Sept/Oct 2024 BoxScore: An Industry United

AN INDUSTRY UNITED

OFFICERS

Chairman: Matt Davis, Packaging Express, Colorado Springs, Colorado

First Vice Chairman: Gary Brewer, Package Crafters High Point, North Carolina

Vice Chairs: Finn MacDonald, Independent II, Louisville, Kentucky

Terri-Lynn Levesque, Royal Containers Ltd., Brampton, Ontario, Canada

Joseph Morelli, Huston Patterson Printers/Lewisburg Printing Co., Decatur, Illinois

Immediate Past Chairwoman: Jana Harris, Harris Packaging/American Carton, Haltom City, Texas

Chairman, Past Chairmen’s Council: Gene Marino, Akers Packaging Service Group, Chicago, Illinois

President: Michael D’Angelo, AICC Headquarters, Alexandria, Virginia

Secretary/General Counsel: David Goch, Webster, Chamberlain & Bean, Washington, D.C.

Administrator, AICC México: Veronica Reyes

DIRECTORS

West: Sahar Mehrabzadeh-Garcia, Bay Cities, Pico Rivera, Califormia

Southwest: Jenise Cox, Harris Packaging/American Carton, Haltom City, Texas

Southeast: Michael Drummond, Packrite, High Point, North Carolina

Midwest: Casey Shaw, Batavia Container Inc. Batavia, Illinois

Great Lakes: Josh Sobel, Jamestown Container Cos. Macedonia, Ohio

Northeast: Stuart Fenkel, McLean Packaging, Pennsauken, New Jersey

AICC México: Sergio Menchaca, EKO Empaques de Cartón S.A. de C.V., Cortazar, Mexico

OVERSEAS DIRECTOR

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

DIRECTORS AT LARGE

Kevin Ausburn, SMC Packaging Group, Springfield, Missouri

Eric Elgin, Oklahoma Interpack, Muscogee, Oklahoma

Guy Ockerlund, Ox Box, Addison, Illinois

Mike Schaefer, Tavens Packaging & Display Solutions

Bedford Heights, Ohio

Jack Fiterman, Liberty Diversified International, Minneapolis, Minnesota

EMERGING LEADER DELEGATES

John McQueary, CST Systems, Atlanta, Georgia

Jordan Dawson, Harris Packaging, Haltom City, Texas

Evan Clary, National Corrugated Machinery Hunt Valley, Maryland

ASSOCIATE MEMBER DIRECTORS

Chairman: Tim Connell, A.G. Stacker Inc., Weyers Cave, Virginia

Vice Chairman: John Burgess, Pamarco/Absolute Roselle Park, New Jersey

Secretary: Jeff Dietz, Kolbus America Inc., Cleveland, Ohio

Director: Mike Butler, Domtar Packaging, Fort Mill, South Carolina

Immediate Past Chairman, Associate Members: Greg Jones, SUN Automation Group, Glen Arm, Maryland

ADVISORS TO THE CHAIRMAN

Al Hoodwin, Michigan City Paper Box, Michigan City, Indiana

Gene Marino, Akers Packaging Service Group, Chicago, Illinois

Tim Connell, A.G. Stacker Inc., Weyers Cave, Virginia

PUBLICATION STAFF

Publisher: Michael D’Angelo • mdangelo@AICCbox.org

Editor: Virginia Humphrey • vhumphrey@AICCbox.org

EDITORIAL/DESIGN SERVICES

The YGS Group • www.theYGSgroup.com

Vice President, Association Solutions: Craig Lauer

Creative Director: Mike Vucic

Managing Editor: Therese Umerlik

Senior Editor: Sam Hoffmeister

Copy Editor: Steve Kennedy

Art Director: Alex Straughan

Account Manager: Jillian Mengel

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

CONTRIBUTORS

Cindy Huber Director of Conventions and Meetings

Chelsea May, Education and Training Manager

Laura Mihalick, Senior Meeting Manager

Patrick Moore Membership Manager

Taryn Pyle, Director of Training, Education, and Professional Development

Alyce Ryan Membership Marketing Senior Manager

Steve Young, Ambassador-at-Large

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.

Slow Down to Go Fast!

If you are reading this, you must have corrugated dust in your veins. I know I do, and I love this industry. AICC’s 50th Anniversary was a tremendous milestone. It was a real pleasure to connect with so many people I admire in the industry at the celebration in Palm Desert, California, and celebrate the success of our members. As this is my last column, I want to leave you with just a few ideas of what I think it takes to be successful in the box business.

First, in our quest to become safer, faster, and more profitable, I think it is important to adopt this mantra: “Slow down to go fast.” Make sure you take the time to plan and be open to ideas and discussion that will encourage innovative thinking. During these past few years through the COVID-19 pandemic and beyond, the industry has felt the go-go-go. Now that we have all caught our breath a little bit, take the time to strategically plan for the next big push.

The next thought is: Talent is the whole ballgame. Kip Tidwell, retired chairman and CEO of the Container Store for nearly 40 years, came up with the idea that when you hire, follow the 1=3 rule—one great person equals three mediocre people. Surround yourself with people you trust and who have different strengths than you. It helps to be the best, when you hire the best.

The third thought is the quote, “Don’t be upset with the results you didn’t get from the work you didn’t do.” This is a quote our customer experience manager, Robert Roane, has plastered on his wall at our box plant. My golf game and my abs (or lack thereof) would attest that this is a true statement. It takes a lot of work to really make it in the box business, so make sure you are putting in the work.

My fourth thought is inspired by conversations with my friend and colleague Andy Reissmann. I believe what we can do as independents, far better than our competitors, is service the daylights out of your customers. Stay in front of your customer. They need to know that when they deal with an independent, they get the royal treatment. It is personal. We listen. We take feedback. We pay attention to detail. We are empowered to make decisions on the spot to benefit them. It is premium, seamless, reliable, fast, and secure. Our customers need to know that when they do business with an independent boxmaker, their experience is going to be different than what they will receive from the integrated companies. We stay up all night so our customer does not have to.

My final thought is that the Association is in wonderful hands with Mike D’Angelo as president. He is supported by a dedicated staff who works tirelessly on behalf of all members, and we are blessed with an incredible incoming chairman, Gary Brewer. He is a true independent entrepreneur and will do a great job leading us forward.

It has been an honor serving you. Thank you, and here’s to the next 50 years!

Market Insights

EPR and Performance-Based Pricing

BY RYAN FOX

In our previous column titled “Alternative Price Mechanism,” we discussed how “Big Paper”—the group led by International Paper, Packaging Corp. of America, and Smurfit WestRock—is looking for new ways to think about pricing. The current method, tying box prices to the open market price of containerboard, hasn’t helped those producers stay as profitable as they’d like.

A more data-driven approach offers advantages. New extended producer responsibility (EPR) legislation also could play a part in accelerating a change in pricing paradigms.

EPR Overview

EPR laws may shape markets for recovered commodities by setting prices and controlling which companies can process and use the materials. California, Oregon, Colorado, and Maine were the first states to pass EPR laws, and Minnesota, New York, and Tennessee are close behind. Another 12 to 14 states have initiated legislation.

Under EPR, brands such as Pepsi, Conagra, General Mills, and Clorox pay into a producer responsibility organization (PRO). It distributes those funds to help cover the costs of recycling, equipment upgrades, training, education, marketing, and labor. The PRO also becomes the main driver of recycling policy in the state. The current PRO in the U.S., the Circular Action Alliance (CAA), and its members represent over 900 brands.

EPR laws place the cost of recycling onto the brands that generate the products. Brands are essentially “taxed” based on the material in their packaging and how much is used. Commodities are listed by type and accompanied by a fee schedule. Brands must report how much

of a product was sold into a state and pay accordingly.

Self-reporting will be key to the program’s effectiveness. Brands will need to collect data from packaging suppliers that identify the packaging’s material, percentage of recycled content, and weight. Smaller companies with up to $10 million of revenue, which use little packaging, may pay flat fees ($600 on the low end in Oregon, for example) to help cover recycling costs in their states.

Packaging commodities that aren’t easily recycled or lack vibrant aftermarkets have higher fees per unit of weight than those with high recycling rates and aftermarket demand. In some cases, a commodity may be exempt from fees after a threshold recycling rate is reached. This is called eco-modulation, and details are still being discussed by CAA and states.

Performance-Based Pricing

If major brands are incentivized to adopt lighter-weight packaging, demand may rise for producers able to make lightweight containerboard. As more brands adapt to the new fee structure, choosing paper combinations that perform to specifications at the lowest possible weight may become the preferred option.

Amazon has succeeded in lowering many boxes to 26 edge crush test (ECT), but many (if not most) mills lack the capability to run light-basis-weight paper. New-Indy’s Catawba mill and ND Paper’s Biron boast new machines that can produce paper down to 18# or less.

This shift and the potential for higher old corrugated container prices might pivot the industry toward pricing based on performance rather than material

type and weight. For over 40 years, 42# kraft linerboard has been the benchmark for box sales. By contrast, Green Markets has chosen to track prices for the lighter kraft weights used by boxmakers to form 32ECT boxes.

Performance-based pricing could be based on dollar per short span compression test or dollar per box compression test. Either way, the classic approach to pricing— virgin versus recycled board—may change. That could free mills and box producers from their heavy reliance on the industry’s benchmark index. Tying box pricing to linerboard has frustrated mills that want to increase prices to cover rising costs.

Lightweighting and performance-based pricing would put more power in a producer’s hands to make the best box possible at a competitive price. Now that EPR fees are poised to become a consideration, the “value over volume” pricing strategy may find a footing.

Ryan Fox is a corrugated market analyst at Green Markets, a Bloomberg company.

Legislative Report

AICC Signs Letter to President Biden Regarding Federal Regulation

BY ERIC ELGIN

In early July 2024, AICC signed on to a letter to President Joe Biden along with nearly 50 other organizations representing millions of businesses operating in every state and community across the United States, on behalf of the millions they employ in all sectors.

The purpose of the letter was to ask the Biden administration to pause all current rulemaking and not to allow any new rules to take effect until there is a thorough legal review of any agency’s constitutional and statutory authority to regulate in the way it proposes. This is a direct result of the U.S. Supreme Court’s recent decision in Loper Bright Enterprises et al. v. Raimondo, Secretary of Commerce, et al.

The court’s decision alters the legal landscape within which federal agencies operate. Prior to Loper Bright, agencies enjoyed broad judicial deference in what, how, and whom they regulated when the legality and scope of their authority was challenged. The court’s opinion in Loper Bright overruled what had come to be known as the Chevron deference, essentially finding current practice at odds with the instructions for courts’ review of agency actions under the Administrative Procedure Act. We will spare the reader the mundane language of the court’s opinion.

Essentially, the decision, as spelled out by Supreme Court Chief Justice John Roberts, “makes clear that agency interpretation of statutes—like agency interpretations of the Constitution—are not entitled to deference.” In other words, only the courts can decide legal questions. Previously, the deference went to the involved federal agency.

This is a big deal for independents, even if you feel far removed from the goings-on in Washington, D.C. This decision impacts all current and future regulations being pursued by the administration. As of July 1, 2024, over 1,000 major rules are in various stages of review by federal agencies. Just 145 of those rules would have an impact on the U.S. economy of more than $200 million.

Your Association understands the need for federal regulation. Along with the other signing organizations, our hope is that the regulatory process, with this court decision, will become less arbitrary, capricious, and costly. Manufacturing is

interconnected to so many other business functions that regulation in a seemingly remote corner of the economy can have far-reaching consequences—and costs. We believe the Supreme Court’s ruling will bring greater order to the regulatory functions of the government going forward.

Eric Elgin is owner of Oklahoma Interpak and chairman of AICC’s Government Affairs subcommittee. He can be reached at 918-687-1681 or eric@okinterpak.com

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VALMET AUTOMATION

DAVID MADDUX

Corrugated Board, Automation Sales

Manager, NA

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CRESPEL & DEITERS

NORTH AMERICA INC.

ADRIAN BECKETT

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COMPANY BOX

KYLE DeJESUS

President 13347 S. Point Blvd. Charlotte, NC 28273 980-215-0960

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PIEDMONT PACKAGING

H.B. WALLACE

President 1141 Foust Ave. High Point, NC 27260 336-822-6422

PRIME PACKAGING SOLUTIONS

TODD LOTZER

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MM BOARD & PAPER NORTH AMERICA

INGER HEINKE

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Members Meeting

Members Engage in the Lone Star State

The AICC Southwest Summit, held June 19–20, 2024, in Arlington, Texas, proved to be an event filled with engagement, education, and networking. The summit kicked off with a reception at Globe Life Field, where attendees enjoyed a baseball game between the Texas Rangers and New York Mets from the comfort of a suite sponsored by BPS AI Software and Haire Group.

The following morning began with plant tours. Nearly 70 attendees visited Harris Packaging in Halstom City, Texas, where they toured the busy and clean sheet plant and were treated to a

Southwest breakfast. After Harris, the group visited the new Greif CorrChoice facility in Dallas. Still in startup mode, the facility will add to Greif’s ability to supply large-format boxes up to triple wall. Then, the group toured Dieco/ Graphics 2 Press before heading to the University of Texas at Arlington (UTA) for lunch and a roster of speakers.

AICC’s Southwest Regional Director Jenise Cox of Harris Packaging and American Carton Co. opened a strong afternoon program featuring esteemed presenters who delivered informative and thought-provoking presentations:

• Steve Jarmon, Stambaugh Ness, delivered a crucial presentation on cybersecurity, highlighting the importance of protecting digital infrastructure. His presentation outlined key strategies for mitigating cyber threats and emphasized the need for comprehensive security protocols.

• Mariam Yousuf, Federal Reserve Bank of Dallas, provided an insightful analysis of the regional economy, offering valuable perspectives on economic trends and their implications. Her discussion focused on

Attendees watch the Texas Rangers take on the New York Mets in September at Globe Life Field in Arlington, Texas, during the AICC Southwest Summit.

Photos courtesy of AICC.

A History of Corrugated Excellence

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Members Meeting

current economic indicators, regional economic performance, and future economic projections.

• Caitlin Salaverria, International Corrugated Packaging Foundation, discussed strategies for finding your

future workforce, emphasizing the importance of attracting and retaining talent in the industry. Her presentation highlighted successful approaches to engaging with educational institutions and

promoting careers in packaging to younger generations.

• Ben Dolezal, UTA, highlighted the benefits of student internships at UTA, showcasing how internships can bridge the gap between academic knowledge and practical industry experience. He presented case studies of successful internship programs and their positive impact on students and companies. He then led a tour of the UTA facilities that include packaging education resources within the Department of Art and Art History.

A closing reception was held at the Choctaw Lounge at Texas Live! The reception was sponsored by AG Stacker.

This year’s summit was also supported by Harris Packaging, Koenig & Bauer, Alliance Machine Systems, Fosber, Pacificolor, Baysek, Pamarco, and SUN Automation Group.

AICC extends its gratitude to all participants, presenters, and sponsors for their contributions to making the 2024 Southwest Summit a success.

Learn more about upcoming summits at www.AICCbox.org/calendar

Attendees tour the new packaging education facilities in September at the University of Texas at Arlington during the AICC Southwest Summit.

Attendees tour the new Greif CorrChoice facility in September in Dallas during the AICC Southwest Summit.

Ask Ralph

Caliper: The Least Effective Quality Control Measurement

BY RALPH YOUNG

The original version of this article first appeared in this publication in November 2012. While we have questions on this property frequently, there has been an uptick in activity this year from members.

Often, I am asked to provide the calculation for determining the potential caliper for a given flute profile. Of course, we have to factor into the calculation the caliper variations of the liner and mediums used by the combiner and the degree of variation within any specific liner or medium. And this calculation is not what one may think should be the case, as medium is compressed in the corrugating roll labyrinth and rolls have varying amounts of wear. If you would like to know more about this formula, contact me directly. On the Ask Ralph blog (www.NOW.AICCbox.org/corrugated-2), you will find categories of dialogue that pertain to caliper. There are at least six additional resources on this matter.

Different mediums’ compression strength or resistance between the steel plates in a caliper gauge is dependent on the type of fiber and the papermaking process. We can often look to the differences between hard caliper and soft caliper to begin to evaluate the compressibility factor. These two procedures are highlighted in the Technical Association of the Pulp and Paper Industry (TAPPI) T-551 om-06 and TAPPI T-411 om-05, which describe the difference between the use of hard steel platens and soft synthetic rubber platens.

I am also often asked to comment on the loss of the edge crush test (ECT) because of the reduction of combined board caliper

through converting equipment. There is not a solid answer for this question because the board can be “sev” crushed, yet the memory/rebound/recover rates of different mediums provide some spring-back of the crushed board—but ECT is lost forever. Also heavily impacted is the reduction of flexural rigidity or bending stiffness, the other key component of box compression.

The research study and report that AICC conducted in 2008 and independent studies that I have participated in through my private consulting company show that 25% of ECT can be lost through the crushing of the combined board. You can study this further in the Fibre Box Association and AICC jointly published fourth edition brochure, Understanding Box Performance. Order this from AICC at www.AICCbox.org/store

Once again, we are talking about measurable caliper after the corrugator and the presses. While caliper is a very simple and convenient tool for smaller sheet plants to at least have as a gauge to measure crush, the measurement can be deceiving. While I would not be advocating for a $75,000–$100,000 TAPPI fully conditioned test lab with all of the test equipment to quantify various containerboard and combined board characteristics, it is important to have finished board tested by a facility whenever process changes occur in the manufacturing operation.

Relatively new to the United States— but not other countries and regions—is a rather inexpensive piece of test equipment that can measure the impact of board crush and its impact of medium degradation and loss of ECT. Please contact

me to receive more information on this dynamic stiffness tester technology. While this way of testing combined board was brought forth by the U.S. Department of Agriculture’s Forest Products Lab in the 1950s, it was not until the mid-2000s that a commercial machine was developed elsewhere. In the U.S., we did the research and invented the idea, but it took another to design the commercial apparatus. Above, we mentioned there are differences in mediums’ elasticity, resistance to crushing, and their resurgence in converted combined board. Semichemical neutral sulfite, medium from recovered fibers, and compression-engineered mediums all perform differently to converting nip pressures. Generally, mediums with high amounts of neutral sulfite semichemical pulp and lignin will exhibit lower caliper losses when confronted with the same operating conditions as combined board containing mediums with high amounts of recovered fiber. There I go again being technical. If you want to see some of the accumulated data that supports this article, contact me. Many other pertinent resources are available through AICC and many outside sources. Be careful about caliper: Sustainability issues and newer ultralightweight containerboards will challenge us in this area.

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

Ask Tom

The Right Approach to Supplier Audits

BY TOM WEBER

Icontinue to receive personal inquiries from members surrounding best practices regarding the formal qualification of an on-site audit of both new and existing suppliers—obviously critical to many.

I suspect the questions continue to stem from our members’ continued COVID-19 supply chain interruptions and key material sourcing adjustments that may or may not have been called out during that troubling period. Many changes were made on the fly and not spelled out.

The AICC Supplier Qualification Document I is available via this article (scan the QR code at right to download), and it is one of the most comprehensive I have personally seen over my four decades in packaging leadership. As I operated many facilities that were qualified suppliers of folding cartons to both pharmaceutical and health care clients, I became acutely aware of just how critical it was to be in an unannounced, keyclient-visit-ready mode every day. This was a culture that I spoke to daily to ensure each and every employee understood the critical nature of what we provided to our clients and how important it was to walk the qualified talk every day with suppliers and clients.

The top five foundational elements of my supplier qualification system readiness were usually as follows:

1. A basic ISO 9000/9001 quality system in place, functioning at a high continuous-improvement level.

2. An SQF, cGMP, HACCP, and/or other suitable plan(s) in place to meet clients’ particular needs.

3. A functional accountability plan to make certain all plant and office personnel were trained

and documented in their specific standard operating procedures and responsibilities.

4. An accounting plan that measured the subsequent cost of quality, with assigned leadership.

5. A follow-up mechanism to facilitate engagement and conversations regularly with all employees.

I hope you enjoy reviewing the supplier audit plan provided for your personal use via AICC NOW, and I

look forward to any comments or suggestions you may have to improve this critical and ever-evolving qualification document to help you and your teams develop the most robust supply chain possible.

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

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Selling Today

The ‘Mafia’ Offer: One They Can’t Refuse

BY TODD M. ZIELINSKI AND LISA BENSON

The paper packaging industry has witnessed significant growth over the past decade, driven by a shift toward sustainable packaging solutions, the expansion of e-commerce, and consumer demands for convenience. Because the market is so competitive, companies must distinguish themselves from competitors by providing real value to their customers. It becomes challenging because when one company does something different, whether at a lower price or adding a new service, others seem to follow, and you end up in a never-ending chase to stand out. One way to rise above your competitors is by creating a “mafia” offer.

While suggesting you create a mafia offer may sound as if we are asking you to channel your inner gangster and strong-arm prospects into buying from you, that is not the case. A mafia offer, popularized by the “theory of constraints,” is so compelling that it is impossible for customers to refuse and challenging for competitors to duplicate. It’s about creating an irresistible proposition that addresses your customers’ core needs in a way that is significantly better than that of the competition.

Understanding Value

Before creating your mafia offer, you must define the value you bring to customers. This allows you to find gaps within the industry that you can fill with products or services that bring value. Value is the perceived worth of a product or service in the eyes of the customer. It is the balance between the benefits received and the costs incurred by the customer.

Benefits are the positive attributes a customer gains from a product or service such as quality, features, convenience, reliability, and emotional

satisfaction. These benefits can be tangible such as the functional advantages of a product or intangible such as prestige or stress relief.

Costs in this equation are not the same as a unit cost. Total costs must be considered, and understanding your prospective customers’ pains is crucial in identifying these total costs. Prospect pains are the specific problems, frustrations, or unmet needs potential customers experience. These pains contribute to the total cost from the customer’s perspective and can include direct financial losses, operational inefficiencies, or intangible costs such as stress and reputational damage.

To determine the relative value, customers will compare the perceived benefits with the costs of a product or service and then compare that with alternatives available in the market. They will often use the relative value to make purchasing decisions. This is an essential component of the mafia offer.

Crafting a Mafia Offer

Creating a mafia offer involves a strategic approach that ensures your proposition is not just appealing but irresistible to your target customers. A mafia offer is not easily re-created or emulated by your competitors. While price, quality, and custom service are elements of an offer that need to exist, they don’t create vast differentiation between your offer and that of your competition. They are required just to play the game. You will need to think bigger and broader in terms of the offer. This process requires a thorough understanding and, in some cases, creativity.

Before creating a mafia offer, it’s crucial to thoroughly understand your customers’ needs and pain points. Conduct comprehensive market research using surveys, interviews, and customer feedback to gather detailed information about what drives customer decisions in the paper packaging industry. This helps identify

Selling Today

the common pain points customers face such as high costs, lack of customization, slow delivery times, or environmental concerns. Quantify the total cost of these pain points in terms of money, time, and stress to understand their impact. The cost of the pain must be significant enough to urge change.

Next, analyze your competitors’ strengths and weaknesses. This helps you identify areas where competitors fall short and uncover unmet needs in the market. Create a comparison chart to benchmark your offerings against those of your competitors, highlighting the unique features and benefits your products or services offer that competitors do not. This analysis will help you find opportunities to differentiate your offer and provide superior value to your customers.

Once you have a clear understanding of customer needs and competitor offerings, focus on highlighting the unique benefits of your product or service by emphasizing aspects that deliver exceptional value and address customer pain points more effectively than competitors do. These benefits could include innovative features, exceptional customer service, or sustainability initiatives. Develop a clear and concise value proposition statement that communicates these unique benefits, ensuring it is easy to understand and resonates with the customer’s needs and desires. Whenever possible, quantify the value you offer. Use metrics and data to demonstrate cost savings, efficiency gains, or quality improvements.

To make your offer irresistible, include compelling incentives such as discounts, bundled packages, or flexible terms. These incentives enhance the attractiveness of your offer and reduce perceived risk. Additionally, offer guarantees such as satisfaction or lead time to further mitigate customer concerns. Simplify the decision-making process by providing clear, straightforward terms and conditions. Use testimonials and case studies to

build credibility and trust, demonstrating the value and reliability of your offer.

Communicating Your Mafia Offer

Develop targeted marketing messages that speak directly to the specific needs and pain points of different customer segments. Use multiple channels to reach your audience, including social media, email marketing, and direct sales. Creating a sense of urgency is also essential. Offer limited-time promotions or highlight the potential losses of not accepting your offer to encourage prompt decision-making.

Here is an example of how a mafia offer might be structured. Use your own value proposition to create a unique mafia offer.

• Pain Points Identified: Inflexible order quantities, late deliveries, and long lead times.

• Associated Costs: Ordering more than needed increases waste, late deliveries require stock to be held and managed or halt packaging operations, and long lead times get us to market later and potentially impact market share and revenue.

• Unique Value Proposition: The packaging company provides customizable order quantities with no minimum order requirement, shorter lead times, and 98% on-time delivery.

• Mafia Offer Statement Example:

“Switch to custom packaging and receive all your orders in as little as two weeks, even sooner for repeat orders. No minimum order quantities are required, so you can order only what you need when you need it. For qualified customers, if your packaging doesn’t ship and arrive when we say it will, we will credit you back up to X% of your order each day it is late, no questions asked.”

The mafia offer will not be for everybody. Making it exclusive to qualified customers will make people want it

more. You can determine what “qualified” means and how they will learn about it. For example, the mafia offer does not apply to one-time orders or simple jobs. A qualifying program may include specific volumes, minimum annual spend, or a larger percentage of their annual packaging spend. To qualify for this offer, you should require the prospect to meet with a packaging consultant and have them do a short packaging assessment to customize the mafia offer specific to their packaging needs. The mafia offer is not to create more orders but to establish long-term customer relationships and programs.

Your sales and market teams must reposition the messaging differently than selling boxes and packaging supplies. Selling on price is not a mafia offer. A mafia offer is a more consultative approach to selling and focuses on the value and return it delivers to the customer. Sales reps will need to be willing to walk away from a deal or not provide the mafia offer if a prospect or current customer is not qualified. The exclusivity aspect is important as, typically, when you tell someone they can’t have something, they want it even more.

By following these steps, you can craft a mafia offer that not only meets but exceeds the expectations of your customers, making it an offer they simply cannot refuse.

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

Andragogy

Importance of Prototyping: A Student’s Perspective

BY MAXWELL WILLIAMS

Imagine yourself relaxing on a beach. The warm ocean breeze leaves you feeling a little parched, so you reach into the cooler at your side for a refreshing beverage. As your hand slides into the cooler, you realize your entire day’s worth of ice has become nothing but a lukewarm puddle, leaving your drinks quite the opposite of refreshing. Since you plan to be in the sun all day, you decide to reapply sunscreen to protect your skin. After a couple of sprays, you notice not as much sunscreen is being dispensed as it should. The strange thing is, the relatively new bottle was at least half full the last time you checked. Upon further inspection, you notice the tube that runs into the lotion is not long enough to get to the bottom quarter of the bottle. Great. No beverage and no sunscreen. As a last resort, you pull out a brand-new beach umbrella to protect yourself from the intense sunrays. Now that it’s up, you can finally return to what you started trying to do—relax, breathe in the fresh air, and close your eyes. All of a sudden, the soothing darkness that was the inside of your eyelids turns to a reddish-yellow, semiblinding wall of light trying to invade your tranquility. You reluctantly open your eyes, only to find that your so-called “quality beach umbrella” couldn’t handle a gust of wind and had completely folded inside out, ripping the nylon cloth blocking the beams, and is now rendered useless. How did this carefree day in the sun turn so quickly into a less-than-ideal situation, and could something have been done to prevent these mishaps altogether? This is where prototyping and design come into play, and why it is critical to ensure

the package successfully complements the product, to design with the customer in mind, and to ensure structural integrity is at the forefront of testing and decision-making.

Before I continue, I’d like to introduce myself. My name is Maxwell Williams, and I’m a senior at Clemson University studying packaging science and brand communication. This summer, I have the pleasure of interning for the Packaging School. The reason I opened with a rather irritating situation is to put a spotlight on the way packaging impacts our lives without us noticing—until it’s inconvenient. One of the main principles for packaging is to provide convenience to the user; this is what makes a standard package that much more successful.

That said, we need to know how the initial design will perform and if it’s worth being put into production. The best way to come to these business-building decisions is to prototype. In our cooler example, the failure point of this package system was designing without any thought of the user or enough testing to see that the cooler would not last a full

day at the beach. If it can’t successfully keep drinks cold or ice frozen on a hot, sandy beach, the cooler is not worth your dollar. This is a prime example of a package not performing the task it was designed to accomplish.

An equal, if not greater, mistake was made with the sunscreen packaging—not recognizing that the length of the dispensing tube does not fit the bottle in a way that allows the consumer to use all of the sunscreen. This poses a multitude of problems. For one, some of the sunscreen is left in the container. Not only is this a waste of the time, energy, and money put into the production and transportation of the products, but they also leave a negative impression on the customer. Yes, the consumer could simply unscrew the lid and use the remaining sunscreen without the spray feature. But this plays against the role of convenience through packaging and adds a burden to the consumer that could have simply been caught during a testing and prototyping phase.

The last example from our mishap-filled beach day is more product-related; however, the same principle applies to

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packaging. A new beach umbrella should withstand the natural elements in much the same way as a parcel being delivered to your doorstep should withstand the rigors of distribution. Should damage occur to such a degree that the consumer’s interaction with the product is impacted, especially in an environment where the elements encountered are expected, the result (not just an unhappy customer) includes negative environmental effects and a failure to reach sustainability goals. Much like what will happen with the now broken umbrella, a best-case scenario for a damaged-upon-delivery product is an immediate return and possible reorder. This translates into more fossil fuel emissions, more energy usage, more costs for either party, more time focusing on what should have been done the first time, and less satisfaction all around. This is why utilizing the correct packaging

components to ensure structural integrity is essential for a positive customer interaction and for business and environmental sustainability.

The ideas just discussed are, of course, not only related to coolers, sunscreen, and umbrellas, or even limited to the plastic, textile, or metal industries. These concepts are integral to every person or company with a product to sell or an experience to provide. In my personal endeavors, I look to exercise these principles whenever I get the chance, specifically in the annual 48HR REPACK competition. A few of my peers and I spend a weekend completely redesigning a package on the market. To be successful in the competition, we must think about how we can improve upon what already exists; consider the person using and interacting with the package; appeal to our target audience; and most

importantly, build a professional, working package that demonstrates our thought process. A recurring theme during our weekend redesign, no matter how much we love an idea, is a willingness to make a change if our package is not feasible in all aspects of the prototyping phase.

Maxwell Williams is a senior at Clemson University studying packaging science and brand communications. He is also an intern at the Packaging School.

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

Leadership Legacy

BY SCOTT ELLIS, ED.D.

With the passing of Willie Mays this summer, I am seeing the lasting impact of the man’s actions and attitude. Epithets like hero and legend are fragile these days, when we find joy in erecting and then toppling pedestals. The building of a legacy is not possible for mortals when perfection is the standard. Consistency is the thing; hard-won recovery and recommitment after error or distraction are the stuff of legacy. I am confident to say that this man consistently exemplified tenacity, excellence, joy in effort, and gratitude. Personally, I bore witness to his influence for over six decades.

I am told that I attended games at Seals Stadium in San Francisco circa 1958. I do recall watching practice games between the 1962 New York Yankees and San Francisco Giants when the series was delayed by rain. From my left-field knothole in the fence, I watched Mays work. It was poetry in

motion. Much later, I would learn some of the hardship he had endured leading up to that season, and it made his joy even more impressive. In countless games at Candlestick Park, he led his team by direction and example. He gave the impression that he was playing checkers so when opponents discovered he was playing chess, it was too late. In 1972, he went back to New York, where the Giants were originally based, to close out his career. I remember the first game in which Mays came to the plate in a Mets uniform; the standing ovation must have lasted five minutes.

After playing his final season in 1973, Mays returned to the Giants in various coaching roles. Countless players received guidance from him on baseball and less essential aspects of life. As an ambassador of sorts, he was a fixture at Giants games well into his 80s. He sat in the stands and readily engaged youth of all ages as we approached him to

talk about the game and the memories we shared.

With his passing, just days before the celebration of Negro League history at Rickwood Field in Birmingham, Alabama, where his career began, his impact continues. While he had more mainstream name recognition than the other players celebrated that day, there were many whose exemplary lives and contribution in baseball have left the world better for their efforts. Accordingly, I am contemplating leadership legacy and what can be gleaned from this example of a well-lived life. What I know so far is that perfection is not required. If that were the case, the obstacles and interruptions of life such as poverty, segregation, the draft, injury, or being traded to the Mets would have derailed him. For most of us, our own frailty and distraction knock us down. Legacy may require the tenacity to “fall down seven times, get up eight,” as the Japanese proverb says.

Leadership

The second aspect that seems to be true of legacy building is distilled purpose. I think this purpose is less about what you do and more about how you do it. Mays deployed extraordinary discipline to hone his natural skills and “do” baseball better than anyone else. However, I would argue that this only gave him fertile soil in which to grow a legacy. The way he lived his daily life is what grew his legacy, long after he could hit a curveball. I don’t know if he had a mission statement. I just know that he showed up. He was approachable, gracious, and helpful, even on days when arrogant players failed to listen—even when sticky children wanted to sit in his lap and awestruck fans wanted to share just one more moment. He consistently behaved as if he was glad you stopped by. He was not holding court; he listened and even asked permission before giving advice.

Leaving a legacy is about creating a positive, lasting influence that benefits others even when you are no longer present. Perhaps it would be a good start, then, to take some time to consider the lasting benefit we want to create through consistent behavior, in our professional and personal relationships, and in our communities. With that outcome in mind, we then plan accordingly. For example, if a part of your desired legacy were to create multigenerational success for your family-owned business, what would you need to do and who would you need to be on a regular basis to effect that outcome? Would you need to invest time or resources differently? I know that for myself, the accomplishment of any worthy goal has required that I temporarily override my own selfishness. To do that with any level of consistency, I need to believe the lasting impact is worth the effort.

My takeaway from these Mays musings? I’ll assess progress toward the lasting influence I’d like to have. Then, I will apologize and make course adjustments. I’ll try to take daily and weekly actions to turn my aspiration into something attainable. Oh, and note to self: Don’t get traded to the Mets.

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 with code AICC21.

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Member Communications

New Faces, Same Great Stories

The AICC podcast, Breaking Down Boxes, is a cornerstone of insightful and engaging content for the independent packaging community. For 27 episodes, hosts Gene Marino of Akers Packaging Service Group and Joe Morelli of Huston Patterson and Lewisburg Printing Co. have led listeners through the inspiring and often personal stories of AICC members. As they step back from their roles, the podcast is set to continue its mission of bringing these compelling narratives to the forefront, this time with a lineup of esteemed guest hosts.

Marino and Morelli have been instrumental in establishing Breaking Down Boxes as a platform for sharing the rich, diverse experiences of independent packaging professionals. Their dedication to highlighting the human side of the industry has resonated with listeners, providing inspiration and practical insights. As they pass the baton, the podcast is poised to enter a new phase.

The podcast will feature a rotating roster of guest hosts, each bringing their unique perspectives and experiences to the table. Among the new voices are Mike Schaefer of Tavens Packaging & Display, Jeff Pallini of Fosber America, Simona Georgescu of Adduco Communications, and George Perreira of Moyy. These guest

hosts are not only seasoned professionals but also passionate advocates for the independent packaging sector.

Schaefer brings a wealth of knowledge. Known for his dry wit, innovative approach, and deep understanding of the industry, he is expected to offer fresh insights and spark thought-provoking discussions.

Pallini will add another layer of depth to the podcast. His technical expertise and strategic vision paired with his sense of humor will bring a comprehensive look at the industry’s evolving landscape while speaking with guests.

Georgescu will contribute her exceptional communication skills and industry acumen. Her background in marketing and communications will be invaluable in exploring the narratives that define the independent packaging world.

Perreira will round out the team of guest hosts. His innovative mindset and commitment to the industry will help dig into the stories of the independent.

Each episode of Breaking Down Boxes will continue to delve into the personal and professional journeys of AICC members. These stories are not only fascinating but also relatable on many levels. They embody the agility, innovation, and resilience that characterizes the independent

packaging community. Breaking Down Boxes remains dedicated to uncovering the lessons and experiences that AICC members have to share.

The transition to guest hosts represents a new chapter for Breaking Down Boxes, one that promises to maintain the high standards set by Marino and Morelli, while introducing new perspectives and ideas. Listeners can look forward to a dynamic and engaging continuation of the podcast.

As AICC members tune in, they can expect to hear stories that resonate with their own experiences and challenges. The independent packaging industry is rich with narratives of perseverance, creativity, and success, and Breaking Down Boxes will continue to be the platform where these stories are told.

While Marino and Morelli’s presence will be missed, the future of Breaking Down Boxes is bright. With a stellar lineup of guest hosts and inspiring guests, the podcast will continue to be a source of inspiration and knowledge for the AICC community, celebrating the independent spirit that defines the industry.

Hear from the guest hosts in the latest episode of Breaking Down Boxes, “Another Door Opens,” on all major podcast platforms or www.AICCbox.org/boxes

AICC Innovation

Member Resources

Together We Go Further

AICC offers online courses, webinars, seminars, conferences, meetings, and other ways to learn from industry experts. You can see all of them at www.AICCbox.org/calendar. There is great value in learning from peers, as well. Peer learning allows you to have conversations with people in the same position about their experiences with the issues you are facing today.

CEO Advisory Groups

The CEO Advisory Groups were formed as a resource for box manufacturing plant CEOs. Members of each group focus on real-world experiences, best practices, and the pitfalls to avoid. You are held accountable and helped by your peers. Connecting with other executives gives you the opportunity to see your company from an outside perspective and discuss changes that can positively impact your bottom line.

AICC Women in Packaging Group

Calling trailblazing women in the packaging space! Join us to unlock your full potential with the AICC Women in Packaging Group. Our vibrant community is dedicated to championing women’s voices, fostering growth, and propelling you toward new heights.

Emerging Leader Program

The Emerging Leader (EL) program is a series of training, networking, and leadership opportunities for young professionals in the paper and packaging industry. With the opportunities and information available in the EL program, young professionals who are ready to commit to their professional development

will have the chance to grow into proven, reliable future leaders in their company and industry.

Leadership Advisory Group

As a leader in an AICC member company, you face challenges many others do not comprehend: the pressure to succeed, to make the right decisions, and to create a positive future for yourself and the company. When involved in AICC programs, many of you can confide in others, share ideas, and receive honest feedback. This group will be even more intentional in meeting its members’ specific needs for connection, education, and discreet communication.

Sales Management Cohort

Production Leadership Advisory Groups

Production Leadership Advisory Groups include operations and production managers from AICC member companies. The group is open to all member companies regardless of location or market niche.

Continuous Improvement Leadership Group

This group is designed to serve managers of all departments. The Continuous Improvement Leadership Group is open to all member companies regardless of location or market niche. You will be part of a group marked by mutual trust, sharing of best practices, and respectful disagreement, for the advancement of each member company’s success and productivity, and for group members’ career development.

Sales management was tough enough prepandemic, but add in the pandemic and supply chain challenges and it has never been harder to be a sales manager than in the market of today. So, AICC has teamed with renowned sales consultant and coach Mark Roberts and bestselling author and sales training facilitator Ed Wallace to deliver AICC’s first Sales Management Cohort professional development program.

Sales Advisory Group

AICC has teamed with Roberts and Wallace to deliver AICC’s first Sales Advisory Group. This program is datadriven, using sales skills and relationship diagnostics that help you assess your selling strengths and skill gaps that could be costing you commissions.

Questions?

Read more at www.AICCbox.org/advisory or contact AICC Director of Education and Talent Development Taryn Pyle at 703-535-1391 or tpyle@AICCbox.org

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Kolbus

Unlocking Efficiency and Innovation With Kolbus America in 2023 and Beyond

As we start 2024, Kolbus America stands proud as an industry leader in packaging and printing solutions, celebrating a year filled with significant achievements, new product launches, and a strategic relocation.

EMPOWERING BUSINESSES WITH CUTTING-EDGE SOLUTIONS

In 2023, Kolbus America continued to make an impact in the corrugated industry with its innovative products and unwavering commitment to customer satisfaction.

Most recently, at CorrExpo 2023, Kolbus America launched the KOLBUS BX Motion, a heavy-duty, all-in-one short run boxmaker. This innovative solution offers unparalleled versatility and efficiency, allowing businesses to produce customized boxes that meet their specific requirements. With its fully automatic quick setup time, scrap removal, and digital printing capabilities, the BX Motion is set to redefine short-run box manufacturing. The first installation of the machine was at a Canadian packaging company at the end of 2023. The European launch earlier in the year was met with great success, and Kolbus America anticipates similar enthusiasm in the North American market.

Salt Lake City-based Wasatch Container became the only box plant in the region with the extensive capabilities, with the by installing a five-color 115” Kolbus RD 115S flexo rotary die cutter. This installation significantly increases their productivity and adds value to their Intermountain West customers. Wasatch Container, along with other RD 115S customers, incluing CompanyBox, New England Wooden Ware, and Green Bay

El Paso, continue seeing great success from their machines.

STRATEGIC RELOCATION AND TEAM EXPANSION

In May 2023, Kolbus America relocated its headquarters to Huntersville, North Carolina, from its previous location in Cleveland, Ohio. This strategic move aimed at positioning the company for continued growth, increased efficiency, and better customer support. The new facility offers a larger and more modern space to accommodate the growing workforce and ensure outstanding customer service. Its proximity to the airport and prominent customers in the packaging industry, like CompanyBox, streamlines operations and enhances customer accessibility.

This relocation brought with it the hiring of key team members to bolster the company’s financial, technical, and customer service capabilities. A full finance team, experienced service technicians, an office manager, and additional customer service representatives have all joined Kolbus America to provide comprehensive support and excellence in customer service.

A BRIGHT FUTURE AWAITS

As we look ahead to 2024, Kolbus America is poised for an exciting year with additional machine installations of the RD 115S and the BX Motion. The company’s commitment to delivering state-of-the-art solutions, innovation, quality, and customer satisfaction remains unwavering.

In the ever-evolving packaging industry, Kolbus America’s dedication to efficiency and innovation sets the stage for businesses to thrive and succeed. With a talented team, groundbreaking products, and a commitment to excellence, Kolbus America is ready to usher in a new era of possibilities in the world of packaging and printing.

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SUN Automation Group

CONNECTING THE DOTS IN CORRUGATED

FROM

FEEDING TO CONVERTING, INDUSTRY LEADER OFFERS

COMPREHENSIVE SOLUTIONS

Corrugated production is no simple task; it’s a symphony of moving parts, each requiring unique equipment and expertise. To effectively serve this multifaceted industry, SUN Automation Group provides a comprehensive suite of solutions. By leveraging in-house expertise and a series of strategic partnerships, SUN is able to address the unique challenges of corrugated production and ensure the entire production line functions seamlessly.

“We take great pride in our breadth of capabilities,” says Greg Jones, Executive Vice President of SUN. “By combining our unique capabilities with expanded resources from our partners, we are able to offer individualized solutions that are tailored to our customer’s exact needs.”

Solutions Across the Production Line

SUN Automation Group stands at the forefront of innovation in the corrugated industry, delivering solutions that span feeding, printing, and converting to ensure comprehensive support and efficiency across the entire production line. A prime example of SUN’s versatility and engineering prowess is the SUN625 Rotary Die Cutter (RDC), an American-made, vertically opening machine designed to be a flexible, high-producing powerhouse. Capable of handling feeding, printing, and converting with seamless inside/outside print integration, the SUN625 RDC epitomizes the strength and dynamism of SUN’s offerings, running at an

impressive 200 kicks per minute—up to 12,000 sheets per hour.

Expanded Capabilities

With Strategic Partnerships

To offer truly comprehensive converting solutions to its customers, SUN has facilitated a series of strategic international partnerships with other leaders in the industry. In 2019, SUN partnered with Latitude Machinery Corp (LMC) and has since been the exclusive representative for LMC in North and Central America. LMC is a world-class manufacturer of Rotary Die Cutters, Flexo Folder Gluers, from Minis to Jumbos, and other solutions for the corrugated industry. The company’s equipment maintains an excellent reputation in the marketplace for its reliability and throughput, which is reflected in the placement of over 100 installations of LMC converting equipment in North America.

While RDCs and FFGs keep up with production, material handling plays an important role in minimizing labor demands and maximizing equipment productivity. Filling the gap for endto-end material handling needs, SUN serves as the exclusive representative for PARA Machinery material handling systems sold and serviced in North America, the United Kingdom, and Ireland. PARA’s extensive product range, with over 15,000 products installed worldwide, includes prefeeders, palletizers, RDC stackers, bundle breakers, pallet inserters, vertical storage solutions, paper mill roll transports, and unit conveyor systems.

To enhance digital finishing for packaging, SUN partnered with Highcon in 2021, bringing innovative cutting and creasing solutions to the North American market.

Optimizing With Next-Gen Technology

Learning from a rich history specific to the corrugated industry, SUN developed Helios, the first machine learning and IIoT platform built by corrugated professionals. This OEMagnostic software quantifies and analyzes key elements of the corrugated manufacturing process. Utilizing this data, box plant leaders are able to make more informed decisions around scheduling downtime and ordering parts, thereby mitigating machine failure and improving overall efficiency. Through machine learning, Helios’ predictive algorithms continuously improve, leading to larger and larger cost savings over time.

Complementing this innovative platform, SUN has partnered with ePS, introducing a suite of ERP and MES technology solutions that work to drive operational excellence and efficiency in corrugated plants across the globe.

Connecting the Dots With Continuous Support

A successful operation in the corrugated industry is contingent on the seamless integration and continued maintenance of complex machinery and systems. Understanding that the purchase of machinery is just the beginning, SUN places a strong emphasis on customer service and technical support. The company’s team of highly trained professionals is available around the

clock to assist with any challenges that may arise, ensuring minimal downtime and maintaining the efficiency of the production line.

As SUN Automation Group reflects on the strides made this year, the company is poised to carry this momentum forward into 2024 and beyond. With a firm commitment to innovation and customer satisfaction, SUN plans to continue its expansion of services and technologies, ensuring that customers are equipped with the latest and most efficient tools necessary to thrive in an ever-evolving market.

Greg has spent over 20 years in the manufacturing and packaging sector. In 2002, he began his tenure with ITW as the National Sales Manager for

ITW Shipper Products. He later joined ITW Muller and spent over ten years delivering equipment and material load containment solutions to clients across various sectors. Rigorously trained in the principles of 80/20, Product Line Simplification, Market Rate Demand, and the importance of cross functional team approach, he applied these skills further for a quick rise in the corrugated industry.

In 2012, Greg joined SUN as the North America Sales Manager. Within three years, he was promoted to Director of Sales and Marketing, then Vice President of Global Sales & Aftermarket overseeing the company’s international sales as well as SUN’s Europe and China operations. Backed by extensive experience and leadership, Greg assumed the

role of Executive Vice President at SUN in 2020.

Greg has been an active member of TAPPI since 2012 and currently serves on their Board of Directors. In addition, he is an active member of AICC and serves on their Board of Directors. He also serves on the Board of Directors of SUN Automation Group.

Away from work Greg serves in his church and is involved in the community. Greg is married to Karen and proud father of two children, Sarah and Paul.

Greg Jones Executive Vice President Greg.Jones@

SuperCorr Expo 2024

Central Package & Display: 65 Years and Growing Strong

BY STEVE YOUNG

Three generations of Haglunds (from left): Austin, sales; Jim, chairman; Kristin, communications, sales, and marketing coordinator; and Mike, CEO.

“In order to get somewhere, you have to be somewhere first.” Jim Haglund, chairman of Central Package & Display in Minneapolis, has harnessed this homespun philosophy throughout his 65-year career in the corrugated and paperboard packaging business.

“I always wanted to go where most other companies did not want to go,” he says. “I always wanted to put a toe in the water somewhere else. That’s what has served us to this day.”

Today, Central Package & Display is a global supplier of specialty packaging products, including corrugated, setup boxes, engineered foam, and industrial crating and casing for electronics and sensitive instrumentation. The company also provides fulfillment and

kitting services to its diverse customer base. Central Package employs 140 people working in two shifts out of its 175,000-square-foot facility in Brooklyn Park, a Minneapolis suburb, with another 35,000-square-foot off-site warehouse nearby. Bucking the conventional shipping models of most corrugated sheet plants, Central Package shipped 30% of its products outside of the state of Minnesota in 2023, with 9% going overseas to far-flung destinations such as Malaysia, Costa Rica, Puerto Rico, and Ireland. To support this worldwide reach, Central Package also has a third-party logistics warehouse in Canada, with plans to open a second in Ireland.

Company: Central Package & Display

Established: 1959

Joined AICC: 1996

Phone: 1-800-523-BOXS

Website: www.centralpackage.com

Headquarters: Minneapolis, Minnesota

Chairman: Jim Haglund

Early Years

Jim Haglund’s career started in the sample shop of a Minneapolis printing company. The young Haglund, fresh off the farm in northern Minnesota, assembled dummies of customers’ print jobs and delivered them throughout the city. Besides the benefit of a $250-a-month salary, Haglund says the job gave him the geographic bearings that would serve him well in his sales years ahead. “That’s how I learned Minneapolis,” he says, “because when you’re from out of the area, you have to learn it numerically and alphabetically and not just from local landmarks.”

Playing his strong suit, Haglund sold, first traveling for Federal Package, then going out on his own brokering boxes

Photos courtesy of Central Package & Display.

in the Twin Cities. It was during this time that he came to know Jerry Hinitz, Jack Persten, and Dick Page, who owned Central Container Corp., one of his regular suppliers. Haglund, knowing the company’s potential and learning of Persten’s impending retirement, offered to buy his half of the business. Persten demurred, however, saying he was committed to selling to his other partners. “Then around Christmastime, he called me back,” Haglund remembers. “He says his retirement is based on the company succeeding. ‘I know you can do it and they can’t, so I’m going to sell you my half.’”

The price, Haglund says, was quickly set: The book value of the business was $238,000; half was $119,000. So, Persten and he agreed to $25,000 down with the balance over 11 years at 7% interest. “I says, ‘OK.’ The only problem was, I didn’t have $25,000!”

Buying the Company

It is a familiar memory for any successful entrepreneur: the scramble to raise that initial capital to start the business. For their part, the Haglunds—Jim and Kathy, his wife of 62 years—sold their house and pulled out $15,000 in equity. Haglund borrowed the remaining $10,000 from his brother who did not give him a break. “I remember he charged me 7% interest over seven years,” Haglund says.

Within five years, Haglund owned 100% of the company, buying out Hinitz and Page. At that time, the Minneapolis packaging market was changing dramatically, from an industrial base of brown box users to highly specialized, technology-driven industries such as health care and medical equipment and instrumentation. In fact, that segment of the Minnesota economy grew so prolifically in the 1950s, ’60s, and ’70s that the Twin Cities area became to be known as “Medical Alley.” The growth of companies such as

3M, Medtronic, and Boston Scientific, aided by the University of Minnesota’s well-endowed medical research and development labs, created a demand for a highly specialized base of professional services and material suppliers. Against this backdrop, Haglund saw his early opportunities for investment and growth. “Selling is 50% personality,” he says. “If the customer likes you and you come in with a new product, you’ve got half the sale completed.”

Growing and Acquiring

Looking for those new product offerings for his customers, Haglund acquired two additional companies in the early ’80s: one, a local sheet plant, and the other, a manufacturer of setup boxes, Fisher Paper Box. It was this latter acquisition that Haglund points to as the driver of the company’s new direction. “Because we now had Fisher and they were in the folding carton business and the chipboard business, it led us to other industries,” he says. “It really was the foundation of our company today; it got us into the medical industry.”

Calling on the spectrum of companies making up the Minnesota “medi-sphere,” Haglund and his team then recognized that these customers frequently had other needs such as foam and partitions. “My theory is that once you’re in front of the customer, you say, ‘What do you need? What aren’t you getting?’ And then they would say something, and we’d look into it and find a way to do it. … This included foam, partitions, and inserts—the things that integrateds didn’t want to run.”

To Move or Not to Move?

The company’s growth through the 1980s and early ’90s strained the company’s capacity at its existing location in Minneapolis. Haglund considered the need to improve efficiencies, quality, and service levels, and move to multigraphics. Housed in a century-old building on

Hiawatha Avenue, an original industrial corridor in the city, Central’s operations were hampered by low ceilings, support posts, production on different levels, and small dock doors, to name a few of the obstacles. The choices for Haglund and his team were to add onto the main plant, add onto an existing addition on the plant, move to an existing building, build a new building, or do nothing. The company’s growing volume in the cramped space was a serious drag on its efficiencies. Hence, the last option of “do nothing” was easily ruled out. The limitations of its existing location also made expansion or improvements impractical.

“Never make future investment decisions based on the current economy,” Haglund tells his team. And in the case of Central’s future location, he took his own advice. The economic slump of the early ’90s gave Central a favorable build-to-suit environment of low interest rates, “hungry” contractors, and local communities competing for new businesses.

Brooklyn Park offered an ideal location and attractive incentives. In March 1992, the first spade of dirt for Central Container Corp.’s new location on 85th Avenue North was turned. Haglund marked the event by inviting thenMinnesota Gov. Jesse Ventura to attend the ceremony, and he did. The official ribbon cutting was held in November.

Equipped for Quality and Precision

Central Container Corp.’s new location, now 31 years young, is a showcase of efficiency. (Haglund is meticulous about maintaining the property.) The corrugated side of the business is equipped to support its diverse customer base of medical, high-tech manufacturing, food and beverage, retail distribution, and industrial companies. Three flexo foldergluers from Latitude, TCY, and Ward form the standard box production line, with Eterna, Brausse, Apstar, and TCY rotary die cutters augmenting the mix. In

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addition, Central’s specialty folder-gluers from Bobst, J&L, and Brausse, plus a Herrmann Ultrasonic welder, provide the capacity needed for the intricate designs demanded in medical and electronic instrumentation packaging. On the setup box side of the business, Central maintains an Emmeci automatic rigid box line. Haglund follows a simple equipment acquisition guideline. “One thing I have always believed: reinvest, reinvest, reinvest,” he says. “We have always reinvested in equipment to improve quality. The medical industry has pushed us.”

Haglund was an early adopter of converting and finishing equipment from Asia, buying his first TCY flexo foldergluer from Taiwan 40 years ago. It was a decision, he says, made from necessity. “We were kind of pioneers,” he remembers. “Everyone was concerned about how do you get parts from Taiwan? But I could get a part from Taipei as fast as I could from New Jersey because Northwest Airlines had all these daily nonstop flights between Minneapolis and Taipei. When I say it was a gamble, it really wasn’t. I didn’t have a choice. We couldn’t afford anything else at that time.”

New Name and New Image

By the early 2000s, the North American supply chain had taken on a new form—containerization—and the term “container” took on a meaning beyond a simple corrugated, rigid box,

or folding carton. Ocean and rail freight had co-opted “container,” Haglund felt, so he sought a new identity for his company. After some careful consideration and taking what Haglund calls “a poll of one,” Central Container Corp. became Central Package & Display. “I felt ‘container’ had too broad an implication,” Haglund says. “Changing the name to Central Package & Display better described who we were and what we had become.”

Haglund remembers the excitement the change generated among the company’s employees and, significantly, among its customers. “When your customers see you moving forward like that, that’s a really good sign,” he says. “It gives a good feeling that the company will be around for a while.”

A Family Business Always

Being “around for a while” is important to Haglund. A devoted family man, he has always considered his family to be an integral part of the business, as well as its path forward. His son, Mike, is CEO and vice president of sales. He came full time to Central in 2001 after an early career in the scrap recycling business and, later, the packaging supply and fulfillment business. Like many offspring of box company owners, he worked in the business from an early age. “I started mowing the lawn over on Hiawatha Avenue,” Mike says, “and later maintenance and painting—the aesthetics—because it was all a wood building back then.”

His early experience at Central did not guarantee him a future place, however. “When I graduated college, my dad says, ‘Well, you’re not going to come in here and work,’” Mike remembers. “Jim always worried about people’s perceptions.”

Mike worked five years in the scrap recycling industry when a small local assembly company came up for sale. “I

bought that company for $90,000 over a five-year period,” he says.

Having his father’s entrepreneurial nose, he then bought out a local packaging supply business, The Box Stop. “We had our own facility, doing about $5 million in sales, and we were brokering boxes, too,” Mike says. “Then in 2001, out of the blue, my dad called. He says, ‘I want to get you involved in Central, so Central’s going to buy you out.’ I didn’t know I was for sale!”

Today, Mike is firmly grounded in his role in the company. “As far as the title or role, yes, I’m CEO,” he says. “But I still oversee a lot of the sales. That’s what I’m good at, and that’s what I like to do.”

Kristin Haglund, Jim’s elder daughter, joined the company in 2014. But her employment at Central, like Mike’s, was not guaranteed. “I started in drafting for an architectural firm right out of school. Then, I went to work for a small local government consortium that served as an information technology hub,” she recalls. There, she honed her skills for systems management and information technology, but her heart, she says, was not in it. Then in a chance conversation, Mike planted the seed for her to come to work at Central. Kristin notes, “‘You need to make a move,’ he says. ‘You and I work well together, why not join Central?’”

Kristin recalls approaching Jim with the idea. “I actually went to my dad to

Mike Gallagher (left) joined Central Package & Display in 2014, allowing Mike Haglund to focus on his passion for leading sales efforts.

Austin Haglund (left) and his father, Mike, represent the second and third generations of Haglunds to join the family business.

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propose it,” she says. “He was bowled over; he had no idea we were discussing it.”

Referring to Jim’s vigilance in guarding the company’s reputation, she adds, “He wanted to say yes, but he says, ‘OK, well, let’s give this some thought and make sure it sounds right, it looks right.’”

Kristin’s focus at Central plays on her strengths in information technology, systems, and human resources. The company is a union shop, so Kristin has a key role in employee relations. “I could just interact with people in such a different way, so I got very involved in employment issues and the things more outward facing,” she says.

Enter the Third Generation

Austin Haglund, 25, is Mike’s son and is the third generation of Haglunds to enter the business. He joined the company in 2019. Like his father, he started by working summers. “I started coming in and working in assembly when I was 15,” he says. “I had seven friends come in, and we all worked in the back for five years through the rest of high school and all of college.”

From there, he worked in design and sample-making, customer service, and then in quality assurance. He’s now on a sales track, managing accounts of his own. “It’s not the most glamorous industry,” he says when asked why he chose to come into the business. “But I’ve always enjoyed it. I grew up with it.”

In 2013, Jim and Mike had a conversation about the future of the business and what role the Haglund family would play in the years ahead. Says Mike, “I had an illness in 2013, so we weren’t quite sure of the future. Once things got better, we started talking about bringing in someone to run the company. I don’t have the dayto-day skills to run the company, and I didn’t want to run the company. I wanted to be involved in sales. We were growing, and my dad was 76 years old, and he was wanting to slow down, too.”

It is not unusual for family businesses to bring in nonfamily members in key

executive positions, but the decision can be difficult. Says Jim, “I’m glad I was such a good salesman because first I had to sell myself on the idea.”

Shortly after that, Jim was touring a local Taylor Corp. printing facility; at the time, Taylor was the largest privately owned commercial print house in the United States. There, he met Michael Gallagher, a division director for Taylor overseeing six printing plants across the U.S. “I was actually very interested in acquiring Central for Taylor,” recalls Gallaher. “But I always say Jim acquired me, so it got flipped around.”

In Gallagher, Jim found the new president of Central Package & Display. The timing for Gallagher was right. A graduate of Macalester College in St. Paul, he became a licensed certified public accountant (CPA) and immediately worked for Taylor, where he spent 20 years and rose to the level of director. The travel involved was taking a toll on his growing family, so he was looking for something local. He checked all of Jim’s requirements: someone local, with a Master of Business Administration or CPA, a family man, and someone young enough to grow with the company. To Gallagher, the choice was easy. “The commonality between Taylor Corp. and Central is that we never wanted to be in the mainstream. We wanted to be in niches,” he says. “There are a lot of similarities between the two companies.” He joined Central in 2014.

Gallagher says his strength is his focus on day-to-day operations. “We’re an execution company, and I’m very involved in the day-to-day,” he says. “Some people say, ‘Well, don’t work in the business, work on the business.’ But our business is being in the business. It’s focusing on today and executing. I’m very hands-on.”

Gallagher’s hands-on focus and the Haglund family’s commitment foretell a productive and profitable future for the company. Some of their initiatives for growth include adding sales representatives,

‘THE MOST RELEVANT OF ALL JOBS’

Now that Jim Haglund has stepped back from the day-to-day running of Central Package & Display, he tells his executives that he’ll do whatever relevant job they want him to do. Holding his new grandson, Oscar Ellison Haglund, on his lap is what he calls “the most relevant of all jobs.”

investing in new equipment to increase capacity, and focusing on key industries to build on existing strengths—an extension of Jim’s philosophy of staying away from the mainstream.

Central Package & Display reflects the personality of its founder, Jim, and his commitment to family, employees, and customers. Gallagher says it best when talking about his 10-year tenure at Central: “I’ve never come into a company that’s successful like Central Package & Display. But it’s not just about the work; it’s about the family.”

Steve Young is AICC’s ambassador-at-large. He can be reached at 202-297-0583 or syoung@AICCbox.org

This election season, boxmakers emphasize making their voices heard on top priorities

BY M. DIANE M c CORMICK

The 2024 presidential election will not change the boxmaking world in an instant, says incoming AICC Chairman Gary Brewer.

“Everybody always waits and thinks that November is going to flip a light switch,” says Brewer, president of Package Crafters in North Carolina. “It never does. It never will. It’s certainly something to talk about, but there’s just too much uncertainty out there right now. I want to invest. I really do. I want to continue to grow. I want the men and women who help produce my product every day have an easier day.”

Still, boxmakers want to know. Can elections refill a hollowed workforce, slow inflation, ease burdensome regulations, and deliver favorable tax policies? Perhaps not on their own, but industry leaders agree that engagement with elected officials of both parties is essential to raising awareness of the economic contributions of boxmaking and the need for policies that spark investment and create jobs.

“Let the markets roll. Let the free market take care of itself. Don’t handcuff or restrain businesses from doing what they want to do. We all like to invest. We all like to grow. We all like to employ.”

—Gary Brewer, incoming AICC chairman and president, Package Crafters

Top Priorities

Workforce development is “probably our top compelling issue,” says Brewer. “The labor pool is certainly not what it once was. The solution to a depleted workforce doesn’t come from the race for the White House but from local leaders supporting community colleges, trade shows, and the training programs needed to prepare young people for attractive careers.

“These are the things to help people get engaged in the industry and get them interested in corrugated boxes,” says Brewer.

After workforce development, controlling inflation headwinds is an imperative because a slowdown in inflation will prompt the Fed to lower rates, Brewer says. “When you lower interest rates, that encourages and spurs investment, and that ties to workforce development,” he says. “We want to invest in new equipment, given the labor pool that we have, to help those young men and women succeed with the latest and greatest technology.”

There, he notes, the solution is not embedded in the people elected to office but in market forces.

Finally, taxation must not increase while inflation continues to hamper investment. Inflation not only limits the bang for the buck, but it also prevents investment in the first place. It causes the outlay for purchases to skyrocket.

Actual tax rates on business haven’t changed for decades, Brewer adds, but can government spending be controlled enough to prevent tax hikes? “You can’t spend your way into success,” he says. “Spending needs to be under control so that tax rates remain stable.”

Business owners need to see tax deductions, write-offs, and credits “ramped back up,” Brewer adds. “If inflation comes down and interest rates come down and then we have credits and deductions, we are going to invest like wildfire. We want to invest. We want to grow. When we invest, what does that do to the people that build the machinery? It’s a trickle effect. If we’re investing and buying, everybody’s busy.”

The upcoming election could have an impact on beneficial provisions from the Tax Cuts and Jobs Act of 2017 that sunset at the end of 2025. Allowing such items as the qualified business income 20% deduction and bonus depreciation on qualified property to expire would just be “hiding a tax hike,” Brewer adds.

Those expiring provisions mean that the industry has “important work ahead,” says Julie Landry, vice president of government affairs at the American Forest and Paper Association (AF&PA). “We look forward to working with tax writers in Congress to build on the 2017 tax reform law, including preserving key policies surrounding research and development, interest deductibility, and

full expensing that are crucial to our capital-intensive manufacturing industry.” AF&PA, she adds, “advocates for a strong and sustainable paper and wood products industry. We believe it is critical that both state and federal policies not jeopardize access to essential paper products or hinder countless modernization projects for our industry.”

Reaching Out

As the old saying goes, “All politics is local.” For businesspeople, the local connection extends to supporting candidates who “encourage investment that’s about job creation without restrictive or overreaching legislation,” says Brewer. “Let the markets roll. Let the free market take care of itself. Don’t handcuff or restrain businesses from doing what they want to do. We all like to invest. We all like to grow. We all like to employ.”

Outreach to candidates and public officials includes letters, emails, meetings, and the time-honored factory tour. Officeholders love to put on a hard hat and visit the factories in their districts, building their own brands and visibility. For businesses, it’s a chance to voice opinions to influential political leaders, whether or not they align with your views.

“You naturally want to talk to the folks who have the same views that you do,” says Brewer. “That’s the easier conversation, but step up and make a phone call or send an email or invite those candidates and leaders that may not align with you, and talk to them. Show them. Encourage them to see what you do, and tell them why it’s important to you as an owner or why it’s important to all of those people and the families that depend on you to get their livelihood.”

The November Effect

While the U.S. presidential election draws more than its share of attention, the outcomes of down-ballot races can have as much of an impact, if not more, on

the marketplace for boxmakers. Many congressional champions for the forest and paper products industry are retiring in this election cycle, notes Landry.

“Regardless of the results, we look forward to working with federal and state elected officials to reinforce the importance of our industry, and our sustainability achievements, to the U.S. economy,” she says.

It is imperative that elected officials realize the influence of international policies in the U.S., says Landry. As it’s currently written, the European Union’s recent Deforestation Regulation (EUDR) “imposes unachievable requirements. This puts significant trade of products at risk between the EU and the U.S. We applaud the work that has been done already by our elected officials to voice serious concern, but there is more work to be done, as this regulation is set to be implemented later this year.”

Electing pro-business, pro-investment officials in Washington, D.C., would benefit the industry, but the process will take time, Brewer says. Boxmakers must “keep their powder dry” and wait to see what the election brings.

The unprecedented upheavals in the presidential race contribute to an uncertain climate, says outgoing AICC Chairman Matt Davis. He seemed almost prophetic when he said in June that he wouldn’t be surprised if Joe Biden didn’t run for reelection. He was right, with Biden dropping out of the race in July and being replaced on the Democratic ballot by Vice President Kamala Harris. “So much is going to change between now and November,” adds Davis, president of Packaging Express in Colorado. “I don’t know what that’s going to be. It’s kind of ‘buckle our seat belts.’”

Davis worries about the increasing divisiveness of elections creeping into his plant. “We kind of get turned off in some ways by the political climate and the way people treat each other,” he says. “It’s an opportunity for us to show what true

leadership is. We come from the mindset of ‘love all and serve all.’ I think people should vote, but we’re not going to tell them who to vote for. We do think it’s important to participate.”

With all that uncertainty, the only thing to do is prepare for change. “We just control what we can control,” Davis says. “That, for us, is getting up every day

and running the best box plant that we can. The economy seems unsteady right now. My advice to other members of our Association is to get out there and stay in front of your customers.”

The Sustainability Picture

In recent years, policy wins at the state and federal levels have positively impacted

“We just control what we can control. That, for us, is getting up every day and running the best box plant that we can.”

—Matt Davis, outgoing AICC chairman and president, Packaging Express

“The growing regulatory burden, including recent EPA air regulations, are threatening U.S. manufacturing jobs and the economy. Meanwhile, extended producer responsibility policies and the EUDR stand to impede efforts to advance a circular value chain.”

—Julie Landry, vice president of government affairs, American Forest and Paper Association

safety, sustainability, product stewardship, and advancing the circular economy. As the political landscape changes, the industry must remain diligent to guard against backsliding.

“The growing regulatory burden, including recent EPA air regulations, are threatening U.S. manufacturing jobs and the economy,” says Landry. “Meanwhile, extended producer responsibility (EPR) policies and the EUDR stand to impede efforts to advance a circular value chain.”

Industry players, including AICC and AF&PA members, “are long-standing leaders in sustainability, and election outcomes will not change that trajectory,” Landry adds.

Among industry sustainability initiatives, AF&PA’s “Better Practices, Better Planet 2020” initiative includes many sustainability goals that have been met, and her organization is making progress toward updating them for 2030. Member mills and facilities are located nationwide

and “are often the economic backbone of rural communities,” she says. “We will continue to advocate for policies that enable our sustainability commitments and ensure people have access to the essential and sustainable paper products they rely on.”

EPR will remain on the table in 2025, Landry says. As the bills become more complex and sweeping, they become likelier to “create barriers to the market-based solutions that have driven the success of paper recycling.”

“Given the very high recycling rates of paper and paper-based packaging, any EPR system must fully and fairly credit industry’s early, voluntary actions,” she says. “EPR can be an effective policy tool for products that are difficult to recycle, have low recycling rates, or where healthy end markets do not exist. But none of these issues apply to paper.”

Paper and paper-based packaging products should be excluded from “the innovation-stifling fees and burdens of EPR programs,” she says. “It is also imperative that fees generated by products in high-performing recycling programs not be used to subsidize development of recycling infrastructure for competing materials.”

Corrugated is one of the most sustainable products available, Brewer says. Boxmaking, he says, is “a very longtime solution sitting around waiting on a problem. With what I see lately, this is a plastics problem, not a paperbased problem.”

Davis hopes for elected leaders who are good stewards of the environment and pro-business. “We don’t want anything that’s so dramatic that it prevents us from doing what we’re trying to do,” he says. “We are essential to the economy. Corrugated is a renewable and recyclable product. The unfortunate thing is, sometimes, that we get lumped into all kinds of packaging and plastics, and we’re not. If anything, we need to

keep getting the message out that paperbased products are a lot better.”

AICC members can support such outreach to elected officials by taking advantage of AICC’s educational and training offerings and then sharing

AICC’s positions with their elected representatives to demonstrate the industry’s constant betterment efforts toward resilience and sustainability, Brewer says. “It’s the cycle,” he says. “Carry our message, but also consume our benefits

and our offerings to help yourself succeed and thrive.”

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Landry also encourages incoming elected officials to join the U.S. House and U.S. Senate Paper and Packaging caucuses, which inform members of Congress about the value of the paper and packaging industries in their states and districts. “AF&PA and AICC members can also play an important role in shaping decisions that impact the industry,” she says. “We encourage members to get involved through our organizations’ grassroots programs and connect with their policymakers to share how policies and their decisions affect our businesses, our jobs, and our communities.”

All Americans benefit when policies are both achievable and sustainable, “with the goal of preserving access to the paperbased products people need and use every day,” Landry adds. “We look forward to working with those who are elected in November to strengthen American manufacturing and continue to advance sustainability in the paper and wood products industry.”

As independent boxmakers leverage personal service and customization as a strategic advantage in the age of consolidation, AICC members are “poised to do well in the future,” says Brewer.

It’s a cycle of investment and job creation that lawmakers appreciate and want to hear about. “We continue to spend money and invest and improve our workforce and our offerings, our equipment, and our products,” he says. “I really think we’re on the cusp of a good run. We just have to get through our current situation, let the policies take effect, and let the fun begin.”

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M. Diane McCormick is a freelance journalist based in

MAINTAINING MOMENTUM

Technology is enhancing boxmakers’ approach to equipment maintenance, improved efficiency, and real-time data analysis

BY ROBERT BITTNER

In the words of Jeff DeVries, president of dryer and ink management equipment manufacturer XericWeb Drying Systems (XDS), “If you can keep your equipment running effectively and efficiently, you’ll ship boxes that cost you less to make, and you’ll meet on-time order schedules. It’s not rocket science. It’s just paying attention to the details.”

Managing those details, though, can be challenging as equipment advances, employees come and go, and customer expectations rise. As a result, DeVries says, “my general experience is that the majority of our customers operate from the perspective of ‘We’ll fix it when it’s broken,’ rather than focusing on preventing breakage in the first place. I don’t believe that’s due to negligence. It’s just that in many cases boxmakers are running lean, and there are fewer and fewer resources—people and time—for preventive maintenance on equipment that seems to be running fine. That’s where I think we machinery people can help, providing tools to optimize their available time and get the best performance out of their equipment.”

From Manuals to Microchips

In the past, recommended maintenance schedules typically were presented in printed equipment manuals. At XDS, that included a recommended planned maintenance (PM) schedule and a blank chart customers could fill in to track what was being done and when. In reality, these tools were rarely used. “If I visited a customer five years later, that chart would likely be empty,” DeVries notes. This situation is common. The need for more effective maintenance solutions has given rise to a number of problem-solving technologies, many of which are based on a collection of general business applications known as Industry 4.0 and Industry 5.0.

“Industry 4.0/5.0 seeks to optimize the manufacturing process through the integration of digital technology, including artificial intelligence,” DeVries explains. “So we began looking at how we could use Industry 5.0 tools—greater digital connectivity, improved analytics, machine learning, and artificial intelligence (AI) applications—to help our customers improve their overall operation as well as improve the maintenance of the equipment that leads to better operation.”

One immediate advantage has been the ability to tailor maintenance to actual machine needs rather than an arbitrary schedule. It’s a process DeVries calls “actively managed maintenance.”

“Historically, our PM guidelines said things like, ‘Every two weeks you clean this. Every six weeks you do this.’ The guidelines were the same for every use case, whether you used the equipment a lot or very little,” he says. “Now, we’re building tools into our control software that look at how the equipment is being used, allowing our customers to focus on when

things need to be done based on actual usage.”

The digital nature of these tools means large amounts of data are being captured that allow for detailed analysis, comprehensive reporting, and informed decision-making. “We’re able to create reports that automatically can be distributed to the right people and stress what needs to be done on the basis of urgency,” DeVries says. “We can tell you how long certain maintenance will take so you can better schedule it into the workday and even provide videos that can walk someone step-by-step through the process. We log the actions when they have been done and can distribute reports on the process, including the parts used and recommendations for future parts stocking. We’re also able to associate costs with this kind of maintenance; we can specifically point out to a customer that by doing this $150 worth of maintenance they saved themselves $2,000 in repair costs. These tools are helping people make smart decisions in situations where they simply don’t have the time, the staff, or the skill set to be able to do that effectively.”

Teamwork Makes Machines Work At Royal Containers, Continuous

Improvement Manager Mohamed Azzouz is constantly on the lookout for opportunities to enhance or improve efficiencies, safety, and overall work conditions in the plant. “The work varies from improving a process to physical improvement at a machine center to get better at what we do,” he says. “Even small improvements can make a huge impact on our process over time.”

When evaluating potential adjustments to current equipment, his discovery process often begins with an investigation that analyzes the production process, measures overall equipment effectiveness, and then determines the extent to which that particular machine could be improved. Then, he may organize what are known as kaizen events, small-group gatherings where employees spend a focused week or two working as a team to explore ways to improve a well-defined and limited-scope project. “The scope is limited by design to make sure we don’t get too ambitious and try to improve everything at once,” Azzouz says. “If you

try to do everything at once, you end up not achieving any of your objectives.”

Some changes can be implemented immediately after the event. “For something that requires a longer process, we come up with a list of recommendations to our maintenance team, or if we need to get a new piece of equipment or upgrade existing equipment, then we have to submit a proposal and justify the expense. We try to use existing resources and critical thinking to get around inefficiencies and challenges. Nine times out of 10 we’re able to make a significant impact without spending money,” Azzouz says.

One particular lesson Azzouz has learned after overseeing many improvements is that while each new piece of equipment or each improved process may deliver efficiencies of its own, any changes you introduce likely will affect workflow and potentially create a bottleneck somewhere else. Each piece of equipment plays a part in your overall production and needs to be managed in relationship to the entire plant. “We need to focus on global efficiencies,” he says.

The pursuit of global efficiencies is leading some manufacturers to seek similarly holistic technological solutions.

So Long, Silos

At DeLine Box & Display, Jeff Putt, managing director of digital services, notes that the company has been using various separate platforms to address the company’s equipment and personnel

needs. “Because we don’t yet use sensors on our machines, maintenance is based on scheduling rather than what might be happening within the equipment,” he says.

For that, DeLine relies on a cloud-based platform called Fiix, which manages service records, inventories, and purchase orders. “It’s a tool that lets us know what we should consider replacing and changing. It isn’t predictive maintenance; it’s preventative,” he points out.

In addition, employee training relies on the web-based Dozuki application. Salespeople are using a bespoke workflow automation program that manages project information, including sales, design, and customer-service functions. The company is developing a new customer relationship management application, which will provide sales analytics to help the sales team make the most of their interactions with customers and prospects.

“All of these are tools great,” Putt says, “but they don’t talk to each other. That minimizes our ability to get true insights out of all this data we’re gathering. Ideally, we want to be able to take that data, analyze and clean it, and develop a dashboard that collates it into a real-time management system. We need to move away from these separate silos, connect our disparate processes together into a more integrated data-warehouse environment so they can be useful in real time. But I think we’ve got at least three or four years ahead of us to develop a useful system.”

“We need to move away from these separate silos, connect our disparate processes together into a more integrated data-warehouse environment so they can be useful in real time.”

—Jeff Putt, managing director of digital services, DeLine Box & Display

It’s a process with inherent challenges. “Whenever you start sharing data between applications, across company departments, with a variety of different suppliers and their equipment, the concern is that someone’s going to hack in and take the whole network down,” acknowledges DeVries. “That leads to reluctance to share information. We’re trying to help customers—and, through them, other manufacturers—see how technology can add value and provide a return on investment for our customers so they can benchmark their practices and see for themselves that these kinds of tools are worth investing in.”

For boxmakers, the advantages of cooperative data exchange are numerous. “Once you have connectivity across the system, you can have a dashboard, a window into real-time events. You can see what’s happening, what needs to happen, and what’s liable to happen,” Putt says. “You can also utilize tools like generative AI and machine learning to give you insights that are deeper than what’s on the surface. Ultimately, you’re going to be able to access data in a timely way so you can utilize it in a timely way. No more waiting until the end of the month to get any real data from your enterprise resource planning [software]. Once the month is closed, it’s too late to do anything about it; all you can do is look in the rearview mirror.”

AI = Real Opportunities

AI based on machine-learning applications is destined to play a significant role in data-driven decision-making.

“Data analysis is where AI software can really benefit a box plant,” Azzouz says. “We’re all collecting all kinds of data from the jobs we run. The challenge is the analysis. You can train an AI model to do that for you, instead of you having to go line by line trying to figure out how efficiently you’re running your production. Once you know what to

“When [AI is] implemented well, it empowers more people to do things effectively, provided they have the acumen to learn how to work with it.”

—Gokul Gopakumar, vice president of technology and business development, SUN Automation Group

target for improvement, then you can confirm through direct observations. AI is a game changer for both continuous improvement and operations.”

Gokul Gopakumar, vice president of technology and business development at SUN Automation Group, says, “I think AI will affect every department and be a part of every operating function within a box plant. Currently, it’s going to be most effective where an infrastructure is already in place to support it, and that typically means around scheduling, planning, and supply chain

logistics as well as predictive equipment maintenance. These are areas where we have seen a lot of investment and a lot of success in other industries, which translates effectively to boxmakers.”

The extent to which AI can help improve a boxmaker’s efficiency is going to depend, in part, on the boxmaker’s size. “Bigger operations will have more operational intricacies, more places where efficiency improvements can bring bigger rewards,” Gopakumar points out. As a result, “it may not be cost-effective yet for really small operations.”

Gopakumar believes boxmakers should keep two key factors in mind as they explore the benefits of AI. First, he says, “box plants have to reconsider the talent they hire. There is great value in bringing in people who have specific software skill sets,” tailored to making the most of what AI has to offer. Second, understand that AI requires an investment, whether a plant chooses to manage everything on their own— investing in development resources, new computer hardware, and so on—or to use existing suppliers to provide some of the AI infrastructure and the required data connections.

“AI is about augmenting and improving people’s ability to be effective and efficient,” Gopakumar sums up. “When it’s implemented well, it empowers more people to do things effectively, provided they have the acumen to learn how to work with it.”

Never-Ending Journey

For better or worse, the learning process and the accompanying pursuit of maximum machine performance and efficiency will never end.

“Continuous improvement is just that: continuous, ongoing,” Azzouz says. “We will never reach a level where everything is running as smoothly as possible and everyone is completely satisfied because the world is constantly changing. No matter how efficient our current processes are, they will change as we add new equipment, develop new products, and respond to new customer requests and market demands. Nothing stays static. And if nothing stays static, you will always have work to do.”

Robert Bittner is a Michigan-based freelance journalist and a frequent BoxScore contributor.

U size U i

It’s time to unbox the latest model in the Ultima machine family –EMBA 295 QS Ultima ™. Delivering outstanding productivity and quality as well as material efficiency to large box operations. That’s what we call big news.

EMBA 295 QS Ul imaª

By introducing the EMBA 295 QS Ultima ™, we now offer a complete machine range to fit any customer need. It comes loaded with all the

benefits you’d expect and like all our Ultima machines it features our unique Non-Crush Converting ™ and Quick-Set ™ technologies.

The 295 QS Ultima ™ offers true DualBox ™ production through TwinFeed ™ and XL slotter, as well as complex internal box die-cutting and creasing with the bottom diecutter. Several available options, like for example HighBox ™ and the award winning LiquidCreaser ™ , further enhance its true flexibility and top-class performance.

XL boxes + XL slotter = XXL output.

SPECIAL SECTION

AICC begins offering annual Xperience conferences to dig deep into critical topics for independents such as e-commerce, digital printing, and artificial intelligence.

Plant tours are always educational, and clearly members also have fun along the way.

In 2024, the AICC Emerging Leader program celebrates its 10th anniversary.

AICC hosts several golf tournaments every year across the United States.

Photos courtesy of AICC.

50 YEARS OF AICC

2014–2024:

FDuring AICC’s 50th anniversary celebration, AICC Chairman Matt Davis and AICC President Mike D’Angelo show that independents together are unbreakable like a bundle of sticks, reenacting the scene from the first AICC meeting.

Young has helped numerous AICC members as the corrugated technical advisor for decades.

rom 2014 to 2023, AICC embarked on a transformative journey, spearheading initiatives that reflected its dedication to empowering industry professionals and advancing the packaging sector as a whole.

In 2014, AICC inaugurated its Emerging Leader Program under the visionary leadership of Chairman Mark Mathes. This initiative underscored AICC’s commitment to nurturing the next generation of packaging leaders, creating board slots specifically designated for their representation and fostering an environment of mentorship and growth.

The inaugural Independents’ Cup Charity Golf Tournament, held during the 2014 Spring Meeting in Nashville, Tennessee, exemplified AICC’s spirit of camaraderie and philanthropy. Led by Mathes, this event not only showcased the industry’s commitment to giving back but also served as a platform for networking and collaboration among members.

In 2015, the AICC board of directors adopted the “Destination Model” for long-range planning and measuring success under the leadership of Chairman

Greg Tucker. This forward-thinking approach provided a road map for strategic initiatives and organizational growth, ensuring alignment with AICC’s overarching mission and vision.

The ongoing partnership between AICC and the Technical Association of the Pulp and Paper Industry (TAPPI) flourished with the co-sponsorship of the fifth SuperCorrExpo® in 2016, reaffirming their commitment to driving industry innovation and collaboration under Chairman Mark Williams’ guidance.

In 2017, under the leadership of Chairman Tony Schleich, AICC’s board of directors invested in building an online education platform, reflecting the Association’s commitment to leveraging technology to enhance member engagement and professional development opportunities.

Board Chairman Al Hoodwin challenged the AICC staff to disrupt their ideas and revamp the design and format of national meetings, which led to the additional learning and networking opportunities members enjoy today.

Starting in 1981, AICC is proud to recognize, showcase, and reward those independents who have met and exceeded their customers’ expectations of their packaging designs and displays. This was done initially with the Packaging Design Competition and is now with TAPPI in the Box Manufacturing Olympics, which takes place every four years in conjunction with SuperCorrExpo ®

Ralph

PAST CHAIRS

Mark Mathes, 2013–2014

Vanguard Companies

Gregory Tucker, 2014–2015

Bay Cities

Mark Williams, 2015–2016

Richmond Corrugated

Tony Schleich, 2016–2017

American Packaging Division of Lawrence Paper Company

Al Hoodwin, 2017–2018

Michigan City Paper Box Company

Joseph M. Palmeri, 2018–2019

Jamestown Container Companies

Jay Carman, 2019–2020 and 2020–2021

StandFast Packaging Group

Gene Marino, 2021–2022

Akers Packaging Service Group

Jana Harris, 2022–2023

Harris Packaging and American Carton Co.

In 2019, AICC realized a long-standing vision with the chartering of the Foundation for Packaging Education under Chairman Joseph M. Palmeri, reflecting its dedication to investing in the development of industry professionals and fostering collaboration across the sector.

AICC continued its legacy of leadership with the appointment of Mike D’Angelo as president in 2019, succeeding Steve Young. Under Palmeri’s guidance, this transition underscored AICC’s commitment to continuity and effective leadership amid a changing industry landscape.

In 2020, AICC navigated the challenges of the COVID-19 pandemic with resilience and adaptability under Chairman Jay Carman’s leadership, leveraging broadcast video calls and enhanced communication among members to ensure continued collaboration and support.

Despite the challenges posed by the pandemic, AICC forged ahead in 2021, becoming the first association in the

industry to hold an in-person national meeting. Held in Amelia Island, Florida, this meeting brought a much-needed sense of normalcy to the membership, and the event was a huge success.

The partnership between AICC and TAPPI was further solidified with the co-sponsorship of the sixth SuperCorrExpo® in 2021, delayed one year due to COVID19, highlighting their shared commitment to driving industry innovation and excellence under Carman’s guidance.

In 2022, AICC extended its partnerships with like-minded organizations by creating microsites for the National Wooden Pallet & Container Association and the Asociación de corrugadores del Caribe, Centro y Sur América to access relevant AICC online education programs. Led by Chairman Gene Marino, this initiative underscored AICC’s commitment to collaboration and knowledge-sharing on a global scale.

In 2023, AICC continued its tradition of fostering industry talent and promoting corrugated industry careers through a partnership with Ben Barber technical

Matthew M. Davis 2023–2024 Packaging Express

high school in Mansfield, Texas, under the guidance of Chairwoman Jana Harris, reaffirming its commitment to nurturing the next generation of packaging professionals.

In 2024, under Chairman Matt Davis, AICC celebrated its 50th anniversary with an epic meeting in Palm Desert, California, and the 7th SuperCorrExpo® in Orlando with TAPPI. His theme of the “Independent Advantage” continues to push the Association forward.

AICC hosts an East Coast and a West Coast ski meeting annually.

AICC seminars bring members together for hands-on learning.

Mike D’Angelo becomes AICC’s president in 2019 and is continuing to support the expansion of benefits to AICC members.

AICC’s golden anniversary gala celebrated with big band music from the golden age of Palm Desert.

Safety-Driven Design

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• No water consumption and treatment needed

Exceptional Parts and Service

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Discover the updated and improved Packaging University available

to all members online – for

free

AICC has been offering free online education to members since 2017. We have been constantly adding new courses and working on making them more easily accessible. Now, Packaging University has gone through a major overhaul to reorganize the courses and make it easier for members to find the education they need.

Packaging University is shown as colleges for different departments. Each college includes core courses important for everyone in a box plant as well as specific courses for that department.

This article explains the key learning objectives of each college. The new Packaging University will launch September 10, 2024. Learn more at www.AICCbox.org/PackU and take the courses.

College of Finance

This course of study focuses on the general best practices for individuals working in the accounting department of a packaging industry company. It does not replace professional certification or matters of local compliance.

Introduction to Corrugated Packaging: Learn the history, uses, manufacturing processes, market trends, and innovations in corrugated packaging.

Introduction to Corrugated Packaging Accounting: Gain an overview of the industry, the accountant’s role, and basic accounting principles.

Cost Accounting: Understand production cost structures, calculate the cost of goods sold, and pricing, manage inventory, and use accounting software.

Financial Management: Explore financial planning, budgeting, financial

statements, key performance indicators (KPIs), performance analysis, and corporate financial decision-making.

Taxation: Learn an overview of relevant tax laws, corporate tax planning, sales and use tax management, and international tax considerations.

Industry Regulations and Compliance: Understand industry standards, environmental compliance, labor laws, and import and export regulations.

Career Development and Professionalism: Explore professional ethics, career advancement, continuing education, networking, and professional associations.

College of Leadership

This course of study focuses on the development of skills for leading people and managing processes. It is intended to provide the generic knowledge needed regardless of departmental assignment. It would be advisable to also complete the course of study applicable to one’s assigned department.

Performance Measurement and Management: Learn how to maximize process efficiency, establish standard work procedures, explore enterprise resource planning solutions and other sources of packaging industry data, and develop a basic understanding of financial documents required for budgeting and profitability. Leaders are also encouraged to complete applicable courses in the College of Process Improvement.

Leading People: Develop skills in peer leadership, accountability management, effective delegation, and team effectiveness. Enhance communication

for coaching employees and for general business purposes, provide motivational feedback, apply situational leadership, conduct productive meetings, and create employee development plans.

Personal Development: Improve emotional intelligence for career growth and master time-management techniques.

College of Production

This college focuses on the process knowledge required to excel in corrugated manufacturing. It covers essential process knowledge, measurement techniques, problem-solving skills, and safety procedures for manufacturing workers in the corrugated packaging industry. Because the majority of AICC’s general members are engaged in flexographic print technology, the number of courses that focus on that technology is high. Courses on corrugated sheet production as well as

CORE COURSES

The follow AICC Packaging University courses are part of all colleges, meaning they are—you guessed it—core to the foundation of industry knowledge:

• Carton Style Resource

• Corrugated Basics Lite

• Flexographic Print Fundamentals

• Glossary of Packaging Terms

• Machine Primer

• Safety Basics

SPECIAL SECTION

other print technologies are included in the catalog.

Process Knowledge: Learn the fundamentals of corrugated packaging, flexographic printing, board combinations, ink management, and understanding warp.

Process Measurement: Learn packaging production math, including the use of tape measures and other physical measures for quality control.

Problem-Solving: Develop skills in data-driven decision-making, using KPIs and maximizing equipment effectiveness, team efficiency, and crew-involved maintenance.

Workplace Safety: Gain knowledge of lockout/tagout procedures and workplace safety regulations.

College of Customer Service

This college equips customer service representatives with the knowledge and skills necessary to provide excellent customer support, handle technical

systems efficiently, and contribute to the company’s sales efforts.

Product and Service Knowledge: Gain a comprehensive understanding of the company’s products and services to effectively assist customers.

Communication Skills: Develop active listening skills, use positive language, and learn to clearly explain solutions to enhance customer interactions.

Customer Service Skills: Learn to handle complaints, de-escalate difficult situations, and resolve issues professionally and empathetically.

Technology and Systems: Get trained on using the company’s customer service systems, including customer relationship management and phone systems, for efficient service delivery.

Company Policies and Procedures: Understand company policies, including privacy, data protection, and security protocols.

OUR ED INVESTORS

Thank you to the following AICC members for their support of Packaging University and commitment to furthering industry knowledge as education investors:

• BCM Inks

• Bobst

• EFI

• Fosber

• HP

• JB Machinery

• Kruger

• Pamarco Absolute

• Pamarco Anilox

• Printron

• Stafford Corrugated Products

• SUN Automation Group

To become an education investor, visit www.AICCbox.org/page/edinvestor

Sales and Upselling Techniques: Learn professional and nonintrusive techniques for upselling products and services to customers.

College of Design

This college equips students with the knowledge and skills to excel in the design and production of corrugated packaging, focusing on materials, manufacturing, structural integrity, design aesthetics, and market insights. It does not include training in computer-aided design software.

MATERIALS AND MANUFACTURING PROCESSES

Raw Materials: Overview of materials used in corrugated packaging.

Printing Techniques: Overview of various printing methods.

• Lamination and Die Cutting: Insights into these essential processes.

CURSOS EN ESPAÑOL

AICC’s Packaging University delivers the following courses in Spanish:

• Resolución de Conflictos

• Glosario de términos de impresión y embalaje

• Entendiendo los rodillos anilox

• Alineación del rodillo corrugador

• Introducción al Embalaje Lean

• Fundamentos de seguridad

• Comprensión de las Combinaciones de Cartón Corrugado

• Principios básicos de las tintas a base de agua para impresión flexográfica

• Operación del Troqueladora Rotativa

• Cómo optimizar la impresión flexográfica

• Conceptos básicos de corrugado 101

• Control de las operaciones en una empresa fabricante de empaques de cartón

• Fundamentos de la Impresión Flexográfica

• Creando un Lugar de trabajo visual usando las 5S o las 7S

• Factores que afectan la resistencia a la estiba en los empaques de cartón corrugado

• Manufacturing Equipment: Overview of machinery used in production.

STRUCTURAL DESIGN

• Design Fundamentals: Basics of structural design for packaging.

• Strength and Durability: Techniques for designing robust packaging.

• Load Capacity and Shipping: Requirements for load capacity and shipping.

PACKAGING DESIGN

• Design Principles: Introduction to core packaging design principles.

• Color Theory and Typography: Basics of color theory and typography in design.

• Reducción de configuración

• La Eficiencia General del Equipo (OEE) en la Industria del Empaque

• Cómo especificar una caja

• Pandeo y cómo controlarlo

• Optimización del Mantenimiento Preventivo

• La importancia de los empaques en el e-commerce, Modulo 2

• La importancia de los empaques en el e-commerce, Modulo 1

• Introducción al Diseño de Cargas Unitarias de Cajas a Nivel de Sistema

• Implementación de un Proceso de Rutina de Mantenimiento Programado

• Cómo realizar una auditoría a la corrugadora

• Conceptos básicos de corrugado 102

• Conceptos básicos de corrugado 103

• Como mejorar las ventas en esta nueva realidad

• Matemáticas para la producción de empaques

• Navegando el Tiempo: Gestión de Tiempo para el Taller

• Sustainability and Recyclability: Ways to design for environmental sustainability.

• Product Presentation: Techniques for creating effective product presentations through design.

CUSTOMER AND MARKET INSIGHTS

• Research Methods: Techniques for understanding customer and market needs.

• Customer Feedback and Trends: Ways to analyze feedback and market trends.

• Competitive Landscape: Understanding of the competition in corrugated packaging.

• Customer Service: Emphasis on the importance of customer service.

• Customer Inquiries: Techniques for responding effectively to customer inquiries and concerns.

HEALTH AND SAFETY IN THE WORKPLACE

• Safety Regulations: Understanding of workplace safety regulations.

• Hazardous Materials: Basics of the proper handling of hazardous materials.

• Safety Programs: Ways to implement effective workplace safety programs.

College of Maintenance

This college is intended to equip students with essential knowledge for skill development in maintenance processes, understanding packaging machinery, problem-solving, and safety, ensuring they are prepared for a successful career in maintenance management.

Maintenance Processes: Learn to implement routine scheduled maintenance, assess facilities from a maintenance perspective, and optimize preventative maintenance. Gain knowledge of best practices, including lean methodology, and involvement of operators in maintenance activities.

Packaging Machinery: Understand corrugated packaging equipment, standards, and materials. Optimize manufacturing equipment and explore innovations and advancements in corrugated packaging machinery. Learn how to audit corrugator equipment and develop preventative measures to minimize downtime.

Problem-Solving: Develop problem-solving skills by gathering data, communicating and collaborating with crews for maximum productivity.

Safety: Gain critical knowledge in safety procedures, including learning lockout/tagout processes, handling hazardous materials, and obtaining enclosed space permits.

SPECIAL SECTION

College of Process Improvement

This college covers essential topics to enhance quality and efficiency. It provides a knowledge base to develop the skills necessary to manage quality, improve processes, ensure customer satisfaction, and prepare students for a successful career in process improvement and quality management. Quality Basics: Learn the foundational principles of quality management.

QUALITY MANAGEMENT AND CUSTOMER SATISFACTION

• Customer Satisfaction: Understanding of the importance of customer satisfaction and how to achieve it.

• Quality Management Programs: Overview of effective quality management programs.

• Customer Feedback: Ways to respond to customer feedback and suggestions.

INSPECTION AND TESTING TECHNIQUES

• Inspection Methods: Understanding of various inspection and testing methods and techniques.

• Inspection Programs: Overview of effective inspection and testing programs.

• Results Management: Ways to manage inspection and testing results and records efficiently.

College of Human Resources

The College of Human Resources (HR)curriculum provides exposure to best practices in key areas of HR management. This curriculum equips students with the knowledge to develop skills necessary to manage HR compliance, employee benefits, HR operations, and talent acquisition effectively. The college does not provide specific direction on matters

of local compliance, and it does not replace HR certification achieved through completion of coursework with organizations such as the Society for Human Resource Management.

COMPLIANCE AND LEGAL ISSUES

• Employment Laws: Overview of federal and state employment laws.

• Compliance Programs: Ways to implement compliance programs and procedures.

• Employee Complaints: Techniques for responding to employee complaints and disputes.

EMPLOYEE BENEFITS AND COMPENSATION

• Benefit Programs: Understanding of employee benefit programs and options.

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• Compensation Programs: Ways to develop and implement effective compensation programs.

• Benefits and Payroll: Approaches to managing employee benefits and payroll operations.

HUMAN RESOURCES MANAGEMENT AND OPERATIONS

• HR Systems: Overview of human resources management systems.

• Employee Relations: Understanding of employee relations and engagement.

• HR Policies: Ways to implement effective HR policies and procedures.

RECRUITMENT AND TALENT ACQUISITION

• Talent Acquisition Strategies: Overview of strategies for talent acquisition.

• Recruitment Programs: Insights into effective recruitment programs.

• Sourcing and Screening: Techniques for sourcing and screening job candidates.

College of Sales

The College of Sales curriculum equips students with essential knowledge in corrugated packaging sales, including packaging solutions, market insights, and negotiation techniques, preparing students for successful careers in sales within the corrugated packaging industry.

PACKAGING SOLUTIONS AND PRODUCT OFFERINGS

• Corrugated Packaging Solutions: Overview of the full range of packaging solutions available.

• Product Knowledge: Insights into the technical expertise in corrugated packaging products.

• Customer Needs: Techniques for identifying customer needs and matching them with the right products.

CUSTOMER AND MARKET INSIGHTS

• Research Methods: Approaches to understanding customer and market needs.

• Customer Feedback: Analysis of customer feedback and market trends.

• Competitive Landscape: Understanding of the competition in the corrugated packaging industry.

NEGOTIATIONS

• Costing Factors: Overview of factors influencing costs for corrugated packaging solutions.

• Budget Constraints: Understanding of customer budget constraints.

• Negotiation Strategies: Insights into effective negotiation and closing strategies.

Packaging made with nature

Our future depends on respecting nature. That is why we source our raw material from sustainably managed northern forests and together with its partners, Metsä plants over 30 million trees every year to ensure that forests grow more than they are used. All the way from the forest to the consumers and with easy recyclability, Metsä Board’s premium products are the natural choice for sustainable packaging. Together we make the perfect package

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The Associate Advantage

JOHN BURGESS PAMARCO VICE CHAIRMAN JOHN.BURGESS@PAMARCO.COM

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

JEFF DIETZ KOLBUS AMERICA INC. SECRETARY JEFFREY.DIETZ@KOLBUS.COM

MIKE BUTLER DOMTAR PACKAGING DIRECTOR MIKE.BUTLER@DOMTAR.COM

GREG JONES

SUN AUTOMATION GROUP IMMEDIATE PAST CHAIRMAN GREG.JONES@SUNAUTOMATION.COM

Press Play – Celebrating a Legacy of Connection and Inspiration

BY JEFF DIETZ

In the ever-evolving world of paper-based packaging, staying connected, informed, and inspired is crucial. For the past couple of years, the Breaking Down Boxes podcast has served as a beacon of knowledge and camaraderie for industry professionals. Hosted by Gene Marino of Akers Packaging Service Group and Joe Morelli of Huston Patterson and Lewisburg Printing Co., this podcast has delved into the personal and professional journeys of key figures in the independent packaging sector. As they conclude their time as the hosts, I reflect on the impact it has made.

Marino and Morelli, with their experience and curiosity, created a platform where entrepreneurs could share their trials and triumphs in candid, compelling conversations. The podcast highlighted the challenges and successes of the independent packaging industry and fostered a sense of community by sharing the stories behind the boxes. By bringing to light the narratives of industry leaders, the podcast provided insights and lessons.

One of the standout aspects of the podcast was its ability to humanize the industry. Marino and Morelli’s interviews were not just about business strategies and market trends; they delved into the personal stories, leadership philosophies, and the highs and lows of their guests.

Morelli emphasized the power of storytelling in shaping careers and fostering growth. “AICC’s membership is full of people who have such powerful stories of growth, success, and even failure. Gene and I have been fortunate over the years

to hear firsthand what their experiences have been like, and ultimately a lot of it has helped shape our own careers,” he says. This excitement and passion were palpable in each episode, making the podcast a must-listen for anyone involved in the packaging industry.

The inaugural episode, which aired on March 7, 2022, featured a conversation with Greg Tucker, chairman and CEO of Bay Cities. The subsequent episode, released on April 4, 2022, showcased John Bird, chairman and CEO of JB Machinery. These episodes set the tone for what listeners could expect: authentic conversations filled with knowledge, lessons, and laughter.

“Joe and I were excited to deliver to the membership stories and advice from successful industry entrepreneurs. We had been fortunate enough to enjoy similar stories over the years and felt that sharing to a broader audience provided insights into being a better leader. We hope you enjoyed,” said Marino. This sentiment underscored the podcast’s mission to educate, inspire, and connect the AICC community.

As we bid farewell to our founding hosts of Breaking Down Boxes, we extend our thanks to Marino and Morelli for their dedication and impactful contributions. Their efforts have left a lasting mark on the AICC community, celebrating the resilience, innovation, and leadership of its members.

Jeff Dietz is president of Kolbus America and vice chairman of AICC’s Associate board.

NEW FREE ONLINE COURSES

The course aims to provide you with an understanding of warehouse management, with a special focus on corrugated sheet suppliers and converting plants.

This course covers the various quality assurance testing and inspection methods used in the creation of corrugated packaging.

In this course, the basics of workplace safety are explained, including guidelines for safe interaction with machines, chemicals, and materials.

This entry-level course describes the daily, weekly, quarterly, and yearly tasks performed by a typical Accounting department in the packaging industry.

Resolución de Conflictos

Este breve curso le informará sobre cómo manejar los conflictos de manera efectiva en nuestros entornos industriales de empaques, mejorando nuestro trabajo en equipo y productividad.

What the Tech?

Moisture Control Changes the Game

BY DAVID MADDUX

For many years, a fundamental cornerstone of automated quality control in papermaking is moisture control. However, the corrugating process is typically controlled with temperature, which is absolutely necessary for flute forming and bonding, but as corrugators worldwide see firsthand, warping, poor bonding, and other issues still regularly occur.

Temperature measurements alone are not sufficient to control wood fiber-based processes. It is primarily moisture, not temperature, that changes the dimensions.

Wood fibers swell and shrink with mois ture content. This is the source of warping in corrugated board. Uneven moisture across the board leads to different rates of contraction, creating tension and stress in the board layers that cause bending. It is common not to measure a change in temperature, yet once you add moisture to the picture, the root cause of quality issues seen on stacker minutes later is clear.

Through extensive testing and development, a measurable correlation between moisture change and warping has been established. They line up almost perfectly as curl occurs in paper production.

Measuring Is Knowing

Measuring moisture in fiber-based webs is a tricky business. Specialized sensor technology is required to achieve a high degree of accuracy and reliability. Once the correct values are captured, extensive know-how is needed to interpret their meaning.

Liner Moisture and Temperature at Splice

Moisture sensors are positioned after pre-heaters and before glue caps on each paper in single facers and each layer before the glue machine. Additional measurement location is after the double

facer measuring the final moisture of the combined board. This ensures that every layer of the board has moisture and temperature measurements. Real-time measurement data allows the preheaters to keep both temperature and moisture in target ranges with speed changes and splicing with automatic close-looped control.

Benefits of Moisture Control

Moisture and temperature profiles of paper reels are normally of better quality when they first come off the paper machine. At this point, there is stable moisture through the reel with a smooth temperature curve from outside to inside. However, several factors can impact the moisture and temperature

Example of moisture and temperature profiles in a paper reel after logistics.

Moisture level can change, particularly when splicing, even if the temperature remains steady.

What the Tech?

profile after production, including storage and shipment.

Without moisture control, the problems that arise from reel-to-reel and layer-tolayer moisture variation are not detectable until the corrugated board is already made. With predictive controls, moisture and temperature differences that caused warping and delamination in the final product can be eliminated. Corrugator production is then far more sustainable as waste is dramatically reduced.

Paper moisture also affects how glue penetrates the fibers. Once moisture control is in place, there is no need to add extra glue for any other purpose than bonding. Corrugators can consistently use the minimum amount of glue required for bonding, reducing glue and energy consumption and further reducing moisture variation after corrugator causing post-warp and washboarding.

Automated Controls for Optimum Performance

While accurate, reliable measurements are the foundation of moisture close-loop control, automation requires deep insights into fiber and water behavior.

Instantaneous measurement— combined with predictive analysis— enables real-time response to varying moisture and temperature. When the machine direction close-loop moisture and temperature controls are on, there is practically no variation.

All grades have their own moisture and temperature targets stored in the database. Each target depends not only on the raw materials but also on the machine type and overall process, including storage, specific to each production plant.

Online Data for Real Results and Continuous Improvement –A Success Story

Adara Pakkaus Oy, a Finnish corrugated supplier, wondered if it could do better

by implementing a new solution that could give it real-time data available online. “We did not want to fly blind anymore,” says Petteri Rekimies, production director at Adara with over 20 years of experience in the corrugated industry. “There’s no question that moisture and temperature vary in raw materials after logistics and also during the drying and rewetting cycles in the corrugator.”

Mikko Järvinen, development manager at Adara, adds, “Overall, we needed real, measured online data to see what happens during production to enable optimization and root cause analyses.

“Reaction time to raw material changes during production is very quick with online measurements and control,” continues Järvinen. “It is much better compared to when operators needed to wait until they see the sheets at the stacker to make corrections. That is too late when the machine is already full of unwanted quality.”

“Our waste level is now the lowest it has ever been,” says Rekimies. “We also know we can still improve, thanks to the real, measured data we have from

the process. Experience from the paper industry has shown that temperature only is not enough to control the process and continuously improve productivity and profitability.”

With the collected data, Adara eliminates assumptions. When decisions are based on measurements from production, concrete actions can be taken to better serve Adara’s own converting and ensure end customers get predictable box quality.

“Our main operators have nowadays much more time to use on other important tasks besides monitoring the quality changes in splices. … Online moisture and temperature data available throughout the process also allows operators to be proactive in other areas that were not possible before,” says Rekimies.

David Maddux is the North American Corrugated Board and Converting Automation sales manager at Valmet. He can be reached at 423-309-8277 or david.maddux@valmet.com

IQ wet-end control effectively eliminates moisture variation.

Strength in Numbers

Enhanced Financial Reporting

BY MITCH KLINGHER

In the “Back to Basics” series of articles, we discussed the following:

• Many of the key relationships that drive profitability in a paper converting operation and how to properly reflect them on your financial statements.

• The need to separate manufacturing activities from nonmanufacturing activities.

• How to create profit centers.

• Why proper categorization and the use of cost centers enhance reporting.

• The need for well-organized and concise reporting.

There is no cookie-cutter approach to reporting as every operation has a slightly different focus and different strengths and weaknesses. The framework for reporting explained in the previous article should serve as a good guide but needs to be

modified to fit your particular needs and circumstances.

The key relationship in the financial statements of every converter will always be material margin. Materials will usually be between 40% and 60% of manufactured sales and 60% and 80% of brokered sales. So, what can be done to enhance the reporting of material margin, other than showing it as a percentage of sales or per MSF (thousand per square foot)? The answer really depends on how you define your profit centers. In the last installment, we showed Table 1 at the top of the income statement.

This is a good first step because it separates manufactured sales from nonmanufactured sales and gives some idea of overall margins. If we were to look at the entire mix of sales based upon 177,500 of MSF shipped and a total of 7,550 major machine hours run, we could come to the following conclusions:

Table 1: ABC Sheet Plant – Income Statement for the Six Months Ended June 30, 20XX

• Sales per MSF: $114.10

• Margin per MSF: $50.70

• Margin per hour: $1,192

But is this enough? The company has over $20 million invested in manufacturing equipment and, with the exception of their midsize flexo, is running a one-shift operation. Its most recent acquisitions are a flatbed die cutter, a specialty folder-gluer, and a digital printer, and they need to understand how this new initiative is working out. They also need to know whether it pays to continue to run a second shift on their midsize flexo, and it would be invaluable to better understand the profitability of their other equipment. Let’s take a look at the manufactured section of Schedule 1 (see Table 2). To get this information, you need to rearrange your product codes to be machine routings, match up production data with every order, and come up with a standard allocation for multiple machine orders.

We see the same $20.25 million in sales and $9 million in material margin, but by spreading this out by machine, adding the hours run, and showing the total hours available, a very interesting and slightly different story emerges:

Table 2: ABC Sheet Plant – Schedule 1 – Material Margin for the Six Months Ended June 30, 20XX

Welcome New AICC Members

SEPTEMBER 2023 – JULY 2024

AMG Packaging & Paper Company Limited

Altamont Capital Partners

Box Company of America

Company Box

Corrugated Chemicals, Inc.

MM Board & Paper North America

Menasha Packaging

Nation Corrugated, Inc.

AD

Crespel & Deiters North America Inc.

Dedicated Paperboard, Inc.

Digital Print Partners

Erhardt & Leimer Inc.

Filtrona Tapes Inc.

Norlands Box Company

NorthGate

Opus Packaging Group, Inc.

HOUSE AD #3

PCA Technologies LLC

Piedmont Packaging

Premier Paper Converting Machinery

Prime Packaging Solutions

Franklin Mountain Packaging, LLC

Graphco

Great American Paper, Inc.

HarperLove Adhesives

JCB Packaging

Larson Packaging Company

Sappi North America

Sterner Global

SupplyOne, Inc.

Sustainable Corrugated

Valmet Automation

Value Added Packaging, Inc.

Strength in Numbers

Months Ended June 30, 20XX

• The mini flexo accounts for almost as much margin as the midsize flexo on two-thirds of the overall footage and has a margin per hour that is $625 higher. With an uptime percentage of 79.4% there are definitely more hours to sell.

• The midsize flexo is crewed for two shifts, but its uptime percentage is only 69.4%. The company might be better served to eliminate the second shift entirely and focus on the more

profitable midsize flexo orders. The reduction in overhead by eliminating the second shift might more than offset the lost margin from some of the lower-priced midsize flexo orders.

• The jumbo flexo is running 82.7% of the time, but even though its material margin looks pretty good at 46.2%, when looked at on an hourly basis, it is the lowest of any machine in the plant. It appears to be running very inefficiently, which is being

disguised by a higher sales price and material margin.

• The rotary die cutter is performing well but is running 9.1% more hours than are actually available, so there are probably some significant overtime hours attributable to this machine center, thus raising costs a little bit. Management needs to come up with a strategy to mitigate this.

• The flatbed die cutter, digital printer, and specialty folder-gluer seem to be doing nicely, but they all need more business.

Additional information such as pieces per hour, unplanned downtime, and other data can be added here to illuminate what is going on with each machine center.

The schedule of nonmanufactured sales is also somewhat illuminating (see Table 3).

While the overall margin for nonmanufactured items is pretty good at 22.2%, breaking these sales down into their components shows a very high margin on brokered corrugated and foam and a very poor margin on pallets and packaging supplies. This is the kind of information that management needs to effectuate meaningful change.

The devil is always in the details. Companies that try to drill down to understand the different components of their businesses often have a significant edge over their competitors. Understanding material margins by profit center and focusing on the key drivers of each profit center can give you an advantage in the marketplace.

In future installments in this series, we will look at the various cost centers in a converting operation and how you may enhance your reporting on them.

Mitch Klingher is owner of

LLP. He can be reached at 201-731-3025 or mitch@klinghernadler.com

Klingher Nadler

Table 3: ABC Sheet Plant – Schedule 1 –Material Margin for the Six

Foundation for Packaging Education

Foundation for Packaging Education Holds Napa Valley Fundraiser

Forty-three boxmakers, suppliers, friends, and spouses gathered for a reception on Tuesday, July 16, 2024, at the Silverado Resort in Napa, California. So began the second Foundation for Packaging Education fundraising event. The group took great advantage of being in the heart of California wine country.

The reception opened with wonderful food and a wide variety of wines, including those from Sanglier Cellars. This winery is a passion project of Jana Harris of Harris Packaging and her husband, Zach Campbell. Campbell served as the sommelier for the evening.

Day 2 saw about half of the group tee off on the Silverado’s esteemed golf course, which hosts a Professional Golfers’ Association of America tour event each year. The foundation’s golfers lived up the course’s slogan: “The perfect game isn’t determined by your scorecard, but by where and who you play with.”

After a brunch, nongolfers made an excursion to the Culinary Institute of America, where they took a cooking class taught by professional chefs. The result of the class was a lunch prepared by the participants, which included starters, lamb, cod, duck, steak, sides, dessert, and, of course, wine.

After just enough time to relax and perhaps nap, the group was ready for dinner on the Napa Valley Wine Train. The line runs through the heart of wine country, where attendees took in breathtaking scenery, vineyards, and vistas, all while enjoying a three-course meal and, of course, wine.

Day 3 began with brunch, followed by a tour and tasting at Chateau Montelena. It was this winery’s 1973 chardonnay

that stunned the world by winning the “Judgment of Paris” in 1976, where a California winery, for the first time, bested French wines in blind taste tests. This beautiful property was a great setting for enjoying several different varieties of their fine wines.

Back on the bus, the group went to Beringer Bros. Winery, noted for being in continuous operation from 1876 through today, including through Prohibition, when the winery had permission to lawfully produce sacramental wines. The visit to this lovely property began with a wine welcome, followed by a delicious lunch, and then a tour and tasting in Beringer’s renowned castle and cave-based cellars.

The Foundation for Packaging Education thanks all of the participants for making this event so fun and memorable.

The Foundation for Packaging Education has a simple and vital mission: It supports the development and dissemination of employee education and training resources for workers in the corrugated, folding carton, rigid box, and related supply chain industries. In other words, the foundation exists to educate your team members to ensure a quality, trained workforce and the future of your enterprise.

Please consider a tax-deductible gift or pledge to the Foundation for Packaging Education today at www.packaginged.org/donate

SAVE THE DATES

AICC 2025 Spring Meeting

April 30 – May 2, 2025

Hyatt Regency Coconut Point Resort

Bonita Springs, FL

REGISTRATION OPENS DECEMBER 2024

AICC 2025 Annual Meeting

October 6 – 8, 2025

Sheraton Grand Hotel Chicago, IL

REGISTRATION OPENS SUMMER 2025

International Corrugated Packaging Foundation

Circle of Distinguished Leaders Nomination: Jeffrey Schwarz

The International Corrugated Packaging Foundation (ICPF), co-sponsored by AICC and the Fibre Box Association, announces the nomination of Jeffrey Schwarz for posthumous induction into ICPF’s Circle of Distinguished Leaders. The program honors exceptional individuals—leaders whose vision, creativity, and energy have moved the corrugated industry forward.

Jeff started in the industry working for Trey Corrugated, the company owned by his father, Jack, and then moved to a startup company, Performance Corrugated. In 1998, Jack founded Schwarz Partners. In 2010, Jack, Jeff, and his brother, John, began leading Schwarz Partners together and expanded its independent sheet feeder operations to include partner companies in the packaging, paper, transportation, and recycling industries. Jeff was instrumental in spearheading sheet feeder co-ops and forging relationships between corrugated industry companies. Following a yearlong battle with glioblastoma, an

aggressive brain cancer, Jeff passed away on November 26, 2023.

Jeff’s nomination to ICPF’s Circle of Distinguished Leaders was initiated by the Fiterman family at Liberty Diversified International. His induction will mark the first time two members from the same family have been honored, with his father having joined this prestigious group in 2011.

Friends, business colleagues, firms, and organizations can honor Jeff by making a donation in his name. Nomination contributions are tax-deductible and support the Circle of Distinguished Leaders program as well as ICPF’s work to grow the workforce of the corrugated packaging industry. Those making donations to honor Jeff will be recognized during a posthumous induction ceremony at a 2025 AICC meeting, and in a subsequent release to the packaging trade press that will also be provided to the Schwarz family.

Contact ICPF President Caitlin Salaverria at csalaverria@icpfbox.org if

you would like to join in honoring Jeff by making a tax-deductible nomination donation to ICPF. ICPF then will forward an invoice with mailing and automated clearinghouse instructions for your accounting department.

For more information on ICPF’s Circle of Distinguished Leaders and to see who has been honored in the past, visit www.careersincorrugated.com/ circle-of-distinguished-leaders.

ICPF Partners With SFI to Increase Youth Awareness of Corrugated Industry Careers

The International Corrugated Packaging Foundation (ICPF) is excited to announce a new partnership with Project Learning Tree (PLT), an initiative of the Sustainable Forestry Initiative Inc. (SFI), to increase youth awareness of corrugated packaging industry careers. The multiyear partnership aims to increase awareness of, access to, and education about rewarding green careers

in the corrugated packaging industry through the development of educational resources and experiences for educators and guidance counselors working with youth in middle school and high school. This comprehensive approach aims to elevate the profile of the corrugated packaging industry earlier as students participate in career exploration, planning, and development.

“ICPF is very excited about this multiyear partnership with SFI,” says ICPF President Caitlin Salaverria. “The collaboration targets key initiatives for the foundation to increase industry exposure and initiate outreach at the high school and middle school level, and it’s a natural fit. PLT has over 40 years of experience providing high-quality education resources and training for educators, career counselors,

Photo courtesy of the International Corrugated Packaging Foundation.

Jeffrey Schwarz

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International Corrugated Packaging Foundation

and families, and ICPF is excited to leverage their expertise and network to ensure more youth are exposed to the many opportunities and benefits that exist from choosing a career in corrugated.”

“We applaud ICPF’s leadership and welcome this opportunity to partner with the goal of supporting a diverse and resilient workforce in the corrugated packaging industry,” says Kathy Abusow,

president and CEO of SFI. “We look forward to working together to ensure young people learn about packaging sustainability and the diversity of green jobs available to them.”

As the demand for sustainable, renewable packaging continues to rise, so do the career opportunities within the corrugated packaging industry. ICPF is committed to empowering individuals to find rewarding jobs and lifelong careers in this sustainable and vital industry. Look for more information and resources from the partnership to be announced as they become available.

Caitlin Salaverria is president of ICPF.

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The Final Score

Reflections

We’re three-quarters of the way through the year. For context, as I write this, the Stanley Cup final has just been decided—without my New York Rangers—and as you read this, the NFL season is underway.

A good time to share random and heartfelt thoughts as AICC starts fiscal year 2025 and we hit the halfway mark of AICC’s Golden Anniversary year.

What a celebration of 50 years of AICC in April in Palm Desert, California! The recognition continues with nostalgia pieces online and in BoxScore throughout the remainder of the year. You can watch the 50-year video on AICC’s YouTube channel, thanks to sponsors BHS, Domino, and WestRock. Each AICC member will receive a commemorative book about your Association’s 50 years later this year, thanks to sponsors BCM Inks, Domino, and WestRock. We cannot say this enough: Thank you to all AICC members. During 50 years of change, your incredible generosity and openness to your fellow members have been a constant.

After 27 episodes of the Breaking Down Boxes podcast over 2½ years, Gene Marino and Joe Morelli have hung up their microphones. Released in July, the 28th episode, with just the two of them, was titled “One Door Closes.” We all know what follows this phrase. We are grateful to Gene and Joe, who conceived the idea of the podcast and made it a much-anticipated monthly event. AICC will continue to produce Breaking Down Boxes going forward, with new hosts because the stories Gene and Joe have brought us in the conversations with their guests have us craving more.

Inflation seems to be easing, and box demand finally seems to be rising. Members have become more optimistic as the months have gone past. AICC members have always been tenaciously adaptable to macroeconomic conditions, specific industry conditions, and the whims of the marketplace. Agility is the calling card of the independent and a key component of the “Independent Advantage” theme of outgoing AICC Chairman Matt Davis.

There will be an election on November 5, 2024, that will be extremely close at the presidential and congressional levels based on today’s polling. Regardless of the outcomes, AICC will continue to advocate for its members’ interests through our partners on such diverse topics as safety, labor, extended producer responsibility, taxes, and regulation. AICC will continue to inform members on emerging trends and opportunities such as artificial intelligence.

Finally, after more than 40 years, Steve Young is no longer earning a paycheck from AICC. As you may know, Steve “stepped back” as AICC president in July 2019 to become AICC’s ambassador-at-large, where he did many good things. Steve just retired from AICC effective June 30, 2024. I am fortunate to have worked with and for Steve, to have learned from him, and, most importantly, to count him as a friend for more than 25 years.

Steve’s impression on this Association, and this writer, will be forever felt.

Michael D’Angelo AICC President

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