Nov/Dec 2024 BoxScore: Welcome 2024-2025 Chairman Gary Brewer

WELCOME,

AICC 2024–2025 CHAIRMAN

Taking flight in his new role, the Association’s board leader embraces the path ahead

OFFICERS

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

First Vice Chair: Terri-Lynn Levesque, Royal Containers Ltd., Brampton, Ontario, Canada

Vice Chairs: Joseph Morelli, Huston Patterson/Lewisburg Printing Co., Decatur, Illinois

Mike Schaefer, Tavens Packaging & Display Solutions, Bedford Heights, Ohio

Eric Elgin, Oklahoma Interpack, Muscogee, Oklahoma

Immediate Past Chair: Matt Davis, Packaging Express, Colorado Springs, Colorado

Chair, Past Chairmen’s Council: Jana Harris, Harris

Packaging/American Carton, Haltom City, Texas

President: Michael D’Angelo, AICC, The Independent Packaging Association, Alexandria, Virginia

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

Administrator, AICC México: Veronica Reyes

DIRECTORS

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

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

Southeast: Chad Wagner, Peachtree Packaging & Display, Lawrenceville, Georgia

Midwest: Cassi Malone, Corrugated Supplies Co., Bedford Park, Illinois

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

Northeast: Larry Grossbard, President Container Group, Moonachie, New Jersey

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

OVERSEAS DIRECTOR

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

DIRECTORS AT LARGE

Finn MacDonald, Independent II/Hood Container, Louisville, Kentucky

Kevin Ausburn, SMC Packaging Group/Green Bay

Packaging , Springfield, Missouri

Casey Shaw, Batavia Container, Batavia, Illinois

Stuart Fenkel, McLean Packaging , Pennsauken Township, New Jersey

Josh Sobel, Jamestown Container Cos., Cleveland, Ohio

Jack Fiterman, Liberty Diversified International, Minneapolis, Minnesota

EMERGING LEADER DELEGATES

Jordan Dawson, Harris Packaging , Haltom City, Texas

Evan Clary, National Corrugated Machinery, Hunt Valley, Maryland

Cody Brant, A.G. Stacker Inc., Weyers Cave, Virginia

ASSOCIATE MEMBER DIRECTORS

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

Vice Chairman: Jeff Dietz, Kolbus America Inc., Cleveland, Ohio

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

Director: Brian Foley, Bobst, Phoenix, Arizona

Immediate Past Chair Associate Members: Tim Connell, A.G. Stacker Inc., Weyers Cave, Virginia

ADVISORS TO THE CHAIR

Matt Davis, Packaging Express, Colorado Springs, Colorado

Joe Palmeri, Jamestown Container Cos., Cleveland, Ohio

John Burgess, Pamarco/Absolute, Roselle Park, New Jersey

PUBLICATION STAFF

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

Editor: Virginia Humphrey • vhumphrey@AICCbox.org

EDITORIAL/DESIGN SERVICES

The YGS Group • www.theYGSgroup.com

Vice President, Association Solutions: Craig Lauer

Creative Director: Mike Vucic

Managing Editor: Therese Umerlik

Senior Editor: Sam Hoffmeister

Copy Editor: Steve Kennedy

Art Director: Alex Straughan

Account Manager: Jillian Mengel

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

CONTRIBUTORS

Cindy Huber, Director of Conventions and Meetings

Chelsea May, Meeting Manager

Laura Mihalick, Senior Meeting Manager

Patrick Moore, Membership Manager

Taryn Pyle Director of Training, Education, and Professional Development

Rebecca Rendon, Senior Manager, Education and Training

Alyce Ryan Membership Marketing Senior Manager

ADVERTISING

Taryn Pyle

703-535-1391 • tpyle@AICCbox.org

Patrick Moore 703-535-1394 • pmoore@AICCbox.org

AICC PO Box 25708

Alexandria, VA 22313

Phone 703-836-2422

Toll-free 877-836-2422

Fax 703-836-2795 www.AICCbox.org

ABOUT AICC

PROVIDING BOXMAKERS WITH THE KNOWLEDGE NEEDED TO THRIVE IN THE PAPER-BASED PACKAGING INDUSTRY SINCE 1974

We are a growing membership association that serves independent corrugated, folding carton, and rigid box manufacturers and suppliers with education and information in print, in person, and online. AICC membership is for the full company, and employees at all locations have access to member benefits. AICC offers free online education to all members to help the individual maximize their potential and the member company maximize its profit.

WHEN YOU INVEST AND ENGAGE, AICC DELIVERS SUCCESS.

Fly the Plane

My name is Gary Brewer, and it is my honor to have been elected as your 2024–2025 AICC chairman. I am president of Package Crafters in High Point, North Carolina, and Creative Packaging in Savannah, Georgia.

My path over the past 21 years has resulted in a two-facility sheet plant operation that has been supported tremendously by my AICC membership. My career began with degrees in paper science and chemical engineering from North Carolina State University and an MBA from Wake Forest University in North Carolina. I started out as a process engineer in a paper mill and then transitioned to various roles in a corrugator plant.

Many times, as I pursued my MBA at night while working full time, I saw classmates leave the stability and security of the company they worked for to chase an idea or a dream. It proved contagious and caused me to make the decision to break out on my own. I started my company with my father and four other team members; we bought an empty building and installed a flexo folder-gluer, rotary die cutter, and printer slotter. Then, it was time to get to work because we had no customers. Here I am now, proudly representing our industry.

I am a believer in AICC, its mission, and the many benefits of membership. The educational resources, peer group offerings, and networking opportunities are the bedrock for me and those I work with, not only early on but through today.

The theme of my chairmanship for this year is “Fly the Plane.” I have been a licensed pilot since my 21st birthday. Entrepreneurs and business leaders, like pilots, face many distractions and diversions on a daily basis. Your priorities, safety, customers, team members, sales, and family are always there, but so are many other circumstances, influences, demands, and interruptions. Everyone is counting on you.

Pilots have extensive education and training as well as their crew, manuals, checklists, and air traffic controllers to help them on their way. You have AICC, your colleagues, friends, family, suppliers, and experiences to help you on your way. Like a pilot, you log hours at your business and become more proficient as you build time honing your skills and embracing new ideas and technologies.

But you must fly the plane. Always. You must run your business.

We’ll develop this theme as the year progresses. I very much look forward to meeting with as many of you as I can and building the dialogue for continued successful flights.

Thank you for the opportunity to serve the Association.

President, Package Crafters and Creative Packaging

Market Insights

A Look at the Evolution of Box Plants

BY RYAN FOX

The fundamental landscape of corrugated boxmaking has changed since the COVID-19 pandemic, with demand bolstered by an e-commerce boom. From Q1 2020 to Q1 2024, corrugated manufacturers increased their number of employees by 4.7%, while total wages rose 26%, according to U.S. Bureau of Labor Statistics data (see table at top right).

Despite the past few years of industry growth, the longer-term trend has been more muted. In 1994, corrugated box shipments totaled 374.8 billion square feet (BSF) and were valued at about $18.7 billion, Fibre Box Association data shows. Almost three decades later, box shipments in 2023 were up just 1% at 380 BSF, and 2024 didn’t look much better through the first nine months. Last year’s shipments were valued at $39.9 billion, roughly the same as in 1994 adjusted for inflation.

Thirty years ago, 1,467 box plants in the U.S. employed about 131,100 people (see chart at bottom right). Those numbers have shrunk since to 1,150 plants and 103,000 workers, down 22% and 27%, respectively. Today’s smaller workforce faces the increasing demand for graphics, on-time deliveries, and perfect quality. That’s a tall order, but the industry has kept up so far, shipping more product with fewer plants and people while generating similar revenue.

Employment and Wages in Corrugated Manufacturing (Q1 2020 vs. Q1 2024)

Source: U.S. Bureau of Labor Statistics

Employment in NAICS* 322111 Corrugated & Solid Fiber Box Manufacturing in the U.S.

* North American Industry Classification System

Source: U.S. Bureau of Labor Statistics

Technology has made that possible. Sheet plants in 1994 largely used handme-downs and old equipment. Converted letter presses or similar basic printer slotter

machines from the 1960s were popular. Many required a second pass to glue the boxes. Conveyance, automation, and elaborate workflows were absent from the

average plant. Almost every machine was manual and required wrenches and tape measures, and the typical press operator might have had 20 years of experience. It wasn’t uncommon for family members to work together on a machine.

If a sheet plant had a conveyor system, it was likely manual. When boxes came off the printer slotter, they were stacked on a cart (basically, a big pallet with four swivel wheels) and pushed by employees through the plant to the next machine. Finding employees was easier than today, and they were the answer to most problems.

The cost to replace old equipment has outrun the ability to generate sufficient profits compared with 1994. New machine prices today are up 30%–130% in inflation-adjusted terms. That’s largely because they’re asked to do far more than they did 30 years ago.

Customer needs have dictated that producers buy new equipment with the ability to print more colors inside and outside of the box. To keep up with orders, machines are highly automated and store box specifications internally. This produces faster setups without the need to turn wrenches. To meet productivity goals and mitigate employee shortfalls, box plants have opted to buy pre-feeders, conveyance, robots, stackers, bundlers, and more.

These advancements and productivity gains have a downside for profitability. The industry’s expanded capacity has prompted some boxmakers to lower box prices to levels that were previously unprofitable to fill up their machines. That widens the gap between prices of containerboard and boxes—and fuels a need for bigger moves in containerboard.

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

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Legislative Report

AICC Advocacy at Work

BY ERIC ELGIN

AICC’s Government Affairs subcommittee and AICC staff members oversee AICC’s participation in efforts to support legislation and administrative rules in Washington, D.C., that would be favorable overall to AICC members. Here is an example of the issues that AICC touches, through the topics of letters signed on to by AICC during fiscal year 2024 (July 1, 2023, through June 30, 2024) starting with the most recent:

• June 12 to U.S. Department of Labor (DOL) Administrator Jessica Looman requesting a stay in the effective date of the new overtime rules.

• May 9 to Looman requesting a delay in the implementation of new salary guidelines for overtime.

• April 29 to U.S. Sen. Tommy Tuberville (R-Ala.) and U.S. Rep. Warren Davidson (R-Ohio) supporting the repeal of the Corporate Transparency Act.

• March 19 to the U.S. Senate Banking Committee leadership requesting a delay of one year in the implementation of the Corporate Transparency Act.

• March 5 to U.S. House members in support of the Overtime Pay Flexibility Act to protect workers and employers from specific changes to overtime pay by DOL.

• January 19 to U.S. House Speaker Mike Johnson (R-La.) and U.S. Senate Majority Leader Charles “Chuck” Schumer (D-N.Y.) urging passage of the Tax Relief for American Families and Workers Act.

• January 16 in support of National Association of Manufacturers

(NAM) letter to the U.S. House Ways & Means and U.S. Senate Finance committees in support of a retroactive earnings before interest, taxes, depreciation, and amortization standard for deductibility going back to 2022 and extending through 2025.

• December 11 to Johnson and U.S. Rep. Randall “Randy” Feenstra (R-Iowa) in support of the Death Tax Repeal Act.

• November 8 to U.S. Senate and U.S. House leadership in support of delaying the Corporate Transparency Act.

• November 7 to DOL in support of the Partnership to Protect Workplace Opportunity efforts to table or defeat the increase in minimum salary definitions for white-collar workers and the resulting increase in potential overtime pay.

• October 4, 2023, in support of the NAM’s letter to U.S. Senate and U.S. House leadership advocating for full research and development expenses to be deductible in the year in which they are incurred.

• September 28, 2023, in support of the Coalition for Tomorrow’s Workforce’s letter to U.S. House Ways & Means and U.S. Senate Finance committees advocating for adoption of the Invest for Tomorrow’s Workforce Act. This act would allow 529 education savings plan funds to be used for technical and trade schools.

• July 6, 2023, to the U.S. Senate and U.S. House authors in support of the Main Street Tax Certainty Act of 2023 to make permanent the 20% deduction for small and individually owned businesses (Section 199A).

In addition, AICC regularly shares information with members on many of these same issues:

• From the Small Business Legislative Council, AICC shares monthly alerts about what is going on in Congress that may be of interest to small businesses.

• From the S-Corporation of America, whenever they issue a communication, AICC sends to members.

• From the Council of Manufacturing Associations, a division of NAM, whenever they issue a communication, AICC sends to members.

AICC also liaises with related industry advocates:

• Corrugated Packaging Alliance: life cycle analysis and sustainability actions.

• Paper & Packaging Board: Sustainability toolkit and promotion of the Box to Nature program.

• American Forest and Paper Association: monthly extended producer responsibility (EPR) update Zoom meetings to stay abreast of state-by-state developments on EPR.

While AICC’s advocacy is not always successful, the voice of the independent is always heard.

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

NEWW PACKAGING & DISPLAY

DAVID URQUHART

President/Owner 205 School St., Suite 201 Gardner, MA 01440 978-632-3600 www.newwpkg.com

AXIS CORRUGATED CONTAINER E.A. CASSON CEO

201 Industrial Dr. Butner, NC 27509 919-575-0500 www.accbox.com

DONECK USA

BILLY PRIEST

Chief Sales Officer

110 Ramsey Pl. Lynchburg, VA 24501 770-238-2151 www.doneck.com

KING PAPER LIMITED

LARRY MILLER

Chief Financial Officer 4800 N. Federal Hwy. Building D, Suite 302 Boca Raton, FL 33431 561-279-3232 www.kingpaper.com

WALLA WALLA ENVIRONMENTAL

CASSIE ROTHSTROM

President and CEO 4 W. Rees Ave. Walla Walla, WA 99362 509-522-0490 www.w2ecares.com

BOX+FOAM

ANN McCANN CEO

10100 S.W. Allen Blvd. Beaverton, OR 97005 503-449-5811 www.boxandfoam.com

Education, Innovation, and Collaboration Earmark SuperCorrExpo® 2024

SuperCorrExpo® 2024 electrified the corrugated packaging industry, drawing nearly 4,000 professionals to Orlando for a dynamic week of innovation and collaboration in September. With 276 exhibiting companies spanning 143,600 square feet of floor space, attendees were immersed in cutting-edge technologies, networking opportunities, and forward-thinking ideas.

The event’s stellar lineup of keynote speakers, interactive workshops, and expert panels offered invaluable insights

into the future of packaging. From artificial intelligence (AI)-driven production innovations to maximizing operational efficiency, SuperCorrExpo® provided a unique platform for learning, connecting, and pushing the boundaries of the industry’s potential.

SuperCorrExpo® 2024 delivered a robust educational experience with three impactful keynote presentations featuring NFL Hall-of-Famer Cris Carter, futurist Sean DuBravac, and “The Manufacturing Millennial” Jake Hall.

The event also included executive panel discussions with industry leaders. Attendees benefited from specialized sessions about AI on the production floor, in marketing, and applying AI in a box plant. Effective Methods to Maximize Die Cutting Productivity and Paper, Testing, and Profitability as well as sessions about automation, building expansion, capital expenditures, and cybersecurity offered insights into innovation, technology, and operational efficiency.

SuperCorrExpo ® 2024’s opening night reception brings together attendees and exhibitors in September in Orlando.

Photos courtesy of AICC.

SuperCorrExpo ® 2024 opening keynote speaker Jake Hall, The Manufacturing Millennial, shares ways to engage current employees and build excitement in the next generation for manufacturing careers.

Nearly 4,000 people come together to see the latest innovations in the industry at SuperCorrExpo ® 2024.

®

and educational

Matt Davis, Packaging Express, passes the gavel to Gary Brewer, Package Crafters and Creative Packaging, the 2024–2025 AICC chairman.

Back by popular demand, the Technical Association of the Pulp and Paper Industry’s CorrPak Competition and AICC’s Package Design Competition join forces once again for the 2024 Box Manufacturing Olympics at SuperCorrExpo ® 2024.

SuperCorrExpo

2024 offers exciting keynote speakers

sessions in addition to a packed show floor.

Many panel discussions bring ideas directly from the box plant to the meeting, giving attendees news ideas to take home from the SuperCorrExpo ® 2024.

AICC CHAMPION AWARD

Finn MacDonald of Independent II and Hood Container was awarded the highly esteemed AICC Champion Award during this year’s SuperCorrExpo®. As a long-serving and dedicated Membership committee chair, MacDonald has played a pivotal role in recruiting new members, retaining those needing support to continue their membership, and fostering greater engagement among AICC member companies. His unwavering commitment and leadership have significantly contributed to the Association’s growth and vitality.

STUDENT DESIGN COMPETITION WINNERS

This year, students were challenged to create an innovative, 360-degree shoppable, freestanding point-of-purchase floor display for their small-format retail stores. The project came from a real-life corrugated display buyer, Rocky Mountain Chocolate. Jerry Frisch of Wasatch Container helped to bring this real-world opportunity to AICC and the students.

All winning teams were from California Polytechnic State University. Winning teams included:

Structure Category

• Isabel Mendoza

• Alex Nishida

• Crystal Quan

• Andrew Reitz

• Jessica Wong

Graphics Category

• Julianne Hom

• Abigail Yee

• Evy Nguyen

• Lara Daghlian

• Christian Angulo

Process Automation for Optimized Performance & Profitability

BOX MANUFACTURING

OLYMPICS WINNERS

Back by popular demand, the Technical Association of the Pulp and Paper Industry’s (TAPPI’s) CorrPak Competition and AICC’s Packaging Design Competition joined forces once again for the 2024 Box Manufacturing Olympics (BMO). The competition was open to all TAPPI and AICC members from around the globe who produce corrugated, rigid box, and folding cartons, as well as their suppliers.

All entries were prominently displayed during SuperCorrExpo® in Orlando. Entries were evaluated by BMO judges based on various criteria, including design, quality, graphic excellence, technical difficulty, and innovative application.

Best of the Industry Corrugated Printing Vanguard Companies: PopSockets Grip & Go Target EndCap

Best of the Industry Corrugated Structure

Peachtree Packaging & Display: Bodyarmor Stadium

2024 Attendees’ Choice

Arvco Container: Custom Food Trays

See all winners at www.SuperCorrExpo.org

AICC/BOARD CONVERTING NEWS INNOVATOR OF THE YEAR

Geo. M. Martin earned the top accolade for its innovative SmartShingle system, which effectively minimizes or eliminates feed interrupts during stack or bundle discharges, addressing a significant operational challenge in die cutting.

SUN Automation Group won second place for the SUN 625HD, a revolutionary heavy-duty 66-inch rotary die cutter. Bahmüller took third place for Unique Turn, a high-speed turning module for specialty folder-gluers.

Additional Finalists

• Kongsberg: Ultimate Precision Cutting System

• JB Machinery: AutoDryer Control

• EAM Mosca: Max-Core Unitizer

• Durst: Digital White

• EFI: Nozomi 14000AQ

• EFI: Packsize X5 Nozomi

Attendees of SuperCorrExpo® witnessed videos showcasing all finalist innovations and cast their votes, selecting Geo. M. Martin as the 2024 Innovator of the Year. Open exclusively to AICC Associate members, this year’s competition focused on machinery.

Learn more at www.AICCbox.org/innovator

The Geo. M. Martin team.

SHINKO Super Alpha OC Open & Close Flexo Folder Gluer

SHINKO Super Alpha Flexo Folder Gluer

Ask Ralph

Sustainability: Taking a Back Seat to AI –But Not Forgotten

BY RALPH YOUNG

Your Association constantly receives news from subscription sources, regular public news services, members, and Associates on local and regional issues, other associations, investment firms, and publicly traded events. We view our Association’s responsibility as staying immersed in these issues, and when we do not have answers for questions you ask, we connect with our network and look to other news sources.

A cover feature article in the July 22, 2024, issue of Board Converting News was on Premier Packaging and included mention of a 22-page sustainability report. This document is available to view or download from the company’s website, www.prempack.com

One year ago, we partnered with the Packaging School, associated with Clemson University in South Carolina, on an eight-hour online course on carbon neutrality—one piece of the total sustainability puzzle. AICC members who chose to participate were able to make significant reductions in their sustainability footprint and enjoyed the exercise. This was just one more educational benefit of AICC membership.

In August, it was reported that BlackRock rebranded the very negative phrase “environmental, social, and governance” as “transitional investing.” For those of you who are not familiar, BlackRock is the world’s largest asset management company, with over $10 trillion under management. So, what’s the big deal?

The company is the elephant in the room and is able to tell public companies

where they own stocks or bonds and how they are to run their business in regard to the issues listed above.

The opposition was so loud that BlackRock needed to rebrand its tactics. This is important to you because this can have a trickle-down effect. Your packaging clients could start asking about your way of doing business. A copy of the report titled BlackRock Investment Steward: Climate and Decarbonization Stewardship Guidelines is at bit.ly/3T9xrlh

In May, AICC held a very wellattended and successful AI Xperience. We continue to be out front on these issues. Thanks again to all the knowledgeable presenters. Keep up the good work.

Against this, we observed that Dole is moving as fast as it can to paper-based packaging and away from plastic for certain ready-to-eat consumer foods. Its claim is that the new packaging design eliminates 97% of plastic usage across an entire product lineup. I assume more paper-based wine bottles are on their way!

Deutsche Bank published a research paper on July 11, 2024. In the survey of consumers regarding the biggest economic risks in the next few years, the five that may have the biggest impact on us as boxmakers are as follows:

• High inflation

• Climate change

• Slow economic growth

• Rise of artificial intelligence (AI)

• Collapse of global supply chains

The Institute of Packaging Professionals’ new Sustainable Packaging

Technical committee is just beginning. We belong to the Chemical Packaging committee in which we monitor movements in the United Nations’ hazardous materials regulations for corrugated packaging.

The Paper and Paperboard Packaging Environmental Council in Canada has been commenting to provincial governments about the Ontario Blue Dot program, which has not accomplished what lawmakers originally envisioned.

Now, their efforts are being applied to being industry experts on extended producer responsibly (EPR), especially to British Columbia lawmakers. Remember that five states in the United States have passed various forms of EPR legislation, all with varying levels of success.

SuperCorrExpo® had two sessions on these issues in September 2024, and at FastMarkets’ International Containerboard Conference in October 2023, AICC moderated a panel discussion on AI. The sustainability session at SuperCorrExpo® featured discussion on life analysis and packaging-to-product weight ratios.

Don’t go it alone. We are here to support and guide you.

Ralph Young is the principal of Alternative Paper Solutions and is AICC’s technical advisor. Contact Ralph directly about technical issues that impact our industry at askralph@AICCbox.org

Ask Tom

State of the Consumable Materials Supply Chain

With 2024 nearing its end, it’s a great time to pause and take stock of what’s going on in the consumables space, including offset printing plates, paper and paperboard, printing inks, and everything else needed to actually produce printed packaging materials.

Although we have certainly rebounded a fair amount from the shortages and price hikes that defined the COVID-19 pandemic years, that doesn’t mean consumables in general aren’t still getting pressure from a number of sources. Depending on the types of consumables you use, you might feel like everything has more or less returned to pre-2020 situations, or you might still be feeling the squeeze.

With that in mind, let’s take a look at a few key material supply trends still impacting the print and packaging space today.

Paper and Paperboard Are Still Under Pressure

While it certainly isn’t nearly as bad as it was a few years ago, the paper and paperboard markets are still under considerable pressure. Demand is still shifting, with many paper mills either closing entirely or moving to other grades of paper and paperboard, particularly packaging grades or consumer products— think toilet paper or paper towels.

“Like all businesses, the challenges paper manufacturers face are input costs—energy, raw materials (pulp costs), and finding labor [like printing press operators]. It is an aging workforce that is challenged to attract younger workers,” says Jill Crossley, director of operations at industry association Two Sides North

America. “An overall decline in demand plus the cost of inflation have led to consolidation, closure, and the transition of many North American paper mills to manufacture other more profitable and desirable marketplace grades.”

I recently saw some data pulled from RISI that showed printing and writing paper capacity has decreased from 65% to 85% since 2000 depending on the paper type. The numbers are similar in Europe, where a strong contraction of capacity has occurred in recent years, as well.

Overall demand for coated paper and paperboard was slightly up in the first half of 2024. The conversions by paper manufacturers and cost pressures have caused printers and end users to look at other paper options, often getting creative and downgrading to a lesser quality or lighter paperboard to help with increasing costs. I would think packaging printers will continue to do this for the foreseeable future because those cost pressures don’t

seem to be going away in the second half of this year or through 2025, as well. What’s next for the rest of this year and into next? There most likely will be some additional short-term shortages or shuffling of supply locations as mill closures and consolidations continue to occur.

The grades of paperboard availability will vary fairly significantly in terms of how much demand and cost increase are seen, so no one trend or prediction will apply to all package printers. Rather, you should continue to work closely with your preferred paperboard mills and merchants to ensure you have what you need, when you need it, and for a price that doesn’t cut into your cost structure.

Offset Plates Are Under Siege

Another area experiencing significant challenges right now is the aluminum lithographic printing plate market, with a battle going on over whether the United States will impose tariffs on imported

plates. Right now, Kodak is the only manufacturer still producing aluminum offset plates in the United States at a facility in Columbus, Georgia, with the rest of the U.S. being supplied with products from Japan or China.

Kodak and the U.S. Department of Commerce have been pushing for tariffs that could soar into the triple digits, if passed. This will force manufacturers such as Fujifilm to raise prices significantly to offset those costs. Not surprisingly, they have been strong opponents of the proposed tariffs, with a statement from Fujifilm noting it will “explain and defend our position to the International Trade Commission.”

Further muddying those waters, Fujifilm has also filed a patent infringement suit against Kodak, saying the company’s Sonora processless plates are infringing on Fujifilm’s patents.

The basis for the tariffs revolves around claims that companies that manufacture aluminum litho plates in Japan and China have an unfair advantage, claiming they are “dumping” plates in the U.S. market for significantly less than they charge in those countries, creating anticompetitive markets. Kodak claims these companies are selling plates for significantly less than the cost of production to capture more market share.

However, Fujifilm noted in a statement, “The preliminary antidumping duties from the U.S. Department of Commerce are predicated in part on the higher market prices of our aluminum printing plates in Japan, which creates the misguided perception of Fujifilm unfairly lowering U.S. prices by comparison. The antidumping law allows Eastman Kodak to claim that the existence of higher prices in Japan somehow makes the lower prices offered to U.S. customers ‘unfair.’ But this is just not true. Fujifilm’s prices to its U.S. customers are not unfair to anyone.”

Recently, 12 regional trade association groups threw their own weight into the

debate, with a formal joint statement against the proposed tariffs. It reads in part, “We are writing on behalf of the U.S. printing and graphic communications industries to urge the International Trade Commission (ITC) to reject antidumping and countervailing duties on imports of aluminum lithographic printing plates from Japan and China. Additional duties on printing plates will lead to increased costs for printers and the businesses they serve, reduce competition in the printing plate market, and threaten the availability of quality printed materials for businesses and consumers alike. … Although the entire printing, packaging, and graphic communications industries and the customers they serve will feel the burden of increased costs—from the largest-scale packaging printers to the smallest mom-and-pop printers—we are particularly concerned that small printers and the thousands of small businesses served by printers in this country will disproportionately shoulder the burden.”

The final hearing was to be held September 12, 2024, which is also when ITC was expected to issue its final ruling on the matter, so stay tuned.

Ink Supply and Demand

In contrast to paper and plates, inks in general aren’t seeing as much volatility right now. There have been hiccups in the past year such as the fight to prevent state legislatures from banning carbon black in inks, which would have significant impacts if passed, but for the products themselves, the market has stabilized into a fairly healthy supply and demand.

A few trends impacting the space include ever-increasing demands for more eco-friendly inks to match with growing sustainability concerns across all types of businesses and industries; a growing demand for more specialty inks, particularly in the digital space—think fluorescents or metallic inks—and the continuing trend for printers to demand

inks that can dry faster and also produce higher-quality pieces, since consumer brands aren’t interested in compromising quality or marketing.

Packaging ink demand is rising rapidly as more commercial printers look to enter the space with short-run or prototype work to complement work they are doing with large and small brands. That trend will likely continue to drive innovation in that space.

On the flip side, the costs of the raw materials needed to produce these inks and the supply chains necessary to move those materials are seeing costs rise, which is impacting the price of the final product. To date—barring the COVID-19 pandemic years—the costs of ink have remained relatively stable, without any major spikes, but more of a steady increase over time. Expect that to continue for at least the short term, although a lot of factors could cause that to change rapidly.

All in all, the consumables market has stabilized in the past few years, but that doesn’t mean the challenges created by the COVID-19 pandemic have simply evaporated overnight. We are still seeing the impacts linger, even as newer challenges such as the imported offset plate tariff controversy come along.

In general, most package printers don’t need to be hoarding paper or supplies anymore for fear of running out and not being able to get more, but they should be paying close attention to what the market is doing and continue to work closely with their chosen vendors to make sure they are prepared for whatever might come down the line during the remainder of this year, in 2025, and beyond.

Tom Weber is president of WeberSource LLC and is AICC’s folding carton and rigid box technical advisor.

Contact Tom directly at asktom@AICCbox.org

Selling Today

Power of Skills and Personality: Driving Sales in the Paper Packaging Industry

BY TODD M. ZIELINSKI AND LISA BENSON

So far in 2024, raw materials, energy, labor, and transportation costs have risen significantly, leading packaging manufacturers to raise prices or reduce profit margins. Simultaneously, while cooling, inflation is still straining consumer spending, prompting consumers to scale back on nonessentials, leading to a decline in certain categories. The U.S. government revised its job growth report, decreasing the number significantly. This may indicate the job market is weaker than initially reported, leading some analysts to believe the feds have waited too long to cut interest rates, and the economy could be slowing sharply. We are living with a significant degree of economic uncertainty. In this challenging environment, having the right type of salespeople is more critical than ever.

A skilled and well-suited sales team can be the difference between maintaining profitability and falling behind during uncertain times. Well suited means they have the skills and personality for the specific sales job—whether that be to prospect and develop new business (e.g., a business development representative [BDR], sales development representative, new business sales executive) or nurture and grow existing customers (e.g., an account manager [AM], account representative, customer service representative). Sustainable company growth requires a sales team made up of both types. Each job requires specific skills and personality traits. Skills are generally acquired through practice, education, or experience and can often be assessed and evaluated. Personality traits are inherent characteristics that shape how a person

feels, thinks, and behaves. Personality traits can be gauged by personality and sales aptitude tests. We use Behavioral Sciences Research Press’ SPQ*Gold sales assessment, which tests for sales call reluctance, sales skills, aptitude, and prospecting behavior, and Inscape Solutions’ Everything DiSC sales assessment, which evaluates dominance, influence, steadiness, and conscientiousness.

Since both jobs have multiple titles associated with them, to simplify, we will refer to those who develop new business as BDRs and those who nurture and grow existing accounts as AMs.

What Makes a BDR Successful?

Finding new business opportunities and converting them into customers require skills different from those of an AM. A BDR, the “hunter” archetype, must prospect, cold-call, negotiate, and close the deal—activities requiring a distinct skill set. The individual will have the skills to understand the intricacies of the market, identify and seek out new opportunities that fit the business goals, build genuine relationships with strangers, and understand the importance of listening and reading social cues to adapt to different sales situations and personalities.

Persuasion is another vital skill— having a deep understanding of their company’s value proposition and how current economic situations impact it provides an advantage to a BDR. Additional skills found in successful BDRs are that they can prioritize leads and manage time efficiently to maximize sales opportunities. They are also adept at adjusting strategies and tactics quickly in

response to new information or changing circumstances.

Like the skill sets, the personality traits of a successful BDR align closely with the job’s demands. They are typically aggressive in pursuing new business, driven by a sense of urgency and a desire to close deals quickly. This aggressiveness is balanced by resilience; a BDR must be able to handle rejection and bounce back quickly, ready to move on to the next opportunity.

Confidence and a competitive spirit are other defining traits of a successful BDR. They believe in their ability to win over clients because they often find themselves in situations where they must beat out other companies vying for the same business. Having a solid value proposition ties back in here.

BDRs are generally independent workers, thriving on autonomy and taking the initiative without needing constant supervision. Lastly, successful BDRs are willing to take risks, understanding that the potential rewards of securing new business often outweigh the risks involved.

Makeup of an Effective AM

In contrast to the BDR, an AM is often seen as a “farmer” dedicated to nurturing and growing existing client relationships. Their primary focus is on maintaining customer satisfaction, fostering long-term loyalty, and identifying opportunities to expand the business within these existing accounts.

The skills required to be a successful AM differ significantly from those needed by a BDR. At the heart of the AM’s role

is relationship-building. They excel at developing strong long-term relationships with their customers, understand their needs, and ensure they are consistently met over time.

Account management skills are crucial for AMs because the primary focus is on identifying opportunities to grow the account. This could mean introducing the client to new products or services, cross-selling within the existing portfolio, or upselling to a more comprehensive solution.

Customer service is another key skill for AMs, ensuring their clients are satisfied with the products or services they receive and addressing any issues or concerns that arise quickly and effectively. This level of service is critical for maintaining client loyalty and preventing churn.

One skill that gets used quite often is problem-solving. Clients will inevitably face challenges, and it’s the AM’s responsibility to address these challenges in a way that strengthens the relationship. This could involve coordinating with other departments within the company to ensure the client’s needs are met, or coming up with creative solutions to unique problems.

Finally, communication skills are indispensable for AMs. Successful AMs keep their clients well informed and engaged, ensuring there is always a clear and open line of communication. They are diligent in following up with customers and addressing their inquiries.

When we look at the personality traits of a successful AM, patience is perhaps the most important trait because building and nurturing long-term relationships take time and effort. AMs need to be willing to invest this time to see the relationship grow and flourish. Nurturing an account requires some level of empathy.

Understanding and caring about the client’s needs and concerns are essential for building trust and ensuring long-term

loyalty. Trustworthiness is closely linked to empathy; clients need to feel confident that their AM has their best interests at heart and will act with integrity.

AMs are detail-oriented, paying close attention to the specifics of each client’s account to ensure nothing is overlooked. This attention to detail helps prevent issues from arising and ensures the client receives consistent and reliable service.

Finally, collaboration is also a critical trait for AMs. They often need to work closely with other departments within the company to meet the client’s needs. This requires a collaborative spirit and the ability to work well with others.

A Cohesive Sales Team

While the roles of BDRs and AMs are distinct, they are also complementary. A successful sales strategy involves hunting and farming; new business needs to be brought in, but existing business must also be maintained and grown.

BDRs and AMs often work closely together, with BDRs bringing in new clients and AMs taking over to ensure those clients are satisfied and the relationship continues to grow. This cooperation and division of labor are essential for the company’s longterm success.

Making Strides in Any Economic Environment

Packaging customers seek partners who are not only knowledgeable but also reliable and supportive, particularly during uncertain times. Sales teams that are a blend of farmers and hunters with the right skills and personality traits are better equipped to maintain strong client

relationships, even when budgets are tight. BDRs and AMs can identify new opportunities for new accounts and existing customers within shifting markets. They are not just selling products; they are offering stability, support, and strategic insights to help their customers navigate uncertain times.

Ultimately, in a year when every dollar counts, having a sales team that combines the right skills with the right personality is not just beneficial—it’s essential. Investing in the right people could be one of the most important decisions packaging manufacturers make this year as they work to stay ahead in an increasingly complex economic landscape.

Todd M. Zielinski is managing director and CEO at Athena SWC LLC. He can be reached at 716-250-5547 or tzielinski@athenaswc.com

Lisa Benson is senior marketing content consultant at Athena SWC LLC. She can be reached at lbenson@athenaswc.com

Andragogy

Trends in Corrugated Materials

BY JULIE RICE SUGGS, PH.D., AND ALLI KEIGLEY

For packaging professionals, the trends in corrugated materials are more than just a passing fascination—they’re like discovering a hidden treasure chest full of new possibilities! Imagine this: You’re at the helm of a packaging design project, and instead of reaching for the same old materials, you’re exploring cutting-edge corrugated solutions that are as ecofriendly as they are innovative.

Picture a small, ambitious startup that makes artisanal chocolates. Its goal is to deliver not just a delicious treat but also an unforgettable unboxing experience that aligns with its commitment to sustainability. The company is in search of packaging that’s stylish and environmentally friendly. Enter the world of advanced corrugated materials. By opting for custom-designed, sustainable corrugated boxes that feature stunning print designs and protective layers made from recycled fibers, the startup is able to captivate its customers while reducing its environmental footprint.

In this article, we take a deep dive into how the trends in corrugated materials are revolutionizing the packaging industry. From optimizing packaging solutions to enhancing sustainability and adapting to ever-evolving market demands, we explore how packaging professionals can harness these innovations to stay ahead.

Let’s kick things off with a key topic in today’s world—sustainability and eco-friendly innovations in the packaging industry. This includes using recycled materials and compostable coatings and reducing overall waste. Professionals need to create packaging solutions that align with sustainability objectives. One way is by examining the United Nations’ sustainable packaging goals, which can provide a foundation for developing

effective strategies. A suggested approach might involve designing corrugated packaging that features a greater proportion of recycled fibers or adopting construction techniques that facilitate easier recycling. For example, you could use corrugated materials made from post-consumer recycled content of old corrugated containers or opt for designs that minimize the use of adhesives and coatings, which can complicate the recycling process.

Education is key here; staying informed on the evolving regulations and standards for sustainable packaging helps ensure compliance and positions companies as leaders in eco-friendly practices. Our partners at the Sustainable Packaging Coalition offer valuable resources on this subject, including its comprehensive guide on the recyclability of paper packaging.

With an increasing focus on regulations related to packaging, encompassing recyclability, food safety, and labeling, packaging professionals must prioritize compliance management to ensure their designs meet all relevant standards. This requires up-to-date information on all pertinent legislation and incorporating necessary features into packaging. Sustainability reporting is also becoming crucial because it involves providing transparency in sustainability efforts and packaging practices, including reporting on material sourcing, recycling rates, and overall environmental impact. The Packaging School can support professionals in this area through its sustainability reporting module, which offers comprehensive guidance on navigating regulatory requirements and effectively communicating sustainability achievements.

Another trend becoming increasingly popular is the customization of

corrugated packaging for branding and unique consumer experiences. Creating custom designs in which printing occurs directly on the corrugated packaging not only strengthens brand identity but also enhances consumer appeal. This could include incorporating high-quality graphics, developing unique structural designs, or adding special finishes that make the packaging stand out on the shelf to create a memorable impression. Designing packaging that provides a more engaging or interactive experience for consumers—such as incorporating custom shapes or designs that enhance the unboxing experience—can boost customer satisfaction and brand loyalty. There is an ongoing push for costeffective packaging solutions that maintain high-quality and performance standards. For packaging professionals, this trend means diving into thorough cost analysis and optimizing packaging designs to balance cost with functionality. This includes evaluating the total cost

Scan the QR code below to access the Packaging School’s sustainable reporting module:

And don’t hesitate to check out AICC’s Packaging University at learning.AICCbox.org for tons of courses that boost your knowledge about sustainability throughout the packaging process.

of ownership—factoring in production, transportation, and disposal. Moreover, streamlining production processes to reduce waste and lower costs is essential. By implementing more efficient manufacturing techniques or enhancing material utilization, you can boost cost-effectiveness without compromising quality. Incorporating education into your team culture can further amplify these efforts, ensuring everyone is equipped with the latest knowledge and skills to innovate and excel in this dynamic field.

Lastly, the integration of technology into corrugated packaging is a growing trend, encompassing innovations such as smart packaging solutions and advanced printing techniques. For packaging professionals, this means exploring the use of quick response (QR) codes, near-field communication (NFC) tags,

or sensors embedded in corrugated packaging to offer additional information or improve traceability.

In summary, corrugated packaging pros need to keep their finger on the pulse of the latest trends to stay ahead in the game and meet the ever-changing demands of consumers and regulators. By diving into the latest advancements in corrugated materials and embracing cutting-edge, sustainable, and cost-effective design practices, you can supercharge your packaging solutions and shine in the marketplace.

Continued education plays a crucial role in this journey, ensuring you stay current with emerging trends and technologies. By committing to ongoing learning, you’ll be better equipped to innovate and adapt, keeping your packaging solutions at the forefront of the

industry and giving you a competitive edge. Think of it as leveling up your packaging game—where every trend is a new power-up to boost your success and keep your creations on the cutting edge of innovation.

Julie Rice Suggs, Ph.D., is academic director at the Packaging School. She can be reached at 330-774-8542 or julie@ packagingschool.com.

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

Leadership

‘MacGyvering’ Simplified

BY SCOTT ELLIS, ED.D.

“MacGyvering” refers to the process of solving a problem or creating something in a resourceful and inventive way, typically by using whatever materials are readily available, often in unconventional or unexpected ways. The term comes from the 1980s television series MacGyver in which the main character, Angus “Mac” MacGyver, was known for his ability to craft solutions to complex problems using everyday items and without the need for advanced technology or tools.

I recently read Unstoppable Brain , in which the author uses MacGyver as a model for failure immunity—not that MacGyvers never fail, just that they don’t let it stop them. Neuroscientist and Unstoppable Brain author Kyra Bobinet is convinced that iteration is the key—we try, we fail, we try something different, we succeed in part, we figure out what is working, we do something better.

Examples of failed change initiatives are easy to find. So many companies have launched initiatives fueled by force of management will, only to return to old habits in a few weeks. Then, the tool or methodology is blamed. In truth, the reason the company did not follow through was due to relying on a tool rather than changing the mindset.

A mindset leads to a way of doing things. The way we do things is our culture. There is no tool, and there isn’t one to be developed that will work for long without a culture of continuous improvement. Such a culture has iteration as its foundation. We don’t usually call it iteration; we call it kaizen or plan-docheck-act. It also has other aliases.

The key to this culture is we never quit because failure just shows us another way that doesn’t work. Iteration brings an attitude that “problems are just opportunities

in work clothes.” In this culture, we never settle because when we succeed, we know that we can build on that success.

How to Build a Continuous Improvement Culture

This culture is absorbed by everyday doing. Any classroom time should be invested in those who will facilitate the use of tools and methods to involve the people closest to the process in continuous improvement. If you are interested in the theory behind this hard-won opinion, you can reference the earlier books in my intentional culture series. Here is the short version: “Don’t take me back to school.” Just identify a problem and engage me with a tool that will help me approach it differently. Use a variety of tools situationally, and soon, I will be fluent in problem-solving.

One of the fastest ways to develop the habits of a continuous improvement culture is to have physical reminders of the tools in the workplace, particularly where work group meetings are held. This helps because it reminds the meeting leader and those present of the tools available. Here is my expanded plan-do-check-act cycle with examples of planning and critical thinking tools that are easy to use with work groups.

1.

LOOKING FOR TROUBLE

This is the habit of looking for trouble, a proactive approach to improvement. We want to be surprised by as few problems as possible. This is practiced by showing people how to use the “five whys” or searching for waste by using the TIMWOOD tool (an anagram for wastes in transportation, inventory, motion, waiting, overproduction, overprocessing, and defects).

2. PROBLEM EXPLORATION

We explore many possible causes so our solutions will decrease or eliminate the actual root cause. Examples of tools to accomplish this include use of a fishbone diagram or a value stream map.

3. SOLUTION BUILDING

Problem exploration data points you to the priority root cause candidates. Those contenders will be the subject of focused attention by an individual or group. Tools such as A3 reports and mission-aligned people and processes (MAPPs) are used in this stage. A3 involves a clear definition of a problem, the current conditions, well-defined goals, thorough analysis, proposed solutions, a plan, and follow-up to test the plan’s effectiveness. MAPP is

AUTOMATION

HAS NEVER CORRUGATED LOOKED BETTER

a series of questions to be answered by a group to ensure success by matching the project goal with goals of the company.

4. IMPLEMENTATION OF OUR WAY

The success of the solution you implement requires involvement of the team will for longevity of the improvement. To achieve lasting change, we will need to build in communication and accountability. Tools to help here include action plans and team charters to keep everyone focused and on task.

5. KEEPING SCORE

Performance measures specific to the task expose levels of progress and provide motivation. Posted key performance measures are essential.

6. ADAPT

We may fail, make partial gains, or attain stellar success. We must adapt or iterate to keep moving up. Tools that can assist here include the lessons learned review and regular process audits. The key is to never give up or settle for good enough.

Incentive?

Recently, I was asked if line workers should be paid more to problem-solve. In truth, those who use critical thinking are paid more because they advance to levels of higher responsibility.

An important ancillary benefit is that they take those skills home, where they model MacGyvering for their family. Your continuous improvement culture can influence whole communities.

Scott Ellis, Ed.D., is a culture tech working for leadership and process improvement. This article is an excerpt from the book of the same name that will be volume three in the Intentional Culture series, available on Amazon.

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Design Space

Impact of Graphic Design on Packaging: Insights From UTA’s Packaging Design Program

BY BEN DOLEZAL

As a professor of packaging design in the University of Texas at Arlington’s (UTA’s) Art and Art History Department, I have the distinct privilege of shaping future packaging professionals—though some are surprised by how much math goes into designing even a simple box. But don’t worry, it’s not all geometry and glue guns. We dive deep into the world of graphic design, a field that’s as much about storytelling as it is about looking good on a shelf.

Why Graphic Design Is Crucial to Packaging

One of the first lessons I stress (other than “don’t use Papyrus font”) is packaging design is more than making something pretty—it’s a brand’s handshake with the consumer. Every color, font, and graphic works overtime to tell a story before you even realize you’ve picked up that same box of cereal for the third time this week.

In our program, students quickly learn that design choices can make or break consumer engagement. Through hands-on projects, they tackle real-world challenges like “How do we make this look cool and affordable?” Spoiler alert: Many sticky notes are involved. But by the time they graduate, they’ve developed the skills to create not only beautiful packaging but also practical, cost-effective solutions. And that’s no small feat.

Sustainability and Paper-Based Packaging

Let’s be real, nobody likes plastic anymore, except maybe some vintage

Tupperware from the 1990s. Enter paper-based packaging, the eco-friendly hero we’ve all been waiting for. However, designing sustainable packaging is like playing Tetris: How do we make it ecofriendly, durable, and still good-looking without breaking the planet (or the budget)?

In our program, students experiment with various paper substrates, custom printing techniques, and structural design. They learn how to solve challenges like balancing cost, production efficiency, and sustainability, all while keeping aesthetics in mind. The goal is to leave with portfolios full of innovative designs that are visually appealing and

environmentally responsible. In other words, they’re learning to save the world—one recyclable box at a time.

Branding Through Packaging Design

Packaging is often the first time a consumer interacts with a brand, so it’s like the product’s “first date” with the buyer— awkward moments included. That’s why it’s essential to get the branding right from the get-go. I teach my students how to use color schemes, typography, and logos to make a strong first impression, creating a brand experience that keeps customers coming back.

Students work on real-world branding challenges, creating packaging that not

Design Space

only tells the product’s story but makes you feel something—like the overwhelming need to buy another bag of chips you didn’t plan on getting.

Challenges and Rewards of Teaching Packaging Design

Ah, the creative mind! Artists love to push boundaries, and in packaging design, that can be a blessing and a logistical nightmare. Teaching artists to consider cost, production processes, and material limitations can sometimes feel like telling a cat to walk on a leash— possible, but tricky. Yet, watching them balance beauty and practicality is one of the most rewarding parts of my job. Through hands-on projects, our students learn how to take their out-ofthis-world creative ideas and translate them into designs that actually work in the real world. (Yes, your triangular milk carton is cool, but let’s think about how that’s going to stack in a fridge, shall we?)

Unique Solutions From Creative Minds

Despite the challenges, students from artistic backgrounds bring fresh, unconventional ideas to the table—

sometimes literally. Whether it’s handdrawn illustrations or bold color palettes that defy the norms, their creativity shines through in their designs. And sometimes, the most unexpected ideas lead to innovative solutions.

Since 2013, my students have won more than 50 national and international awards for their packaging designs, including several awards from the annual AICC Student Design Competition. From a pingpong paddle box shaped like a cannon to a floor stand display resembling a circus big top, their work has been recognized for pushing creative boundaries in all of the best ways.

Career Opportunities in Packaging Design

One of the biggest joys of teaching is seeing my students go out into the world and land impressive jobs—often at companies such as Frito-Lay and Mary Kay. They use their newfound skills to make consumers buy things they didn’t know they needed.

Our program prepares students to thrive in the competitive world of packaging design. With professional

portfolios packed (pun intended) with their work, many of our graduates have secured roles at major companies, applying what they’ve learned to create the next big thing in packaging. After all, we know it’s not just about the product—it’s about how it’s wrapped. In the world of consumer products, graphic design is the heartbeat of successful packaging. The UTA program equips students with the tools to balance creativity, sustainability, and practicality. Whether it’s winning international awards or landing top jobs, our graduates prove that packaging design is about more than just wrapping a product—it’s about shaping an experience.

And remember, if you ever need advice on picking out the perfect font for your packaging, I’m always here—just don’t use Papyrus.

Ben Dolezal is an associate professor at UTA.

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Education

New Sales-Focused Webinar Coming Soon

AICC is excited to offer its members an insightful new webinar titled Death of Traditional Sales Model: The New Sales Process for Corrugated and Protective Packaging on Wednesday, December 4, 2024. This educational session, available for free to AICC members in good standing, will explore how the evolution of buyer behavior is reshaping the sales landscape for packaging professionals.

As sales and marketing continue to evolve, traditional methods of connecting with potential buyers have become increasingly challenging. Buyers now take a more independent approach to their sales journey, and the salesperson’s role is undergoing significant transformation. This shift is a response to new buyer habits and a recognition that the conventional sales model has proven inefficient for complex sales environments such as corrugated and protective packaging.

Leading the discussion will be Todd Zielinski, managing director and CEO of Athena SWC, an expert with over 20 years of experience in sales, lead generation, tactical marketing, and business development. As a co-founder of Athena,

Zielinski was instrumental in creating Athena’s outsourced business model and has consistently helped companies optimize their sales strategies for better results.

This webinar presents a unique opportunity for AICC members to gain critical insights into the modern sales process

and adapt to the shifting dynamics of the packaging industry.

Remember, the webinar is available free of charge to AICC members in good standing. To register or learn more about this valuable opportunity, please visit www.AICCbox.org/calendar

Menasha Corp.: 175 Years an Independent

BY STEVE YOUNG

Menasha’s corporate headquarters in Neenah, Wisconsin.

Anyone who’s been in the corrugated industry for 20, 30 years, or more can be forgiven for thinking of Menasha Corp. as an “integrated” forest-products company. After all, it did own paper mill assets and timberlands during much of its long history.

But Mike Riegsecker, president of Menasha Packaging, is quick to set the record straight. “We’re a 175-year-old private company that’s owned by the same family that founded it,” he says. “We’re now in the seventh generation of family ownership.”

Menasha Corp., based in Neenah, Wisconsin, this year celebrated its 175th anniversary as an independent. Riegsecker recalls the company’s legacy of entrepreneurial innovation and commitment to customers, employees, and their communities. “The industries we serve continue to evolve, and that has evolved the expectations our customers have with their packaging and supply chain

requirement,” he says. “These evolutions have taken place for 175 years, and as they do, we have remained focused and committed to growing and investing in the solutions we offer—always focused on helping our customers solve the challenges they are facing today while remaining out front and in tune with the challenges that are on the horizon where new solutions will be required.”

The company was founded in 1849 in Menasha, Wisconsin, as the Pail Factory, a maker of wooden buckets, barrels, and kegs. It floundered in its early years, however, and in 1852, a young transplant from Woonsocket, Rhode Island, Elisha D. Smith, seeing an opportunity to exploit the growing volume of trade in the newly admitted state of Wisconsin, acquired it for $1,200—money borrowed from his father-in-law in Rhode Island. In 1872, the firm reorganized under the name Menasha Wooden Ware Co.

Company: Menasha Corp.

Established: 1849

Joined AICC: 2023

Phone: 920-751-1000

Website: www.menasha.com

Headquarters: Menasha, Wisconsin

President: Mike Riegsecker

Though the privately held Menasha of today lacks vertical integration in timber resources and paper mill assets, its founder recognized the need to secure his sources of raw material supply. In the early days of the Wisconsin territory, canal and rail transportation made possible the bulk-shipment of products such as vinegar, sauerkraut, beer, and sausage from the interior of the territory to the Great Lakes ports of Green Bay and Milwaukee. Abundant timber resources there provided the hardwoods needed to produce the barrels and kegs to support this trade, so Smith acquired timberlands in Wisconsin, Michigan, and Minnesota to supply the company. Later, after these sources grew thin—reforestation was little practiced at that time—he bought lands in Washington, Oregon, and northern Idaho. Downstream timber processing facilities such as lumber mills, stave-making plants, cooper shops, and

Photos courtesy of Menasha Corp.

painting facilities completed Menasha Wooden Ware’s supply chain and drove much of the company’s success in the last decades of the 19th century.

With the passing of Smith in 1899, his son Charles Robinson Smith took the reins of the company. But it was his son Mowry Smith Sr. who, as a new member of the company’s board of directors in the 1920s, recognized the value of a new, nascent industry: corrugated paper.

By the late 19th and early 20th centuries, the development of corrugated paper and fiberboard shipping boxes provided an alternative to heavy wooden crates. Shippers, impressed with the lightweight durability of corrugated paper, saw it as a viable alternative. Gina Shaw, writing in Living Our Values: The Story of Menasha Corporation , named the Lawrence Paper Co. in Lawrence, Kansas, and Fort Wayne Corrugated Paper Co., as two of the earliest entrants into this market, calling them “the first mass corrugated box producers in the United States.” However, the railroads, the predominant carriers of freight in that era, objected to the introduction of paper-based packaging and began charging a tariff on products packaged in it. A landmark decision for the future of the corrugated box as a shipping container came in 1914 with the Pridham case in which the Interstate Commerce Commission ruled that there were no differences between the movement of commodities in fiber and wood boxes and thereby removed the added tariff. This decision paved the way for the young corrugated box industry to compete with its wooden counterparts. It was thus, in 1927, that Menasha Wooden Ware, seeing shrinking demand for its wood-based packaging, converted a four-story butter-tub warehouse into its first corrugated box plant. The corrugator installed was from the Samuel M. Langston Co., and its principal linerboard supplier at the time was the John Strange Paper Co. of Menasha.

According to author Shaw, the company struggled in its early years but recovered even as the Great Depression gripped the nation. Although the company grew into profitability, Menasha was dependent on outside suppliers of linerboard and corrugating medium. Lacking the capital to build its own mill but seeking more control over its sources of supply, Menasha in 1939 acquired a stake in the Otsego Falls Paper Mill, a manufacturer of linerboard and medium located in Otsego, Michigan. Then, beginning in the 1940s, the company expanded its converting capacity through box plant acquisition, starting with Durham Container Co. in North Carolina. And in what could have been the prototype for today’s sheet-supplier or joint mill-ownership consortia, Menasha and four local box companies in 1946 purchased the John Strange Paper Co., the original supplier to its flagship plant in Menasha. The corrugated box industry was propelled by a post-war economic boom, and vertical integration was a principal driver of the industry’s capital investment decisions. Shaw, in Living Our Values, writes that during this time, Menasha expanded west, with the 1954 construction of a greenfield corrugated box plant in Anaheim, California. Concurrently, the company parleyed its timberland holdings in the Pacific Northwest into lumber and building products for the postwar housing boom as well as constructing a corrugating medium mill in North Bend, Oregon, to serve the expanding West Coast box market. The company still operated under the name Menasha Wooden Ware Corp., until 1957, when Menasha shipped its last wooden product and closed its wooden products arm. In 1962, the company changed its name to Menasha Corp.

Today, Menasha Corp. consists of two principal divisions: Menasha Packaging and ORBIS (see sidebar on p. 34). Overall, it has nine corrugated

printing and converting sites across North America. Each of these sites receives graphic packaging preprinted rolls or top sheets from Menasha’s North American Preprint Hub in Neenah, its litho-printing facilities in Neenah and York, Pennsylvania, and a litho-lamination plant in Richmond, Indiana. Menasha also maintains a network of 32 packaging service sites across North America. These sites perform co-packing, display assembly, and kitting services, which round out the company’s focus on supply chain efficiency for its diverse customer base. Menasha’s contemporary focus on graphics has deep roots, as well, going back to founder Elisha D. Smith, who once said, “A good-looking package is worth more money.” That philosophy was translated into action during the company’s acquisition spree between 1969 and 1980, when it acquired several plants, including Wisconsin Container Corp., Crown Corrugated Containers in Greensburg, Pennsylvania, and Hartford Container Co. in Hartford, Wisconsin. Hartford became Menasha’s color division, maturing now over 40 years and enhanced by further acquisitions of independents, including Triangle Container Corp. in Philadelphia, the Strive Group (formerly Pride Container) in Chicago, and Pearce-Wellwood in Brampton, Ontario. The company’s 2022 purchase of

Mike Riegsecker, president of Menasha Packaging, in Menasha’s Retail Integration Institute, where the history of the company is displayed.

Member Profile

Georgia-Pacific’s color box division put an exclamation point on Menasha’s graphic emphasis and broadened the company’s reach not only in the Midwest but also in the South and Northern California.

Riegsecker, now with Menasha for 31 years, witnessed the company’s growth, especially its graphics services and capabilities. An Indiana native and graduate of Purdue University in Indiana, he joined the Menasha color division out of school. “I spent the first eight years or so in manufacturing operations before I got into technical sales roles,” he recalls. “I ran sales for our whole company and had different regional jobs along the way. So, I’ve done a lot of different things over the 31 years before coming into this job in 2018.”

In the past 25 years, the corrugated industry has shifted its marketing and sales focus as the North American manufacturing base shifted to lower-cost manufacturing environments. “We really started with what was going to stay in the U.S., and we decided that we were going to focus on food, personal care, and household products in a big way as our core market segments,” he says.

The company has engineered a finely tuned system of printing and graphics application, from direct print, litho-lamination, preprinted linerboard, and sheet-fed digital—what Riegsecker calls “integrated services and vertical integration of the way we apply graphics to corrugated or other material.” From its graphics houses to its finishing operations, product is shipped to one of its 32 service facilities for final packing and delivery to retailers.

Menasha considers the customer’s entire supply chain, and its introduction of automated systems drives costs out of the chain for their direct customers and their customers’ customers. Says Riegsecker, “We asked ourselves, ‘Could we become part of a revenue conversation with our customers versus just a cost conversation?’ And we started to develop relationships,

and we now have offices next to the major retailers all over the U.S.”

Menasha’s commitment to its customers and their retail customers began in earnest in the early 2000s. The company, under the newly minted leadership of President Mike Waite, was still seen as a commodity brown-box supplier. To counter this, writes Shaw in Living Our Values, “Waite and his team established the Retail Integration Institute (RII), a strategic merchandising consultancy housed within Menasha Packaging.

“The intent behind RII was to create a mechanism for co-developing merchandising solutions with customers, wiring packaging’s value proposition more tightly to its customers’ needs and goals.”

Visitors to Menasha Corp.’s Neenah headquarters will find their way to the RII showroom, where the company’s retail promotion expertise is on full display for primary market segments such as food and beverage, personal care, pharmaceutical, and automotive aftermarkets, among many others. According to Shaw in Living Our Values, Menasha’s first

successful project in RII was with the H.J. Heinz Company (now Kraft-Heinz). Ketchup and mustard were profitable for Heinz, but pickle relish was not. “On RII’s advice,” Shaw writes, “Heinz created the now-familiar ‘picnic pack,’ a bundle of ready-to-go ketchup, mustard, and relish sold at chains like Walmart, Sam’s Club, and Costco. The solution increased the package’s appeal, saved Heinz about $500,000, and generated record sales.”

While a success for Heinz, it was a significant learning experience for Menasha. Riegsecker, recalling the case, says, “We didn’t understand all the cost drivers, what the costs were of holding the merchandise, and how to price it.”

All these, he now says, are at the heart of Menasha’s continuous effort to improve efficiencies by enlisting automation to streamline the process for their customers.

“It’s almost like we’re providing packaging systems, not just displays. And so, how do you do that efficiently? How do you look at the total cost through that lens?

“Menasha’s original strategy of evolving with the industries we serve as they grow

ORBIS: CUSTOMERS ALSO NEED PLASTIC

“Well, I can see that plastics are becoming a threat to paper packaging. We ought to have a foot in the door.”

With that quip, Mowry Smith Sr., grandson of Menasha founder Elisha D. Smith, in 1957 set the stage for what is today Menasha Corp.’s other principal division: ORBIS. Menasha had already identified a need for industrial companies to transport parts in-plant and from warehouses to production lines—and for bakeries to deliver to retail stores. The company thus acquired a majority stake in a pioneer closed-loop plastics packaging manufacturer, G.B. Lewis, and thus diversified its product offerings for a growing customer base. Over the years and with several acquisitions, Menasha’s plastics division became a vehicle for balancing the cyclicality of the corrugated packaging business. In 1996, these several entities were combined to form ORBIS.

Today, ORBIS supplies reusable totes, pallets, containers, dunnage, and racks to a wide range of global manufacturing, distribution, and assembly industries. Headquartered in Oconomowoc, Wisconsin, ORBIS has 3,300 employees working in 12 North American manufacturing and 34 service-center sites. Operating under the banner of ORBIS Reusable Packaging Management, ORBIS service centers sort, inspect, clean, refurbish, and repair all types of reusable packaging.

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Member Profile

has driven many investment decisions around the expansion of our footprint, state-of-the-art assets, automation, robotics, and new products and services. This continued network modernization is critical to the longevity and success with customers.”

From the start, Smith was a man of integrity who considered the well-being of his employees as a cardinal virtue of his company. Even as the former woodenware business was drying up, no employees were laid off. Writes Shaw, “It probably would have made more business sense for Menasha to lay off many of its longtime employees when the [corrugated] box plant opened [in 1927], but true to its values as a people-first company, Menasha wasn’t about to turn loyal workers out in the cold.”

These values hold true today, seven generations later. “It’s interesting,” Riegsecker notes. “Everybody’s got the same equipment in this industry, right? So, it’s people who are the differentiating force, and you know, I’m proud of our people in Menasha. There’s just a tremendous longevity in the company, and our people really have a passion for our customers and our communities. It’s one of the reasons I’ve stayed here for 31 years.”

Menasha has engraved this ethos within its very name, declaring with each first letter of the following values its peopleand value-centric culture:

• Meet our commitments.

• E xcellence in serving our customers.

• Neighborhood involvement and improvement.

• A bility to see and embrace change to continually improve.

• Sincerity, candor, and teamwork in everything we do.

• Honesty, integrity, and respect at the highest level.

• A ccountability to customers, employees, communities, and shareholders.

The Menasha of the postwar era presented a textbook model of vertical forest-products integration: vast land holdings in the Upper Midwest and Pacific Northwest; pulp, timber, and building materials; paperboard and corrugating medium; and converting facilities in the form of corrugated box and sheet plants.

By the 1980s, however, the company’s leadership decided to sell its West Coast assets, including its North Bend, Oregon, medium mill and Anaheim, California, box plant, to Weyerhaeuser. This divestiture allowed Menasha to focus on the growing graphics and display markets, especially serving the large food, beverage, and consumer products customers in the Midwest. The company retained its 225,000-ton-per-year medium mill in Otsego, Michigan, having rebuilt the two paper machines there in the mid-1990s. But by the early 2000s, the Otsego mill was also diluting Menasha’s focus on its core businesses, and in 2005, the mill was

shut down and later sold. The company then became one of the largest open market buyers of containerboard, which today Riegsecker says is a decided competitive advantage. “That was a major transformational event for us,” he says, referring to the Otsego closure, “because we became one of the largest net buyers of liner and medium in North America. I think it’s an advantage because we’re able to utilize different kinds of paper, different recycled content. We’re not locked into one way of doing things with a mill that we’re invested in.”

Riegsecker and his team at Menasha Packaging are energized by the company’s rich 175-year history and its status as a seventh-generation family-owned independent in the corrugated and paperboard industries. “Menasha’s mission,” he says, “is to ‘help customers protect, move, and promote their products better than anyone else.’ One hundred seventy-five years ago, Menasha would have been focused on helping customers ship products like candy and butter in bulk. Today, Menasha is a leader in high-end graphic packaging, protective packaging, promotional displays for retail, and the fulfillment of solutions for over 1,500 global brands in the U.S. and Canada.”

“Yet,” he adds, “we’re independent. We’ve niched and created value and hustled entrepreneurially just like the rest of the AICC membership does every day. We’ve learned to provide value to some of the biggest consumer goods companies in the world but in the same entrepreneurial way.” And so, to those in AICC’s membership who remember Menasha as an integrated company, Riegsecker says, “Think again. We’re excited to get back in AICC. The entrepreneurial spirit is exciting to us.”

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

The Menasha RII displays retail solutions for a wide range of packaging and point-of-purchase markets.

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WELCOME, AICC 2024–2025 CHAIRMAN GARY BREWER

Taking flight in his new role, the Association’s board leader embraces the path ahead

BY ROBERT BITTNER

When some of his colleagues learn that Gary Brewer graduated from North Carolina State University’s chemical engineering and pulp and paper science and technology programs, they naturally assume he was a gifted student. Brewer insists that wasn’t really the case. “I wouldn’t say I was a good student,” he says. Still, he knew early on that he wanted to be a chemical engineer, which required a serious education. If he were to succeed academically, he would need to perform better than he had in high school. That meant being single-minded about his goals. “It came down to discipline,” Brewer says. “I had to focus. I couldn’t play club sports, couldn’t be in a fraternity, or do any of that stuff.”

So while his North Carolina State roommates crashed on the couch to watch the television series Miami Vice, “I was at the library almost every night to get away from the distractions,” Brewer recalls.

Photos courtesy of AICC.

Gary Brewer and his father started Package Crafters in 2003.

Photo courtesy of Mike Micciche/Micciche Photography

“Give me all the data—all the ifs, ands, or buts—let me analyze them, and then I can help guide you to a conclusion or a decision that needs to be made.”

Today, Brewer applies an engineering mindset to his work as a boxmaker—president and CEO of Package Crafters in High Point, North Carolina, and Creative Packaging in Savannah, Georgia. And now, his roles expand even further as he begins his term as 2024–2025 AICC chairman.

Growing Up

“My father was in the textile industry on the finance side,” Brewer says. “If you wanted to get promoted in those days, you had to be willing to move. Since it was just me—no siblings—and my mother didn’t work outside the home, we moved around a lot. I grew up all over North Carolina.”

Brewer’s career interests were shaped early on. Initially, he assumed he’d follow in his father’s footsteps and work in accounting. Then, he discovered chemistry. He didn’t see himself as a chemist in a lab, though. Instead, he leaned toward chemical engineering. And that led him to NC State’s Engineering Department and the related pulp and paper science and technology program. “Paper science is simply specialized chemical engineering,” he says, “so that was my backdoor into the chemical engineering program.”

Just as he knew he didn’t want to be a lab chemist, Brewer also didn’t foresee spending an entire career working as an engineer. “I didn’t want to be in the trenches doing project work or process work all my life,” he says. “I wanted to manage people and processes at a higher level. That was my goal from the start.”

Engineering and higher-level process management appealed to Brewer’s technical mindset. “I enjoy solving problems, fixing things, digging into cause and effect,” he says. “The single biggest thing I got out of engineering is understanding how to approach a problem. Give me all the data—all the ifs, ands, or buts—let me analyze them, and then I can help guide you to a conclusion or a decision that needs to be made.”

Gary Brewer and AICC President Mike D’Angelo at Package Crafters.

Industry Introduction

After graduating in 1992 with two Bachelor of Science degrees, Brewer left his home state for the first time, taking a position at St. Joe Paper Co., a paper mill in Port St. Joe, Florida. “I started out as a process engineer and believed I would be in management in that segment of the industry,” he says. “I never imagined the career change to corrugated boxes. But my education, my experience, and my technical knowledge ended up making me attractive to a corrugated box company in North Carolina, which recruited me.”

That company was Carolina Container. President Paul Ingle needed someone with mill experience to manage the company’s containerboard purchasing. And as it happens, Carolina Container also was where Brewer’s father, Wayne, was chief financial officer.

Brewer spent his days learning the corrugated business. He also made time to complete an MBA at Wake Forest University in North Carolina. Within a year of graduation, he used his newfound knowledge to develop a business plan for a startup sheet plant, which he then presented to lenders. Those efforts paid off. He launched the resulting company, Package Crafters, with his father 20 years ago.

As with most startups, the first years were rough. Brewer credits his wife, Ginny, as being instrumental in getting the company—and their family—off the ground. “When we started the company, she was absolutely key because I didn’t take a paycheck for two years,” he says. “Hers was the only income. We ended up moving in with my parents, freshly married, and trying to start a family and a business. She was with me the whole

time. Not only is she my wife, but she’s my best friend.”

Crafting a Career

Brewer says Package Crafters focuses predominantly on industrial packaging—“brown boxes with a little bit of color, a little bit of POP (point of purchase) display work.” Creative Packaging, a company he acquired in 2015, focuses more on color work and

Gary Brewer on the floor of his facilty in High Point, North Carolina.

Gary Brewer on the floor of his facilty in High Point, North Carolina.

POP displays while producing its fair share of brown boxes.

“I’m proud of the reputation we’ve built as a company,” Brewer says. “We are respected for being a good company, a responsive company, a fair company. That’s really a big thing for me. It’s also a big thing for me that when I step out into the plant, I can look around at the 75 employees working for me and appreciate the fact that I am responsible for them and their families.

“I enjoy serving customers—getting the job done, making them happy, and

giving them new ideas, new solutions. That’s probably the engineer in me,” he adds. “A lot of my competitors tell potential customers the same answer because they do the same things for everyone or they do what every other boxmaker does. That’s fine. If that’s what customers want, I can do that, too. But I’ll also say, ‘Have you thought about this? Have you considered that? Let me show you some other solutions.’”

Brewer describes his approach to leadership in his plants as hands off. “I give guardrails; I give advice,” he says.

“You wouldn’t just climb into the pilot’s seat of a plane without knowing how to fly, having a flight plan, being prepared for whatever pops up in your flight path. AICC offers the key building blocks to a successful flight.”

team members.

“I’m very open with [listening to people’s thoughts] on how to do something. And if I have an idea that you don’t agree with, speak up.”

Traveler, Not Tourist

When he is not in one of his companies, Brewer is likely to be in the air. “I’ve had my pilot’s license since I was 21 years old, and I’m an avid pilot,” he says. “Aviation is definitely a passion of mine.”

In addition, he enjoys running and participating in triathlons, restoring cars and houses, and spending time outdoors. “I like to fish a lot,” he says, “and within the last two years, I’ve even gained an interest in turkey hunting.” He also has coached sports, including coaching his three daughters in soccer.

Finally, Brewer says, he has a strong interest in experiencing the world through travel. “When I was really young, I ran across a quote that said, ‘Be a traveler of life, not a tourist,’” he says. “I’ve taken that to heart. I want to experience life, not just pass through it like a tourist. So if there’s an opportunity to do something new, I embrace it. For instance, on a trip to Hawaii last January, my family decided to take surfing lessons, having never surfed before. And it was great. I probably got too confident too quickly—taking on the big waves too soon—but I had a great time doing it. For me, it’s all about the experience.”

Gary Brewer offers advice and direction with his

The Industry and AICC

When asked what he sees as the big challenges for the industry and the Association during his chairmanship, Brewer’s first thought won’t surprise anyone. “Labor is always going to remain an issue,” he says.

“Beyond that,” he continues, “I think we are going to need to address the impact of ongoing consolidation in our market. Larger companies are buying up smaller independents, while people are aging out of the workforce or selling their companies for various reasons. We’re in this natural cycle of the big people getting bigger, while the smaller people are disappearing.

“That’s going to come full circle; it always does,” he says. “So, the industry consolidates, prices rise, and service may suffer. And that leads to startups sprouting up that promise to deliver what the bigger companies can’t.”

Brewer’s insight into that cycle is born of experience. “When I started Package Crafters, industry lead times were, on average, a week out,” he says. “So, to break through, I entered the market with a three-day delivery model. The competitors in my market were not providing that, and it caught a lot of people’s attention. That’s what put me on the map.”

Similarly, the next generation of startups will be searching for their own competitive advantages, along with the kind of resources, information, and opportunities only AICC can provide. “As leaders within AICC, we need to explore all of the ways we can support these startups with the technical knowledge and resources they’re going to need,” he says. “How do we ensure a good source of capital for those wanting to start up? How do we help them acquire the equipment they need? How do we give them all the entrepreneurial resources they need? At the same time, we must remain relevant for industry

veterans because the industry is constantly evolving.”

Brewer draws on his aviation background to illustrate AICC’s integral value for the industry. “You wouldn’t just climb into the pilot’s seat of a plane without knowing how to fly, having a flight plan, being prepared for whatever pops up in your flight path,” he points out. “AICC offers the key building blocks to a successful flight: educational coursework, CEO groups, production leadership groups, and the Emerging Leaders group. And the recently formed Foundation for Packaging Education is soon to be the catalyst for next-level educational and leadership offerings.”

All of these resources work in combination to help AICC members become

stronger contributors to the industry, people who are “always leading, whether they’re in direct conversation with someone or just walking the floor.”

For Brewer, AICC will always be part of that leadership message. “I knew about AICC when I started Package Crafters, but I felt like I was too small to join,” he recalls. “I look back on that now and realize it was a total mistake. It’s the organization that the independents in our industry absolutely need.”

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

Gary Brewer’s engineering mind keeps him open to new ideas.

THE FUTURE IS NOW

BY M. DIANE M c CORMICK

Associate members are delivering the latest innovations for boxmakers looking for the next great competitive edge

When it comes to innovation, Dave Burgess, sales director at JB Machinery Inc., encompasses the industry’s drive toward greatness.

“The amazing thing about the business is how many and how frequently the innovations come through,” he says. “It’s a very innovative business. It makes our end-use customers think that if they’re standing still, they’re going backward. The innovations are out there, and to keep up, they’ve got to keep pushing these innovations forward.”

As innovations continue materializing, AICC Associate members shared the problems solved by their breakthroughs and how they create cultures of innovation. By working with boxmakers on research and development (R&D), automation and efficiency, sustainability, and other pressing challenges, they are driving the corrugated industry toward new frontiers.

Close Collaboration

Innovations emerge from conversations, collaborations, and R&D that turn ideas into reality.

At SUN Automation Group, innovation stems from recognizing that customers understand their operations and needs “better than we do,” says Executive Vice President Greg Jones. “We have some brilliant engineers, but we take the voice of the customer with great sincerity and react in a position of humility to bring solutions to the market together.”

SUN’s innovation process also involves observing other industries while leveraging the wealth of in-house knowledge and experience from engineers, field service technicians, and those on the manufacturing floor.

“Ideas become innovations by creatively engineering valuable solutions to customer problems and inefficiencies,” says Jones. “We collect the voice of the customer about challenges, problems, and

pain points in need of a solution. Then, we brainstorm concepts and match the most valuable solution to the problem. If the value proposition makes sense for every stakeholder, we move forward.”

JB Machinery’s R&D succeeds because “we’re good listeners,” says Burgess. “We talk to our customers about pinch points, about where they struggle. Our goal is, ‘How can we make our customers more efficient?’”

Innovations have the power to substantially decrease average run size while increasing the speed of changeover and running the order.

And although ideas are the lifeblood of innovation, not every idea floated at JB Machinery is allowed to fly. At a recent internal meeting, the team “killed a bunch of ideas because they’re not in our lane,” says Burgess. The company’s forte of press enhancements creates the parameters for ideas that move forward to R&D.

After launch, continuing the conversation leads to refinements, Burgess adds. Customers are encouraged to run the product for a time and submit their honest appraisal of likes and dislikes.

JB Machinery’s AutoWash solution, for instance, is an outgrowth of the company’s 2012 AICC Innovator of the Year award winner, the KleenPlate solution, developed for all users.

EFI keeps innovation at its core as it actively identifies problems to solve or processes to improve, says Liz Logue, vice president of corporate business development and inkjet strategy. The next step is looking for creative ways to address the problem with stable, proven technology. Staying up to date on inkjet head technology and investing in innovative new inks and primers help produce the most cost-effective, high-quality output.

“EFI actively engages with boxmakers to understand the key drivers and challenges in their business,” Logue says. “We work to understand every process

in their plant, understand their business needs, and listen to their concerns.”

EFI has dedicated professional services experts to support innovation initiatives, while a dedicated brand driver team educates end users on the value associated with digitally printed products.

Durst leaves no stone unturned in delivering solutions to converters by maintaining contact with “all departments of our customers,” says Steve Lynn, director of labels and packaging. “While we are in regular communication about daily production on the equipment we supply, it is important to maintain a relationship with management, sales, and marketing teams to understand their needs or challenges to see how we can help.”

Durst’s presence in other print markets provides insights that can be useful for corrugated, Lynn says. The company’s single-pass technology in use at ceramic and label companies globally “gives us knowledge of what has worked in other, more established single-pass inkjet markets,” says Lynn.

Bahmüller stays “one step ahead” by keeping in close contact with the industry and suppliers, participating in global trade fairs and meetings, and analyzing lost orders for further development potential. In this way, the company can keep its finger on the pulse of industry needs, says Benjamin Lauterbach, vice president of BTI, a Bahmüller subsidiary in Charlotte, North Carolina.

“Innovations are never plucked out of thin air but are created together with the input of our customers and their requirements,” Lauterbach says. “Once the potential for development has been identified, a new development project is started in the shape of a user workshop. Initial approaches to solutions are presented to a small, well-known circle of Bahmüller users and partners, discussed, and, if necessary, adapted.”

Under a nondisclosure agreement, the new product or machine is then brought

to production with one or more development partners. Release and market launch come “only after an extensive test phase in production.”

The fact that Kongsberg PCS is gathering record-breaking orders for its new digital cutting platform stands as “a testament to the remarkable efforts of our R&D team in developing this fantastic new solution,” says President and CEO Stuart Fox. Kongsberg PCS’ approach uses customer-centric research, preview events, and feedback sessions at all phases.

“We work closely with our customers and partners to ensure they benefit from maximum return on their investment in Kongsberg PCS technology,” says Fox. “It is important to us that we develop solutions that not only give our customers the creative freedom they need to achieve their specific goals, but that also deliver the very best user experience while ensuring maximum operator safety.”

Another recent Kongsberg innovation—its new feeder and stacker system—demonstrates the company’s development of advances in automation through the appointment of a project manager for automation and robotics and dedicated R&D teams, all with “deep

“Ideas become innovations by creatively engineering valuable solutions to customer problems and inefficiencies.”

—Greg Jones, executive vice president, SUN Automation Group

knowledge and technical expertise to achieve the company’s goal of empowering customers to maximize efficiency and productivity through automation.”

Automation and Efficiency

In the never-ending search for a competitive edge and cost savings, technology and AI are driving innovations that create efficiencies through automation by optimizing machine availability, productivity, and health.

Boxmakers are using AI-generated data to inform decisions around capital expenditures, while greater visibility into productivity and machine health is improving equipment effectiveness by increasing throughput, improving quality, and reducing downtime, says Jones.

making its mark in addressing labor shortages, improving efficiency, and enhancing safety.

LABOR SAVINGS

Automation is “critical to the future success of boxmakers,” says Logue. Innovative presses increase productivity and reduce operator intervention.

As Lauterbach says, “It is not about eliminating operators but about filling the gap and making the working environment more pleasant in order to maintain the highest production speeds and output over time.”

Reducing repetitive tasks improves ergonomics, efficiency, and accuracy while allowing employees to focus on value-added work, says Jones.

Lynn noted that vendors are leveraging AI to deliver faster, more predictive service and support. Technology is also

EFFICIENCY

Competition and cost are key drivers in the constant search for innovations that create efficiencies. And corrugated converters face increasing pressures to produce better products faster, more safely, and more efficiently to meet the demands of the global market, says Fox.

The good news is that JB Machinery, EFI, Bahmüller, Kongsberg, SUN, and many other AICC Associates are pushing the envelope to help boxmakers get out ahead of those demands, whether it’s faster printing, automated plate-washing, or just simplifying operations through multifacted equipment, to name a few.

SAFETY

Innovations and customization keep machinery in step with strict safety standards. They can also minimize the

effects of human decisions on the health and well-being of people and machines, says Jones.

Innovations that improve not only efficiency but also safety and reliability can make breakdowns “a thing of the past,” he adds.

QUALITY

Technology can also drive significant leaps in quality through better color matching and higher-quality design that shines on the product.

And while an innovation might be groundbreaking, industrywide impact demands scalability. Modularity allows boxmakers to acquire and scale up equipment in alignment with their space, orders, and budget.

Sustainability

“Innovations are never plucked out of thin air but are created together with the input of our customers and their requirements.”

—Benjamin Lauterbach, vice president, BTI

With today’s innovations, sustainability is making giant leaps. In digital print, continuous improvements drive sustain ability and efficiency by reducing waste and overproduction while demanding fewer harmful chemicals and plates, says Lynn.

More efficient washup cycle times and innovations in feeders also contribute to sustainability, says Jones. Enabling original equipment manufacturers (OEMs) to help boxmakers run lighter-weight board without sacrificing quality “enhances the sustainability story,” he says.

digital adoption,” Lynn says. “We never stop working to improve and enhance our solutions.”

A Bright Future

According to Logue, EFI’s innovations in digital print promote sustainability by reducing global warming potential by 50% compared with analog printing by eliminating printing plates, ink waste, and overproduction.

Plus, Lauterbach notes, equipping machines to sustain the manufacture and delivery of high-quality boxes supports sustainability because “every delivery that is not complained about and produced again” means less waste.

Other products offer greater use of recycled, readily recycled, and other materials for greener operations, says Fox. The use of recycled materials in manufacturing and assembly, plus the incorporation of materials with lesser environmental impact “also demonstrate … a focus on a sustainable, efficient, and forward-thinking approach to production,” he says.

What’s next for industry innovators?

More innovations.

Looking ahead, JB Machinery is all-in on efficiency and quality improvements. “We’re very good about making products literally seamless to the point where they look like they were manufactured by the OEMs,” Burgess says.

Corrugated businesses have stabilized since the COVID-19 pandemic, Burgess says. With its growing reputation for sustainability, the industry is ready to surge. “The read we’re getting is that they’re ready for the reinvestment phase,” he says. “They’ve had a couple of years of trying to utilize the investments they made during COVID, and now they’re ready to start pulling again.”

At EFI, plans are underway for a version of one of its presses that outputs a stacked box, “essentially offering a digital folder-gluer to the industry,” says Logue.

Durst is expanding its range of printers “for lower investment levels to allow more

Bahmüller is “constantly adapting our products to changing market conditions and requirements,” Lauterbach says. In addition to machinery improvements, it’s vital to ensure seamless operations and productivity through service after the sale, so Bahmüller is establishing a digitization strategy based on four online-based pillars: diagnostics, reporting, analysis, and web shopping.

At SUN, Jones says, “we are always looking for areas for continuous improvement. We are never content to stand still, realizing we need to continue to bring new technologies to the industry.”

The Kongsberg PCS team is excited to showcase its most recent innovations and solutions at upcoming events, Fox says.

“We are always innovating and have a number of new production and automation solutions at advanced stages of development—but you’ll just have to wait for the announcement on those!” he hinted.

M. Diane

McCormick is a freelance journalist based in Pennsylvania.

SPECIAL SECTION

Associate members have been a valued part of AICC since the beginning. Travers

Ward Machinery, speaks at the1993 supplier roundtable.

Stavac,

Michael Harris, WPR Services, moderates a panel with Greg Arvanigian, Arvco Container; Jeff Pallini, Fosber; Jeff Quinn, Haire Group; and Mark McNay, Southern Missouri Containers, during SuperCorrExpo ® 2024 in September in Orlando.

AICC events have always been a family affair.

Maria Frustaci, a longtime AICC staff member, retired in 2023.

AICC has always worked to stay on the forefront of technology.

Matt Davis, Packaging Express, welcomes attendees to SuperCorrExpo ® 2024.

Photos courtesy of AICC.

THE NEXT 50 YEARS 50 YEARS OF AICC

Throughout this, the 50th year of AICC’s existence as the partner in the success of the independent converter, BoxScore has been sharing a decade-by-decade look at how the Association and the industry have evolved.

AICC has come a long way from the first meeting at the Stouffer’s St. Louis Hotel in Missouri, where the founding members gathered in response to market threats against their very existence.

Today, AICC members drive everything that AICC does. AICC is at trade shows such as the recently completed 7th SuperCorrExpo®. AICC is a partner in ownership of SuperCorrExpo® with the Technical Association of the Pulp and Paper Industry. Independents partner with other independents and integrated companies, as well. Independents are represented by AICC on Capitol Hill and educated by AICC online, in classrooms, and in their plants. AICC brings together independents at national and regional meetings, in CEO and Leadership Advisory groups, and as Emerging Leaders. Every person on an AICC member company’s team can have access to AICC programming.

What About the Next 50 Years?

AICC has a head start on the next 50 years with the aforementioned Emerging Leaders program. Also, given the longevity of our members and the multigenerational nature of our many member companies, we’re betting an individual who is an AICC member today will likely be a member 50 years from now.

AICC’s supplier member companies are leaders in the development of technology, machinery, software, and solutions. Boxmakers’ partnership with these leaders ensures continuous improvement and the adoption of the latest solutions to bring efficiency and increased productivity. This has been a constant throughout AICC’s existence and will never change.

AICC takes pride in being a member-led Association.

An AICC member wins a new color television at an AICC event in the 1990s.

AICC’s Emerging Leader Program marks its 10th anniversary in 2024.

Leadership of AICC and the Technical Association of the Pulp and Paper Industry cut the ribbon to open the seventh SuperCorrExpo ®

AICC held an AI Xperience earlier this year. Artificial intelligence (AI) will continue to develop, and as it does, boxmaker and supplier operations will be forever changed. AICC will continue to share developments in AI with members until an even more revolutionary development replaces AI.

The independent’s business of 2024 is dramatically different from the business of 1974.

AICC evolves with its members because AICC is its members. AICC 2074 will likely look nothing like the AICC of today, but you can be sure that in 2074 when you invest and engage, AICC delivers success.

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Clemson University packaging science students at the booth during the SuperCorrExpo ® 2024 in September in Orlando.

Plant tours are offered at many AICC events.

AICC Emerging Leaders taking in a ballgame in Chicago after a day of training.

ANNUAL REPORT AICC 2024

AICC’s strong fiscal year punctuated by its golden anniversary

Earlier this year, AICC completed its fiscal year (FY) 2024. It began unlike any other year because the membership was ready to celebrate AICC’s Golden Anniversary: 50 years of advocating for the independent, of educating the independent, of celebrating the independent; and 50 years of ensuring the success of our members—first and always.

AICC closed FY 2024 in a strong financial position, due primarily to the above-mentioned 50th anniversary celebration. But the year’s events at AICC were certainly more than just the big party at the Spring Meeting.

National Meetings and Events

National and regional meetings, golf events, and a ski event mark the AICC calendar throughout the year. These events keep AICC close to its members and the members close to one another.

The fall 2023 Annual Meeting occurred in September. “Box Plants, Bourbon, & Business” was the theme for a meeting that took members from general and breakout sessions in downtown Louisville, Kentucky, to box plant tours at local plants Independent II, Premier Packaging, and Greif/CorrChoice, to

historic Churchill Downs, home of the Kentucky Derby.

AICC’s 50th anniversary celebration took place in April at the J.W. Marriott Desert Springs Resort in Palm Desert, California. What a party it was with more than 850 members and guests reveling in formal wear with the “Rat Pack” and a big band. An AICC timeline and a past presidents and past chairs “walk of fame” made nostalgia the theme of the day. The joy and celebration at the gathering were a far cry from the first AICC meeting in 1974 in St. Louis, when the inaugural members came together because their survival was at stake.

At that meeting, and again at this year’s meeting, a symbolic single twig was broken in contrast to an unbreakable bundle of sticks. Independents are strong together.

AICC is thankful for all of the members who participate at in-person events throughout the year and for those who joined the party in Palm Desert. We also have special gratitude for the many Associate member companies whose generous sponsorship makes all of these events possible.

Education and Training

AICC NOW was launched in FY 2023 to better organize and present AICC’s

complete archive of webinars, white papers, and member reference materials.

AICC NOW also hosts AICC’s Packaging University at NOW.AICCbox.org

A great deal of time and effort was spent in FY 2024 to make Packaging University a true university with the introduction of multiple colleges, focusing on specific areas of study with core courses, all relevant to paper-based packaging. With the new “semester” starting in September 2024, this new-look site will improve the member experience.

Online education is a member benefit available to every individual who works for an AICC member company. Packaging University has seen over 19,000 completed courses since spring 2017. AICC continues to create approximately 10 new online courses annually and to translate existing and new courses into Spanish on a regular basis.

AICC Education Investors deserve special recognition: Fosber, BCM, SUN Automation, JB Machinery, Pamarco, Absolute, Printron, EFI, Krueger, Bobst, HP, and Stafford Corrugated Products. These Associates have committed financial and intellectual resources to ensure the continuing education of AICC members.

AICC’s Breaking Down Boxes podcast continued to educate and entertain members. As the fiscal year closed, hosts Gene Marino of Akers Packaging and Joe Morrelli of Huston Patterson/Lewisburg Printing Company announced they were hanging up their microphones. AICC has much gratitude for Marino and Morrelli, conceiving of the idea, birthing it, and making it a must-listen event each month. AICC will continue Breaking Down Boxes with new hosts because so many member stories remain to be heard.

AICC continues to host education opportunities for other Associations through microsites as we maintain our relationship with the National Wooden Pallet & Container Association

At the close of the fiscal year, AICC had 518 members in the United States, Canada, and Mexico, with General (boxmaker) members totaling 285 and Associate (supplier) members totaling 233.

(NWPCA) and Asociación de corrugadores del Caribe, Centro y Sur América (ACCCSA).

In May in Chicago, AICC hosted the AI Xperience. Artificial Intelligence (AI) is going to revolutionize manufacturing processes—and the world we all live in. AICC gathered early adopter members and suppliers to share their knowledge and vision with boxmakers and Associates at a two-day event that had 120 attendees. To reinforce AICC’s commitment to educating members on AI, the new Innovation & Technology subcommittee was formed. The members of this subcommittee are collaborating on an ongoing, multichapter white paper that is keeping members abreast of the challenges and opportunities in the fast-evolving AI environment.

Foundation for Packaging Education

Launched in fall 2020, the Foundation for Packaging Education is a 501(c)(3) education foundation whose mission is to ensure funding to sustain AICC’s and other entities’ education programming. This programming is directed toward existing workers in the paper-based packaging industries, essentially AICC’s members. The donor count has risen to 50 pledging companies and individuals. Total funds on hand are $1.94 million, with pledges made but due in the future totaling $860,000. The goal is to have $3 million on hand to fund programming. Visit www.packaginged.org to make a pledge. Your pledge will help the

foundation meet its goal, and you will be investing in your company’s future.

The foundation administers AICC’s long-standing Dick Troll Memorial Scholarship and the Steve Narva Memorial Scholarship, funded by several pledge companies in the foundation.

The Foundation for Packaging Education thanks and values all of the companies and individuals that support the future of independent education through their generous pledges.

Publications and Advertising

Since all AICC publications are available in digital format, AICC’s publications and media past and present are now found at the previously mentioned AICC NOW site. Included are surveys, white papers, Ask the Expert content, past and current issues of BoxScore, all webinars, and so much more.

BoxScore remains AICC’s flagship publication. Produced six times a year, the content is always relevant and generated primarily by members. The January/ February issue is The Big Associate Issue, dedicated to AICC’s Associate member companies in good standing. Each interested company receives one page of editorial copy for them to speak about themselves. The issue also serves as a de facto AICC buyer’s guide.

You can access the AICC Media Guide at www.AICCbox.org to see all of the ways to get your message in front of fellow members.

Governance, Cooperation, and Advocacy

AICC continues to follow its destination model driven activity in which the board of directors sets high-level strategic goals for the year.

AICC’s standing committees— Convention Content, Membership, Education, Government Affairs, Paperboard Regulations & Sheet Supply, Nominating, and Associate Member— translate the strategic goals into effective deliverables and programming. Each committee is chaired by a member of the AICC board of directors, ensuring a connectivity and accountability both ways. AICC staff members execute the deliverables and programming as identified by the committees. Operating in this manner ensures transparency and accountability. This model also keeps AICC programming relevant to members’ needs and provides the Association the

ability to evolve as members evolve. Committee membership and board of directors participation are open to any AICC member. Please consider signing on to the future of your Association by serving.

AICC continues its close ties with fellow industry associations such as the Fibre Box Association, Technical Association of the Pulp and Paper Industry with which AICC shares co-ownership in SuperCorrExpo® and Corrugated Week, and the American Forest & Paper Association (AF&PA). These entities together with AICC also comprise the Corrugated Packaging Alliance.

Internationally, AICC is a member of the International Corrugated Case Association (ICCA) with AICC’s Overseas Director Kim Nelson of Royal Containers on the ICCA Board of

Directors. AICC maintains relationships with the Sheet Plant Association in the United Kingdom, the European Federation of Corrugated Board Manufacturers, ACCCSA, and NWPCA. AICC management and staff endeavor to represent member interests at various events throughout the year.

AICC’s footprint is also international through its constituent organizations, AICC México and AICC Canada. Members in both countries have access to all AICC-generated programming and also receive unique member benefits, events, and information closer to home. Both organizations are represented on the AICC board of directors. AICC management and staff participate in many member events south and north of the border.

AICC also represents member interests through its membership in and partnership with several organizations that inform and

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engage with various governmental entities at the state and federal levels.

Among these are the Small Business Legislative Council in which AICC holds a seat on the board of directors and the Council of Manufacturing Associations, a division of the National Association of Manufacturers. Issues relating to paper and paper-based packaging are borne by the AF&PA, which is active in Washington, D.C., and state capitals around the United States.

Extended producer responsibility in which the brand owner and producers may be liable for the life cycle of packaging is a growing legislative trend on which AICC is keeping members informed.

AICC is active in campaigns on behalf of members at the federal level regarding regulatory environment. Actions here seem to move slowly, but our partners allow AICC to keep members informed on several matters: the introduction of the Corporate Transparency Act, the expansion of 529 education savings plans to cover trade school participation, new overtime rules, evolving Occupational Safety and Health Administration regulations, and the continuity of the 199A deduction for S corporations.

Membership

AICC’s member retention rate continues to be one of the highest among manufacturing associations at 94%. AICC’s tagline “When you invest and engage, AICC delivers success” proves time and again to be accurate for the member experience. At the close of the fiscal year, AICC had 518 members in the United States, Canada, and Mexico, with General (boxmaker) members totaling 285 and Associate (supplier) members totaling 233.

Financial Results

AICC finished FY 2024 in a very strong position, beginning with the balance sheet.

Total revenue was better than budgeted by just over $700,000 due to strong dues

Balance Sheet

collection, Spring Meeting attendance, and sponsorships. On the expense side, most categories ran according to budget. Administrative costs were elevated as the AICC board approved a move of $100,000 to the Foundation for Packaging Education. Meeting expenses were higher due once again to strong attendance at the AICC Spring Meeting. The higher meeting expense was covered by higher meeting revenue.

Operating income was better than budget by $84,000, with an actual operating income of $26,000 against a budgeted loss of $58,000. Below the line, other income and expenses netted $223,000 against a budgeted loss of $16,000. This resulted in total net income of $249,000 compared with a budgeted loss of $74,000, a favorable variance of $324,000.

AICC has an independent auditor, Mullins PC of Bethesda, Maryland, review its results each year. The above financial information is not audited. The information is derived from AICC’s June 2024 financial statement, compiled by an outside accountant.

As of press time, AICC’s audit has not been completed. Once audited numbers are received, they are presented to the AICC Budget Committee and board of directors for review and approval. All AICC activities are fully transparent to the board and members. Members that wish to receive AICC’s audited financial statements should contact Mike D’Angelo at mdangelo@AICCbox.org

Thank you for 50 years of membership, participation, and support. AICC looks forward to being your Association for the next 50 years.

Ordinary Income/Expense Revenue

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Agility, Adaptability, Flexibility

BY JEFF DIETZ

Plant expansion is a significant milestone for any company, marking growth and opportunity. However, as discussed during a recent panel discussion I moderated with industry leaders Jerry Frisch from Wasatch Container, Gene Marino from Akers Packaging, and Matt Bivens from Harris Packaging, this complex process is filled with unforeseen challenges. The panelists emphasized the importance of having a plan B and adapting to the unexpected, a lesson that resonates for all aspects of business in today’s fast-changing environment.

Planning for the Unpredictable

No matter how well planned a project may be, something always goes wrong. Frisch shared his challenges of how unexpected delays of switch converters and unplanned expenses affected Wasatch Container’s expansion. Similarly, Marino discussed delays in acquiring critical equipment and needing to adjust their installation timeline. Both experiences highlighted the need for contingency and adaptability.

While project management and planning are crucial, what often proves just as important is the ability to react quickly when things don’t go according to plan. This applies to plant expansions and everyday operations. Having contingency plans, alternative suppliers, or flexible timelines can help companies avoid prolonged disruptions and financial losses.

Matt Bivens shared his experience of dealing with potentially disruptive downtime when installing a new machine at Harris Packaging. This left his team searching for solutions because they hadn’t accounted for such demand in their original plan. This led to creating a new line in a new area of the plant,

causing them to sacrifice some raw material storage. “We flipped the script because business conditions changed,” he said. Nonetheless, it was still a problem. Bivens’ experience underscores the critical need to build flexibility into any expansion project—whether in terms of budget, layout, staffing, or timelines.

Need for Agility

The need for adaptability extends far beyond the scope of plant expansions. The post-pandemic world has highlighted the importance of agility in business, making it clear that the ability to pivot quickly is a necessity for survival and growth.

While plant expansions can be disruptive, similar issues occur in day-to-day operations. The pandemic magnified these issues, driving home the point that the ability to pivot in response to new challenges is essential.

Importance of a Plan B

Whether it’s alternative suppliers, backup timelines, or financial reserves to cover unexpected costs, companies must be prepared for anything. The panelists stressed that planning for contingencies is a safety net and critical component of successful operations.

The panelists reflected that although they each had backup plans, they hadn’t anticipated how frequently they would need to rely on them. The ability to adjust plans on the fly allowed the projects to continue without long-term disruptions. In today’s business climate, where disruptions seem to be the norm, having contingency strategies is essential for maintaining productivity and profitability.

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

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What the Tech?

Exploring the Six Stages of AI and Machine Learning

BY RICHARD BOYD

The landscape of industry is undergoing a seismic shift, fueled by the rapid evolution of technologies that promise not just to automate but to transform the way we live and work. Leveraging my decades of experience working with artificial intelligence (AI), I’ve identified six progressive stages that act as a road map from simple automation to genuinely transformative impacts of this evolving technology. We’ll begin this journey in our current phase, the “Chat Era,” and work our way forward, learning the challenges and possibilities in designing our future for the greatest good.

Stage 1: Chat – The Dawn of Conversational Companions

We find ourselves at an exciting inflection point in the evolution of AI. In the Chat Era, AI has shed its old skin of basic, scripted responses to emerge as a versatile conversationalist capable of much more than a simple Q&A session. Chatbots have transformed our interaction with the digital world, humanizing the technology we’ve used for years.

By harnessing the full potential of AI chat systems, we can enhance production and create efficiencies across various sectors. Chatbots can provide real-time updates on production statuses and delivery dates in corrugated packaging, reducing operational costs and improving customer satisfaction, contributing to an agile and responsive supply chain.

To transition gracefully into the next stage of AI—content creation—AI must deepen its understanding of complex human interactions. It’s about evolving past basic keyword recognition to grasp

the nuances of language and context. Most importantly, upholding stringent ethical standards in data collection and use is imperative, ensuring user trust and privacy are always maintained.

Stage 2: Content Creation –The Double-Edged Sword

With the second stage of AI development, AI’s capabilities in content creation spark tremendous excitement and ethical concerns. AI’s proficiency in tasks such as drafting legal documents and written correspondence or creating digital artwork marks a giant leap in productivity and creativity.

However, as AI begins to shoulder more cognitive responsibilities, it’s become clear this advancement is not without its dilemmas. In particular, the convenience

of relying on AI for creative and analytical tasks could inadvertently weaken our critical-thinking skills, relegating us to the role of technology supervisors rather than active creators. We must learn to prompt AI for productivity without relying on it for all original creation. Then, there’s the moral landscape of AI-generated content. Now that we have technologies capable of producing hyperrealistic fake images and audio, the potential for misuse skyrockets. Scammers can now create convincing forgeries that can be used to spread misinformation or commit fraud, posing serious challenges to ethical norms and legal frameworks. We must develop robust systems to monitor and evaluate AI outputs to advance our collective goals, not hinder them.

What the Tech?

Stage 3: Work Efficiency –The Automation Advantage

Process and workflow automation isn’t a new concept, but recent advances have elevated it to new levels of efficiency and intelligence. While traditional automation handles straightforward tasks, modern systems redefine processes, manage complex workflows, and analyze vast volumes of data with remarkable speed and accuracy.

Beyond administrative efficiency, these advancements are transforming the workplace by reallocating routine and repetitive tasks to machines, freeing up humans for higher-order thinking and creative problem-solving. This shift can boost productivity while enhancing job satisfaction so workers can focus on more engaging and meaningful work. The key to these transitions is thoughtful integration, ensuring automation complements rather than replaces human expertise.

Stage 4: Prediction –Navigating the Simulation CenturyTM

A huge leap for humanity in what I call the Simulation Century™ is the ability to deeply model complex systems and predict outcomes far in advance. Understanding not only the first-order consequences but also the second, third, fourth, and beyond consequences of an action is a superhuman power. Digital twins and knowledge graphs have become essential tools, offering detailed simulations of physical processes and systemic interactions.

Digital twins, for instance, allow cities to test and refine systems virtually before implementation, greatly enhancing urban efficiency and safety. Similarly, in the manufacturing industry, they can predict equipment failures before they occur, minimizing downtime and extending machinery life. Knowledge graphs complement these simulations by mapping intricate organizational data into actionable insights, aiding in swift,

strategic decision-making. This stage of the AI journey requires a sophisticated blend of human and machine intelligence in which predictive capabilities surpass reactivity and enable organizations to analyze potential outcomes with remarkable precision.

Stage 5: Improved Judgment –Harnessing AI for Better Decisions

Improved judgment is the ultimate goal of AI and machine learning technology. Daniel Kahneman said a decade ago that in the machine age, every organization should allocate 1% of its budget to modeling its actions and improving judgment. This critical capability is being overlooked in the ChatGPT era of talking to data and effortlessly producing content, much of which could be considered mediocre. AI’s potential to supplement human judgment, particularly through tools such as knowledge graphs, is an untapped treasure in decision-making processes. Influential thinkers such as Kahneman emphasize AI’s significant value in areas requiring complex decision-making such as governance and public policy. Knowledge graphs visually organize extensive data sets, helping decisionmakers find connections and patterns that inform better judgments. Integrating AI with human intuition creates a powerful synergy, making decisions more comprehensive and forward-thinking.

Stage 6: Designing the Future –AI as a Force for Good

The final stage of AI development is about harnessing AI to shape outcomes that benefit society deliberately. As I’ve often emphasized, the ultimate moral purpose of technology is not merely to predict complex future outcomes but to actively design the future we desire. We can create and work toward achieving our aspirational goals by harnessing AI. Alan Kay once said, “The best way to predict the future is to invent it.” In this spirit, we

use AI not just as a tool for forecasting but as a fundamental force in shaping a future aligned with our highest ethical standards.

On this front, particularly within the corrugated industry, the adoption of AI offers substantial possibilities. AI’s ability to advance sustainable and efficient production can be transformative. By finely tuning material usage and improving machinery efficiency through predictive maintenance, AI not only elevates operational effectiveness but also can support organizational sustainability goals.

This vision of AI as a catalyst for good emphasizes the importance of proactive design. It challenges us to think creatively and responsibly about how we program and deploy AI, ensuring it positively contributes to our collective future. Through such efforts, AI can help us navigate and shape the complexities of the modern world, making it a better place for future generations.

Envisioning Tomorrow: The Expansive Future of AI

As we journey through the Simulation Century™ and its possibilities, we should focus on technological advancement and how these technologies can be harnessed to reflect our highest societal and ethical values. AI offers more than efficiency and convenience; it presents an opportunity to design a future that embraces sustainability, equity, and human dignity. The path we pave with AI today will dictate the landscape of tomorrow, challenging us to envision and strive for a future that transcends our current limitations and fulfills our most aspirational goals.

Richard Boyd is founder and CEO of AI and machine learning company Tanjo Inc. and co-founder and CEO of Ultisim Inc., a simulation learning company that utilizes gaming technology and AI.

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Strength in Numbers

Independent Thinking 101

BY MITCH KLINGHER

Analysts seem to be able to calculate mill output each year to the nearest ounce of paper, but no one really knows what the potential board output is from in-place corrugators or the potential units of packaging shipped from converters. What we do know is that the income statements of mill-based companies are heavily dependent on the sales price of paper per ton versus the cost of furnish (primarily OCC and pulp). We also know that North American paper supply is currently greater than the demand for it and that mill-based companies have been closing mills and taking lots of downtime to compensate. Economics 101 dictates that when supply is greater than demand, prices should go down, yet because a relatively small number of manufacturers dominate this market, prices have been going up. So, independent companies have seen the price of raw materials rising, and no end is in sight. That’s because the suppliers want to see their stock prices rise, and the easiest way to do this is to raise prices. Getting back to corrugating capacity and converting capacity, no one can really measure this effectively for a few reasons:

• While mills are limited in number and each mill is designed to run a specific output, there are infinitely more corrugators in the marketplace, and their capacities are more dependent on the technology they employ and the mix of business they run.

• Finishing equipment, technology employed, graphic content, design complexity, and other variables relating to the packaging they are manufacturing make this difficult to predict. In addition, the same packaging may be made with different

combinations of finishing equipment. For example, a box might be digitally printed, printed using flexography, or labeled. It may be run on a rotary die cutter, a flatbed die cutter, or on a computer-assisted design table. Laser die cutters are even making their way into converting operations.

What we do know is that 2021 and 2022 were profitable years for converters, and most invested heavily in new plants and equipment. New corrugators are generally wider and faster. New finishing equipment sets up and runs faster. So although we may not be able to measure it, we know that converting capacities have increased in the past few years.

What we also know is that box shipments peaked at almost 36 billion square feet in 2021 and 2022 and now are around 32 billion square feet, which is about where the market was in 2019. Similarly, the market for paper peaked at almost 2.9 million tons and is now about 2.5 million tons. During this time, over 2 million tons of new papermaking capacity came into North America, and the integrated companies took over 2 million tons of capacity out of service to keep the paper market in equilibrium. The price for export linerboard has also dropped a few hundred dollars per ton mainly because of new mill capacity in all our export markets, making it unprofitable to export linerboard not consumed in North America.

So, we have large integrated paper companies with stagnant stock prices closing paper mills because new mills have started up, and too much paper is being made in their markets where there is too much converting equipment and

sagging demand. If you laid out this fact pattern to any economists, they would say this market should be exhibiting signs of falling prices, but we are seeing exactly the opposite.

Another difficult measure is how much of the roughly 32 billion square feet of corrugated shipments is being made by independents. The rule of thumb has been roughly 20%, but with the copious consolidation over the past 20 years, it may be less.

When I got involved in the industry in the early 1990s, 25 independent corrugators were operating in the New York City area alone. Today, there are three—and probably fewer than 25 independent corrugators in the U.S. Independent converters composed almost entirely of sheet plants compete in the marketplace based on creativity, innovation, quality, and service. Yet when you look at their profit and loss statements, the biggest expense is always paper/sheets, and it looks like the price of that is going to continue to go up, even though it is plentiful. Because of the converting capacity and the lack of growth in demand, the price for packaging should be trending downward.

What I see is that this is true for longer-run commodity-type businesses in which pricing is not contractual. The biggest issue is that most integrated companies and many larger independents have a large percentage of their businesses tied up in supply agreements that have pricing mechanisms. Almost all of these contracts are tied to Producer Price Index (PPI) Pulp & Paper Week pricing. PPI is supposedly reporting on the transacted price of paper, but with fewer than 25 independent corrugators buying paper in the open market, the notion that this

Strength in Numbers

index represents a significant portion of the paper transactions stretches the imagination.

What is going on is that for the integrated companies to get price increases in their contracts, PPI has to report that the transacted price of paper is rising. So with respect to contractual business, which is mainly the realm of integrated producers, they must continue to raise the reported price of paper to boost their margins and improve stock prices.

The real issue comes with the business that is not subject to a contractual pricing mechanism, and this is the world most independent converters live in—increased competition from integrated companies looking to fill up their mills and plants and from other independent converters who now have more converting capacity.

As stated, this seems to be occurring in the longer-run commodity-type business

that crosses over between the worlds of large independent and integrated producers. However, on the rest of the mix, I am finding that the vast majority of independent producers continue to compete based upon creativity, innovation, quality, and service. They have passed through these continued price increases to their customers and in many cases have improved their margins. The conventional wisdom is that once you reach your break-even point, that contribution from each incremental order will drop to the bottom line, and therefore, you can take incremental orders at lower prices because you know they will generate profits. This does not seem to be the course of action most independent converters I work with have taken. It comes down to what I call independent thinking 101:

• Work your niches hard.

• Charge a fair price.

• Implement a culture of continuous improvement and take care of your people.

• Don’t accept marginal business that doesn’t fit your normal criteria just to fill up your plant.

• Focus on long-term profitability and growth.

I am proud to say this is what I am seeing from my independent friends in the face of economic conditions that have deteriorated for them over the past couple of years.

Keep up the good work, gang!

Mitch Klingher is owner of Klingher Nadler LLP. He can be reached at 201-731-3025 or mitch@klinghernadler.com

Foundation for Packaging Education

Did You Know?

Did you know that the number of online courses completed at AICC’s Packaging University since the beginning of 2017 is closing in on 20,000?

Did you know that AICC maintains a course count of nearly 100 courses at Packaging University?

Did you know that 30% of the courses available at Packaging University have been translated into Spanish?

Did you know that AICC develops at least 10 new courses each year for Packaging University?

Did you know that access to Packaging University is a member benefit available to every employee at each AICC member company?

Did you know that an ongoing training program and the ability to grow is often cited as a primary reason employees stay with an enterprise?

Did you know that several AICC member companies utilize a suite of courses from Packaging University—especially Corrugated 101, 102, and 103; Safety Basics; and Board Combinations—as part of their onboarding of new employees?

By now, you should know that if you are not utilizing AICC’s Packaging University in your company, you should.

Did you know that maintaining a relevant and growing education program is a major expense for AICC?

Did you know that AICC has a 501(c)(3) education foundation, the Foundation for Packaging Education, that exists to

ensure there will always be funding for the development of courses aimed at individuals employed in the corrugated, folding carton, and rigid box industries?

Did you know the Foundation for Packaging Education administers two scholarship programs, AICC’s Troll Scholarship and the Steve Narva Memorial Scholarship?

Did you know that more than 50 AICC member companies and individuals have pledged nearly $3 million collectively to the Foundation for Packaging Education?

By now, you should know that if you have not made a pledge to the Foundation for Packaging Education, you should.

Please visit www.packaginged.org to invest in your company’s future.

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CPG Honors Jeffrey Schwarz With $150,000 Donation for ICPF Circle of Distinguished Leaders Induction

The Corrugated Partners Group (CPG), a collaborative network of manufacturers, has donated $150,000 on behalf of Jeffrey Schwarz for posthumous induction into the International Corrugated Packaging Foundation’s (ICPF’s) Circle of Distinguished Leaders. Contributions were received from these CPG facilities: Alliance Sheets, Encorr Sheets, Flutes Hanna, Flutes Zionville, Heartland Sheets, Independence Corrugated, Keystone Sheets, NewCorr, New England Sheets, North Star, Pinnacle Corrugated, SPP Miami, Triumph Sheets, Star Corr, and StarCorr de México.

The Circle of Distinguished Leaders program honors exceptional individuals—leaders whose vision, creativity, and

MORE ON ICPF’S CIRCLE OF DISTINGUISHED LEADERS

Scan the QR code for more information on the International Corrugated Packaging Foundation’s (ICPF’s) Circle of Distinguished Leaders and to see who has been honored in the past.

energy have moved the corrugated industry forward. Schwarz spearheaded sheet feeder co-ops and forged relationships between corrugated industry companies. Following a battle with glioblastoma, a brain cancer, Schwarz passed away on November 26, 2023.

The Fiterman family at Liberty Diversified International initiated Schwarz’s nomination to the Circle of Distinguished Leaders. His induction will mark the first time two members from the same family have been honored; his father, Jack, joined this group in 2011.

Industry contributions on behalf of Schwarz have led to the most successful Circle of Distinguished Leaders nomination to date. In another donation, Pacific Southwest Container has contributed $50,000 to recognize Schwarz’s legacy. Additional pledges and donations have been made by AICC, Amtech Software, Atlas Container, Bay Cities, Buckeye Corrugated, BW Papersystems, Central Package & Display, DanHil Containers, Domtar, the Fibre Box Association, Fosber America, Great Northern Corp., Green Bay Packaging, Jamestown Container Cos., Jim Johnson, Liberty Diversified International, Litho Press, Bob and Debbie McIlvaine, Packaging Express, Paige Co. Containers, Jim and Pam Porter, Rick and Mary Van Horne III, Wasatch Container, Welch Packaging, and Wertheimer Box.

Friends, business colleagues, firms, and organizations can still honor Schwarz by donating in his name. Nomination contributions are tax deductible and support the Circle of Distinguished Leaders

Program and ICPF’s work to grow the workforce of the corrugated packaging industry. Those making donations to honor Schwarz will be recognized during a posthumous induction ceremony at a 2025 AICC meeting and in a subsequent release to the packaging trade press that will also be provided to the Schwarz family.

Contact ICPF President Caitlin Salaverria at csalaverria@icpfbox.org if you would like to join in honoring Schwarz by making a tax-deductible “nomination donation” to ICPF. ICPF then will forward an invoice with mailing and automated clearing house instructions for your accounting department.

Caitlin Salaverria is president of ICPF.

Photo courtesy of the International Corrugated Packaging Foundation.

Jeffrey Schwarz

NEW FREE ONLINE COURSES

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

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

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

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

Resolución de Conflictos

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

The Final Score

‘Why Can’t I Get a Job?’

SuperCorrExpo® 2024 wrapped up on a Thursday. Nearly 4,000 participants and a sold-out exhibition space tell the story of a robust corrugated marketplace.

Among those 4,000 attendees were several students from various four-year institutions with packaging and paper programs. AICC was honored to host the winners from its Student Design Competition. If you were at the SuperCorrExpo®, you saw their winning displays at Association Central, upstairs from the show floor. The graphics and structure categories from the competition were represented. AICC was honored by having a real-life corrugated display buyer, Rocky Mountain Chocolate Factory, provide the project challenge for the students. A big thank-you to Wasatch Container’s Jerry Frisch.

I spent some time with these young people—some who graduated this year, some still in school. They are excited about packaging in general and the corrugated industry in particular. They walked the SuperCorrExpo® floor with a combination of awe, anticipation, and motivation.

AICC invests a lot of time, energy, and resources to make sure that we are engaged with young people in the packaging schools and in the packaging industry. In addition to the Student Design Competition, we offer the Troll Scholarships and a robust Emerging Leaders program. Go us!

I had the pleasure of joining the Student Design Competition winners at dinner one evening during the show. I went on and on about how finding and retaining labor is the No. 1 challenge facing AICC members and has been before, during, and after the COVID-19 pandemic to which one of AICC’s dinner guests responded, “If that’s the case, why can’t I get a job?”

I really didn’t have an answer for this intelligent, award-winning young person, with a Bachelor of Science degree in business administration and consumer packaging, with minors in packaging and industrial technology.

Now, I know a lot of the labor challenge is to get folks to sign up for—and show up for—jobs on the plant floor. We know manufacturing has its challenges in that regard—and likely for office positions in a manufacturing operation, as well.

But this is someone who is motivated to get a job in a corrugated box plant.

Glassdoor, LinkedIn, and several other similar job sites are the main way this individual has been submitting applications to box plants. Is there too much “noise” in sending a job application in this manner? I don’t know.

I do know that if we want these dynamic, fresh, eager people to go to work in our box plants, we have to find a better way. Even the International Corrugated Packaging Foundation is questioning its career portal.

If you have some ideas or want to share the way you are getting good people to work in your box plant, please share them with me, mdangelo@AICCbox.org. Also, drop me a line if you’d like a recommendation and a couple of resumé s.

I know some very good people.

Michael D’Angelo AICC President

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