many exhibitors. One can slightly alter AICC’s messaging to sum up the SuperCorrExpo experience: “When you invest and engage, SuperCorrExpo delivers success.” You get out of it what you put into it. Yes, attendance was down compared to the last edition in 2016. This is no surprise. After every trade show, there is the usual discussion of quantity versus quality. This year, the discussion regarding attendance brought a different adjective for the attendee: motivated. The shoe fits. Anyone who hopped on a plane or drove several hours to Florida to spend time at SuperCorrExpo, cutting through the news and concerns of the day, did so for a reason. And they were rewarded. I had the pleasure to meet Adrian Quigg from Hummingbird, a SuperCorrExpo exhibitor. He was kind enough to buy me a glass of wine, and when we toasted, he raised his glass and said, “Community counts!” How appropriate were these words to sum up the 2021 SuperCorrExpo experience? Corrugated is a community. Paper-based packaging is a community. AICC is a community. In my opinion, COVID-19 will be with us for a long time in many forms and variants. We must continue to keep our community together, as we did in the past year with the limitations that we faced, and present, as we did at Amelia Island and at SuperCorrExpo. It is time. Why? Because your smile is your logo. Your personality is your business card. The way you make others feel is your trademark. These are not my words, but I believe in them. Be it on the floor of SuperCorrExpo, in Association retention and recruitment, in equipment and service sales, in box sales—honestly, in everything that you do. Personal interaction is a competitive advantage!

Michael D’Angelo AICC President

BOXSCORE September/October 2021

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Sept/ Oct BoxScore: Welcome AICC Chairman Gene Marino

Articles inside

SPECIAL SECTION TRENDING UPWARD

ASK TOM

TOMORROW’S TAKE

WELCOME, AICC CHAIRMAN GENE MARINO

SCORING BOXES

LEGISLATIVE REPORT

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SELLING TODAY