Nov/ Dec 2017 BoxScore by AICC, The Independent Packaging Association

M i Mt si tu sb ui bs ih si h Bi oBx o xM aMk ai kn ig n gM aMc ah ci hn ie ns e s

Introducing

Same 2-minute set-up time Same industry-leading quality Same accuracy and smooth folding Simply more boxes per minute! Make better boxes faster over short or long runs

Sibling rivalry is alive and well. Meet the faster brother. The EVOL family of box making machines has a long lineage of incredible performance. So, it should be no surprise that a new EVOL would be welcomed into the world that is just a little bit faster, turning heads and making box companies swoon. The EVOL 100/400. The family resemblance to the highly regarded 350 bpm, 4-color EVOL 100 is easy to spot – all the same productivity and quality traits that have made EVOL the top performer in the industry. It’s just that the new EVOL 100/400 machine can produce 400 boxes per minute! If you’re a box making company looking for an edge – and you know who you are – get acquainted with the EVOL 100/400. Contact us for a look through our expanded EVOL family album.

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2, 3 or 4 Color 330 bpm FFG • 45" x 115"

2, 3 or 4 Color • 400 bpm FFG 37" x 100"

3 Color • 400 bpm FFG 34" x 84"

A PUBLICATION OF AICC, THE INDEPENDENT PACKAGING ASSOCIATION

November/December 2017 Volume 21, No. 6

WELCOME AICC CHAIRMAN

AL HOODWIN

BRINGING FAMILY BACKGROUND, LEADERSHIP, AND FORWARD THINKING TO AICC

ALSO INSIDE Positioned to Win AICCâ&#x20AC;&#x2122;s 2017 Annual Report

TABLE OF CONTENTS November/December 2017 • Volume 21, Issue 6

COLUMNS

52 FEATURES

WELCOME AICC 2017–2018 CHAIRMAN AL HOODWIN! Bringing family background, leadership, and forward thinking to AICC

58 62

POSITIONED TO WIN

CHAIRMAN’S MESSAGE

SCORING BOXES

LEGISLATIVE REPORT

MEMBERS MEETING

ASK RALPH

ASK TOM

SELLING TODAY

TACKLING TECH

SAFEGUARD

LEAN LEARNINGS

LEADERSHIP

MARKETING MIX

THE ASSOCIATE ADVANTAGE

THE HIDDEN FACTORY

FINANCIAL CORNER

THE FINAL SCORE

DEPARTMENTS

How one proven company has sustained success

WELCOME NEW MEMBERS

AICC’S 2017 ANNUAL REPORT

GOOD FOR BUSINESS

MEMBER PROFILE

ICPF UPDATE

AICC sees a banner year in revenue, participation, and influence

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

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

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

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

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

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

CONTRIBUTORS Mike D'Angelo, Vice President Maria Frustaci, Director of Administration and Director of Latin America Cindy Huber, Director of Meetings and Conventions Chelsea May, Member Services Coordinator Laura Mihalick, Senior Meetings Manager Taryn Pyle, Director of Training, Education and Professional Development Alyce Ryan, Marketing Associate Richard M. Flaherty, President, ICPF

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

ADVERTISING Information: Virginia Humphrey, vhumphrey@aiccbox.org Opportunities: Howard Neft, InTheKnow Inc. 847-899-7104 • thneft@aol.com Taryn Pyle 703-535-1391 • tpyle@aiccbox.org AICC PO Box 25708 Alexandria, VA 22313 Phone 703-836-2422 Toll-free 877-836-2422 Fax 703-836-2795 www.aiccbox.org

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

Chairman’s Message

STRENGTH IN NUMBERS

’m grateful for the opportunity to lead this amazing organization. As a thirdgeneration owner of a 113-year-old manufacturer of rigid setup boxes, I’m honored to be one of the first leaders of this organization whose primary business is not corrugated. While the substrates we work with are different, there are many similarities between us: • We are all independent companies. • We are all smart and innovative entrepreneurs. • We all face similar challenges in hiring, training, and developing our workforces. By focusing on our similarities, we can accomplish some great things together. My theme for this year comes from my own experience in being in an association. As a child, I used to go with my dad and our family to all of our yearly association meetings. It was a highlight of every year for me. I became friends with other families with box companies and learned a lot about the issues facing our businesses. Many long-term relationships were developed with several people who are a part of this Association today. If anyone called you for help, you would help them out in a heartbeat. It was like having one big extended family. After I bought the box company from my father in 1993, I become very involved with our National Paperbox Association. I found it to be a very rewarding experience to work with other box company owners in solving common problems that faced all of our businesses. I learned that you could accomplish a lot more as a group than as an individual. I learned that just being a member of an association isn’t where the true value is. The true value is when you engage with others, share your experiences, and learn from each other. I learned that there was strength in numbers. I look forward to working together on three initiatives this year: • Digital Print—What is the best way to take advantage of this new technology to deliver new products and solutions to our customers? • IT/ERP Systems—Let’s determine what functionality is missing from our common ERP systems and encourage our software developers to implement solutions for us and our industry. • Industry/Company Data—Let’s define what metrics we should be looking at and what numbers we should be striving for in our companies.

I want to thank all of you again for allowing me to be your chairman this year, and I look forward to working with all of you and showing you how much an engaged and united membership can achieve for the good of the entire industry.

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

BOXSCORE www.aiccbox.org

Scoring Boxes

LOST: BOXMAKERS’ OPPORTUNITY TO PACKAGE AGRICULTURAL GOODS WORTH $9 BILLION BY DICK STORAT

BOXSCORE November/December 2017

U.S. Dollar Broad Currency Index (January ’97 = 100)

130 125 120 115

+23%

110

SOURCE : F EDER A L RESER V E BOA RD

ndependent converters work smart and hard to satisfy customers’ day-to-day needs. So, it is easy to understand that less attention might be focused on the larger macroeconomic forces affecting their fortunes. Nonetheless, broad economic trends have the potential to alter the competitive playing field. Few are more significant than currency exchange rates. The rising strength of the U.S. dollar measured against currencies of the nation’s trading partners is one of the most relevant economic set points affecting independent corrugators’ fortunes. The top chart on the right shows the relationship between the U.S. dollar and a broad trade-weighted aggregation of trading partner currencies since 2010. The data are shown as an index, with the average exchange rate in 1997 equal to 100. Between 2010 and the middle of 2014, the exchange rate averaged around its initial value of 100, with oscillations of 5 percent or less. However, starting in the middle of 2014 and ending last year, the U.S. dollar became steadily stronger, establishing a new trading range some 23 percent higher than before. Since then, there have been some ups and down, including the most recent 8 percent decline as early optimism surrounding the new administration’s economic initiatives has faded. Nonetheless, the U.S. dollar today

105 100 95 90 2010-01

2011-01

2012-01

2013-01

2014-01

2015-01

2016-01

2017-01

U.S. Exports of Packageable Agricultural Goods Sector Fruits Vegetables Tree Nuts FRUITS VEGETABLES & TREE NUTS

VOLUME ($ MILLION) 2013 2016 $7,423 $6,708 $4,404 $4,690 $7,110 $7,357 $18,937 $18,756

Beef Cuts Pork Cuts Chicken and Cuts RED MEAT & POULTRY CUTS

$5,240 $4,400 $4,273 $13,913

$5,237 $4,190 $2,769 $12,195

0.0% –1.6% –13.5% –4.3%

Total

$32,850

$30,951

–2.0%

SOURCE: U.S. CENSUS BUREAU

ANNUAL % CHANGE 2013–2016 –3.3% 2.1% 1.1% –0.3%

Scoring Boxes

remains fully 20 percent stronger than justified by economic fundamentals that have not changed significantly since 2014. The stronger dollar makes imports less expensive for consumers, and thus more competitive with domestically produced goods, while squeezing margins on goods exported from the U.S. and reducing export opportunities for U.S. producers. The agricultural sector of the U.S. economy has been impacted significantly by this exchange-rate swing. The rest of this article examines the impact of changes in international trade of packageable agricultural goods. These are meat and produce categories that consumed almost 17 percent of last year’s corrugated shipments, according to the Fibre Box Association. Fresh and processed fruits and vegetables, tree nuts, subprimal meat cuts, processed meats, and poultry are included in this assemblage. The table below shows the trade balance (exports minus imports) for important packageable agricultural goods in 2013, before the U.S. dollar soared, and in 2016, when the dollar remained some 20 percent above levels justified by economic fundamentals. It shows how almost $9 billion of packaging opportunities evaporated in just three short years, as the trade balance declined from a surplus of $8.7 billion to a deficit of $257 million. Trade deteriorated in every category of packageable agricultural goods. Between 2013 and 2016, the trade balance for fruits, vegetables, and tree nuts declined by $5.7 billion, led by a $4.4 billion decline in fruit trade. During that period, trade in beef cuts and processed beef declined by $1.4 billion, and poultry trade deteriorated by $1.5 billion. The table on the bottom of Page 4 focuses on exports of agricultural

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U.S. Trade Balance of Packageable Agricultural Goods Sector Fruits Vegetables Tree Nuts FRUITS VEGETABLES & TREE NUTS

VOLUME ($ MILLION) 2013 2016 $(3,243) $(7,638) $(3,799) $(4,968) $6,583 $6,441 $(458) $(6,165)

CHANGE 2013–2016 $(4,395) $(1,170) $(142) $(5,707)

Beef Cuts Pork Cuts Chicken and Cuts RED MEAT & POULTRY CUTS

$1,817 $3,266 $4,099 $9,182

$411 $2,909 $2,588 $5,908

$(1,407) $(357) $(1,511) $(3,275)

Total

$8,724

$(257)

$(8,981)

SOURCE: U.S. CENSUS BUREAU

BOXSCORE www.aiccbox.org

Scoring Boxes

commodities important to suppliers of corrugated packaging. Exports of vegetables and tree nuts managed to eke out small gains between 2013 and 2016, but fruit exports declined by 3.3 percent per year, only partially due to insect damage to the Florida citrus crop. Exports of poultry were hardest hit, declining by 13.5 percent, on average, during each of the three years under review. Overall, these exports declined by $1.9 billion as the U.S. dollar strengthened during 2014â&#x20AC;&#x201C;2016, a decline of 2 percent per year on average. The growth in imports of these goods was significantly more damaging than the decline in exports. While export losses were limited to 2 percent per year,

imports rose at a 9.0 percent average annual rate between 2013 and 2016. This import surge led to a loss of $7.1 billion in packaging opportunities for domestic boxmakers, as shown in the table below. Imports of fruits, vegetables, and tree nuts combined increased by 8.7 percent per year during the past three years. Imports of fresh and processed fruit rose by $3.7 billion, an average annual increase of 10.4 percent. Imports of tree nuts, one area in which U.S. farmers have been able to maintain a trade surplus, almost doubled in the past three years, rising at 20.3 percent each year, on average. Fresh and preserved vegetable imports grew at 5.6 percent per year.

Imports of meat and poultry grew even faster than the sector total, rising at 9.9 percent per year. Most of the damage was concentrated in the beef sector, where imports grew by $1.4 billion, or 12.1 percent per year, on average. What this analysis confirms is that broad macroeconomic measures, particularly currency exchange rates, can have a profound impact on the market opportunities for independent boxmakers. Dick Storat is president of Richard Storat & Associates. He can be reached at 610-282-6033 or storatre@aol.com.

U.S. Imports of Packageable Agricultural Goods Sector Fruits Vegetables Tree Nuts FRUITS VEGETABLES & TREE NUTS

VOLUME ($ MILLION) 2013 2016 $10,666 $14,346 $8,203 $9,659 $526 $916 $19,395 $24,920

Beef Cuts Pork Cuts Chicken and Cuts RED MEAT & POULTRY CUTS

$3,422 $1,134 $174 $4,731

$4,826 $1,280 $181 $6,288

12.1% 4.1% 1.4% 9.9%

Total

$24,126

$31,208

9.0%

SOURCE: U.S. CENSUS BUREAU

BOXSCORE November/December 2017

ANNUAL % CHANGE 2013â&#x20AC;&#x201C;2016 10.4% 5.6% 20.3% 8.7%

2018 WEST COAST SKI MEETING www.aiccbox.org/west

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Legislative Report

PRINT & PACKAGING COALITION ANNOUNCES 2018 LEGISLATIVE SUMMIT DATES

coalition of printing and packaging industry associations, allied in their advocacy for an improved manufacturing climate for their members, has announced their joint cooperation in sponsoring the 2018 Print & Packaging Legislative Summit, June 19–20, in Washington, D.C. This signature event will bring printers, packaging converters, suppliers, and allied interests together for public policy and political education, as well as direct interaction with members of Congress and the presidential administration. In the 2018 Summit, AICC, the Independent Packaging Association, the Fibre Box Association (FBA), and the Printing Industries of America (PIA) will be joined by NPES, The Association for Suppliers of Printing, Publishing and Converting Technologies, and Idealliance, a global industry association representing the visual communications industry. “We are excited that NPES and Idealliance are joining with us in 2018,” says AICC President Steve Young. “Our members share a common manufacturing process of putting ink on paper, converting the product, and shipping to a customer in a job-shop setting. Our suppliers are also intricately a part of this effort, as our members rely on their technology to remain innovative and competitive.” The Print & Packaging Legislative Summit debuted in 2017, a rebranding of the former AICC and FBA Corrugated Industry Washington Fly-in. Joined in 2016 by members of PIA, who also

BOXSCORE November/December 2017

sponsored a similar event, the Summit now includes even more representatives from the allied printing and converting industries. “We have been extremely pleased by our alliance with AICC and FBA,” says Michael Makin, president and CEO of PIA. “We believe we have an even greater impact when legislators hear the concerns of many members in the print and packaging supply chain.” Thayer Long, president of NPES, adds his members’ excitement in being involved in 2018: “Our members are the suppliers of technology to the global printing and imaging value chain, and our efforts to ensure a healthy print economy provide a direct benefit to them.” Idealliance, whose members also encompass commercial mailing and fulfillment houses, agrees. “Our members’ businesses are becoming increasingly dependent on each other, and so this unity of legislative purpose is important,” says David Steinhardt, president and CEO of Idealliance. “As the traditional lines between printing and packaging begin to blur, it’s necessary that we work together with a common purpose.” As in past years, the sponsors of the 2018 print and packaging event will be co-located with the National Association of Manufacturers’ (NAM) Manufacturing Summit. “Our members have enjoyed the benefits of attending many of the NAM Manufacturing Summit events in the past,” says FBA President Dennis Colley. “NAM has the requisite horsepower to attract keynote speakers such as Vice President Mike Pence and House Speaker

Paul Ryan, and we in turn benefit from those presentations.” Young says he will be extending an invitation to other print- and packagingrelated groups to join the effort. “This past year, we were pleased to welcome representatives from the National Association of Printing Ink Manufacturers (NAPIM) and the International Association of Diecutting and Diemaking (IADD).” Young says. “We are hopeful that they and other groups in the paperboard packaging sector will also ally with us in 2018.” More information will be available later in the year. For questions, please contact: Cindy Huber, AICC, at chuber@aiccbox.org or 877-836-2422; Rachel Kenyon, FBA, at rkenyon@fibre box.org or 847-364-9600; Lisbeth Lyons, PIA, at llyons@printing.org or 202-6276925; Sherry MacDonald, NPES, at smacdonald@gasc.org or 703-264-7237; or David Steinhardt, Idealliance, at dsteinhardt@idealliance.org or 703-837-1066.

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New Members

WELCOME, NEW MEMBERS! APPLETON COATED LLC ANN WHALEN Senior Vice President—Marketing & Customer Services 540 Prospect St. Combined Locks, WI 54113 Phone: 920-968-3809 www.appletoncoated.com awhalen@appletoncoated.com PRINTERS 401K JOE TRYBULA Vice President Advisory Services 14323 S. Outer 40 Rd., Suite 210 S. St. Louis, MO 63017 Phone: 800-307-0376 www.printers401k.com joe@printers401k.com DOMTAR STEVE HENRY Vice President—Strategy & Business Analysis 100 Kingsley Park Drive Fort Mill, SC 29715 www.domtar.com steve.henry@domtar.com GENERAL CONTAINER CORP. LEN CUOCO President 5450 Dodds Ave. Buena Park, CA 90621 Phone: 714-562-8700 www.gcc-pkg.com lenc@gcbox.com

BOXSCORE November/December 2017

OLYMPIC WIRE & EQUIPMENT MATT O’DONNELL National Sales Manager Phone: 949-646-9731 Fax: 714-436-0240 www.olympicequipment.com mo@olympicequipment.com AMERICAN CONTAINERS, INC. MICHAEL A. ISBAN President 2526 Western Ave. Plymouth, IN 46563-1039 Phone: 574-936-4068 Fax: 574-936-4036 www.acontainers.com misban@acontainers.com CORRUGATED SYNERGIES INTERNATIONAL LLC SAMANTHA BRENDIBLE 1100 SW 27th St. Renton, WA 98057 Phone: 425-227-0300 Fax: 425-227-0196 www.csicorr.com samanthab@csicorr.com INDEPENDENT PRINTERS WORLDWIDE INC. DAN I. BENDELE President/CEO 4210 Lockin Circle, Suite 1001 Powhatan, VA 23139 Phone: 804-598-9373 Fax: 804-884-3744 www.ipw-inc.com dbendele@ipw-inc.com

HÖCKER POLYTECHNIK GMBH TANJA BRINKMANN Borgloher Str. 1 49176 Hilter a.T.W. Germany Phone: +49 (0) 5409 405 139 Fax: +49 (0) 5409 405 589 www.hoecker-polytechnik.de tanja.brinkmann@hpt.net MAGNUM INKS & COATINGS MARK DESANDRE Director, Business Development 355 Wright Drive Middletown, OH 45044 Phone: 877-460-8406 www.magnuminks.com mdesandre@magnuminks.com JD ENGINEERS DOEKE HOLTROP President Jetze Veldstraweg 109 Oldeouwer, NL 8515 CP Netherlands Phone: +31 (0) 513 552 125 Fax: +31 (0) 513 552 202 www.jdengineers.nl doeke@jdengineers.nl WOODLAND MFG. CO. INC. LAWRENCE A. MARCINKUS JR. 1936 E. State St. Hamilton, NJ 08619 Phone: 609-587-4180 Fax: 609-587-1880 www.woodlandmfg.com larryjr@woodlandmfg.com

Members Meeting

Photos courtesty of AICC

WHAT HAPPENS IN VEGAS GROWS YOUR COMPANY

Chris Heusch, ARCH Inc., and Jim Nelson, Green Bay Packaging’s Great Lakes Division, judge the Designers’ Lab solutions to their real-world problem from Sweets Candy.

ore than 700 attendees and guests converged at the Encore Hotel in Las Vegas, Nevada, for the AICC 2017 Annual Meeting. The meeting offered a value-packed week of events including AICC’s Independent Packaging Design Competition, the 2017 Designers’ Lab, and PackExpo Las Vegas 2017, which was held at the Las Vegas Convention Center.

PackExpo PackExpo featured the latest in packaging and processing innovations, new trends and technologies, and creative business solutions, along with the opportunity to connect with more than 30,000 packaging professionals from more than 75 countries from around the world. AICC

BOXSCORE November/December 2017

Experts Tom Weber and Ralph Young led tours for AICC members around the trade show floor. The show featured more than 2,000 exhibitors. All AICC meeting attendees were encouraged to attend the show and received complimentary admission and transportation. AICC’s meeting officially kicked off on Monday evening with the opening night cocktail reception, where attendees came together to relax, unwind, and connect with friends and colleagues. Designer’s Lab The AICC 2017 Designers’ Lab began on Sunday at the Encore Hotel. Attendance was up significantly this year, with 34 designers participating from AICC’s member companies and six students.

This three-day event gave designers the chance to learn new techniques—in both structural and graphic design—from experts in the field, to network with their peers and show off their talents. The event kicked off with presentations from the sponsoring companies, including Arden Software North America, Esko, Gerber Technology, and Xante. EnCorr Sheets and Wasatch Container were also contributing sponsors of the event. Dan Malenke, president of PKGPRO, discussed “Trends in Paperboard Packaging,” and Dr. Andrew Hurley, assistant professor at Clemson University, spoke about “Leveraging Human Factors in Packaging Design.” Rick Kay, president, Sweet Candy Co., presented this year’s real-world challenge.

Members Meeting

General Sessions The opening general session began with Tony Schleich, Lawrence Paper Company, American Packaging Division, and 2016–17 AICC chairman, welcoming the group to Las Vegas and the 2017 Annual Meeting. Next Jim Nelson, president of Green Bay Packaging’s Great Lakes Division and AICC’s Package Design

Emerging Leaders Twenty Emerging Leaders heard from Rocky Romanella, 3Sixty Management Services, who led an interactive, in-depth session on why values matter in business. Romanella asked them about developing a personal brand and helped them find the ethical lines they will live by. He also shared wisdom he learned from his father about being a good leader and good company steward, including “learn your job, then learn some more.” Later in the week, leaders also saw the magic of Las Vegas live during a David Copperfield show.

Eye-Openers Mornings began early for attendees who joined the Eye-Opener Session. The first morning, the “Management Succession—Planning for Future Sustainability & Success: Thinking Outside Family” session featured an interactive panel discussion of owners, comprising James Haglund, Central Package & Display; Kim Nelson, Royal Containers; and John Bird, JB Machinery. The panel, moderated by Gene Marino, Rusken Packaging, discussed how they came to the decision to bring in successors outside the family. The second day kicked off with round two of the early morning eye-opener session on “Management Succession— Planning for Future Sustainability & Success: Thinking Outside Family.” The session featured the successor to the previous days’ owners, including Mike Gallagher, Central Package and Display; Terri-Lynn Levesque, Royal Containers; and Jeff DeVries, XDS Holdings. The session was moderated by Marino.

Selling Digital The Selling Digital Print Training began on Monday morning, featuring presenter George Moretti, Innovative Intelligent Solutions LLC. A great deal is being taught about this trend, with emphasis on equipment, but few programs teach you how to sell digital. This one-day course is a teaser leading up to AICC’s new Digital Print Sales two-day course, to be held in 2018. Moretti shared his knowledge on what worked and what has not worked, and attendees reviewed several real-life experiences with existing clients over the last few years.

Networking receptions each evening gave friends and colleagues the chance to reconnect.

The designers were tasked with creating a standard floor display or half-palletsized display utilizing the 13-ounce bags of Sweet’s Taffy. The lab featured two functioning CAD tables provided by Esko and Gerber Technology, a digital printer provided by Xante, and software and computers sponsored by Arden Software North America and Esko.

Four workshop tracks offered critical information in leadership, HR, security, and the digital print market.

BOXSCORE www.aiccbox.org

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Members Meeting

Competition Committee chairman, announced the winners and presented awards to the 2017 Annual Student Design Competition winners who were in attendance from Clemson University, the University of Texas at Arlington, and Dunwoody College. The judges for the package design competition and design lab were also recognized and included Cordes Porcher, Corrugated Synergies International; Chris Heusch, ARCH Inc.; Carl Cecil, Flint Group; Ben Dolezal, University of Texas at Arlington; Rick Putch, National Steel Rule; Gary Cooke, Stafford Cutting Dies; Rick Reinsch, Digital Recollections; Robert Meisner, University of Wisconsin–Stout; and Dan Malenke, PKGPRO. Steve Young, AICC president and trustee of the Richard Troll Scholarship Foundation, announced the recipients of the J. Richard Troll Scholarship awards. Jim Curley of NV Publications was inducted into the AICC/RISI Hall of Fame. Since its inception in 1981, AICC and Paperboard Packaging have joined together to award the Hall of Fame Award. This award is presented annually to an individual who has contributed greatly to the benefit and welfare of independent converters in the packaging industry over the years. Next, Juan Javier González, Cartró, presented on “Facing Complexity,” how to keep up with the expanding technological complexity in production and plant processes. The general session came to a close with a keynote presentation by Rocky Romanella on “Balanced Leadership.” Attendees also received

copies of Romanella’s recently published book, Balanced Leadership—Tightening the Lug Nuts. The closing general session began with the board elections and “changing of the guard” as Schleich handed over the reins to Al Hoodwin, Michigan City Paper Box Co., the 2017–18 AICC chairman. Next, Nelson announced the prestigious judges’ and people’s choice awards in the Packaging Design Competition, followed by recognition of our Designers’ Lab sponsors, and the announcement of the winners in the 2017 Design Lab Team Challenge. This was followed by the announcement of the winners in the AICC/BCN/ Corrugated Today 2017 Innovator of the Year—Boxmaker Category. Jay Carman, AICC plant innovations chairman, and Len Prayzch, editor, Board Converting News, presented the 2017 Innovator of the Year Award to Bay Cities for their entry “Assemble AR App.” Second place was awarded to Green Bay Packaging’s Great Lakes Division for their Label Stock Inverter entry. Third place was awarded to Acme Corrugated Box Co. for their Fully Integrated Finished Goods Conveyor System. The general session culminated with an enlightening presentation by Jeffrey Ma on “Ten Times Better—Maximize Performance Through Big Data.”

On day two, during “Being Obsessed With the Front Line,” Romanella explained that the agile business succeeds when the front line is fully committed, is experienced, and uses the tools available to them. He went on to state that the value proposition works when your front line is on a mission. DIGITAL PRINT

The track began with a packed house of nearly 100 participants to hear

More than 700 people came together for the 2017 AICC Annual Meeting in Las Vegas.

Workshops EXECUTIVE & LEADERSHIP

The first day of the track featured keynote speaker Rocky Romanella on “Why Values Matter in Business.” Romanella discussed how leaders must demonstrate their values and set the tone from the top.

AICC recogognized the hard work of outgoing Chairman Tony Schleich, Lawrence Paper Company, with his wife, Kim.

BOXSCORE www.aiccbox.org

Members Meeting

The Package Design Competition featured 86 entries in the corrugated, folding carton, and rigid box categories from 26 member companies.

“Pathways to Digital—Where Is the Digital Market Headed?” presented by Jeff Wettersten and Kevin Karstedt, Karstedt Partners, and was followed by a panel discussion with boxmaker members who are currently using digital print in their companies. The panel featured Richard Brown, The Boxmaker; Robert Sweet, Bennett Packaging; John Kelley, Dusobox; Michael Drummond, Packrite; and George Moretti. The second day, moderated by Cordes Porcher, featured a digital supplier panel discussion on the latest technology and sharing of knowledge and solutions. Panelists included Tim Harris, ColorHub; John Ballentine, Tango Press; Garrett Bradley, Gemini North America;

Tom Green, Durst North America; Barb Willans, EFI; Whit Copley, Fuji Film; Eviatar Halevi, HP; and David Carmichael, Sun Automation.

and Retain Employees in the Workplace,” featuring Rich Goldberg, President Container Group; Atoka Dumont, Volk Packaging; and Elsie Genova, Poly Print.

HUMAN RESOURCES

RISK MANAGEMENT

The first day featured Brendan Kinzie, co-founder of GoGetter, presenting “The Numbers Behind the Shrinking Manufacturing Workforce, Overcoming These Challenges, and Building a Winning Culture.” Participants had a deep dive into the factors driving shortages in the packaging industry. Then they learned how to maximize employee retention by building a winning culture. On the second day, Kinzie moderated a panel discussion on “How to Gain, Train,

The first day of this workshop featured Justin David of InterWest Insurance Services LLC, and Doug Friel of Johnson, Kendall, and Johnson, presenting two views on “Risk Management: Protecting Your Assets in the Company.” Day two offered “Risk Management: Protecting Your Company From a Cyberattack,” presented by Jesse Reynosa, computer scientist, FBI Las Vegas Division, Cyber Task Force. Reynosa warned attendees that 47 percent of companies nationwide have discovered a cyber breach and 75 percent of websites are vulnerable. To protect company data, he encouraged everyone to maintain server backups. This was followed by “Protecting Your Financial Assets,” presented by Mitch Klingher, Klingher Nadler LLC.

AICC has posted all available PowerPoint presentations (as submitted by speakers for inclusion) on the AICC website at www.aiccbox.org/national. Video recordings of the general sessions are available via request sent to Laura Mihalick at lmihalick@aiccbox.org.

BOXSCORE November/December 2017

Members Meeting

AND THE WINNER IS … Tuesday afternoon, the 2017 Independent Packaging Design Competition was open to attendees for viewing and offered the opportunity to vote for the coveted People’s Choice award. This year’s competition featured 86 entries in the corrugated, folding carton, and rigid box categories from 26 member companies. The package design competition offers companies a great opportunity to show off their creativity, innovation, and excellence in packaging. On Tuesday evening, the winners in the competition were announced by Jim Nelson, AICC Package Design Competition chairman, during the evening’s networking reception.

SAVE THE DATE: The AICC 2018 Spring Meeting & 5th Annual Independents’ Cup Charity Golf Tournament will be held April 16–18, 2018, at the Sheraton Grand at Wild Horse Pass Resort in Phoenix, Ariz.

FOLDING CARTON CATEGORIES

RIGID BOX CATEGORIES

Confections FIRST PLACE: Great Little Box Company — La Churreria 2/3 Churro Cup SECOND PLACE: Utah Paperbox — Shari’s Gourmet Berries THIRD PLACE: Great Little Box Company — Moonshine Doughnuts — Doughnut Party, Long Box

Pharmaceuticals & Health Care Products/ Nonpharmaceutical and Medical Devices FIRST PLACE: Ray Products Inc. — Medical Device Box

Retail Food & Beverages & Alcohol Packaging FIRST PLACE: Utah Paperbox — Uinta Ready Set Gose Company Self-Promotion, Advertising, Promotional, Product Promotion, and Collectors’ Items (items not for sale) FIRST PLACE: Utah Paperbox — UPB Motion Coat Improvement Over Former Package FIRST PLACE: Utah Paperbox — Real Fruit Juice Sweet’s Sticks SECOND PLACE: Great Little Box Company — Temper Pastry Chocolate Collection Family of Packages FIRST PLACE: Ray Products Inc. — Fort Scott Munitions SECOND PLACE: Great Little Box Co. — Temper Pastry Paperboard & Corrugated Package Unit FIRST PLACE: Abbott-Action Inc. — Salesmen Totem

Personal Accessories, Jewelry & Eyewear FIRST PLACE: Ray Products Inc. — John Stephens Custom Crafted Calls Confections FIRST PLACE: Central Package & Display — The Dodecahedron SECOND PLACE: Ray Products Inc. — Christopher Elbow Chocolate Box Paper Products, Stationery, Office Supplies & Retail Store FIRST PLACE: Central Package & Display — Heartland SECOND PLACE: Ray Products Inc. — Coldwell Banker Family of Packages FIRST PLACE (TIE): Elegant Packaging — Baked by Melissa V Notch Slide Boxes FIRST PLACE (TIE): Michigan City Paper Box Co. — Frango Mint THIRD PLACE: Utah Paperbox — Cache Toffee Collection Family Combination Rigid Set Box FIRST PLACE: Utah Paperbox — Cache Toffee Collection Medium SECOND PLACE: Ray Products Inc. — Eminence E-liquid

See the winners at www.aiccbox.org/pdc.

BOXSCORE www.aiccbox.org

Members Meeting CORRUGATED CATEGORIES Innovative Structural Design, Consumer & Industrial Focus FIRST PLACE: BoxMaster — 2-Bottle Vodka Carry Pack SECOND PLACE: BoxMaster — Carry Case Displayer THIRD PLACE: Great Little Box Company — Strange Fellows Brewing 4-Pack Crate HONORABLE MENTION: Wasatch Container — Falcon Performance Shock Shipper Counter, Shelf, Power Wing & PDQ Displays FIRST PLACE: Commencement Bay Corrugated — House of Donuts Wholesale Box SECOND PLACE: Skybox Packaging — Life Support Power Wing THIRD PLACE: Bennett Packaging of Kansas City — Ridgelander Truck Counter Display

Floor Displays, Standees Designed to Be Used Without Product FIRST PLACE: Bennett Packaging of Kansas City — Galaxy S8 Launch Campaign SECOND PLACE: Abbott-Action Inc. — Digital Spiderman Promotion Floor Displays, Designed to Merchandise Product FIRST PLACE: Bay Cities Container — Transformers Display SECOND PLACE: Abbott Action Inc. — Sharpie Floor Display THIRD PLACE: Weber Display & Packaging — NJ Lottery Nutcracker Holiday Promo Direct Printing on Combined Brown Board — Line/Screen Combination FIRST PLACE: Commencement Bay Corrugated — Xing Long Farm Sweet Potato/Ginger SECOND PLACE: Sumter Packaging Corp. — Rewined — CF Monthly Box THIRD PLACE: Wasatch Container — Honeyville Mailer

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November/December 2017

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HR Tools to Help You Grow Find and Keep Your Dream Team: -Welcome on Board Guide -Online Employee Know Your Rights & Apptitude Test Responsibilities: -Human Resourse Management Guide Benchmark your boxplant: -2016 Salary, Hourly Wage & Benefits Report -2017 Sales Compendation Report WWW.AICCBOX.ORG/STORE

Members Meeting

Flexo Print on Combined Board — Line Work & Nonprocess Screen FIRST PLACE (TIE): Mid-Atlantic Packaging — Rusty Rail Seasonal 12-Pk. FIRST PLACE (TIE): Supplyone Inc. — Almond Cluster Box SECOND PLACE: Skybox Packaging — Next Generation Super Duty THIRD PLACE: Sumter Packaging Corp. — Terressentia — Rising Creek Bourbon Flexo Print on Combined Board — Standard or Modified Process Colors Used in the Reproduction of Built Color Images — Cartoon Art or Computer Art FIRST PLACE: Supplyone Inc. — Chicken Box Flexo Print on Combined Board — Standard or Modified Process Colors Used in the Reproduction of Photographs or Original Art Continuous Tone Images FIRST PLACE: Commencement Bay Corrugated — Lovers Lane Cherry Top SECOND PLACE: Weber Display & Packaging — Cherrydale Gold Fundraising Box THIRD PLACE: Mid-Atlantic Packaging — Lakeside Organic Peppers Tray Best Application of Spot or Full Label With or Without Direct Print FIRST PLACE: BoxMaster — Beer Advent Calendar SECOND PLACE: Mid-Atlantic Packaging — WL Gore Elixir Sales Kit THIRD PLACE: Phoenix Packaging — Andrew Pearson Design Digital Printing on Combined Board FIRST PLACE: Abbott-Action Inc. — Ocean Spray Mocktails Pallet Skirt SECOND PLACE: Sumter Packaging Corp. — Gillespie’s Peanuts 10-oz. Display THIRD PLACE: Bennett Packaging of Kansas City — AICC 2017 Packaging Design Competition Invitation

Form and Function: Using Corrugated Outside of Packaging & Displays FIRST PLACE: Packrite — Self-Promotional Magazine Holder Best Corrugated Self-Promotion FIRST PLACE: Corrugated Container Corp. — CCC Vintage Box Truck Self Promotion SECOND PLACE: Lewisburg Printing Co. — Halloween Customer Gift THIRD PLACE: Abbott-Action Inc. — The Beast Salesmen Kit HONORABLE MENTION: Sumter Packaging Corp. — MAG-Lite House Best Use of Corrugated Replacing Other Substrate (Plastic, etc.) FIRST PLACE: Packrite — Self-Promotional Koozies Corrugated Art & Design FIRST PLACE: Sumter Packaging Corp. — Eclipse Day Skeeball

JUDGES’ CHOICE Corrugated Graphics Supplyone Inc. — Almond Cluster Box Corrugated Structure Bay Cities Container — Transformers Display Folding Carton Great Little Box Company — La Churreria 2/3 Churro Cup Rigid Box Central Package & Display — Heartland

PEOPLE’S CHOICE Sumter Packaging Corp. — Eclipse Day Skeeball

For more information on the AICC 2017 Annual Meeting, Design Lab & Package Design Competition, please contact Cindy Huber at chuber@aiccbox.org or Laura Mihalick at lmihalick@aiccbox.org or 703-836-2422.

BOXSCORE www.aiccbox.org

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Ask Ralph

COMBINING REALLY LOW BASIS WEIGHT BOARDS BY RALPH YOUNG

his is like déjà vu. It was in the early ’90s when the industry was moving from Mullen-based linerboards to the new lighter and stronger compression-based grades (then 35 and 56#) that are so common today. Well, it’s time to review the past and make corrugator and starch and process adjustments going forward. It was almost 30 years ago that the industry was struggling to combine the new lighter-weight, “high-performance” liners and mediums versus the historical 42# and above grades. The new containerboards were made in a different way. And so today, there is another technology breakthrough in which some mills are targeting to replace 35# with 33# and below. These boards are also different from the conventional 35# that we have all become too comfortable with running through the corrugator. So, it’s back to basics in a new world. TAPPI Test Method T-821 sets the protocol for using a pin apparatus based on the number of flutes per foot and a crush tester to measure quantitatively the strength of a bond. However, there are many other aspects to consider. Most pin jigs have to be custom made because flutes per foot are not what they used to be; we have a dozen more flutes to consider than A, B, and C; and flute profiles have changed. The old numeric values that we targeted in the past no longer serve us well. The work in developing this standard cautioned against using this method for lightweight (below 33#, which I would

expand to 35#) because the liners will bend around the pins and deliver false results, as much as 29 percent below the actual strength. So, what is a quality process team at a corrugator to do? I reached out to two respected associates in Europe to ascertain how they know they have good bonds. Since they have been making these low-grammage linerboards for more than 15 years, this was the place to go for guidance. Working with some combiners recently, those who perform pin adhesion testing have been concerned about low values. So, what I heard from across the pond follows: One said that they are no longer conducting pin testing, yet there is an active FEFCO method much like our TAPPI one. The other associate said that they monitor bonding by glue-line widths at the soak tank and fiber pull by board separation by a skilled operator who has the “feel” for the bond and can also observe and analyze the fiber distribution between the liner and the medium. Contact me if you would like to learn more about this. One of the additional concerns has been the thought that lower pin results could mean lower ECT and box performance. There is a very small correlation between increasing pin adhesion and increasing ECT, and it is maxed out at lower levels than before. What is critical to achieving the best bonds with low grammage (18–23# now available in North America) and high-density sheets is to run with lower- starch solids, maybe with an additive, and

certainly with lower corrugator zone temperatures than midweight combinations. It is imperative that we drive the moisture in the adhesive toward the liner, as they generally have about 7 percent moistures and mediums around 9 percent. These are averages. Starch penetrates only 1 mil into the surface of the liner, so it’s not a matter of going deeper. I suggest that you coordinate with your paper suppliers’ technical representatives and starch and additive suppliers. You do not need to suffer alone. Get the advice of those who should know how to guide you to better bonds and stronger boards. I have recommended over the years the use of a Chalmers DST to measure medium degradation in the single facers and combined board crush at other points in the corrugating and converting operations. While I am not privy to any research that relates DST test results to bond strength, the machine will tell you how well you have maintained the integrity of the board, which might include the bond. Editor’s note: Used with permission from Kruger. alph Young is the R 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.

BOXSCORE www.aiccbox.org

Ask Tom

DOES YOUR TEAM PASS THE ENERGY TEST? BY TOM WEBER

oes your team have the energy to succeed in 2018 and beyond? To find out, take this simple test. Imagine your team is pitted against two other teams in a unique competition. The first team to push a car—in neutral and without the engine running—to the other end of a large parking lot wins. Your team gets to choose which of three cars it wants to get behind and push: • The blue car is rolling backward. • The red car is sitting still. • The green car is rolling forward. Which car do you want your team to get behind? It seems like an easy test to pass; logically, the green car gives your team a strategic advantage because it has forward momentum. The fact is, your team is given this energy test every day. Here’s how: When an unplanned issue challenges your team, how your team chooses to focus determines the energy it will have to overcome that issue.

BOXSCORE November/December 2017

Teams that flatline before they reach the finish line function with a problem- orientation to their world; their backward focus creates an experience of having to push against a counterforce. Momentum is not on their side. Teams that succeed first energize themselves around a shared reality by: 1. understanding their problem; 2. collectively functioning with a solutions orientation; and 3. focusing forward and being rewarded with the energy needed to go the distance. Does your team pass the energy test? With the right focus, it will. Three Easy Strategies to Develop Energy for Your Team Accountability is at the heart of energy. And if you’re trying to make that heart pump a little harder and move a little faster—without turning into Attila

the Hun—then try these three simple strategies. First, measure everything. No matter how subjective something is, there are ways to measure it. After all, you get what you inspect, not what you expect. Second, assign everything. With firm due dates and measurable deliverables. And never, ever let people share assignments. Third, create transparency. Post results for all to see. Not just organizational results, but also individual results. No one wants to be last—especially with results being viewed by their peers. Execute well, my friends, and here’s to a great 2018 and beyond! Tom Weber is folding carton advisor for AICC. He can be reached at tweber@webersource.com.

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Selling Today

NEW BUSINESS DEVELOPMENT: CREATING A DETAILED ROAD MAP FOR SUCCESS BY TODD M. ZIELINSKI AND LISA BENSON

s we near the end of the year, you are likely well into planning your business goals for 2018. Much as you wouldn’t take a road trip without a road map—or navigation system—to help you reach an unfamiliar destination, the same can be said for planning your annual business goals. Having a road map ensures that you don’t make wrong turns or get sidetracked along the journey. If you found that your new business development results for 2017 fell short of your expectations, it is the perfect time to look at what went right and—more importantly—what went wrong, so you can make corrections and set yourself up for a successful 2018. As my navigation system says when I make a wrong turn, “recalculating”—it might be time to reset your plan. In our article from the last issue, titled “Do the Math: Hitting a Home Run With Your Marketing and Sales

BOXSCORE November/December 2017

Goals,” we outlined a clear-cut path from your annual sales growth projection to the number of new contacts you must reach out to each month to hit your sales goals. To make this work, there are some decisions that must be made and processes and resources that are required before you arbitrarily start reaching out to new contacts. Your navigation system doesn’t work just because you have one; you have to set it up, input the address, decide how you will travel (car, walk, bus), and choose the route you want to take. The same can be said for your new business development plan. There are some questions that must be answered and processes that must be created before you begin your journey. Who Is Your Ideal Customer? You will want to start by replicating your ideal customer and then extrapolating from that. What industry and segment

of that industry are they in? Are there similar industries or segments that might need your product or services? What company size is ideal? Does geographic location matter? What is the average lifetime value for a new customer in each industry and segment? Be sure to prioritize your targets, so you are not wasting time on a company that will offer a low return at the expense of a higher-contributing company. We all know that companies don’t buy products and services—people do. It is imperative to understand who the decision-makers or key influencers in each segment are and what criteria they use for purchase. Can you answer the five W’s: whom they purchase from, what they purchase, where they purchase, when they purchase, and why they purchase? What Do You Need Them to Know? What makes your business different? Not many companies will say they have subpar people, quality, and products—so before you rattle off this list as your differentiator, dig deep and come up with something truly unique and meaningful. When you have won business, what reasons are you given? This is a good place to start. The message you send must be compelling and represent your product or service. Speak to the decision-makers and/ or key influencers in their own language (not your company language). You may need more than one message, depending on who the decision-makers and key influencers are. For example, an engineer is going to need to hear something different than the company CEO.

Your Ad Here BoxScore reaches approximately 2500 readers.

Advertise in BoxScore and reach your marketing goals with AICC, The Independent Packaging Association, the only association dedicated to the independent corrugated, folding carton, and rigid box manufacturers and industry suppliers. See all advertising opportunities at www.aiccbox.org/mediakit.

Ad Reps Virginia Humphrey | 703.535.1383 | vhumphrey@aiccbox.org Howard Neft | 480.391.1189 | hneft@aol.com Taryn Pyle | 703.535.1391 | tpyle@aiccbox.org

Selling Today

How Will You Tell Them? How will you get your message to them in the most successful, impactful manner? There are many ways to get your message to the buyer—trade shows, inside sales, cold calling, internet marketing, advertising (electronic or print), direct mail, press releases, etc. You must know your customer to know what they will respond to. Keep your message succinct, and keep your target audience in mind. How Do You Know If You Are Successful? Feedback is a critical function for success. You must be able to quantify the results you expect to produce from each marketing or media program and link them to your new business development goals. We laid out the path in the last article for determining the number of prospects you must target and convert to reach a specified number of qualified sales-ready leads, a calculated percentage of which then converts to new accounts. We also discussed the importance of tracking and possibly readjusting those numbers based on your results. Much as your navigation system provides feedback when you’ve made a wrong turn, tracking results in a quantifiable manner will provide the feedback you need to adjust course before you’ve gotten too far off track. What Processes Do You Need to Implement Your Plan? Now that you know who your ideal customer is, who the decision-makers and influencers are in those companies, what differentiates you from the competition, the messaging that will resonate with your customer, and the manner for delivering it, and you have performance metrics

BOXSCORE November/December 2017

in place for measuring your results— now what? How will you execute this plan? You will need to have repeatable processes and skilled and trained staff in place to effectively execute your new business development activities. You will need a process in place that includes how often you will touch (call, direct mail, email, etc.) each prospect and qualified lead, and by what means. You will need an opt-in nurture process to keep your brand top-of-mind as prospects move through the buying cycle. Whatever process you put in place, it should be repeatable, and touches should continue until resolution (sale, opt-out). You will need to have technology in place, such as a CRM and marketing automation software, and, as mentioned above, skilled, trained staff to carry out the marketing activities. If you are expecting your salespeople to do this, how will you keep them from being fragmented among nurturing current customers, clerical and other tasks, and new business development? Putting in the time is critical for successful execution of your new business development plan. If your performance metrics tell you your plan isn’t working, you will need a process improvement plan. What is your process for determining the root cause? How will you implement changes? Putting It All Together A large consideration in annual planning is budget. You have to develop a budget and calculate the expected ROI on your marketing program investment to determine the appropriate total budget for your marketing efforts. The costs for implementing the technology, people, and

processes can be high. We’ve estimated it can cost upward of $300,000 over a twoyear period to internally implement an effective front-end business development and lead generation model. Another option is to outsource. A typical investment with outsourcing partnerships can be considerably lower. When evaluating outsourced partnerships, it is highly important to make sure the provider has good industry experience (including proven results within your specific target markets), provides a complete holistic and high-collaboration solution, as well as measurements and tools for tracking performance goals, and has the ability to continually improve process. Whether you go it on your own or choose to outsource, a plan that includes repeatable processes, a feedback loop, and methods for making corrective actions will be your road map to success. Athena SWC’s New Business Planning Guide (available to view at http://bit.do/AthenaSWC) will help you create a detailed road map that ties your new business development activities to tangible goals. 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.

Thank you Education Investors

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

Become A Partner in Education Education Investor Program We invite you to partner with AICC as an investment to your company and the industry. The Education Investor opportunity is available to 15 AICC member companies for $15,000, each. Companies may partner to meet the threshold. It is an annual commitment that offers companies: Involvement: • Opportunity to provide educational content, including videos, white papers, and other course materials for online courses. Promotion: • A commercial included in an online course Recognition: • Company logo on AICC online courses • Company logo included on “Thank you” page in each issue of BoxScore • Company logo included in National Meeting deck • Company name may also be included in emails specifically promoting online courses For more information, contact Mike D’Angelo, Vice President, 703.535.1386 or mdangelo@aiccbox.org.

Tackling Tech

THE SHORTEST DISTANCE BETWEEN TWO POINTS BY JOHN CLARK

here is a maxim in geometry: The shortest distance between two points is a straight line. This principle carries over into sports such as auto racing and downhill skiing, where the shortest distance between two points may not be a straight line, but rather what is referred to as “the line.” The line is not the shortest path, but rather the most efficient path between start and finish. In sports, this efficiency results in victory. In business, this efficiency results in lower costs and greater profits. To fully understand “the line,” you have to understand the terrain. Most importantly, you have to know where the finish line is and take the best path to it. The race is determined not by how you start, but how you finish. Your business has a line. It starts with a trigger action from the client, such as a request for quote or placement of an order, and ends when you receive payment and post the cash. In between are multiple steps that define your business, and your efficiency in these steps determines how successful you are. The tie that binds it all together is a clear understanding of your business practices as implemented in your software solution. You get to the finish line much faster traveling at the speed of

electrons rather than the speeds of people, machinery, and trucking. Today almost all plants have ERP systems and processes in place to move orders through the plants efficiently, but at the tail end of your business process you lose much of your order visibility. Warehouses are blind corners, and freight and delivery functions are basically done out of eyesight—making it nearly impossible to follow “the line” efficiently. Technology today no longer has to be tethered. Mobile solutions extend your “plant” right into your customer’s facility.

The tie that binds it all together is a clear understanding of your business practices as implemented in your software solution. 30

BOXSCORE November/December 2017

With electronic delivery tickets and GPS tracking, you can follow your drivers to the dock door, and the receiving receipt, once signed, automatically generates a signal to print and deliver an invoice in real time. Analytic tools can be used to measure “the line” for every order and every delivery. Small gains in loading patterns, delivery routes, and delivery times can reap small advantages that total up to a tidy sum over time. In today’s world, nothing is permanent. Analyzing patterns, time frames, and histories using analytics tools can help you stay on “the line” to continued success. John Clark is director of analytics at Amtech Software. He can be reached at jclark@ amtechsoftware.com.

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Safeguard

OUT WITH THE OLD, IN WITH THE NEW BY LES PICKERING

s it just me thinking that this year has flown by faster than last year? With the final column of this year, let’s look at closing strong and looking forward into 2018. Traditionally, this is a time when the final campaigns are fulfilled, allowing us the time to clean out, take stock, and plan for the new year—an opportunity to take some things to the next level.

Taking Stock in 2017 for a Great 2018 A great place to start is removing what is not needed. So, what can we clean out? How about those great idea boxes that we thought we could use for ideas, but the campaign is long gone? How about those sample boxes in the sales department and conference room? In fact, there is a multitude of items that can be disposed of if you have an internal cleanout campaign. Let’s merge and make space for the new tooling of 2018; this is a better option than the cost of additional racking! When removing all these items and clearing

BOXSCORE November/December 2017

the aisles and corners, remove at-risk safety issues. While you are at it, take a look at cables in the customer service areas, behind desks and monitors, and in customer waiting areas, and take a peek into the IT department—which is not for the faint of heart. In the electronics and computer industry, they use a method termed cable management. It’s where loose cables are transformed into looms using a technique that allows you to quickly trace cables, but has them organized using strain loops and wrap methods that make them much more provisional-looking. This results in a safer area and one that is easier to clean and maintain. Another area to focus on is the reception area, and whether the cables face the visitors. The Rise of the ‘Hi-Viz’ Vest I have no doubt that the business I should have ventured into in the late ’70s is hi-viz (high visibility) materials.

Today, the number of items in fluorescent colors and materials is staggering. Their wide use is escalating each decade. In Europe, it is common for vendors to visit packaging facilities with their own personal protective equipment (PPE), the hi-viz vest being one of them. This trend will continue, with many U.S. facilities adopting this garment as a norm, which leads me to ask two questions regarding the hi-viz vest. 1. Are we safer wearing hi-viz vests? 2. Why do I need to wear a hi-viz vest? Well, we may think we are safer, and no doubt the eye reacts to large blocks of contrasting color. In low-light areas, it helps enormously. I certainly feel safer wearing a vest, but is it a false sense of security? This leads me to the second and more relevant question: Why do I need to wear a hi-viz vest? My current belief, based on 40 years in manufacturing facilities, is the need for the hi-viz vest

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BOXSCORE November/December 2017

is largely because, so often, people don’t work in factories; they work in warehouse conditions. They are large areas of work, for sure, but where is the clear demarcation for process, transport, and product? Take a walk across the production floor. Is it clear where the work is done? Is it clear where people are to walk? Is it clear where the fork truck works? I don’t mean wide spaces set from custom and practice; I mean clear lines and signage. Can you see where the trucks leave the aisles and enter a process? What safety measures are in place where trucks and people come into close proximity? When a fork truck comes close to the people, what can be done to reduce the speed of the truck?

Safeguard

Issuing a hi-viz jacket is quick and relatively low-cost, but it does not address techniques and methods to change warehousing into professional factories— factories in which you are proud to bring customers to visit. Great factories have clear standards where work and process are undertaken, transport of goods is clear, and the storage of WIP and other materials is clearly laid out. Let us work in factories, not warehouses. Another Thought for Another Day Another area for thought that can assist you with customer tours is to create what we have termed “customer landings.” These are areas set out in

numerous locations within the facility (e.g., customer service, production, etc.). They can be established at the entrance or change of a production area, such as moving from printing to cutting, gluing to assembly, or analog to digital printing. These customer landings are usually an 8"x4" board on which you communicate to the visitors what to look for. This is a point where you are differentiating yourself versus the competition, focusing on safety, process, and your amazing people. It’s a transition point where the salesperson leading the tour can hand off this part to the supervisor or production lead. These are wonderful opportunities to get your message across as to why you are

No. 1 in this area of supply, by showing and explaining not that you can do the work, but how you do the work in a safe, effective method. Les Pickering is co-founder of Quadrant 5 Consulting, based in San Francisco. He can be reached at 415-988-0000 or leslie.pickering@ quadrant5c.com. Follow Les and Quadrant 5 on Twitter @Q5cLP.

BOXSCORE www.aiccbox.org

Lean Learnings

SUCCESS = CHOICE + DISCIPLINE BY MIKE NUNN

ere it comes, another trip around the sun. The start of a new year is regularly described as a chance to start fresh and create a new beginning. I choose to look at the new year with a different set of glasses. I put my why glasses on and ask myself why I got the results I did in the year that’s coming to an end. Why did I have the successes I achieved? Why didn’t I get the results I wanted? Reflection is a powerful tool. More often than not, the reflection reveals either a lack of, or strong focus on, the basics that yielded my results. In that vein, rather than trying to come up with a list of new and innovative ways to find success in the new year, I want to take this opportunity to remind myself about some of the easy things to do that will continuously lay a solid foundation for success. The best part is, most of these points we’ve known for years, even decades, but sometimes a reminder is needed to put them back into focus.

needle-moving things, and the exponential change things. For success in 2018, identify the ball that you need to keep your eye on.

Keep your eye on the ball. How come sometimes we don’t watch the ball? Football, golf, baseball … it doesn’t matter what the sport is, if your eye comes off the ball, your chance for success will be significantly reduced. Now think about your work. What is the ball? A lot of us are busy being busy and are trying to operate with a mile wide and inch deep approach without the laserlike focus on the important things, the

Do the little things. If you take time to complete the little things each day or week, this will set the stage for taking on the big things. I recently listened to a podcast that cited making the bed every morning as a great steppingstone for accomplishment in the day. The little things may seem just that—little—but when compounded over a life or career, the impact can be significant.

Keep weeding. In all areas of our lives we have weeds. Just as in the garden or lawn, if you ever decide to stop weeding, then the weeds will take over. Weeding isn’t fun, and it takes a lot of daily work, but the discipline of weeding is rewarded with a beautiful landscape. Find your weeds and get rid of them. Sharing is caring. Society is shifting more and more to a protective state, where sharing and opening ourselves up to others generates a fear that we will be vulnerable or taken advantage of. I say that the vast majority of people in the world are good people, and we’re all waiting for someone to go first. So, go first. Don’t wait for the other person to offer, say hi, or show compassion. Go first!

Stay curious. Life doesn’t stop teaching, so don’t stop learning. The only way growth can happen is by increasing your value, and as best I can determine, the only way to increase your value is to learn and do more and bigger things. And the only way to learn is by being curious. Books, courses, seminars, and peer mentoring are just a few of the pathways to success. What’s easy to do is also easy not to do. And the easy things, including the stuff mentioned above, are usually the important things. • It’s easy to keep your eye on the ball. • It’s easy to read (audiobooks, too). • It’s easy to weed (when done daily). • It’s easy to do the little things. • It’s easy to share. Thankfully, you’re not a tree, which means you have the ability to write your script for success, and you don’t have to stay rooted. All of the above and what you do today, tomorrow, and in the new year, is a choice. Your choice. Success = Choice + Discipline. Mike Nunn is vice president of operations at Ideon Packaging and is Lean Black Belt-certified. He can be reached at 604-524-0524 or miken@ ideonpackaging.com, or followed on Twitter @mikednunn.

Related AICC Education: Jan. 30–31: Best Practices for Flexographic Printing: Raising the Standard. Learn more at www.aiccbox.org/calendar.

BOXSCORE November/December 2017

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Leadership

LEADERS CAN EMERGE AT ANY STAGE BY TERRI-LYNN LEVESQUE

s the incoming AICC Emerging Leaders board delegate, I have been elected to represent and advocate on behalf of the next generation of leaders within our Association. This is a responsibility that I feel is a great honor and privilege. Being involved in AICC’s Emerging Leader program, I have been fortunate enough to take several plant tours, listen to industry experts, receive leadership training and development, and most importantly, network with peers whom I now call friends. Leaders come in all different forms; they don’t only include the person at the top of an organization chart. Leadership is much more than a position or a title. While an organization chart may help clarify decision-making levels, it does not limit the actions and characteristics that define great leaders. Title or No Title—What Makes a Great Leader? DISPL AYING HONEST Y AND INTEGRIT Y IN ALL YOU DO

As children, we are taught that dishonesty and breaking your values is a punishable offense. I’m reminded of the mantra that is ingrained into us from an early age by our parents or grandparents: “Do unto others as you would have them do unto you.” This is true in your personal and professional life. Your actions and words will determine whether you get respect from others and will affect your future success. Earning the respect of your team is critical.

BOXSCORE November/December 2017

FINDING YOURSELF GREAT MENTORS

The four types of mentors you need are the coach, the connector, the cheerleader, and the challenger. Very early in my career, I naturally gravitated to a mentor within our company who had the same core values as I did. He is the one I go to for support, feedback, guidance, and when I need to be taken down a notch. Great mentors are always willing to share their knowledge, provide constructive feedback, help you continuously grow, inspire you to be better, and teach you how to overcome challenges. They will assure you there are no stupid questions, and they will be unafraid to tell you the hard truth. They are passionate about the industry and wanting to give back. Being a great leader starts with a great support system. COMMUNICATING EFFECTIVELY

An effective communicator is continually improving key skills: actively listening, showing friendliness, being concise, practicing empathy, having confidence, providing feedback, and being conscious of their nonverbal communication. They strive to be an expert in all these areas and will work hard every day to push themselves out of their comfort zone. BEING PASSIONATE ABOUT ALL YOU DO

Passion is something that is not easily faked, and it can be displayed in several ways: • By looking professional, dressing for the role you want. • By being a team player; being the solution and not the problem.

• By focusing on your work and making it a priority. Develop a positive work ethic. • By knowing your competitors inside and out. Stay ahead of the curve, know your market and all adjacent markets. • By becoming an expert in your field. Be that “go-to” person. • By showing up on time and being prepared. • By balancing your enthusiasm with a dose of realism. Find that work-life balance so you don’t burn out. Know the difference between “want to do” and “need to do.”

Great leaders choose their words and actions in order to better their people or their customers. In the words of Douglas McArthur: “A true leader has the confidence to stand alone, the courage to make tough decisions, and the compassion to listen to the needs of others. He does not set out to be a leader, but becomes one by the equality of his actions and the integrity of his intent.” What will your leadership mantra be? Terri-Lynn Levesque is the office manager at Royal Containers Ltd., in Brampton, Ontario. Levesque is an Emerging Leader and a board member of AICC Canada. She can be reached at tlevesque@ royalcontainers.com.

2018

May 16-18, 2018 Guadalajara, Mexico Riu Plaza Guadalajara Hotel

www.aiccbox.org/mexico

Marketing Mix

TO MAXIMIZE YOUR HOLIDAY SALES, START MARKETING EARLY! BY ALYCE RYAN

uring the holidays, companies have the chance to capture loads of new customers. In order to get to the purchase itself, shoppers have to navigate their way through the packaging to get to the product. The “unwrapping” element of this process can enhance—or even hurt—the customer’s perception of a brand. This is why your marketing efforts need to be planned out and executed early. Here are a few tips to make the most out of your marketing campaign throughout the holiday season: Develop a Campaign Strategy Plan out your marketing efforts ahead of time so you don’t get caught in the holiday frenzy. If time is limited, Canva and Adobe Spark are simple yet efficient tools to create social media graphics, and Hootsuite is a great platform that allows you to schedule posts in advance.

Give Your Website a Face-Lift When brands are trying to figure out which packaging company to choose, for many, the first thing they will do is look at your website. Make sure you have all the correct updated information, add high-definition images, and maybe even decorate your logo with a Santa hat or snowflake. Donate to a Cause The holiday season isn’t only about receiving, it’s about giving. This is a great way to help those in need and also get your name out there. Create a Social Media Plan and Craft Content for Maximum Shares The holidays are a time to be creative on social media. It’s OK to be weird to stand out, as it’s all about grabbing the attention of your customers. When planning your holiday posts, keep in mind that

Facebook, Twitter, and Instagram are visual platforms. Use videos, animated GIFs, Boomerangs, and striking images to grab attention. Pay attention to the dates, and produce holiday-themed content and discounts. Toward the end of the year, customers’ news feeds will be bombarded with an abundance of holiday content. I recommend you use motion to grab attention during the holidays. Use visuals to catch eyes and land a new sale! Create Holiday DIY Projects Using Corrugated or Carton Board Create fun DIY projects using your products, and ask people to share them via social media with your hashtag. This is a great way to engage your customers and show that packaging isn’t just a box. Send Early Holiday Cards If you plan on sending holiday cards to previous customers or prospects, send them early to stand out! Decorate Your Office During the holidays, everyone can be stressed out. Adorn the office with decorations to show customers your company culture and increase employee satisfaction, which results in a highly accountable, uber-productive environment. Alyce Ryan is a marketing associate at AICC. She can be reached at 703-836-2422 or aryan@aiccbox.org.

BOXSCORE November/December 2017

Recent Deals Completed by Klingher Nadler LLP Michiana Corrugated Products Company

Jamestown Container Corp.

Sturgis, MI

Jamestown, New York

Has been acquired by

Has agreed to acquirethe assets of

Tecumseh Packaging Solutions

H. P. Neun Co. Inc. Lyons, New York

(An Akers Packaging Service Group Company) MITCHELL E. KLINGHER MITCHELL E. KLINGHER

580 Sylvan Ave, Suite M-A Englewood Cliffs, NJ 07632 (201) 731-3025 Fax (201) 731-3026 info@KlingherNadler.com

Associated Packaging, Inc. And

Fast Pak, LLC

580 Sylvan Ave, Suite M-A Englewood Cliffs, NJ 07632 (201) 731-3025 Fax (201) 731-3026 info@KlingherNadler.com

Central Florida Box Corp. Lake Mary, Florida

Greer, South Carolina

Has been purchased by

Has sold their assets to

Kapstone Paper And Packaging Corporation

Northbrook, IL

Northbrook, IL MITCHELL E. KLINGHER MITCHELL E. KLINGHER

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AICC TOOLBOX.. ................................................ 43 GOAL-SETTING. . ............................................... 44 AICC INNOVATION ........................................ 47

BOXSCORE TIPS, TRICKS, AND SOLUTIONS TO BETTER BUSINESS

AICC TOOLBOX

TROUBLESHOOTING?

e all just want technology to work. Unfortunately, that doesn’t always happen, even on AICC’s website. If you or your team are having trouble logging in, here are a few simple ways to troubleshoot the problem.

Tips for Shared Computers Some member companies are having all of their employees take AICC’s free online courses. Some have even set up a few computers for everyone to use. To minimize login issues, try the following: 1. Uncheck the “Remember Me” box when you log in. This can confuse your browser, since it could be trying to remember everyone’s password for the same website. 2. If multiple people are using the same computer, we recommend using a private browser window. Private browser windows forget everything after you close them,

so even if someone forgets to sign out, the next person will be able to log in easily. To open a private browsing window: • Chrome: http://bit.ly/2ySNHeA • Firefox: https://mzl.la/1CzyHMx • Explorer: http://bit.ly/2za5UWh You Click ‘Sign In’ and Nothing Happens You have entered your username and password, but when you click “Sign In,” the boxes go blank. This normally means that either your username or your password was entered incorrectly. Make sure your caps lock key is off, and try again. Still not working? Use the “Reset Password” link to set your password to whatever you want. You Click ‘See All Courses’ and Are Sent to Your Profile Page AICC’s most-visited page is now the Free Online Courses page. You do

have to be logged in to see this page. If you log in to get to this page or click “See All Courses” and are redirected to your profile, this is an issue with your browser’s cache. Cache is like your browser’s memory. If it sends you somewhere you were not expecting, it is because the browser remembers what happened last time you clicked on that link. To solve this issue, you can clear your browser’s cache or use the instructions above to try logging on in a private browser window. Instructions to clear cache: • Chrome: http://bit.ly/2uiObbB • Firefox: https://mzl.la/1a9zdnT • Explorer: http://bit.ly/1cKiOHN Have more questions? Call AICC at 703-836-2422, and any staff member can help.

BOXSCORE www.aiccbox.org

Good for Business

GOAL-SETTING

THE COUNTDOWN BEGINS TO A HAPPY NEW YEAR! BY TERRI-LYNN LEVESQUE

here is always something about this annual tradition that brings a feeling of peace. It’s similar to the feeling when you close your eyes and take a deep, cleansing breath. For a moment, a weight is lifted, as you reflect on the year that is now behind you. At the same moment, you feel the promise of something new, building on the successes and failures of the previous year. At some point, we all will start to brainstorm what the goals are for the year ahead, both professionally and personally. In today’s business world, setting goals is critical. Setting clear, specific, and obtainable goals is key to growing a successful business. Yet, only 8 percent of people who set goals actually achieve them. The definition of goal-setting is “the process of identifying something that

BOXSCORE November/December 2017

you want to accomplish and establishing measurables with time frames.” There are different goal levels within a company to consider: • Companywide goals. These are goals that focus on growing the business as a whole. The goals are communicated to all staff. All decisions made by staff must have the goals in mind. This also ensures the entire staff is running the same race. • Department goals. These are goals that are set with a focus on a specific department. They must directly connect back to the companywide goals. • Individual goals. These are goals that are specific to individuals. The individuals are held accountable, and are assessed on their ability to meet their goals. Managers have

their own set of team goals that differ from their individual goals. Goals should use the five SMART elements: S — Specific. Clearly describes what the target is and what needs to be accomplished. M — Measurable. Tools must be available to make sure progress is tracked and on target. A — Achievable. Goals should be aggressive, yet attainable. Setting a goal that will inevitably fail defeats the purpose and breeds discouragement. R — Relevant. Goal has a clear impact on the company, department, or individual. T — Time-Bound. Specific time frame and deadlines it will take to reach the goal.

Good for Business

Now that you have the foundation for creating goals, how do you set them and keep staff motivated to reach them? 1. Get input. It’s extremely difficult to set a department goal, for example, without having input from everyone in that department. At Royal Containers Ltd., we meet as a management team annually to set corporate goals. In management meetings each month, we monitor, communicate, and report which goals are on track and which ones are not. 2. Define the goals with specificity so there is no room for misinterpretation. This helps everyone focus on the target and the successful behaviors needed to obtain it. Communicating the goals is key. You must use visuals that include electronic platforms. We use things like communication monitors, posters, pictures, and other visual aids throughout all venues within the company. Use prompts and reminders. We start every—and I mean every— meeting by reviewing our mission statement, core values, and company goals. We report whether we are on track to promote transparency within the company. This reinforces an “eyes on the prize” mentality and aids in accountability. 3. Measure. Create reports to measure progress. We use a tool called a “scorecard.” It lists each goal, who is responsible to meet each goal, deadlines, and any risks or challenges we may face. Create a weekly or monthly checklist of items to be completed, and create calendar reminders to keep you on track. 4. Train your employees. AICC is always a great resource. The Packaging School, for example, is a tool that can help with training new and established employees—courses such as

BOXSCORE November/December 2017

Communication for Coaches, Go Team Go: How to Make Your Team More Productive, Project Planning for Success, Achieving Higher Levels of Productivity in Corrugated, and the many Packaging 101 courses. All AICC courses are free and included in your annual dues. At Royal Containers Ltd., we are partnered with Holly G. Green of The Human Factor, in conjunction with AICC, in the Ready, Aim, Win program. 5. Celebrate and reflect. Once you reach your goals, celebrate your success. You did it! How has it improved your business and contributed to your bottom line? If you failed, reflect on reasons why you didn’t achieve your goals, and highlight challenges that you can change for the future. Reaching goals takes work. I love watching TED Talks videos on ted.com or YouTube for motivation. They highlight creativity and innovation in just about any area you can imagine. How can you personally become better at reaching your own goals? Every night, look at your calendar and prepare your checklist of tasks to be completed for the next day. Every Sunday, write out a checklist of three things you want to accomplish in the week ahead. Use apps such as “Be Focused.” Let’s face it: These days, we use our phones to organize all aspects of our lives. We all have those moments of panic when our phones shut down due to low battery. These tools help you focus and track your goals. As a final tip, something I learned at the 2016 AICC Emerging Leaders meeting in Fort Worth, Texas, was to “build a focus vault.” Think of your attention like a currency. Your attention (currency)

resets every day, and you have only so much to use each day. Like money, you should spend it wisely, on the things that will help you reach your goals in two to 10 years. Go into your focus vault to do better and become excellent. The combination to the vault is: 1 — Pick one place to enter the vault. Your brain picks one environment to form a habit. 00 — This one you have full control of. Zero digital activity. Fight back against the digital distractions with good technology, such as the “Freedom” app. This effectively puts your computer in “freedom mode” and will allow only one program to run, with no email notices or notifications. Turn off your phone during the vault time. Just like Girl Scout cookies, when we have the temptation within arm’s reach, we are more inclined to be tempted to eat one (pick up our phone). Put the Girl Scout cookies back in the pantry during vault time. 45 — Don’t be in the vault longer than 45 minutes. Start at 20 minutes and work up to 45. In the words of Wayne Gretzky, the greatest hockey player who ever existed: “You will always miss 100 percent of the shots you don’t take.” Don’t be afraid of goals or failure. Goals push us beyond our comfort zone, help show our level of commitment, and test our determination. Terri-Lynn Levesque is the office manager at Royal Containers Ltd., in Brampton, Ontario. Levesque is an Emerging Leader and a board member of AICC Canada. She can be reached at tlevesque@royalcontainers.com.

Good for Business

AICC NNOVATION

CONNECTING ONLINE www.aiccbox.org

Connect & Message a Fellow Member

Using the private member directory, search for the person’s name. Click on the profile, click “connect” to invite them to your Connections or “message” to send them a note through the AICC website. They will get an email notifying them of the message or connection request.

Share Your Thoughts & News on Your Feed

On “My Feed,” fill in “what’s going on today?” with your thoughts, articles, ideas, and questions for your connections. Then click “post.”

ore than 700 people came together in September for the AICC Annual Meeting in Las Vegas, and while being able to look someone in the eye and shake their hand is ideal, it can’t always happen. Now you have the opportunity to message other members online and post your thoughts, ideas, and questions. But you don’t have to leave your office to connect with other members. Connect and Message a Fellow Member Using the private member directory, search for the person’s name. Click on the profile, click “Connect” to invite them to your Connections, or “Message” to send them a note through the AICC website. They will get an email notifying them of the message or connection request. Share Your Thoughts and News on Your Feed On “My Feed,” fill in “What’s going on today?” with your thoughts, articles, ideas, and questions for your connections. Then click “Post.” Ask Questions Click “Quick Links,” then “Communities.” Click on the ones that are most appropriate for your question, then you can review questions and answers already posted or click “New Topic” to post a new question.

Ask Questions

Click “Quick Links” then “Communities.” Click on the area most appropriate for your question, then you can review questions and answers already posted or click “new topic” to post a new question.

www.aiccbox.org Connect & Message a Fellow Member

BOXSCORE www.aiccbox.org

Member Profile

JAMIL PACKAGING BY VIRGINIA HUMPHREY

COMPANY: Jamil Packaging Corp. ESTABLISHED: 1973 JOINED AICC: 1976 Photo courtesy of Jamil Packaging Corp.

PHONE: 877-239-2600 WEBSITE: www.jamilpkg.com LOCATIONS: Mishawaka, Ind. OWNER: David Diroll Sr. and Mary Ellen Diroll The Innovation & Experience Center at Jamil Packaging Corp.

o matter how important they are, it isn’t the customers who come first at Jamil Packaging. At this Indiana corrugated company, which serves customers around the country, the No. 1 priority is placed on its associate employees, its supplier companies, and always doing the right thing as a member of the business community and the world. “We’re a growing company,” says General Manager David Diroll Jr., “and we feel our growth can be directly attributed to our culture and our family’s mindset on doing business—putting people first. Everything we do with our associates, our supplier partners, and even our competitors is done the right way.”

BOXSCORE November/December 2017

It’s a culture that was developed under the guidance of a team of coaches in 2005–2006. Jamil was founded in 1973 and sold in 1993 to the Diroll family, which now owns it. The company, led by David Diroll Sr. and Mary Ellen Diroll, shifted its focus to one of continuous improvement and creating a culture that involved everyone in the company. “That was a huge turning point,” says Diroll. “We saw we could control what happened inside our walls. The improvements we saw had a positive and dramatic effect on the bottom line, helping us become more profitable, efficient, and streamlined. The family took that added profitability and invested it back into our company.”

That investment took the form of more advanced equipment, hiring more people, and introducing better quality control. “That took us from the dark ages to the future,” says Diroll. He says that one of their most important business practices is to be honest and have a deep concern and awareness of their company’s culture. They are a family-owned business, but they are committed to being professional in their take on business and doing right by their employees, 115–120 of whom work in their box plant alone. One thing he says they do differently is to make sure they don’t have a corporate feel when it comes to the chain of command. Anyone, he says, from a truck

Member Profile

driver to a flexo operator, has access to any owner and any manager. They don’t want them to go around their supervisors or management leaders, but if they want to talk to an owner, they can. By treating their associates and supply chain partners with professionalism and respect, they create a culture in which everyone is committed to the best possible outcomes. “We talk about associates and supply chain partners in a collective—they are so important to the future of the company in terms of taking care of the customers,” Diroll says. “We don’t put the customer first. The customer is put at the top of everything we do, but in order to do that, we have to take care of our associates and have really good partners.” The team at Jamil is committed to being transparent. Employees are brought together at every level to identify problems and be on action teams to help solve them. Managers are told to check their rank at the door when it comes to employee meetings. “Everyone is equal at those meetings,” Diroll Jr. says. “We’re including people at every level.” Jamil Packaging isn’t just a corrugated company. It also owns a share of the largest corrugator operation in the country. This allows the company to help serve the needs of its partner, along with supplying itself with corrugated. Jamil is a turnkey operation and is involved with everything from structural design to graphic design to delivery. Jamil has industrial engineers on staff who can help customers with things from concept to delivery and everything in between. Sometimes the company designs the product; other times customers send their product to Jamil and ask them to pack it and ship it out. “Really from concept to delivery, that’s what we do,” says Diroll.

SETTING THEMSELVES APART During the first week of October 2017, Jamil completed the installation of a new high-tech digital printing press manufactured by Hewlett-Packard, the HP Scitex 11000. “It will help us get into more value-added, short-run, high-graphic business that we believe will set us apart from some of the others that are out there,” says David Diroll Jr. The six-color press has a printable area of 63 by 126 inches. It can do POP/ POS, POP rigid, posters, directional rigid signage, displays, double-sided banners, exhibition, event graphics, and indoor posters. Diroll says the company plans on the press creating more value-added offerings for its customers in the high-graphics short-run, point of purchase, and display areas. The press is designed to cost-effectively address a wide range of jobs and run lengths. Hewlett-Packard says it simplifies and automates production and continuously improves operations, something Jamil is committed to. Jamil is sending its operators to train with people from HP, talking with its customers about their new capabilities, and running various jobs on it. Jamil has placed the printing press in its own environment, separate from the other equipment in the manufacturing plant. “We’ve built a digital operation,” says Diroll. “It’s a different mindset. It’s separate from the traditional brown box and one- or two-color printing. We’re calling it the Jamil Packaging Innovation and Experience Center. It’s almost like a minicompany within a company.” Jamil has hired some new employees to be a part of it, including an outside graphics person to be the champion of the press. The company also created a team of interested associates from within. The new team will be involved with graphics and structural design. Diroll says they see themselves moving more into the retail packaging world— both for those who are putting their products into the big-box stores such as Walmart or Costco and for those who are e-commerce companies. The latter companies, he says, rely heavily on their packaging because that is the experience their customers have with their companies. “In a scenario like that, they really want the packaging to be a wow experience for the customer,” Diroll says, “because they don’t have a salesperson to talk to them. Shipping a regular brown box verses a high-graphic customized packaging really gives the customer a wow experience and drives them to do business with that company again.” He also says the equipment, being a hybrid machine, will help Jamil enter new markets other than just corrugated. The press can print out a myriad of different materials, including those used in the indoor and outdoor signage industry. “It gives us an opportunity to cross over into other industries than just corrugated.”

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Member Profile

Diroll says his family gets a big kick out of creating jobs. While it might not always be this way, so far all of their growth has been 100 percent organic— Jamil hasn’t acquired any other companies and shut them down. “We get a real thrill out of bringing the best people together in an environment where everyone gets a say,” says Diroll. “There is an expectation of everyone being a part of the team and not just owned by a someone who only cares about the bottom line and has an ego that they have to be the biggest.” Jamil also endeavors to do right by its competitors. They are friendly with them and try to do everything the right way. “We have opened conversations with competitors all over the place,” Diroll. says. “We are fierce competitors—I don’t know that there is anyone with more

competitive spirit than our family—but we compete the right way, respecting our industry and our competitors. This is what helps us put our heads on the pillow at night. No matter what we do, we try to do it the right way. We play fair.” Jamil has always been an active member of AICC, even before its current ownership. “The relationship we’ve created with AICC has been tremendous with other box manufacturers and the openness of the Association to be a network for all of us.” He says AICC’s educational initiatives are phenomenal and something they wouldn’t be able to get on their own. They have also taken part in the CEO advisory group for the past 10 years. With a strong culture intact, Jamil is committed to growth. Its main box plant

and corrugator is in Indiana, with a satellite plant in Tennessee. Jamil continues to invest in new equipment, including a new box folder gluer and a digital printer just this year. Mostly, though, Jamil wants to stay focused on being a growing company that they can be proud of. “Our reputation is extremely important to us,” says Diroll. We want to do everything the right way. Being the biggest isn’t the most important, but being the best is.” Virginia Humphrey is director of membership and marketing at AICC. She can be reached at 703-535-1383 or vhumphrey@aiccbox.org.

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Welcome AICC 2017–2018 Chairman

AL HOODWIN! BRINGING FAMILY BACKGROUND, LEADERSHIP, AND FORWARD THINKING TO AICC By Geoff Williams

f Albert K. Hoodwin were around to see what his grandson, Al Hoodwin, has done with Michigan City Paper Box Co., you’d have to think he would be impressed. For starters, it’s a 113-yearold company. Plenty of good businesses don’t last that long—and the company is still thriving. The rigid paperboard box manufacturer—based in Michigan City, Ind.—has state-of-the-art technology throughout its plant and is known for its award-winning retail store boxes. Albert K., sadly, never met his grandson. In 1904, Hoodwin, a Russian immigrant, started manufacturing paper boxes on the second floor of an old factory building in Michigan City. Sixteen years later, he moved the business to an old church building and then to a manufacturing plant that had been a shirt factory. But in 1928, the 50-year-old was driving two employees home when his car was at a railroad crossing and hit by a train. Hoodwin was killed, and one of his employees perished, as well. The other

“ I am really glad I came back when I did. I’m glad I got to spend 11 to 12 years of my dad’s life working with him.” employee lost a leg but survived, says the younger Hoodwin, who is now 53 and has been running the business since 1993. After Albert K. Hoodwin died, his wife, Lillian, 37, took over the company while raising two young sons. Later, in the 1940s, Lillian’s sons, Louis and Fred, joined the company. Ultimately, the older brother, Lou, would run the business while Fred became the plant manager. Many years later, Lou’s son, Al Hoodwin, would grow up and would also be involved in the family’s business. During his high school days, Al was sweeping floors, making deliveries, and working on production lines. Then, after Al secured an MBA in management information systems at Indiana University in August

1986—well, we’ll let part of our interview tell the next part of his story. BoxScore: It seems that you did what a lot of family business owners do nowadays. They’ll send their kids off to work for another company, and then they come back and bring their knowledge to the family business. Was that the plan when you went to work at Apple? Hoodwin: You know, I have noticed that a lot with the family businesses in AICC. They’ll send their son or daughter off to another company in another industry, and the son or daughter will bring some of the best parts of that experience back to their own company. That would be a great thing to help kind of formalize for members of AICC. It would almost be

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Al Hoodwin walks the line at Michigan City Paper Box.

like a precursor to the Emerging Leader program. I could see it as a job-matching program, where your kids would work for somebody else’s company, and another business owner’s kids would work for yours. Anyway, I have seen that happen informally. But in my situation, Apple was a company I had always wanted to work at growing up. And so I actually used that argument, saying, “Hey, Dad, this would be a great experience for me to work at another company for a while, so I don’t grow up as a spoiled kid who runs his father’s company. I told him I’d stay at Apple for a year. I wound up being there nine years, and then my father was, like,

‘Enough is enough. It’s time for you to come back home.’ ” BoxScore: So, you didn’t come back because you were dying to work in the family business? You returned because your father wanted you to? Hoodwin: It was definitely the main reason in the beginning. I went back and forth in how I felt in those early years of running the company. It was always expected that I was going to go into the business. Honestly, I sometimes called the family business “the family curse.” My grandfather was killed in the prime of his life, and my grandmother had to take over the company, and in her time, it was

“ I think companies are doing a better job these days with not making their kids feel like that have to come into the business.” 54

BOXSCORE November/December 2017

very challenging for a woman to be taken seriously in business. So, my father and uncle really had no choice but to go into the business. Hindsight is 20/20, but my dad would have been just as successful doing anything else. He had an opportunity to go into the linen business, for instance, and didn’t, but I know he would have done well if he had. My uncle was really not happy at the business. I think he was miserable being plant manager. It just wasn’t what he wanted to do, but back in those days, he had no choice. I think families are doing a better job these days with not making their kids feel like they have to come into the business. I’ve discussed this with other company chairmen, and I’ve asked, ‘Is so-and-so coming into the business,’ and they’ve said, ‘I don’t know if I’m going to let them yet.’ It isn’t assumed and as automatic as it used to be, and I think that’s how it should be. I’m glad to see more families

giving their children more independence in those decisions. I would have been very happy staying at Apple and very happy staying in the high-tech industry. That said, I am really glad I came back when I did. I’m glad I got to spend 11 to 12 years of my dad’s life working with him. My dad passed away when he was 89, but he was still a person who wanted to come to work every day. Even when he was slowing down, I at least got him into the office three times a week. And nothing can ever replace those memories. Invaluable Experience When Hoodwin was working at Apple Computer in Cupertino, Calif., however, he was racking up valuable experience that he would bring to the family business. Hoodwin was the senior manager of the executive briefings and sales incentive programs for Apple Pacific. He managed the executive briefing center to close large corporate sales for Fortune 500 customers based in Canada, Latin America, Australia, Japan, and the Far East. He also ran the international portions of worldwide sales meetings and product introductions. After Hoodwin bought the business from his father on June 30, 1993—not surprisingly, having had an up-close view of the 21st century—he immediately began converting their paper ordering and accounting process to a computer-based system. But his changes weren’t just about computers. In 1994, Hoodwin led negotiations with the United Steelworkers union to make critical changes to the labor contract, including the addition of productivity expectations. There were also machinery updates in the plant. “If you had come into our plant, you’d find the latest automated machines—from the 1950s and ’60s,” Hoodwin quips.

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“ As a group, we can always accomplish more than we can as individuals.” There was an acquisition in 2006 when the company bought Gem Box of the West in Los Angeles and moved its machinery to the Michigan City location to automate all lines with the latest fully automatic spotting equipment. And throughout it all, Hoodwin has been very involved with the industry as a whole. In 2007, Hoodwin worked with Peter Freund, then-owner of one of the largest box manufacturers in the country, to

merge the National Paperbox Association with the Canadian Paperboard Packaging Association to form the North American Packaging Association. From 2007 to 2009, Hoodwin was the chairman of the North American Packaging Association. In recent years, Hoodwin started becoming very involved and engaged with AICC. He joined the board of directors in 2011, and in 2015 he was named a vice chairman of AICC. “I think when you have a volunteer organization like AICC, every member has a duty to give back to it as much they receive from it,” Hoodwin says. In other words, he has received a lot. BoxScore: So, what do you hope to do as the 2017–2018 AICC chairman? Hoodwin: My theme for this year is strength in numbers, and it kind of plays

Hoodwin converses with Michigan City Paper Box team members on the plant floor.

BOXSCORE November/December 2017

off two different things. One, it’s based on my experiences that I’ve had at previous associations, but it’s the idea that we can always accomplish more and obtain better results when members with similar challenges and goals enact solutions for the industry. Back in my old association group, for instance, a group of rigid box members formed a task group to address various issues in the industry, and that was very successful. BoxScore: What did the task force do? Hoodwin: At the time of the Rigid Box Task Force, I was vice chairman of the North American Paperbox Association (NAPA). Peter Freund was the chairman at that time. The committee consisted of business owners and production managers of rigid box operations at various member plants. We got together as a group and defined what common issues we had amongst ourselves that we could possibly address as a group. The issues divided between supplier issues and machinery issues. For the supplier issues, we determined what common suppliers we were having issues with, and then met with them as a group at their facility to work out and address our issues. This successfully addressed many issues we were all having and has led to better relationships with these suppliers since the visits took place. Then we looked as a group at the fastpaced changes that were occurring with the development of our box-wrapping lines from leading machine suppliers like Emmeci. Some of the members of the group had already installed this brandnew machinery in their plant, and they shared with us for what applications they worked well and what challenges they faced installing this machinery. Most of the current machines in our plants were over 40 years old, so it was a major change for many of us to accommodate the new machinery and learn what changes were

needed in the preparation of materials, as well as training our old employees to use the new machinery. I think this group effort allowed many of us to successfully install and transition to this major change in our industry. We helped each other set standards for the new machinery and volunteered to help train each other’s employees to better run this new machinery. Most of those that participated in that task force are the companies that are still around today and I feel have been more successful because of their participation on this task force. … As a group, we can always accomplish more than we can as individuals. BoxScore: Do you find people agree with that? A lot of business owners—in any industry—fear working with others because they’re afraid they’ll end up giving up market share, or that it’ll end up blowing up in their faces. Hoodwin: Today, our challenge as an association—and this has often been the challenge—is engagement. How do we get more members engaged, and how do we attract those companies that feel they’re better off working on an island and not working with others? Somehow, many of them are afraid they’re going to give away trade secrets. And that’s so not the case. You give away information, but you also get information, and so much more. I have example after example where people have given me a new idea that’s saved my company hundreds of thousands of dollars. I know it’s hard to get out of the office to go to events and meetings, but it’s well worth the trip.

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Geoff Williams is a journalist and writer based in Loveland, Ohio. USA & Canada: Tel 1 630 537 1203 • Email rg@bcscorrugated.com Europe & Rest of the World: Tel +44 1525 379359 • Email sales@bcscorrugated.com

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POSITIONED TO WIN

HOW ONE PROVEN COMPANY HAS SUSTAINED SUCCESS By Scott Ellis, Ed.D.

he question at hand is: How can a company be positioned for success? Having taken on the task, I see that it is a matter better suited to a book, with chapters on strategic planning, market analysis, best practices for attracting talent, and staying focused on key objectives as the business scales. Word-to-picture ratios being what they are, I will answer the question with a sketch of 34 years in the life of Pacific Southwest Container LLC (PSC) in central California. August 9, PSC lost its founder, Don Mayol. His oldest son, John Mayol, has been leading the team for nearly 25 years. The chief reason I am sketching this company as a picture of success is that they have maintained the founder’s paradigm while continuously adapting to thrive in a changing market. However, I must first offer an objectivity disclaimer. I have known the Mayol family since I was a young boy, and I am grateful for the mentoring, friendship, and years I spent as a PSC team member. I hope that what I lack in detachment can be balanced with knowledge gained as a student of, and a contributor to, PSC’s culture. Like many independent packaging companies, a rising star in sales and

Reactivity is an occupational hazard of entrepreneurs; when they get bored, they want to change something. management of an integrated firm founded this one. In 1973, Don Mayol was the youngest general manager in the Weyerhaeuser system when his entrepreneurial nature prompted him to found an independent company. He named it after his favorite airline, and with their example of customer service in mind, he began to use and adapt the systems he had learned in the larger corporate world. As a condensed history of the founder’s years, I offer that he learned from his corporate jobs, from the galvanizing management of cash flow, and from many people of all stations whom he observed and invited to coffee. This knowledge was used to build a company structure that they would grow into. He risked financially and by investing in people, with no cap on sales commissions, best-in-class pay, and challenging work. This gamble was shared and supported by his wife, Lois, and his three children, John, Jim, and Jennifer.

Don worked to grow the business by focusing on a niche and controlling as much of the process as he could afford. PSC also grew because Don shared decision-making power earlier than most by splitting responsibility for sales and operations and assigning them to son John and nephew Tom Andersen. PSC culture was also shaped by the founder’s generous nature. Uncommon drive to serve the customer marked the early years; and service to the community has been a quiet and consistent practice. As John Mayol puts it, “Dad did not coin our mantra, Learn, Risk, Grow, Serve, but he exemplified it.” By the ’90s, the generational transition was well underway, but it was accelerated by Don’s heart attack at age 57. John stepped in and immediately doubled down on his father’s penchant for hiring the best and brightest, and for sharing power. Because John had been involved

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from day one and had watched Don build the structure of a larger company, he had a field of operation—a way of seeing things. Jim Mayol stood shoulder-to-shoulder with his brother to bring perspective and advice as general counsel. John had already led the effort to grow sales significantly. He credits his cousin Tom Andersen with the development of a quality improvement culture that would enable PSC to attract high-graphics customers, such as Apple, HP, and Gallo. John recalls, “We raised the bar and hired a group of people that we could not afford, and then found creative ways to compensate them and keep them engaged.”

which was the subject of Doris Kearns Goodwin’s book Team of Rivals. It is a smart and competitive group of individuals with a common goal. I admire John’s conflict-friendly process of achieving results, and I asked him what the pros and cons have been. He agreed that it would be easier to work with fewer alphas, but that the company would be decidedly less successful without the drive, challenge, and focus of this type of team. Strategic Planning The company began with more structure than most, but it was reactive by nature to customer needs and more. Reactivity is an occupational hazard of entrepreneurs;

“Our intent has always been to control the process front to back, so that we are responsible for every quality outcome.” — John Mayol, CEO, Pacific Southwest Container LLC

Today, PSC is one of the largest packaging suppliers on the West Coast, with three manufacturing locations focused on high-quality single-face lamination, corrugated boxes, and folding cartons. The company has grown on John’s watch from 75 to 800 team members required to serve customers. PSC’s CEO was generous with his time and candor as we recently discussed the company’s positioning for success. I asked John to describe the key factors contributing to the company’s growth and resilience and came away with these conclusions: Forceful Leadership PSC’s senior management team is reminiscent of Abraham Lincoln’s cabinet,

BOXSCORE November/December 2017

when they get bored, they want to change something. Thirty of PSC’s team members hold off-site planning sessions three times a year. They know their target market and plan toward being the best equipped with machines, processes, and talent to exceed customer expectations in each of the categories in which they choose to compete. John adds, “At the same time, we are opportunistic, and we make adjustments every day based on constant research and awareness of what is going on in the marketplace.” Looking Both Ways This is the ability to pay attention to both the business at hand and improvement of the process of doing the business at hand.

Albert Rothenberg called this Janusian thinking, in reference to the Roman god Janus, who is represented with two faces looking in opposite directions. This idea is referenced in Chris Zook and James Allen’s book The Founder’s Mentality. Organizing the business around a quality system in the ’80s provided a base for the incorporation of lean thinking in the ’90s. “I hate solving the same problem twice,” John says. Root cause analysis is ingrained in the culture. “We want systems in place that make it the logical outcome to get it right the first time, and when we don’t, we focus our efforts on improving the system.” Hire the Best and Brightest “We hire above our station,” says John, “and then we need to keep it interesting for people at all levels.” The company has relationships with packaging and business schools, local colleges, and even high school programs that prepare students for various careers. Ongoing education is encouraged for all by a tuition reimbursement program and is of particular importance for management. Even when a team member cannot move up the ladder, there is opportunity to move around the business. Control the Process “Our intent has always been to control the process front to back, so that we are responsible for every quality outcome.” John adds that they brought in people with experience to help them expand control as they invested in new products and services. When protective packaging was needed to serve key customers, they went all in and formed a division. They added lithographic and single-face lamination capability and a folding carton skill set. Sharing ownership of a sheet feeder led to investment in their corrugator. They aim to be a one-stop shop that does not job anything out.

Culture Improvement My depiction of the present organization may seem clean and shiny, but is the result of leadership that has been in a long-term down and dirty fight to control its own destiny. So, my final question for John regarded the challenges PSC is working on now. As you can imagine, the answers pertaining to position in the market, capability expansion, or capital improvement are not for the public eye. Regarding the next level of company culture, he is very willing to share. On general principle and as part of the strategy to be an employer of choice, he says, “I want the team members to have more fun, I want to foster more collaboration, and I want us to be nice to one another;

yes, I used that word, nice.” By setting a tone and a standard, along with assessments and training, John believes they are making progress. “We move very fast, we are impatient, and we are competitive in the market, but also with each other.” John believes that recent efforts are paying dividends. With increased patience, as shown in listening and seeking to collaborate, John sees increases in problem-solving and innovation. There are many lessons that may be learned by studying companies such as PSC, or even your own. I believe asking your own team similar questions will bring perspective that can lead to adaptation. If you took on such a company as a lifestyle business, you quickly learned that the lifestyle

included much work and responsibility. It doesn’t seem fair, but as Don Mayol shouted when I was an idealistic teenager, “Fair is for games, kid.” Scott Ellis, Ed.D., provides the brutal facts with a kind and actionable delivery when a leader, a team, or a company needs an objective, data-based assessment of the current state of operations and culture. Training, coaching, and resources develop the ability to eliminate obstacles and sustain more effective and profitable results. Working Well exists to get you unstuck and accelerate effective work. He can be reached at 425-985-8508 or scott@workingwell.biz.

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2017 ANNUAL REPORT

AICC SEES A BANNER YEAR IN REVENUE, PARTICIPATION, AND INFLUENCE 62

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ICC’s 2017 fiscal year ended on June 30, and it was a banner year in terms of revenue, member participation, and influence in our industry. Completing the first year of a four-year “strategic agility” plan known as “Destination Modeling,” AICC achieved or exceeded its targeted goals in four principal functional areas of operation and laid the foundation to build on those in the years ahead. The following report details 2017’s results in membership, education and training, meetings and conventions, and governance.

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AICC Members by Company Type 4 12

Folding Carton Rigid Box Sheet Supplier

209

192

Sheet Plant Corrugator Plant Associate

59 AICC Members by Geographic Distribution (General & Associate)

Other International Canada Mexico USA

428

BOXSCORE November/December 2017

Membership AICC membership numbers continued to grow in the past year, despite a growing trend of consolidation in the industry. Dues revenues reached a record $1,299,352 in FY 2017, up from $1,144,791 in FY 2016. AICC welcomed 12 new corrugated general members, three folding carton general members, and 25 associate members in the fiscal year, and enjoyed a general member retention rate of 94 percent. The total number of corporate member entities worldwide was 490, up from the previous year’s 476. Education and Training AICC’s industry-specific education and training programs reached almost 2,000 employees in the industry and brought $410,267 in revenue in the 2017 fiscal year. This was up from $330,000 in FY 2016, or an increase of 24 percent. The increases were fueled in large part by the introduction of new onboarding courses, such as Corrugated Fundamentals and Folding Carton Fundamentals, both introduced in 2016. In addition, new partnerships with Clemson University’s Sonoco Institute provided a dedicated Designers’ Workshop as well as a Flexographic Printing Press Maintenance workshop. AICC’s webinars continue to reach a larger number of member company employees due to their relevant subject matter and relatively low expense and time commitment. In FY 2017, AICC introduced a series of HR compliance webinars with Christine Walters, JD, MAS, SHRM-SCP, SPHR. These webinars covered topics such as employee drug

testing, hiring and firing practices, and audits of employment policy manuals. The major development in AICC’s Education & Training program was the announcement in March 2017 that all AICC online courses would be included free of charge as part of AICC’s membership benefits. This transition from pay-as-you-go to “all-included” was directed by AICC’s board, and has been made possible by a unique partnership with The Packaging School, Greenville, S.C., a leading online educational platform for the material handling, packaging, and processing industry. At the end of the 2017 fiscal year, the Packaging School and AICC partnership provided members with nearly 30 online courses free of charge in disciplines covering production, sales, design, and general leadership and management topics. National Meetings, Summits, and Special Events Attendance at AICC’s national meetings and regional summits and other events topped 6,000 people in fiscal year ending June 30. The 2016 Annual Meeting and AICC/TAPPI SuperCorrExpo, held for the first time in Orlando, Fla., attracted more than 5,000 people to the combined quadrennial event. AICC’s 2017 Spring Meeting was held in Austin, Texas, and saw an attendance of 628 people. AICC’s annual legislative fly-in—this year rebranded to The Print & Packaging Legislative Summit—attracted 65 participants. This year, AICC continued its partnership with Printing Industries of America (PIA) and collocated the event with the National Association of

Education & Training Participation, In-Person Courses & Online Courses Completed FY 2017

500 400 300 200 100 0

Number of Companies

Number of Participants Goal

E-Courses Completed

Actual

Participation in Online Education, Number of Individual Employees 1000 900 800 700 600 500 400 300 200 100 0 31-Jan

28-Feb

31-Mar

30-Apr

31-May

30-Jun

BOXSCORE www.aiccbox.org

Manufacturers (NAM) Manufacturing Summit. Representatives from the National Association of Printing Ink Manufacturers (NAPIM) and the International Association of Diecutting and Diemaking (IADD) also attended. In 2017, AICC introduced the idea of regional summits, national events that are smaller in scale but focusing on specific topics to attract a wider audience. One of the first, “Distilling the Digital Print Market,” was held in June in Louisville and attracted 71 participants. Total attendance at the U.S. regional summits was 749. Combined income from AICC/ TAPPI SuperCorrExpo, national meetings, regional summits, and the Print & Packaging Legislative Summit was $2,415,886. AICC’s fourth annual Independents’ Cup Charity Golf Tournament, held in conjunction with the 2017 Spring Meeting in Austin, raised a combined $46,500 for Ronald McDonald House Charities of Central Texas, Project Healing Waters Fly Fishing Inc., and the Austin Music Foundation, up 19 percent over the previous year. AICC’s regions remained active in FY 2017, with 22 events held domestically and internationally. The U.S. summits were attended by more than 668 members and guests. Publications and Advertising AICC’s publications and advertising contributed positively to AICC’s steady growth in FY 2017, bringing in a combined $354,135, up from $334,970 in FY 2016. This was made up of $318,858 in website and print (BoxScore) advertising, and $35,277 in publication sales.

BOXSCORE November/December 2017

National and Regional Summit Attendance

Print & Packaging Legislative Summit

749 Summits

628

Summits Print & Packaging Legislative Summit Austin

2017 Spring Meeting, Austin

SuperCorrExpo

5,000 AICC/TAPPI SuperCorrExpo, Orlando

AICC Canada AICC Canada encompasses Ontario, Québec, and the Maritime provinces. It is run by an independent board of directors chaired by President John Franciosa of McLeish Corr-A-Box Packaging & Design. AICC Canada hosts a number of events annually and provides various services to its members locally. In 2016–17, events included general member meetings, an annual Christmas party with 120 attendees, and the winter president’s luncheon, at which local business leaders are inducted into the AICC Canada Hall of Fame. This past year, AICC Canada honored Ross Nelson of Royal Containers and recognized his lifelong support of the industry. In March 2017, AICC Canada co-hosted a regional conference

and table-top fair with the CCCA (Canadian Corrugated & Containerboard Association). And completing the year, the highly attended golf tournament was also co-hosted with CCCA, where up to 180 golfers participate. AICC Canada publishes its own regional membership directory and biennial salary survey. John Franciosa also serves as regional director on the AICC Board of Directors. For more information on the activities of AICC Canada, contact Jana Marmei, executive administrator, at 905-727-9405, or jm@aiccbox.ca. AICC Mexico In 2017, AICC Mexico celebrated its 16th annual meeting June 7–9 in Monterrey, Mexico, with 178 people in attendance.

AICC Mexico has 25 members, and in 2017 began planning for the hiring of a full-time executive to manage its affairs and grow membership. Founded in 2001, the region continues to be a vital and growing part of AICC’s international family. AICC Mexico was represented on AICC’s Board of Directors in 2017 by Yair Caballero of Corrempaques in Querétaro, Mexico; he is succeeded by Pedro Aguierre of Tecnología de Cartón in Gómez Palacio, Durango, Mexico.

Executive and Governance AICC’s Executive Committee in FY 2017 began consideration of ways to restructure the AICC Board of Directors. The purpose of this exercise, consistent with our Destination Model goals, is to improve the recruitment, education, and training of board members, as well as to look at the size of the board and its governing effectiveness. As part of the improved training and education of officers and directors, AICC President Steve

Young and then-First Vice Chairman Al Hoodwin attended the American Society of Association Executives Symposium for Chief Elected Officers and Staff Officers in Chicago in April. This symposium will be an annual part of AICC officers and directors’ orientation, an effort that will create a more effective governing board of directors for AICC. AICC continued its annual outreach to and coordination with related industry trade associations, including TAPPI,

YOUR SUCCESS IS OUR BUSINESS

SMARTER PACKAGING SOLUTIONS Samuel Packaging Systems Group is a leader in the design, manufacturing, and distribution of packaging and unitizing solutions. Products for the Corrugated Industry include, but are not limited to: Polyester Strapping, Strapping Hand Tools, Strapping Machines (P702-C, SCU-8), Stretch Film and Stretch Film Machines (the Defender series, SRA 650, STA 500) and more!

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PACKAGING SYSTEMS GROUP 2017-09-25 2:14 PM

BOXSCORE www.aiccbox.org

the Fibre Box Association (FBA), Flexographic Technical Association (FTA), and others. Internationally, AICC maintains membership in the International Corrugated Case Association (ICCA), where we are represented on its board of directors by Kim Nelson, CEO of Royal Containers Ltd. and AICC overseas director. In addition, AICC participated in the annual convention of ACCCSA, the association for corrugated manufacturers in the

Caribbean and Central and South America. In September of 2016, then-AICC Chairman Tony Schleich, Immediate Past Chairman Mark Williams, and AICC President Steve Young attended the annual conference of the Sheet Plant Association in Birmingham, England. Financial Results AICC’s operations in FY 2017 brought in $4,711,837 in revenue and realized expenses of $3,632,811.

This resulted in a net operating income of $1,079,026. This income, combined with $36,070 in nonoperating income from AICC regional activities, resulted in a total net income of $1,115,096. AICC’s auditors are Councilor, Buchanan & Mitchell, PC, of Bethesda, Md. AICC members who wish to receive a copy of AICC’s audited financial statement should send a request in writing to Steve Young, President, AICC, PO Box 25708, Alexandria, VA 22313, or email syoung@aiccbox.org.

Balance Sheet Year Ending June 30, 2017

Current Assets Property & Equipment Other Assets TOTAL ASSETS Current Liabilities Long-Term Liabilities TOTAL LIABILITIES Unrestricted Net Assets TOTAL LIABILITIES & NET ASSETS

2017 4,143,638 561,225 73,818 4,778,681 1,320,478 74,754 1,395,232 3,383,449 4,778,681

2016 2,661,198 587,144 53,613 3,301,955 979,053 54,549 1,033,602 2,268,353 3,301,955

2017 4,711,837 3,321,368 311,443 3,632,811 1,079,026 36,070 1,115,096

2016 3,274,152 2,745,107 466,793 3,211,700 62,452 7,516 69,968

Income Statement Year Ending June 30, 2017

TOTAL REVENUE Operating Expenses—Program Operating Expenses—Management TOTAL EXPENSE OPERATING INCOME NONOPERATING INCOME TOTAL INCOME

BOXSCORE November/December 2017

April 16-18, 2018 Sheraton Grand Wild Horse Pass Resort & Spa Chandler, AZ & 5TH ANNUAL INDEPENDENTS’ CUP CHARITY GOLF TOURNAMENT The AICC 2018 Spring Meeting will be held April 16-18, at the Sheraton Grand Wild Horse Pass Resort & Spa in Chandler, AZ. The meeting will feature a three-day series of general sessions, workshops and networking and social events. The meeting will also feature the 5th Annual Independents’ Cup Charity Golf Tournament being held on-site at the Whirlwind Golf Club. The AICC host hotel for the 2018 Spring Meeting is the Sheraton Grand Wild Horse Pass Resort & Spa. The resort was designed to be an authentic representation of the Gila River Indian heritage and culture and offers guests a recreational, educational and inspirational experience in a resort setting. The resort is located in the high Sonoran Desert on an expanse of rugged Arizona landscape where the ancient vistas, mountains and roaming wild horses remain untouched. The Sheraton Grand Wild Horse Pass Resort & Spa offers endless activities for every member of the family in one luxurious destination. This unique resort features Native American culture, Wild West adventure, championship golf, a luscious spa, tennis courts and award-winning dining, as well as, three swimming pools and a 111-ft. waterslide. Onsite activities include wagon rides, horseback adventures, an Interpretive Desert Trail and poolside movies. Nearby, enjoy Rawhide, an 1880’s Western Theme Park featuring cowboy stunt shows, petting zoo, stagecoach and train rides, live entertainment nightly or the new Wild Horse Casino Complex located less than a mile from the resort featuring fine dining restaurants, concerts, a nightclub and casino. The hotel provides complimentary shuttle service between the Wild Horse Casino Complex and the nearby Phoenix Premium Outlets shopping center for guests.

Sheraton Grand Hotel—AICC Hotel Room Reservations Traditional Single & Double Accommodations: $249 per night* (*plus applicable taxes/fees—currently 13% and reduced resort fee of $10.00 per night)

To make your hotel reservations directly into the group block you can call (866) 837-4156, and reference AICC 2018 Spring Meeting or to make reservations online directly into the group block, visit: www.starwoodmeeting.com/Book/aicc2018springmeeting. Attendees are encouraged to make their hotel reservations before the group cut-off date of Thursday, March 22, 2018 in order to be guaranteed availability, and to ensure you receive the group rate. Please note the hotel block could sell out prior to the cut-off date so booking your hotel reservations early is strongly recommended.

Registration information will be available December 2017 at www.AICCbox.org/meeting

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

The Associate Advantage

PLANNING FOR SUCCESS DAVE BURGESS JB MACHINERY VICE CHAIRMAN DBURGESS@JBMACHINERY.COM

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

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

JOE MORELLI HUSTON PATTERSON PRINTERS DIRECTOR JMORELLI@HUSTONPATTERSON.COM

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

BOXSCORE November/December 2017

t’s always amazing to me that as soon as we get beyond Labor Day, we start to think about our goals for the following year—2018 in this case. Most larger companies are now starting to transmit their budget packages to key employees, looking for concrete answers on next year’s business within 45–60 days, so they can start planning for capital and human and cash resource requirements. That whole process has to start with sales! Success in sales doesn’t come by accident. It requires a lot of thought and a high level of planning. The thought process gets me to a sales number that I think is attainable, and the planning involves all the steps necessary to make the numbers, namely: • Who are the customers I am targeting? • Where are they? • What are they planning for capital purchases? • How do I show them an ROI that makes my value proposition more appealing? • Who am I competing with (many times I am not really competing against a fellow competitor; I am competing for a slice of the capital budget money)? • Who is in my pipeline from last year and still hasn’t purchased? • Which trade shows, conventions, summits, etc., do I need to attend to meet the influencers and the targets? An old marketing professor of mine in the U.K. used a phrase that I have always remembered and is still 100 percent true 40 years later. “If you don’t know where you are going, any road will take you there!” In simple terms: If you fail to plan, you are, in effect, planning to fail!

Once I have my plan in place and my sales target has been approved, it’s time to execute and hit the road, knowing that my plan has to be flexible enough to deal with change. Our traditional independent market is going through some rapid changes. Pick up the trades any day to see which integrated company has purchased which independent. Suddenly, that project you pitched to an owner now needs to go in front of a committee. If it passes that test, there are an additional eight levels of approval needed, and it may take months—even years—to be approved. But that doesn’t stop me from trying. I live by four fairly simple rules in sales—the 4 Ps—and I think that they are common for all of us: 1. Planning. Perhaps the most important of all. 2. Professionalism. Look that part, do your research, make the appointment with the decision-maker, get there early, and make your points clearly and concisely. 3. Patience. The days of making the presentation, quoting the project, and receiving a PO seem a long time ago. I just received a purchase order that I have been working on for four years with five different plant managers— now that’s patience! 4. Persistence. If you feel strongly that your product is viable and can show a positive return for the customer, then persistence pays. He or she will eventually see that you are sincere; but if you stop calling or contacting, you will soon slide down his or her list! I hope that 2018 will be another great year for this industry, and I am sure I will see you on the road! This article was written by Dave Burgess.

Best Practices for Flexographic Printing: Raising the Standard Tuesday, January 30Wednesday, January 31, 2018 Clemson University Clemson, South Carolina

AICCâ&#x20AC;&#x2122;s twoday course will focus on how to produce clean solids and line work, as well as halftones and spot colors by balancing classroom sessions and time on press.

Questions? Contact Taryn Pyle typle@aiccbox.org 703.535.1391

www.aiccbox.org/standards TROUBLESHOOTING

CREATING SOPS

HANDS-ON LEARNING

Troubleshooting issues will be addressed from dot gain and die-cutting to proper graphic design for corrugated to ensure the best results .

Participants will create standard operation procedures, one point lessons, and checklists to put their new knowledge into practice.

Nothing is better than using new skills as they are learned. Attendees will learn on machinery and increase productivity.

Build Your Team. Build Your Company.

The Hidden Factory

TAKING THE BUSYNESS OUT OF BUSINESS BY CHUCK DELANEY

good friend and longtime business colleague of mine likes to use the phrase, “Activities are important, but results are necessary.” He and those inspired around him pursue results in all facets of our business. I have thought about his words and believe, with the pace of business constantly accelerating, that the expectations of even faster results are imperative to every business owner. The value to measure how you can keep pace with accelerating expectations is ROT (return on time). Measuring ROT should be mission critical in all areas of the company, but especially in sales. Sales need to come in line with current business realities of cycle time reduction. For years, we have heard and believed that opening a targeted account takes months (nine or more), and a major share of the account usually takes 1½ to two-plus years to develop. I once toed the line and always made mention of this as a business owner and sales leader. However, I am not buying it anymore. With the advent

BOXSCORE November/December 2017

of automation of the front end of the sales cycle and onboarding process, clients are more open to awarding business much more quickly than we are conditioned to expect. I am now expecting the opening of accounts and account growth to a significant share to happen in quarters, as opposed to years. As you read this, I know you might be saying, “Bull,” but I have seen it happen firsthand, and it is one of the most exhilarating sales experiences I have ever been a part of. The critical issue you need to solve for this to happen is to determine and define your unique proven differentiators in the supply chain process that you have developed. Your proven differentiators should not be able to be duplicated by any of your major competitors. To see your business take off, you need the value proposition that separates you from every other corrugated organization you compete with locally or nationally. You will not be able to use your current business processes to see these extraordinary results. You’ll

need to take a proactive approach to every sales facet that has been used by your organization and automate it. Every step must be examined—ranging from the initial account or industry identified to the design and ideation process and the final prototype of these practices. Fortunately for you, most leaders in our industry will not dare to try to do this. Thus, you have a chance to impact your company results for years to come, if you embark on a journey driven by results. Your customers will be happier, and your company won’t be bogged down by unnecessary activities. It is up to you and your leadership team to either expect “impossible” results or just stay busy. Chuck Delaney is managing director of GROW Retail Technologies. He can be reached at 708-491-5090 or cdelaney@growrt.com.

UN-BOX-ING

noun an act or instance of removing with anticipation a newly purchased product from its packaging.

Make it happen in a single pass with the

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Financial Corner

M&A FEVER IN THE CONVERTING BUSINESS: IS THERE AN END IN SIGHT? BY MITCH KLINGHER

t seems that all anyone in the converting business wants to talk to me about these days is “What is my business worth?” This question is usually followed by “and who might the likely buyers be?” M&A (mergers and acquisitions) fever has ripped through the industry like an epidemic with no cure in sight. Public companies have difficulty hiding the economics of most of their acquisitions, so when their deals are announced, there is the usual reporting of economic value and multiples. Private company deals are generally announced with very few details, which always gets the rumor mill going with all kinds of conjecture. There have been a host of announcements of deals in the last year running the gamut from a few million dollars to more than a billion dollars and everything in between. Is there an end in sight? The key dynamics that are driving this phenomenon are: • The quantum leaps that technology has offered in converting speeds and the overall converting capacity of each plant. • An imbalance in the supply of and demand for paper in North America.

Converting Capacities As you can see below, the corrugating capacity has increased by almost 250 percent, and the converting capacity has increased by almost 550 percent. Since there are now corrugator installations with widths of more than 130 inches and speeds approaching 1,500 linear feet per minute, this disparity is accelerating. This, coupled with the slow growth in the demand for corrugated products, means the economy needs far fewer corrugated plants. Supply of and Demand for Containerboard In 1980, approximately 40 percent of the world’s demand for containerboard was in North America. Today this number is closer to 20 percent, as so much manufacturing has gone elsewhere. Yet almost all of the mills that were around then are still in operation, and many more mills have been constructed since. Because the absolute demand for corrugated products has grown modestly, we find ourselves in the unenviable position of having a containerboard supply of approximately 36 million tons per year and containerboard consumption of approximately 30 million tons per year. Based upon the latest data, approximately

18 percent of the containerboard manufactured in North America is for export. The key issues are the profitability associated with these export tons and whether these export levels are sustainable in the long run. According to most of the industry analysts, much of this tonnage is, at best, marginally profitable, although the reports have indicated pricing has improved recently. In any event, the paper producers make a lot more money on tons that are consumed domestically. As to the issue of sustainability, much of the world has been actively building high-tech, state-of-the-art mills, geared to produce lighter-weight, higher-performance paper than most of the older mills here in North America. Lower-weight recycled paper offers customers a potentially significant competitive advantage over heavier-weight kraft paper, which over time may seriously erode the profitability of North America’s existing mills. While the output of our pulp-based mills is both desirable and necessary in other parts of the world, this disparity is also being made up by new mills in emerging economies that also have significant forestry resources. North American paper producers are therefore trying to become more vertically

1980S CORRUGATOR

WIDTH 87”

SPEED 400/MIN

3-SHIFT OUTPUT 85,000

MSF/MONTH

2017 CORRUGATOR

110”

1000/MIN

210,000

MSF/MONTH

1980S CONVERTING

SETUP 30 MIN

PCS/HR 5000/HR

1,764,000

PIECES/MONTH

2015 CONVERTING

5 MIN

20,000/HR

9,072,000

PIECES/MONTH

BOXSCORE November/December 2017

New Industry Leading Software iNEXT Renamed EnCore

“I think the name EnCore says it all! We will continue to challenge our Software Solutions to deliver more, so our 600 customers and 50,000 users can do more for their customers.” - Cosmo DeNicola

After an industry wide naming competition, with hundres of submissions, Amtech’s iNEXT software is now EnCore! The winning submission was received from Nathan Bevers of Dura Fibre “My inpiration came from Amtech’s long history of constantly going the extra mile by updating their software, creating new modules and transitioning to the latest technology.” EnCore, previously known as iNEXT, is the cloud-based next generation software to Amtech’s industry leading Imaginera.

“When your customers demand more, turn to EnCore!” For more information, please contact Darren Artillio at DArtillio@amtechsoftware.com

Financial Corner

integrated by owning more North America-based converting operations. The continuing increase in the price of containerboard by the North American producers without significant increases in the input costs associated with manufacturing the containerboard has given these companies almost unprecedented profits. Their perceived need to be more integrated with North American converters, coupled with their concerns over the long-term sustainability of export markets and availability of significant profits to invest, has fueled this M&A fever. Is This a Good Thing? If you are an independent converter looking for an exit strategy, this is an excellent thing. The change in the dynamic here is that in past years, an acquirer would only look at paying you a return on the profits

produced in your operation. Integrated buyers today will also add the increased profitability on the tons they are currently exporting at lower profit levels to the consideration that they are willing to pay. When multiples get reported, they are generally very high based upon the profits generated by the converter, but very reasonable when looked at from the point of view of the integrated purchaser. If you look at this from a global perspective, it simply represents one domestic mill-based company taking domestic converting business away from another domestic mill-based company. It is not really creating any more value within the overall domestic containerboard business, so billions of dollars are being spent without them representing any real investment in the containerboard business. North America is in dire need of new investment

has been acquired by

a wholly owned subsidiary of

advised the seller in this transaction. www.tuckermidis.com For more information, contact Tucker Midis & Owen, LLC 404.442.5685

BOXSCORE November/December 2017

into containerboard and converting businesses. European producers are eager to enter this market, and they possess technological and operational knowledge that may eventually cause a quantum change in how this business is conducted here. Yet the major integrated producers seem to be chasing short-term profits by chasing higher levels of integration. It is also questionable as to whether integrated companies with a need to cut up tons domestically will have the ability to keep the bulk of the business that they are acquiring with their purchases of independent converters. How much appetite they will exhibit for shorter orders that go over multiple machines and require tighter tolerances and shorter delivery schedules remains to be seen. An independent business is sold at a higher price because it is generally harder to do. The typical target independent companyâ&#x20AC;&#x2122;s earnings that exist and the tons that go along with them are usually dependent on a much higher level of service than most integrated companies are willing and able to give. Will the gains associated with these acquisitions be permanent? Only time will tell. Is There an End in Sight? It is difficult to say now how long this will last. Mill-based companies have a lot of cash, and many are still actively looking for acquisition targets. Unless there is a major change in the economics of the export markets or they realize that they may have a challenging time servicing business currently run by independent producers, I would expect it to continue for the foreseeable future. Mitch Klingher is a partner at Klingher Nadler LLP. He can be reached at 201-731-3025 or mitch@ klinghernadler.com.

New York Holiday Weekend in

INTERNATIONAL CORRUGATED PACKAGING FOUNDATION’S

December 8 - 10, 2017

SUPPORT ICPF'S OPERATIONS & PROGRAMS ATTEND THE 2017 HOLIDAY WEEKEND IN NEW YORK

Socialize – Enjoy the best New York City has to offer during the holiday season. Network and strengthen your ties within the industry. By participating you will be supporting the International Corrugated Packaging Foundation (ICPF)!

Program – Participants will begin with a Friday reception at Sardi’s Restaurant that is frequented by celebrities from around the world, sponsored by Pratt Industries. Saturday, participants will attend a Broadway matinee, sponsored by BW Papersystems. Saturday night, join executives and spouses for a reception and dinner at the renowned Le Cirque restaurant. The reception is sponsored by Fosber America and the dinner is sponsored by Bobst North America. Additional weekend sponsors include Equipment Finance Corporation and Gerber Innovations. In addition to participating, many executives (manufacturing executives, box plant owners & executives, and service & supplier executives) invite clients, potential ICPF Corporate Partners, and reward key executives from their companies with this special holiday weekend function. Free time on Friday, Saturday, and Sunday will allow for holiday shopping, sightseeing, museums, more Broadway plays, and dining at New York’s finest.

Contact Registration@icpfbox.org for Registration Form or Download at www.careersincorrugated.org

ICPF Chairman, Jeff Chalovich, President Corrugated Packaging at WestRock, stated “It is a special opportunity to mix with peers in an informal social environment. ICPF’s holiday weekend is one of the most unique events in the industry. Your participation supports ICPF, an important resource for our future.”

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

PACKAGING

CORRUGATED

F O U N D AT I O N

CONSIDERING BECOMING AN ICPF PARTNER? USE ICPF RECRUITING PORTAL AND RESOURCES NOW!

uring ICPF’s fall meeting, ICPF’s board of directors voted to create access to ICPF’s career portal, résumé bank, and other resources for those corrugated packaging firms that are not currently an ICPF Corporate Partner. ICPF has more than 700 students and upcoming graduates in its corrugated packaging network and averages more than 100 current résumés in its résumé bank. Over the past seven years, entry-level positions and student internships posted on the career

portal, or promoted through ICPF’s corrugated packaging career network, have attracted an average of five qualified applicants. For a tax-deductible donation of $5,000, ICPF’s career portal and résumé bank offer unique opportunities to fill your entry-level and student internship needs. And, if your company decides to pledge to become an ICPF Corporate Partner during the 12-month period, the donation can be applied to the first tax-deductible pledge payment.

Students and upcoming 2018 graduates have already begun seeking positions for this spring and summer. Do not delay on promoting your anticipated openings for packaging design, graphic design, customer service, supply chain management, business, or sales. As before, ICPF corporate partners continue to regularly use these resources as a partner benefit. For more information, contact info@icpfbox.org, or call ICPF at 703-549-8580.

ICPF AND ARDEN DONATE SOFTWARE TO APPSTATE PACKAGING LAB

hen Appalachian State University graphic design students arrived on campus this fall, they discovered a major addition to their packaging design lab. Over the summer, Arden Software donated faculty training and 22 seats of design software to ICPF for use in Appalachian State’s packaging lab in North Carolina. Appalachian State (AppState) is the second of ICPF’s 25 university partners receiving both Arden and Artios design software to further enhance their design knowledge through learning the two applications. Lewis-Clark State College, which straddles the border of Washington state and Idaho, also utilizes both Arden and Artios design software in its packaging design program. “When it became an ICPF Corporate Partner, Arden Software made a large,

BOXSCORE November/December 2017

long-term commitment to ICPF, both monetarily and through the donation of Impact CAD Software and ongoing training to its university partners,” says Jim Silianoff, president and CEO of Arden. “Many of Arden’s largest customers, such as WestRock, Bobst North America, and Packaging Corporation of America, use Impact CAD extensively and serve as key partners of ICPF. Our donation to Appalachian State University continues our commitment to ICPF and the universities it serves. Arden’s customers—large and small—then benefit directly by having a knowledgeable pool of applicants from which to choose when hiring from universities.” Dr. John Craft and Dr. Mandy Wu, the AppState Graphic Arts and Imaging Technology Program professors overseeing the installation, thanked Arden and

ICPF for the recent donation. “The Arden design software will be utilized at multiple levels within Appalachian’s packaging design and production classes. It will be used at the introductory level to help students explore packaging design and learn basic skills. And the Arden design software will be used alongside ArtiosCad software in advanced packaging classes where students design complex packaging structures. The students are eager to use the new software, which will further provide them with the necessary education and skills to meet the rigorous demands of the corrugated packaging industry.” Through ICPF and Esko, each of ICPF’s university partners earlier received a donation of Artios design software for their packaging labs. As with Arden, a license renewal donation to each college is provided annually by Esko.

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

PACKAGING

CORRUGATED

F O U N D AT I O N

ICPF PROMOTES CORRUGATED CAREERS TO STUDENTS AT PACK EXPO Photo courtesy of the International Corrugated Packaging Foundation

f you attended AICC’s annual meeting and Pack Expo in September, you may have seen ICPF’s banner displayed at nine university booths during the Expo. Over two days, ICPF visited with faculty and 92 students at their booths, where staff provided information on corrugated packaging and display careers and tutorials on using ICPF resources to apply for student internships and full-time positions upon graduation. The university packaging programs participating with ICPF at the show included Cal Poly, Clemson, Florida, Indiana State, Michigan State, RIT, Rutgers, Wisconsin–Stout, and Virginia Tech. Students additionally participated in a drawing to receive free Fibre Box Handbooks.

The Virginia Tech corrugated packaging systems and design program, launched by ICPF’s donation of testing equipment, DT CAD sample table, and online corrugated curricula, offers an ongoing pipeline of student interns and graudates for southern and Mid-Atlantic operations.

ICPF ANNOUNCES NEW BROADWAY HIT FOR HOLIDAY WEEKEND 2017

or its Holiday Weekend in New York this season, ICPF has secured tickets to the new musical The Band’s Visit, starring Tony Shalhoub (Monk, Men in Black, and Wings). The musical received the Obie Award, The Lucille Lortel Award, and The New York Critics’ Circle Award. Many critics anticipate it also will win numerous Tony awards in 2018, including Best New Broadway Musical. ICPF’s Holiday Weekend in New York is scheduled for December 8–10, 2017.

At this writing, more than 100 guests have registered, and we expect to break another record in participation. If you are considering joining us this year and wish to learn more about the weekend events, visit www.careersincorrugated.org, or email register@icpfbox.org to acquire a registration form. Half of the tax- deductible registration fee is a donation to ICPF operations and programs. It will be another fun weekend where executives, with their spouses or guests, can support

ICPF while socializing and enjoying the best of New York City during the holiday season. Richard Flaherty is president of the International Corrugated Packaging Foundation.

BOXSCORE www.aiccbox.org

The Final Score

A SUCCESSFUL YEAR, A FOCUSED DESTINATION In this issue, you will find our 2017 Annual Report (see Page 62). This is a regular feature in our November/December edition of BoxScore, a sort of “State of the Union” for AICC. I am using this column to provide some editorial color to this report in order to provide some additional context as to why this report is important to you, AICC’s members. As you do in your business, your Association regularly engages in a strategic planning process. Now I really don’t like the term “strategic plan” because it causes my eyes to glaze over. Rather, I prefer “strategic vision,” and this is what your board of directors has set forth for the next couple of years. The goals in this strategic vision include the following: financial objectives in terms of revenues and expenses; membership goals in recruitment and retention; education and training; conventions and summit meetings; and governance. The 2017 fiscal year was the first full year of this vision. From a financial perspective, we exceeded budgeted revenue by $1,038,192, and this was due in large part to the success of SuperCorrExpo 2016, held last October in Orlando. This infusion of revenue shows the importance of the SuperCorrExpo franchise to AICC’s long-term financial health, a fact recognized by AICC’s leadership more than 20 years ago, when we concluded the first SuperCorrExpo agreement with TAPPI. AICC’s revenue stream is made up of diverse parts, the largest of which is our national meetings, followed by dues, education and training, advertising, and publication sales. In fact, two of the financial metrics we track annually are percent of dues to total revenue, a target of 40 percent (currently 38 percent), and percent of administrative costs covered by dues (target of 100 percent, but currently 89 percent). Reaching these metrics and ensuring they stay within an agreed-upon range is important because it will ensure that we are not overly reliant on one source of revenue only, and that we maintain a balanced budgetary model. Since we are in the business of operating a successful Association, we endeavor to ensure financial growth, accountability, and transparency for you, AICC’s members. I believe this year’s Annual Report shows that AICC has accomplished these goals in fiscal year 2017, and more: It tells you that your Association is sound, that it is providing increasing member value, and has built a solid foundation for future growth. I commend it to your reading.

Steve Young President, AICC

BOXSCORE November/December 2017

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