July/ August 2016 AICC BoxScore by AICC, The Independent Packaging Association

M i t s u b i s h i

B o x

M a k i n g

M a c h i n e s

Introducing

The largest EVOL ever!

115"

330 boxes per minute (BPM) 45" x 115" size means more capacity and options Same 2-minute set-up time as its smaller EVOL brothers

45"

The EVOL family just got even bigger, 45" x 115" big! ®

The new EVOL 115/330 is a titan of a box making machine and a marvel to behold and to operate. This big guy effortlessly works though units of corrugated sheets at a nimble 330 BPM 30 percent faster than similar-sized machines! Versatility and quality are also in its DNA, as it can produce panel sizes as small as 3.5 inches as well as skip feed to 53 inches and achieve the smoothest fold ever, thanks to the advanced engineering of its folding section. 4 Color 330 bpm FFG 45" x 115"

EVOL 115/330 – the bigger EVOL brother with the brains and beauty to go with all that brawn. The EVOL family is growing. And helping you grow your business. Call us for a preview of our newest family member.

3 or 4 Color 350 bpm FFG 37" x 100"

3 Color 400 bpm FFG 34" x 84"

North American Office • 11204 McCormick Road • Hunt Valley, MD 21031 Phone: 410.584.7990 • Fax: 410.584.1252 • mhicorr@mhicorr.com • mhicorrugating.com

TECHNICALLY S PE A K IN G ...

JAMES CARSON 29 Years of Industry Experience

James knows Flexo! Committed to the market since 1946, our business culture and value for relationships have been the drivers and differentiating factors behind our position as the most successful global flexographic anilox supplier to date. From offering the most extensive portfolio of products on the market, to offering the best consultative advice and delivering an overall superior customer service; all underpinned by our passionate corporate culture, Pamarco has been able to build enduring and meaningful relationships with converters and OEM suppliers around the globe. Â Increased profitability is our goal for every client. Pamarco products, technical support and an understanding of the desires and dreams of our converters gives us the unique ability to stimulate positive growth. We provide each client with ready access to a team that is dedicated to improving both their printing processes and their productivity. Our consistent service and support delivers not only a product, but improved profitability as well.

Talk with your Pamarco Representative about specifications for your application. Â Email flexosales@pamarco.com or visit www.pamarco.com

YEARS YOUNG

July/August 2016 Volume 20, No. 4

A PUBLICATION OF AICC, THE INDEPENDENT PACKAGING ASSOCIATION

PUTTING THE ‘SUPER’ IN

SUPERCORREXPO

IT HAS BECOME THE CAN’T-MISS EVENT OF THE INDUSTRY

ALSO INSIDE Making the Case for Corrugated The Breakdown of Maintenance Drupa and Digital Printing

TABLE OF CONTENTS July/August 2016 • Volume 20, Issue 4

COLUMNS

ON THE COVER AICC President Steve Young and TAPPI President and CEO Larry Montague

44 48

CHAIRMAN’S MESSAGE

SCORING BOXES

LEGISLATIVE REPORT

ASK RALPH

TACKLING TECH

LEADERSHIP

SUSTAINABILITY

THE ASSOCIATE ADVANTAGE

FINANCIAL CORNER

THE FINAL SCORE

DEPARTMENTS

FEATURES

WELCOME NEW MEMBERS

MEMBERS MEETING

GOOD FOR BUSINESS

THE CASE FOR CORRUGATED The way consumers buy is changing, and packaging needs to change with it

POINT OF VIEW

MEMBER PROFILE

THE BREAKDOWN OF MAINTENANCE Proper machine maintenance is essential to ensure a healthy bottom line in the manufacturing sector

SPECIAL SECTION

ICPF UPDATE

PUTTING THE ‘SUPER’ IN SUPERCORREXPO® It has become the can’t-miss event of the industry

44 48

BoxScore is published bimonthly by AICC—The Independent Packaging Association, PO Box 25708, Alexandria, VA 22313, USA. Rates for reprints and permissions of articles printed are available upon request. AICC is an international trade association representing a majority of independent North American manufacturers of packaging products and the suppliers to the industry. AICC members are represented by 538 boxmaking locations and 482 supplier locations, both segments of which are offered a full array of membership services, programs, and benefits. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of AICC. The publisher reserves the right to accept or reject any editorial or advertising matter at its discretion. The publisher is not responsible for claims made by advertisers. POSTMASTER: Send change of address to BoxScore, AICC, PO Box 25708, Alexandria, VA 22313, USA. ©2016 AICC. All rights reserved.

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

BOXSCORE www.aiccbox.org

OFFICERS Chairman: Mark Williams, Richmond Corrugated Inc. First Vice Chairman: Tony Schleich, American Packaging Corp. Vice Chairman: Al Hoodwin, Michigan City Paper Box Vice Chairman: Joe Palmeri, Jamestown Container Companies Vice Chairman: Jay Carman, Stand Fast Packaging

President: A. Steven Young, AICC Headquarters Immediate Past Chairman: Greg Tucker, Bay Cities Container Corp. Chairman, Past Chairmen’s Council: Mark Mathes, Vanguard Companies Secretary/General Counsel: David P. Goch, Webster, Chamberlain & Bean Counsel Emeritus: Paul H. Vishny, Esq.

DIRECTORS-AT-LARGE Jim Akers, Akers Packaging Brad Albright, Touchpoint Packaging Matt Davis, Packaging Express Marco Ferrara, Cajas de Cartón Sultana John Forrey, Specialty Industries Inc. Jana Harris, Harris Packaging Corp./American Carton

ASSOCIATE MEMBER DIRECTORS Chairman: Keith Umlauf, Haire Group Vice Chairman: Jeff Pallini, Fosber America Secretary: Ed Gargiulo, Equipment Finance Corp Director: David Burgess, JB Machinery Immediate Past Chairman: Brian Kentopp, Bobst

REGIONAL DIRECTORS Region 1: Vacant Region 2: David Deline, Deline Box Company Region 3: Kevin Ausburn, SMC Packaging Group Region 4: Eric Elgin, Oklahoma Interpak Region 5: Gary Brewer, Package Crafters Inc. Region 6: Clay Shaw, Batavia Container Inc. Region 7: Finn MacDonald, Independent II Region 8: Joe Hodges, Mid-Atlantic Packaging Region 9: Larry Grossbard, President Container Group Region 10: Peter Hamilton, Rand-Whitney Corporation Region 11–12: John Franciosa, Coyle Packaging Group Region 14: Yair Caballero, CorrEmpaques Overseas: Kim Nelson, Royal Containers Ltd.

ADVISERS TO THE CHAIRMAN Tom Skinner, Phoenix Packaging Inc. Craig Hoyt, Buckeye Boxes PUBLICATION STAFF Publisher: A. Steven Young, syoung@aiccbox.org Editor: Virginia Humphrey, vhumphrey@aiccbox.org EDITORIAL/DESIGN SERVICES The YGS Group • www.theYGSgroup.com Editorial Director: Annette Gray Managing Editor: Ashley Reid Copy Editor: Steve Kennedy Associate Editor: Drew Bankert VP, Marketing Services: Jack Davidson Creative Director: Serena Spiezio

Art Director: Jason Deller Account Manager: Brian Hershey SUBMIT EDITORIAL IDEAS, NEWS, AND LETTERS TO: BoxScore@theYGSgroup.com CONTRIBUTORS Maria Frustaci, Director of Administration and Director for Latin America Cindy Huber, Director of Meetings and Conventions Chelsea May, Member Services Coordinator Laura Mihalick, Senior Meetings Manager Taryn Pyle, Director of Training, Education and Professional Development Richard M. Flaherty, President, ICPF ADVERTISING Information: Taryn Pyle, tpyle@aiccbox.org Opportunities: Howard Neft, InTheKnow Inc. 847-899-7104 • thneft@aol.com Folding Carton and Rigid Box Advertising: Taryn Pyle 703-535-1391 • tpyle@aiccbox.org AICC PO Box 25708 • Alexandria, VA 22313 Phone 703-836-2422 • Toll-free 877-836-2422 • Fax 703-836-2795 www.aiccbox.org

ABOUT AICC AICC, The Independent Packaging Association, is uniting and celebrating

the success of inspired, independent packaging companies. We are a growing membership association which has served independents since 1974. AICC SERVES: Passionate professionals; The independent and united; The responsive and agile. AICC WILL: Connect and cultivate; Deliver success.

Chairman’s Message

SUPERCORREXPO® 2016: SHARPEN YOUR COMPETITIVE EDGE

n a couple of months, the 2016 AICC/TAPPI SuperCorrExpo® will take place in Orlando, Florida. This is the largest exposition featuring working machinery in the Western Hemisphere and takes place every four years. More than 300 industry suppliers will showcase their machinery and innovations in one place, the Orange County Convention Center, where thousands of industry leaders from scores of different countries are expected to gather. If you are looking to sharpen your competitive edge, there is no better place to be than SuperCorrExpo®. The exposition will take place October 17–20. In addition to great keynote presentations each day, there will be many opportunities to attend sessions focusing on subjects related to machine maintenance and maximizing the overall effectiveness of converting equipment. There are also a couple of pre-conference workshops, a flexo and rotary die-cutter calibration workshop, and a one-day intro to corrugated workshop. There is a supplier innovation “What’s New” session on Monday, and the AICC/BCN/Corrugated Today Innovator of the Year competition will also be held during the week. All this in addition to a pre-conference golf outing, networking opportunities, and post-conference plant tours. You can check it all out on the website www.supercorrexpo.com. In my previous column I wrote about the importance of describing what “winning” looks like for your company, so everyone on the team has a clear picture of what it looks like when you get there. Once you have a clear picture of where you want to go, you can start implementing strategies that will help you get there. In the packaging industry, like many other competitive industries, the most successful companies are usually either a least-cost producer or a niche supplier, and often a combination of the two. Whichever competitive edge you want to sharpen, SuperCorrExpo® has you covered. This is an opportunity to expose your people to some amazing technological and educational offerings. I look forward to seeing you in Orlando!

Mark Williams President and CEO, Richmond Corrugated Inc. Chairman, AICC

BOXSCORE www.aiccbox.org

Scoring Boxes

KEEP A SHARP EYE ON INVENTORIES BY DICK STORAT

BOXSCORE July/August 2016

Chart 1: Total U.S. Manufacturing Inventory-to-Sales Ratio (Three-Month Moving Average) 1.45 1.40 1.35

Average = 1.3 months

1.30

SOURCE : U.S. CENSUS BURE AU

Months of Supply

erhaps the most distressing issue facing the U.S. corrugated industry is an unanticipated manufacturing recession. Because of a combination of decreasing consumer demand and overproduction of goods, box plant customers suddenly have excess inventory. Consequently, box production faces an even more rapid slowdown as the impact is amplified back into and through the box plants’ supply chain, leading to industrywide economic distress. Anticipating manufacturing recessions allows independent corrugators to better match supply to customer demand. Careful and continual analysis of inventory levels relative to demand is critical for independent corrugated converters. Anecdotal customer information aside, the earliest signs of inventory growth come from the Institute for Supply Management’s monthly “Report on Business” (see www.ism.ws). However, more complete data are reported monthly by the U.S. Census Bureau’s “Survey of Manufacturers’ Shipments, Inventories, and Orders” approximately 45 days following the end of the month being reported. Included among the data reported are inventory-to-shipment ratios measured in months of supply for the U.S. manufacturing industry and key manufacturing industry segments. This article examines the short- and long-term trends of the inventory-to-sales ratios of the total manufacturing sector and the nondurable goods sector of the U.S. manufacturing base, which consumes more than 75 percent of U.S. corrugated packaging. Inventory-to-sales ratios differ in these sectors, but all provide insight into the current state of inventory management. In the charts provided, the significant manufacturing recession that occurred in

1.25 1.20 1.15

07 07 08 08 09 09 10 10 11 11 12 12 13 13 14 14 15 15 16 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 n- Jul- an- Jul- an- Jul- an- Jul- an- Jul- an- Jul- an- Jul- an- Jul- an- Jul- ana J J J J J J J J J J Manufacturing Recession

conjunction with the economic recession of 2008–09 is shaded. Inventory-to-sales ratios have been shown as three-month moving averages to dampen the impact of month-to-month swings. The Total U.S. Manufacturing Inventory-to-Sales Ratio (Chart 1) showed a sharp 20 percent rise during the severe recession that began in the second quarter of 2008 and ended in the summer of 2009. Following the recession, however, the ratio did not return to its historical range of around 1.2 months, as retailers of durable goods successfully pushed some stocks back into manufacturers’ warehouses. For almost five years following the recession, the inventory-to-sales ratio remained in a narrow range around 1.3 months of supply as inventories were well-managed. However, toward the end of 2014, as the U.S. dollar strengthened dramatically against most foreign currencies, manufacturing activity faced strong international trade headwinds and slowed to a crawl. Consequently, inventories

began to rise relative to sales, even as manufacturers reduced actual stocks. Throughout 2015 and into this year, the inventory-to-sales ratio continued to rise into cautionary territory, reaching 1.37 months in March 2016. That put it 5.4 percent above its long-term average of 1.3 months and only 5.5 percent below its peak during the last recession. Efforts to reduce this high ratio will have a dampening effect on manufacturing activity in the months ahead. Since nondurable goods consume some 75 percent of U.S.-produced corrugated packaging, understanding inventories in this sector is especially important. The inventory-to-sales ratio for nondurable goods—those intended for consumption within three years (Chart 2)—has averaged about 1.0 months of supply over the nine years shown on the graph—significantly less than overall manufacturing. It also exhibited a sharp rise during the recession and took about one year to recover to normal levels following its

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Scoring Boxes Chart 2: Nondurable Goods Inventory-to-Sales Ratio (Three-Month Moving Average) 1.12 1.10

1.04

Average = 1.0 month

1.02

SOURCE : U.S. CENSUS BURE AU

Months of Supply

1.08 1.06

1.00 0.98 0.96 0.94 0.92

07 07 08 08 09 09 10 10 11 11 12 12 13 13 14 14 15 15 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 n- Jul- an- Jul- an- Jul- an- Jul- an- Jul- an- Jul- an- Jul- an- Jul- an- Jula J J J J J J J J J Manufacturing Recession

peak at the end of 2008—depressing box demand during that period. For 4½ years following the recession, it remained at or below its long-term

average level. However, since then the nondurable goods sector has risen into cautionary territory in a manner similar to overall manufacturing. In March, the

nondurable goods inventory-to-sales ratio was poised midway between its longterm average and its prior recessionary peak, suggesting that nondurable goods manufacturers’ warehouses hold more than enough finished goods. Keeping an eye on customer inventories is critical when planning for future production. As the examples discussed here illustrate, individual market sectors have inventory-to-sales ratios that behave quite differently and must be examined individually in conjunction with other business intelligence to determine prospects for future business opportunities. Dick Storat is president of Richard Storat & Associates. He can be reached at 610-282-6033 or storatre@aol.com.

Software looked good on paper?

Has it kept pace with your evolving business? You have invested in new machines. Customers have more challenging requirements (more orders, less volume, shorter lead times and more last minute changes). Products are more complex and yet you want to manage working capital effectively. In this new world, you need to efficiently manage your assets to deliver the perfect order. The OMP solution supports your ever changing business aligning your strategy & operations with your customer’s demand. SUPPLY CHAIN DESIGN •SALES & OPERATIONS PLANNING•ORDER PROMISING•MASTER PLANNING•CORRUGATOR OPTIMIZATION•PRODUCTION SCHEDULING•SHOP FLOOR INTEGRATION•TRANSPORTATION PLANNING Optimize your supply chain management. For Excellence in Supply Chain Software: www.ompartners.com

BOXSCORE July/August 2016

Legislative Report

LEGISLATORS TELL MEMBERS: ‘STATE YOUR CASE!’ BY JOHN FORREY, SPECIALTY INDUSTRIES/NUPAK PRINTING, AND STEVE YOUNG, AICC

he 30 members who attended this year’s AICC/FBA Washington Fly-In heard a strong message from the senators and congressmen who represent them: “State your case.” This year’s event, held June 6–7 in Washington, D.C., coincided with the National Association of Manufacturers’ Manufacturing Summit, which drew more than 300 participants. In specific meetings with congressmen, senators, and their staffs, AICC and FBA members discussed areas of concern in labor policy, environmental policy, and tax and fiscal policy. The group heard from Sen. Shelley Moore Capito (R-W.V.), Sen. John Boozman (R-Ark.), and Rep. Reid Ribble (R-Wis.), and enjoyed a special meeting with House Speaker Paul Ryan (R-Wis.). On labor issues, members cited the Department of Labor’s recent overtime rules and urged support for legislation that would nullify the rule. On environmental issues, members discussed the Environmental Protection Agency’s rule to strengthen National Ambient Air Quality Standards for ozone, asking their support for legislation to delay the implementation until 2025 to allow time for compliance with current standards. And on tax policy, members urged adoption of the NAM 21st Century Tax Policy, urging reform in business tax structures, which have not been changed since 1986. This year, 15 members of the Printing Industries of America joined AICC and FBA members at the Fly-In. Doug Rawson, president of AICC member Superior Lithographics in Los Angeles, chairs PIA’s Government Affairs Committee. u

BOXSCORE July/August 2016

Here are some highlights from the 2016 Fly-In

Left: Members of the Printing Industries of America on the Speaker’s Balcony on the west front of the U.S. Capitol Below: Members meet with House Speaker Paul Ryan (R-Wis.) in the Speaker’s Office. (Photo courtesy of Len Prazych)

Legislative Report

Top left: Sen. Shelley Moore Capito (R-W.V.) addresses the Fly-In Breakfast Briefing. (Photo courtesy of Len Prazych) Left: Joe Trauger, vice president of government relations for the National Association of Manufacturers (NAM), presents NAM’s legislative agenda to members at the Breakfast Briefing. (Photo courtesy of Len Prazych) Top right: AICC Chairman Mark Williams of Richmond Corrugated welcomes members to the 2016 AICC/FBA Washington Fly-In. Above: Congressman Reid Ribble (R-Wis.) tells the group, “It’s important to state your case as small-business owners.”

BOXSCORE www.aiccbox.org

New Members

WELCOME AICC’S NEW MEMBERS ALBANY INTERNATIONAL CORP JOSEPH SICILIANO Global Product Manager 3601 Electric City Blvd. Kaukauna, WI 54130 Phone: 603-203-6885 www.albint.com joe_siciliano@albint.com BALDWIN TECHNOLOGY JAMES CERRETA Account Manager 2230 N. Orchard St., Unit 402 Chicago, IL 60614 Phone: 773-896-6060 www.baldwintech.com james.cerreta@baldwintech.com BEST GRAPHICS INC. DAN BRAHM President W222 N600 Cheany Drive Waukesha, WI 53186 Phone: 800-236-7603 www.bestgraphics.net danb@bestgraphics.net

BOXSCORE July/August 2016

BRADEN SUTPHIN INK COMPANY BOB NOWAK General Manager 4480 N. 124th St. Milwaukee, WI 53225 Phone: 414-461-4999 Fax: 414-461-4241 www.bsink.com bnowak@bsink.com

FRAIN INTEGRATION MARY WOODRICK Director of Converting Services 245 E. North Ave. Carol Stream, IL 60188 Phone: 847-809-1744 Fax: 630-629-6575 www.frainintegration.com mwoodrick@frainintegration.com

COLEX FINISHING MAUREEN DAMATO Sales 55–57 Bushes Lane Elmwood Park, NJ 07407 Phone: 201-265-5670 Fax: 201-265-7093 www.colex.com maureen@colex.com

GEMINI NORTH AMERICA GARRETT BRADLEY President 611 NE Lone Hill Dr. Lees Summit, MO 64064 Phone: 816-305-8271 geminigarrett@gmail.com

DYNARIC, INC. BOB FREY National Sales Manager–East 5740 Bayside Rd. Virginia Beach, VA 23455 Phone: 800-526-0827 Fax: 757-363-8016 www.dynaric.com bobf@dynaric.com

SCI BOX EARL “SKIP” BENNETT President 515 S. First St. Mount Vernon, IL 62864 Phone: 618-244-7244 Fax: 618-244-7869 www.scibox.net skip@scibox.net

Uniting and celebrating the success of inspired, independent packaging companies.

8 out of 10 general members say AICC has had a substantial, positive impact on their business.

â&#x20AC;&#x153;Eight years ago a fellow AICC member company approached us about an account that was opening operations in our region. After some investments and training, the account grew steadily becoming one of our three main customers. The contacts and networking at AICC add huge value to independents,â&#x20AC;? Marco Ferrara, Sultana, AICC Director at Large.

Jenise Cox & Jana Harris Harris Packaging Corporation

”They said we couldn’t print 4-color process displays and shelf ready packaging on a gear-driven machine!

The proof is in the printing.”

” We started with just two KleenPlate®’s and then added three more, plus six JB IR dryers, UV and VisionMaster® throughout. Now we run at DOUBLE our previous press speeds and have greatly enhanced our graphic capabilities.”

Booth 1455

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Ask Ralph

LINERBOARD WEIGHTS CONTINUE TO DROP BY RALPH YOUNG

ight weighting of corrugated is happening every day. Some combiners and converters have discovered containerboards, more effective corrugators, converting equipment with less degradation, and improved designs to produce the “same” carton with less basis weight. Not everyone is on this adventure, but those who have led the charge have been reaping the rewards. While these newer containerboards are not necessarily for conventional applications such as industrial packaging, food applications, or U.N. hazmat packaging, there are open opportunities every day. In 1991, when the industry made the move to include edge crush tests as an alternative measure for shipping containers, more than 50 percent of all linerboard production was 42# linerboard. Then, most of the production was virgin kraft pulp. Now, 42# linerboard, both recycled and kraft combined, represent less than 30 percent of all linerboard production. The whole scale of linerboard production has shifted down (see chart). Now, 13.5 percent—or about 2.8 million tons—of linerboard are at 32#/MSF or below. Some of the other key factors in the move to right weighting is the growth of e-commerce and retail- and shelf-ready packaging. How strong does a package need to be when it is delivered by drone? The market does not always need industrial-grade packaging to deliver products intact to the end user. Look at the basis weight grade structure in Western Europe compared to the United States in the data above. There are elements there that make this contrast seem extreme. One of them is

SUBSTANCE: LINERBOARD BELOW 26# 27–32# 34–37# 42#

PERCENT OF TOTAL IN 2000 3.4 1.9 22.0 28.4

PERCENT OF TOTAL IN 2014 4.9 8.6 32.7 17.9

Source: AF&PA

the lead by independent containerboard producers in Europe that can take recovered fiber of lower quality than what we have in the United States with the latest papermaking technology and produce high-strength test liners (recycled). The United States still has the world’s strongest new fiber entering the recovery stream to counterbalance the poor-quality fiber received from the packaging from imported goods and the constant reuse of our own fiber. • U.S. common liner is 31–35#. • Europe common liner is 20.5#. • U.S. common fluting is 23#. • Europe common fluting is 18#. • U.S. average recovered fiber is 50 percent. • Europe average recovered fiber is 85 percent. There continues to be increasing momentum for better economics, more sustainability, and less-destructive corrugated manufacturing processes. Some combiners and converters, because of corrugator effectiveness and zero-crush flexos, can produce 32 ECT from lower basis weights than 35/23/35. Single sourcing from containerboard machines has also reduced variation. One can

look to the success of trade suppliers like Packrite (www.packrite.net) to see the growth of fine flutes like E, F, and N and new potential opportunities for 18# to 23# linerboard—the perfect applications that consume these flutes. Check out their website to view corrugated packaging in a whole new light! You may also want to investigate Compak/Webcor/CW South’s site (www.compakwebcor.com) to review applications for right weight packaging. These right weight containerboards are the domain of recovered fiber and not the kraft pulping process targeted for the heaviest linerboard and large industrial packaging. The world-class technology coming onstream can engineer amazing strength performance from old corrugated containers and mixed waste. What we have seen developed and perfected in Europe is coming here. R alph Young is the principal of Alternative Paper Solutions and AICC’s technical adviser. Contact Ralph directly about technical issues that impact our industry at askralph@aiccbox.org.

BOXSCORE www.aiccbox.org

Tackling Tech

SUPERCORREXPO®: A GREAT CHANCE TO ‘SHOW OUR CUSTOMERS THE MONEY’ BY JOHN CLARK

uperCorrExpo® in Orlando, Florida, October 17–20, is an amazing opportunity to introduce new products and display all your company has to offer to both current customers and, hopefully, future ones. Historically it has been a terrific place to build opportunities, gain brand awareness, and make deals. Our experience has been a real ROI in terms of all our business objectives. Probably more importantly than achieving financial goals, the expo gives companies an opportunity to meet with other boxmakers and packaging companies to see what’s on their minds, learn about what challenges they are facing, and match them up with products and services that can take them to the next level. Many attendees tend to be a bit more diverse than the people we would meet in a typical sales interaction at a plant. The length of the expo also affords customers and ourselves an opportunity to dig deeper into the details to establish how we can benefit from working together. Arguably the best thing about the show is the diverse attendees it draws. With such a wide-ranging program, there

is sure to be something for everyone. Technical sessions grow knowledge of the industry, along with introducing members to key performance indicators (KPIs) and best-of-breed methodologies. The workshops are attractive in that they are very specific opportunities that focus on key issues facing the industry. Naturally, the biggest draws are the new sessions that highlight the technical advances to propel member companies forward. Where else would you gain so much information and have all that expertise in one place at the same time? The networking opportunities are world-class. The real energy, though, is in the booth. No matter the size or location, attendees can find jewels on display. From the proverbial “diamond in the rough” to the “Hope Diamond,” innovation shines brightly. The synergy among exhibitors is an important value as well. With today’s technology, you will have vendors collaborating to produce a single solution. Interfaces are a key component to getting multiple platforms to work in harmony. Having access to all these vendors in one place opens up a world of potential to examine not only single-threaded

products, but also a comprehensive solution. It is easy to do side-by-side comparisons in a very timely manner. Given that there are so many packaging companies walking the floor, it’s easy to obtain vendor recommendations and gain lessons learned while onsite. “Our company’s strategy is to staff our booth with a multidisciplined team that is prepared to answer any questions that may arise, and to determine best-ofbreed solutions for any attendee that takes the time to meet with us,” states Amtech President Cosmo DeNicola. “Since we are not an equipment company, we focus on staffing several demo stations so we can show real-time software solutions in a comfortable and professional manner. Over our 35-year membership in AICC, we always come away from these expos with real value to our company and our customers.” John Clark is director of analytics for Amtech Software. He can be reached at jclark@ amtechsoftware.com.

The expo gives companies an opportunity to meet with other companies to see what’s on their minds, learn about what challenges they are facing, and match them up with products and services that can take them to the next level. 14

BOXSCORE July/August 2016

Leadership

MAXIMIZE YOUR TRAINING ROI BY SCOTT ELLIS, ED.D.

hen students arrive at an AICC Packaging University destination workshop, I routinely ask what knowledge they traveled to gain. The question serves to teach me how I must customize the material and delivery to provide the most effective training. It also tells me how well-prepared the student is to gain value for the company that invested time, money, and lost productivity in sending a valued employee to the workshop. In fact, because this worthy

investment is costly, we plan destination training for only those experiences that cannot be delivered effectively online as webinars or e-learning. The studentâ&#x20AC;&#x2122;s answer also seems to predict the value that will be gained to keep the employee engaged and to apply the learning in the home plant. To maximize the application of knowledge gained in training, use the standard operating procedure below as a guide. The most important step in this process

is to set expectations with the employee as to the aim and use of the knowledge that will be gained. This would include a requirement that the knowledge gained by the participant be shared with the appropriate members of the team. The employee and the team will be enhanced by the knowledge that a team member is attending, and that the whole team is thereby virtually attending. If the sole purpose of sending the employee is to invest in their own continuing education,

OPERATION: Training Application Protocol Objective: Maximize return on training investment Job Titles of Involved Employees: All Required and/or Recommended Personal Protective Equipment: safety glasses, name badge

BASIC STEP 1

BASIC STEP 2

BASIC STEP 3

BASIC STEP 4

BASIC STEP 5

Identify needed training for basic instruction or professional development.

Set expectations between leader and employee for learning and application. What form of report will be required?

Knowing that you will be expected to report out, learn like a teacher. Students often learn for the test. Learn like a teacher so you will retain and apply the information.

Ask specific questions to help you apply the training to your unique challenges.

Present the lessons learned to your leader and/or team. The more involvement you can foster, the more likely best practices will become common practices.

Aim 1.0

BOXSCORE July/August 2016

Leadership

then they will gain more with knowledge of their leader’s confidence and the expectation of a growing future with the company. Sending the participant with specific questions and case study information on the topics that will be covered can ensure further gains. Most instructors are thrilled with the opportunity to show the efficacy of the principles they are teaching by showing the way to solve a

problem for your company. In addition, the other students are engaged by this practical exercise. Lastly, best practices become common practices when a team is involved in deployment. In this way, the team shares understanding and a commitment to the desired outcomes. A running tally of applied training ideas and the cost savings and/or increased revenue generated will prove the value of your continued

investment in employees, and in keeping your company knowledge base on the cutting edge. Scott Ellis, Ed.D., is a partner at P-Squared 2 (P ). He can be reached at 425-985-8505 or scottellis@psquared usa.com.

BASIC STEP 6

BASIC STEP 7

BASIC STEP 8

BASIC STEP 9

BASIC STEP 10

Contact AICC Packaging University, a local technical college, or other resource. Will classes be most effective on your site, at an alternate destination, or online?

Check the learning objectives of the course, the trainer’s expertise, and any additional educational experience at the venue.

Participate. Share your knowledge and ask other participants questions. You will leave with knowledge and resources.

Build an action plan or SOP to assist in communication with your team at the home plant. An SOP template is available at www.psquaredusa.com.

Calculate and report the savings gained by implementation of the action plans developed in training.

BOXSCORE www.aiccbox.org

Sustainability

IFCO REPORT USES INACCURATE DATA FOR CORRUGATED CONTAINERS BY DENNIS COLLEY

he Corrugated Packaging Alliance (CPA) reviewed IFCO’s recently published “Comparative Life Cycle Assessment of Reusable Plastic Containers and Display- and Non-Display-Ready Corrugated Containers Used for Fresh Produce Applications,” which was conducted by Franklin Associates and compares the environmental impact of reusable plastic containers (RPCs) to corrugated containers. Unfortunately, we have not had access to the actual report that identifies the boundaries, key assumptions, and methodologies used in the study, and we are disappointed in the approach used by IFCO to announce the report’s findings. Transparency is a key life-cycle assessment (LCA) requirement, and publishing the full facts allows them to be fairly and accurately understood. For the LCA’s most popular environmental impact indicator, global warming potential (GWP), IFCO uses a baseline assumption of 15 percent recycled content for corrugated. “Life Cycle Assessment of U.S. IndustryAverage Corrugated Product” (PE Americas and Five Winds International, December 2009), “Life Cycle Assessment of U.S. Average Corrugated Product” (NCASI, April 2014), and many other publications note corrugated containers’ average recycled content of approximately 50 percent, which advantages corrugated containers by almost 40 percent over RPCs for CO2 emissions or GWP. The recycled content of corrugated boxes is tied to total system fiber usage and therefore is linked to many variables in an LCA. The amount of virgin fiber required in the system is offset by the

BOXSCORE July/August 2016

recycled content, which affects energy consumption and emissions at the mills. The demand for recycled fiber also drives the high recovery rate of old corrugated containers (OCC), currently 92.9 percent in 2015, and reduces waste to landfills and subsequent methane generation. IFCO acknowledges that a higher recycled content percentage (such as 52.7 percent) for corrugated packaging generates superior GWP results for corrugated, as compared to RPCs. However, this analysis is buried in the last section of the report’s executive summary. The CPA will publish the corrugated industry’s third LCA—including baseline

assumptions and documented statistics—in October and expects continued improvements for several environmental impact indicators. The 2014 study revealed a 32 percent reduction in the GWP from the first-ever corrugated industry LCA, published in 2009, along with double-digit reductions in eutrophication, respiratory, and fossil fuel depletion indicators. What Is GWP? The mechanism of the greenhouse effect can be observed on a small scale, as the name suggests, in a greenhouse. These effects are also occurring on a global

Greenhouse Effect Trace gases in the atmosphere

Absorption Reflection

UV radiation

CFCs Infrared radiation

CO2

CH4

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Sustainability By using inaccurate data for the recycled content of corrugated boxes, IFCO was able to tip the scales to favor RPCs. The corrugated industry’s LCA, in contrast, used very conservative statistics for RPCs’ key assumptions. scale. Shortwave radiation from the sun comes into contact with the Earth’s surface and is partly absorbed—leading to direct warming—and partly reflected as infrared radiation. The reflected part is absorbed by so-called greenhouse gases (GHGs) in the troposphere and is reradiated in all directions, including back to Earth. This results in a warming effect at the Earth’s surface. In addition to the natural mechanism, the greenhouse effect is enhanced by human activities. Greenhouse gases that are considered to be caused, or increased, anthropogenically are, for example, carbon dioxide, methane, and chlorofluorocarbons (CFCs). The illustration on Page 18 shows the main processes of the anthropogenic greenhouse effect. An analysis of the greenhouse effect should consider the possible long-term global effects. The global warming potential is calculated in carbon dioxide equivalents (CO2 equivalent). This means that the greenhouse potential of an emission is given in relation to CO2 . Why Does the Recycled Content of Corrugated Lower the Industry’s GWP? Removal of carbon from the atmosphere, primarily due to biomass—trees grown to produce containerboard—offsets a large proportion of all GHGs (biogenic CO2 and others). Live trees absorb and capture carbon from the atmosphere (carbon sequestration). That carbon remains trapped in the harvested wood fiber and manufactured corrugated product through its entire life cycle, right up to end-of-life (EOL). The captured

BOXSCORE July/August 2016

carbon, having been removed from the atmosphere, offsets that which is emitted at EOL. As long as that fiber is in play (in existing corrugated or recycled into new corrugated and paper products), its sequestered carbon is withheld from the atmosphere—lowering GHGs and, therefore, global warming potential. Why Is IFCO’s Error Important? The answer to that is simple. All LCAs are based on critical facts—and reasonable assumptions in cases where those specific numbers are not available. The corrugated industry’s recycled content average has been calculated and verified—and made public—for many years. By using inaccurate data for the recycled content of corrugated boxes, IFCO was able to tip the scales to favor RPCs. The corrugated industry’s LCA, in contrast, used very conservative statistics for RPCs’ key assumptions. We used publicly available data from the RPC industry. We also made the fundamental assumptions available in the LCA report when it was released, allowing for objective scrutiny. Transparency is a core requirement for LCA that substantiates the report’s credibility. What Can You Do About This? The best thing you can do is to share the facts. Links to the corrugated industry’s LCA, a 26-page summary report, and a fact sheet are available for download (see “Resources”). Even spreading the word about corrugated’s true recovery rate and recycled content average will help. Follow CPA on Twitter and retweet our

content, or tweet your own. Inform your customers and employees about the facts. FBA issued a press release detailing the discrepancy in IFCO’s claims, which is also available for download. The corrugated industry has a great story to tell, and it has always maintained very high standards for integrity. Your participation in the LCA, your committee work, and your companies’ sustainability efforts all contribute to the integrity of the entire industry, so don’t be shy. Share the truth. Dennis Colley is the executive director of the Corrugated Packaging Alliance and president of the Fibre Box Association. He can be reached at 847-364-9600 or dcolley@fibrebox.org.

RESOURCES Corrugated Packaging Alliance www.corrugated.org For more information about the Corrugated Industry LCA, visit www.aiccbox.org/LCA.

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Inc.

Members Meeting

COLLABORATION FOR EDUCATION BY KATIE GRAHAM

Photos by Katie Graham

n May 2016, AICC collaborated with Clemson, Pamarco, All Printing Resources, DuPont, and Measure Color to provide a first-of-its-kind flexography class for independent corrugated converters. AICC has consistently demonstrated its commitment to educating independent converters, and this new series of classes has raised the bar for hands-on training and problem-solving. The event, hosted by AICC and Clemson University, served to educate converters on the growing trend for high-line graphics covering all market applications from point-of-display to boxes. This push to high-line graphics and the expectations of brand owners exceed anything seen in the past. As customer needs change, converters are being called upon to print finer line screen and increasingly intricate graphics—a need that requires corrugated converters to develop new skills and become familiar with the technologies required for success. The above select group of suppliers, led by Scott Ellis of P2 and Kern Cox of Clemson University, were brought together by AICC for this class in order to provide the tools, answer questions, and act as a forum to address the needs and challenges of the converter. This approach

Flexography class attendees watch a presentation on the care and maintenance of anilox rolls.

to education and problem-solving combines many areas of expertise, rather than printers receiving isolated responses that may or may not provide the best solution to their specific problem. The key areas of discussion surrounded the importance of controlling ink film thickness and the techniques to control ink viscosity and color strength. Also covered were the importance of prepress, color separation targets to achieving ideal tonal scales and gray balance, and the value of running a banded anilox roll test to dial in the ideal engraving

DON’T MISS THE TOTAL PRODUCTIVE MAINTENANCE COURSE! Course dates: October 18 and 19, 8:00 a.m.–noon (held in conjunction with SuperCorrExpo® ) Instructed by John Kravontka, CMRT, and president of Manufacturing Solutions LLC, this course will explore the crucial partnership between operations and maintenance. Register today at www.supercorrexpo.org!

BOXSCORE July/August 2016

specifications. All these things come together at the print nip, and if the correct components and specifications are selected, the results will meet or exceed the expectations of brand owners. Each day, the class was concluded with a group discussion and one-on-one time with suppliers. These moments of personalization gave the printers the ability to go from an array of opinions to a more in-depth answer to their individual issues—a version of what many would call a root cause analysis. This one-on-one time also allowed the printers to glean a better understanding of specific products directly from each area in the press. This class provided access not only to information and education, but also to practical problem-solving. An example of this is one attendee being able to provide a print sample for the group to troubleshoot; the problem was identified and a solution developed. In addition, the class was held at Clemson’s Printcon facility, which houses a press and allowed attendees an opportunity to participate in real-time problem-solving exercises. This

Members Meeting

provided information about common issues to look for in the press room, as well as methods to prevent and correct the issues. Practical, hands-on experience can provide invaluable information for printers to utilize in their own facilities and make lasting strides to improve the quality of their print. As the marketing manager of Pamarco, I see the need for these classes continuing and increasing in importance as pointof-display and box graphics create a pop and sell the product inside. Growth of corrugated packaging capability is just

Preparing for the print trial

one component of the brand’s print needs, and the objective is to match the other processes used to promote the product. Getting corrugated to match the results of flexo labels, offset-printed primary packaging, and those items printed by inkjet is the real goal. Katie Graham is marketing manager at Pamarco. She may be reached at katie.graham@ pamarco.com.

AICC welcomes collaboration and support from all AICC members. If you would like to be involved in creating course content, resources, white papers and more, please contact Taryn Pyle at tpyle@aiccbox.org or Scott Ellis at scottellis@psquaredusa.com. Attendees participate in the print trial

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GOOD FOR BUSINESS

TOOLBOX ............................................................. 24 AVOIDING MISTAKES ................................. 26 AICC INNOVATION ........................................ 28

BOXSCORE TIPS, TRICKS, AND SOLUTIONS TO BETTER BUSINESS

TOOLBOX Connect Through the AICC Membership App

ICC Mobile, the membership app for AICC, The Independent Packaging Association, allows members to connect and gain information with the tap of a screen, and is available for iOS and Android devices. A “must have” for AICC members and event attendees, this free app allows users to view meeting schedules, sessions, networking events, and maps of meeting locations. Users can also create personal schedules, text other meeting attendees, locate members near them, and much more. Here’s how to get it on your device.

First, download the app. You can scan this QR code or search for “AICC Mobile” in your app store.

Use the three bars in the upper left corner to open the menu and see all you can do.

BOXSCORE July/August 2016

Some items are for members only, so log in using the same ID and password you use on the AICC website.

Now you can use the Member Locator to find members in your area.

When you are registered for an event, you can chat with other attendees who are logged in through Connect. You find this in the Connect option in the bottom menu when you are at an event.

You can email, text, or call the people you are connected to through the app.

Select Events from the main menu to see past, current, and upcoming events. You can see the agenda, speaker information, and the attendee lists.

You can also update your contact information and see your membership card.

Download the AICC Membership app today and start connecting! BOXSCORE www.aiccbox.org

Good for Business

AVOIDING SALES MISTAKES Four Key Business Development Mistakes Sales Teams Should Avoid BY TODD M. ZIELINSKI 1. Resist the temptation of fragmenting your sales resources. We often find that business-to-business (B2B) sales teams are responsible for juggling multiple tasks in conjunction with the sales cycle. This can include activities around prospect list-building efforts; lead generation and management activities; servicing existing customers; executing the active sales cycle; preparing, managing, and closing proposals/quotes; networking, preparing for, and participating in trade shows. It is important that all of these sales-related tasks be executed consistently over time to develop new business. But how effective and focused can these sales resources be, considering their individual capacity to manage and execute so many different activities of the sales cycle? The key question really is: How much more effective can sales resources be if they simply focus on the active process of selling? If they have access to a dedicated infrastructure (resources, process, and tools) that is focused on the execution and management of the administrative, front-end sales tasks and activities, to

consistently feed the sales pipeline? Could division of labor in the sales process provide greater productivity and results? 2. Hone your internal tracking processes — “What you can’t measure, you can’t improve.” Do you know how many touches (mailers, emails, phone calls) it takes to secure a qualified lead? Tracking these metrics is extremely important in understanding the front-end sales process and sales cycles. When developing new opportunities within B2B sales environ ments, our internal experience has found that it takes an average of 15–20 touches, per contact, over four to six weeks to secure a qualified relationship. Do you know how many touches it currently takes your sales team to convert a prospect to a qualified first step in your sales cycle? 3. Avoid false assumptions — “Farmers (account managers) can effectively ‘hunt’ new business.” It’s natural to believe that sales reps can mine new business—in addition to servicing and retaining existing customers—primarily because that is the role of a salesperson. But why, then, are some sales reps better at new account development than others? Is it hard work? Is it luck? Is it the ability

Failure to consistently touch and build future relationships could mean the loss of opportunities or leads slipping through the cracks.

BOXSCORE July/August 2016

to sell value? Maybe it’s all those things, but I think there is probably a much larger question to ask of this situation. Does selling to new customers require a different approach than to existing customers? If they are different, then could we not assume that the two approaches might require a different focus and skill set that not all sales resources possess, prefer, or are capable of executing? If this assumption possesses some truth, then why do we continue to pretend that every sales rep can effectively do both? 4. Consistently nurture relationships in long-sales-cycle environments. Short-term leads or low-hanging fruit are always preferred, but not always realistic. Decision-makers in complex B2B sales environments are not impulse buyers. Long-term relationship development typically requires the nurturing of relationships until decision-makers are ready to actively evaluate and eventually purchase. It is most important that you understand and follow up at the appropriate time in the prospect’s buying decision process. Failure to consistently touch and build future relationships could mean the loss of opportunities or leads slipping through the cracks. Do you currently have a systematic approach for executing and managing one-to-one nurture touches consistently—across your sales pipeline—with the required follow-up due dates to convert future interest opportunities? Todd M. Zielinski is managing director and CEO at Athena SWC, LLC. He can be reached at tzielinski@athenaswc. com. To learn more, visit www.athenaswc.com.

“Quality is our goal and we work hard to deliver it.”

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Manufacturing Department

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Good for Business

AICC NNOVATION AICC Is Investing in Your Growth BY VIRGINIA HUMPHREY

s member companies evolve to remain vital in the current marketplace, so must AICC— The Independent Packaging Association. The AICC board of directors has been leading the association through the creation of a three-year strategic plan. One of the first steps was to define the mission of AICC. It is this mission that will be the guiding principle for all that comes after. All actions and activities of AICC must ultimately help the association live up to this mission statement: Uniting and celebrating the success of inspired, independent packaging companies. These words were chosen deliberately to reflect the work of AICC members and the role AICC wishes to play in member companies and the industry. To take AICC to the next level of member service requires significant investment. From those investments will come an organization providing you with more and greater tools to help you succeed. AICC Chairman Mark Williams, president of Richmond Corrugated Inc., explains the value his company gets out of AICC membership. “Our company has been a member of AICC for 40 years, but has received the most benefits during the past 15, while I have served on the board of directors. I joined the board in the fall of 2000, which coincided with a major downturn in the economy that had a terrible impact on our business. Eighteen months later we were on the brink of going broke. AICC and fellow AICC members were very instrumental in helping us turn our company around. We have made a profit 10 years in a row and

BOXSCORE July/August 2016

13 of the last 14 years. Each of the last six years has been a record year. We would not be here today if it were not for AICC.” AICC wants to support you in your success stories, so we are investing in the member benefits that bring you the most value.

and networking at AICC add huge value to independents.” To allow more members to connect, AICC is investing in our national meetings and membership. In the last five years, AICC has seen attendance, especially among boxmakers, increase 10–12 percent at national

AICC wants to support you in your success stories, so we are investing in the member benefits that bring you the most value. At the end of a recent machine training session, participants used their host plant to test the skills they learned. Attendees identified $800,000 that could be added to the host’s bottom line with less than $15,000 in needed repairs and expenses. To continue building your bottom line, AICC is investing nearly $400,000 in educational programs and infrastructure for you in the coming year. We are revamping our online Packaging University with more courses and instructional tracks in sales and production, and offering new seminars that will improve your bottom line. Connections in this industry are a key to growth. Marco Ferrara, CEO, Cajas de Cartón Sultana, S.A. de C.V., Monterrey, Mexico, and AICC director at large, says, “Eight years ago, a fellow AICC member company approached us about an account that was opening operations in our region. After some investments and training, the account grew steadily, becoming one of our three main customers. The contacts

meetings. To foster greater connections among members, AICC is investing in new strategies to continue this growth by offering more plant tours, learning opportunities, and networking events. And of course, this coming year AICC and TAPPI join together to present our flagship SuperCorrExpo® 2016, October 17–20, in Orlando, Fla. We have also committed to growing AICC’s membership by bringing in 55 new companies. This year, we are investing in membership recruitment, as well as keeping you well informed about the benefits available to you to retain our consistently high 94 percent retention rate—your vote of confidence in us. Virginia Humphrey is AICC’s director of membership.

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Point of View

What are some of the most common problems you see in a plant? What are some simple tips for improvement?

WIP A common problem seen in corrugated box plants is how work in process (WIP) is handled through a corrugated box plant. I see three main problems:

1. WIP is commonly sent down main line through bander, occupying the time of a critical resource. 2. W IP sits too long before it is converted to finished goods. 3. W IP is handled multiple times before it is converted to finished goods. A simple solution would be to apply lean manufacturing techniques to change the process from batch to flow. Through a kaizen event, it would point toward the following solutions: 1. Add a return line to divert WIP off the main line. 2. Improve scheduling so the first-pass operation goes directly to second-pass operation. 3. Change the layout of equipment so operations are in line. — Michael Harris, president, Systec Conveyors

Maintenance Changing oil regularly is the single most important maintenance item to keep your gearbox healthy and running strong. Just as you would do with your personal vehicle, any gearbox should have regular oil changes. Typically, a timeline for the change as well as the approved lubricants are listed within supplied operations manuals. If access to the draining of your gearboxes causes difficulty because of location, and if your gearbox is supported off the floor, you may want to try the following. To ease the access and speed the time in changing the oil, run a series of pipe fittings with a threaded plug from the bottom drain hole to a convenient location, maintaining a healthy pitch. When draining, hang a used milk jug or other such container with the opening over the end of the pipe run, ensuring the container will hold all the used oil. To speed the draining, open the fill hole. Once the gearbox is empty, plug the drain and fill to sight hole (if equipped) or recommended amount, using a funnel. Be sure not to overfill. — Frank Reynolds, manager–internal sales resources, SUN Automation Group

September/October Point of View: What are your most innovative approaches to social media and marketing? Please send all responses to BoxScore@theYGSgroup.com.

BOXSCORE July/August 2016

Incomplete Factory Tickets One of the most frequent problems I encounter is incomplete, inaccurate, or insufficient factory ticket details. The problem heavily impacts manufacturing efficiencies. Sometimes, manufacturing can be wrong by just following the factory ticket as it is sent. Manufacturing can also be wrong by not following the factory ticket. Issues with factory tickets create more inefficiencies in manufacturing in the evening and night shifts if these tickets are not fully evaluated and validated and released for production. Depending on the magnitude of the orders processed, the bottom-line impact related to issues with factory tickets can be thousands of dollars per month. Here is the solution: Establish a cross-functional team among customer service, quality, and manufacturing (all shifts) at a minimum to develop a strategy for ensuring accurate, complete, and adequate factory tickets. One of the outputs from this cross-functional team at a minimum should be to develop a factory ticket issues feedback log and fill it for a period of three months to detect the top five most common and recurring issues. From there, coach all customer service representatives to minimize them. A constant emphasis on top management to minimize factory ticket errors, without blaming employees, can be a winning strategy to maximize efficiencies and minimize errors. — Baskar Kotte, president and CEO, Quality Systems Enhancement, Inc.

Incorrect Color Standards I often see unclear or incorrect color standard targets on the press side. The best solution is defining an accurate color standard (target) by storing the color electronically with software designed with a color library to store a color permanently. This will eliminate confusion and enable consistent color from press run to press run. — Scott Miller, national sales and technical director, BCM Inks USA, Inc.

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Member Profile

MEDIA TECHNOLOGY INC. BY ROBERT BITTNER

COMPANY: Media Technology Inc. ESTABLISHED: 1991 JOINED AICC: 2016 PHONE: 800-684-7655 WEBSITE: www.mediatechnologyinc.com LOCATION: Oklahoma City, Oklahoma President: Tom Hale

hile its name may sound more like a high-tech startup than a paper/packaging company, Media Technology has been integrating precision technology with the medium of paper since it was founded in December 1991 by the trio of Tom Hale, Betty Hickman, and Rocco Santoro. Their original goal was highly focused: to provide roll paper products for high-speed Delphax Page Printers. The requirements were stringent. “The data centers that purchased Delphax printers were required to purchase their roll paper from a paper mill that had been approved by Delphax,” President Tom Hale explains. “That was because the paper had to have a certain moisture content and resistivity properties that would allow the ‘ion deposition’ charge to dissipate quickly. If the charge didn’t dissipate quickly, the sheets would

BOXSCORE July/August 2016

cling together as they entered the multiple stackers on the end of the printer. And if the moisture level or smoothness of the paper wasn’t within spec, there were issues with the toner flaking off due to the cold pressure fusion technology. So the paper converter approval requirement was to ensure that only approved mills were used and that the paper rolls were consistently produced on a certain core, with very strict rewinding tolerances for tension and edge smoothness.” Media Technology was one of only two companies in the United States at that time to receive Delphax approval. Yet within just two years, the company was forced to expand its mission when Xerox purchased Delphax Systems, manufacturing shifted to Canada, and the new parent company eliminated a number of suppliers, including Media Technology. In response, the company broadened its

converting operation to include slitting and rewinding capabilities. “The slitting/rewind evolved into printers wanting sheeted paper, so we added that,” says Hale. As the company’s reputation for superior quality and fast turnaround grew, so did the requests for converting other types of chipboard, claycoat, and gypsum products. In 1993 and 1994, management added another master roll slitter/rewinder, two sheeters, and two large guillotines. “Custom chipboard is still a lot of what we do,” Hale says. “We also do sheeting and dividers for brick manufacturers. And about 10 years ago we got into folding carton,” which led to the addition of equipment for die cutting, folding, gluing, and windowing. “Currently, our focus is on growing the folding carton business.” Today, Media Technology has about 25 employees working in a

Photos courtesy of Media Technology Inc.

Member Profile

Media Technology Inc.'s CAD cutter and CAD system

36,000-square-foot space. Many of them have been with the company for 20–25 years. In addition to Hale, co-founders Hickman and Santoro are also still with the company. “It’s really a family environment,” notes Hale. Despite the company’s growth and expanded product line over the last quarter of a century, Media Technology continues to be highly focused on providing high-quality services for its niche markets; they are not attempting to be all things for all clients. For example, apart from a digital printer for product mock-ups, they offer no in-house printing. “We bring in rolls, sheet it, and then send it out to about a halfdozen printers we trust. Then we bring it back for die cutting and foldout,” Hale explains.

A smaller company typically serves only local and regional clients, yet Media Technology’s customers are spread out across the United States, due in part to the company’s unique niche in the marketplace. “We get orders for folding cartons from most states in the Union,” says Hale. “It’s not a large volume. But we fit the niche when people can’t go to a RockTenn or if they need a smaller quantity and fast turnaround. Customers know that if they need custom chipboard, or if they just need a skid, we can supply it.” That focus is also what led the company to join AICC. “One of the other members here in Oklahoma called me up to ask if we had considered joining,” Hale recalls. Membership just seemed to make good business sense. “Most of our marketing is

Even though Media Technology is one of the newest AICC members, the company has already begun to see the benefits. 34

BOXSCORE July/August 2016

done with large packaging suppliers and corrugated suppliers—companies that are already members—and we were interested in the prospect of working more closely with those folks and, hopefully, growing our business through them.” Even though Media Technology is one of the newest AICC members, the company has already begun to see the benefits. “One of our salesmen has talked to a couple of other members,” Hale says, “and some information has gone back and forth. That kind of networking is the main reason we joined.” Given the market changes he has seen over the last 25 years, Hale is reluctant to predict what the future may hold for the industry. But when it comes to Media Technology, his goal is straightforward: “Continuing to increase our business.” Robert Bittner is a freelance writer based in Michigan and a frequest contributor to BoxScore.

BOXSCORE July/August 2016

PUTTING THE ‘SUPER’ IN

SUPERCORREXPO

It has become the can’t-miss event of the industry BY GEOFF WILLIAMS

ome things seem to be around forever. Even if you’re of a certain age, it’s probably slightly difficult to remember a time before the Super Bowl. Sliced bread has been around so long, it’s easy to forget that there might have been a time when it didn’t exist (any time before July 6, 1928). Even the wheel had to be invented. SuperCorrExpo® may not be a tradition as old as the Super Bowl, but if you don’t think it’s super—the best thing since sliced bread—maybe you haven’t been there. It’s the largest corrugated industry trade show in the Western Hemisphere, staged and funded by the Technical Association of the Pulp and Paper Industry (TAPPI) and AICC, the Independent Packaging Association. SuperCorrExpo® has made a mark on the pulp, paper, corrugated, folding carton, and rigid box industries since it debuted in 2000. In the last 16 years, it has become the go-to place for industry veterans and newcomers from around the world to meet new people, strengthen existing relationships, sell equipment, and simply look at the latest and greatest in machinery, such as rotary die cutters, single-facers, and design tables. Looking back on it now, it seems like a no-brainer that a world-class industry trade show would flourish in the paper

and packaging industries, but it really wasn’t so obvious, says Steve Young, president of AICC. “We knew the first show would be a smashing success,” he says. “First shows always are. It’s new, it’s exciting. The question was, would the fourth and fifth shows be successful?” So, with 16 years in the rearview mirror and as people plan their trips to the fifth

SuperCorrExpo® this fall (October 17–20) in Orlando, Florida, it’s a good time to look at how we got here, and what the future may hold. The Beginning Before 2000, if you wanted to attend a corrugated industry trade show, your options were fairly plentiful, which was part of the problem.

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“TAPPI’s meeting content tends to focus more on the ‘technical/ production’ side, and AICC’s content tends to focus on the ‘management/leadership’ side. So by combining forces, we were able to come up with a program that offered a wider breadth of topics and content that would appeal to all levels in the plant, and we would be able to offer this at a reduced registration fee.” — Cindy Huber, director of meetings and conventions, AICC

For decades, TAPPI and AICC had each held their own trade shows, and while they were each successful enough entities, it was too much of a good thing. Larry Montague, TAPPI president and CEO, says he had heard some TAPPI volunteers began thinking about suggesting that TAPPI and AICC join forces to hold one show in the 1990s. There were continued gripes from business owners in the corrugated box industry who were growing weary of exhibiting their equipment at one trade show after another that didn’t seem to offer enough for them. There was a well-received corrugated trade show in Paris, but the price of shipping machinery—some of which weighed tons—to Europe could be cost-prohibitive, and the trade shows that TAPPI and AICC were offering, while well received, felt rather small considering the time and money involved to attend. Then in 1997, it became obvious to everyone that the two organizations would be stronger if they would align forces and put on a joint conference (see “The Final Score,” Page 68). “TAPPI and AICC both had their annual meetings in Chicago a couple of weeks apart, and vendors said that this was ridiculous,” Montague says. The first show, as then-AICC President Joseph R. Palmeri, Jamestown Container Companies, predicted, was a smashing

BOXSCORE July/August 2016

success. The show in 2000 dubbed itself “The Corrugated Show for the World,” debuting at the Georgia World Congress Center in Atlanta. Production managers, box plant owners, engineers, technical service personnel, and production employees descended upon the city, and small wonder that they came. It was the chance to see an impressive display of machinery from more than 300 exhibitors and, of course, the opportunity to network. There were also workshops with topics including “Ergonomics for Engineers,” “Printing Technologies for the 21st Century,” and “An Eye on the Latin America Corrugated Industry.” There were also numerous speakers that year, from veterans in the corrugated packing industry to bigwigs like the chief economist for Morgan Stanley Dean Witter, who would give an overview of the containerboard and corrugated industry. But the most surprising guests were the final ones—political gurus James Carville and Mary Matalin, probably then and still America’s most famous politically diverse married couple. If they could get along, certainly TAPPI and AICC could. And they did, although in the beginning, it was more like two shows in one, with TAPPI doing their own thing and the AICC doing theirs, all under one roof. Still, it worked, and in the summer of

2001, under the leadership of then-AICC president Craig Hoyt, Buckeye Boxes, the two organizations signed an agreement to present more conferences. Like the summer or winter Olympics, they would meet every four years. The next SuperCorrExpo®, it was decided, would be held in November 2004, once again in Atlanta, to continue every four years through 2020. After that, Hoyt and thenTAPPI President Mike Wallace concluded that their 2020 counterparts could keep the conferences going. The In-Between Years As the years have gone by, the two organizations have worked together very well, according to representatives of both groups. “I think it’s been great,” Montague says. “We’re stronger together. Steve Young is an inspiring guy, and I consider him a friend, and they have their own board, and we have our own board, but we get together and figure out what’s the best approach for the show.” Young is equally effusive. “Larry and his group are tireless in promoting and building this show, and we’re very honored and pleased to be a partner with TAPPI,” he says. The conference seems to be fueled by camaraderie. Shortly before the 2012 conference, one attendee wrote in an

online industry journal published by BCM Inks—a company that manufactures and markets “environmentally correct” water flexo printing inks for the corrugated packaging industry—that he and his four colleagues were planning on having a “fun and educational time” at the show. In a blog-type post, the attendee offered up “10 Crazy Reasons to Attend SuperCorrExpo® 2012,” one of which was that if you stopped by the BCM booth, you might be able to “share some adult refreshments.” Another reason to go was the ability to eat yourself into a stupor. “More free appetizers and refreshments will be available on the show floor, aftershow receptions, and in private hospitality suites than you can possibly consume,” the BCM writer stated. There are, indeed, numerous opportunities at every expo to not think about growing your company and instead enjoy everyone’s company. “One of our biggest draws is the golf tournament,” says Kristi Ledbetter, TAPPI’s converting division manager. “A lot of people like that, especially since for a lot people, they might only see each other once a year. It’s just fun for them.” “It’s like a fraternity, fiercely so,” Montague says of the corrugated industry members and of virtually everyone who comes to the SuperCorrExpo®. “With a lot of the downsizing, people will be displaced without a job, but they can come here and network, and a lot of them have picked up jobs. … The corrugated industry is awesome. It’s a great group of people that’s tough to duplicate anywhere.” And that kinship may be why SuperCorrExpo® has continued to grow as much as it has. “TAPPI’s meeting content tends to focus more on the ‘technical/production’ side, and AICC’s content tends to focus on the ‘management/leadership’ side. So by combining forces, we were able

to come up with a program that offered a wider breadth of topics and content that would appeal to all levels in the plant, and we would be able to offer this at a reduced registration fee,” says Cindy Huber, director of meetings and conventions at AICC. It has been a massive effort for not only the organizations putting the show together, but also for the exhibitors. As one display owner, Ron Adler of Adler Display, told Business Wire in 2004, designing and building a booth for Mitsubishi “was a great challenge.” The display weighed 16,323 pounds—

more than eight tons. “When we crate the Mitsubishi booth for shipment to Atlanta, suffice it to say it won’t go in the back of an SUV or a van,” Adler said. That year, the conference took up 114,471 square feet and featured 222 companies with booths. Four years later, the conference’s square footage swelled to 129,721 to accommodate 292 companies. In 2012 … well, the country was still feeling the effects of the recession. It was down to 115,420 and 263 companies. At the time of this writing, the 2016 conference has 133,000 square feet booked and 261 companies on

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the floor. “And there are months to go,” Ledbetter says. Of the 2008 conference, Montague says that it was held shortly before the economy imploded. “If it had been held three months later, it would have been heck in a handbasket,” he quips. This Year Both Montague and Young stress the importance of simply showing up. You can’t gain much from the show if you don’t come. “I always try to walk around the exhibits, and during the last show early on, I asked this one guy if it was worth the trip,” Montague says, “and he just smiled and said, ‘I made a deal with the first guy who walked by here, and it paid for the whole trip. Now, I can just sit back and relax.’ ” “The most successful companies have a habit of participating,” Young agrees. “They’re networking and meeting suppliers, and they learn what’s out there and from each other.” There’s also the valuable opportunity to network with people from around the world, without going clear around the world. “There is a big show in China, but it’s so far for people to travel there,” says Maria Frustaci, director of Latin America at AICC. Of SuperCorrExpo®. Frustaci adds, “It’s the only big machinery show in the Americas. The people from Latin America come to this show because they find a lot of value in learning what’s going on in the industry. They can see everything in one place, different kinds of machinery, technology, everything. It’s the place to be.” As for the events this year, the schedule is too packed to mention everything, but there will be workshops developed

BOXSCORE July/August 2016

“The most successful companies have a habit of participating. They’re networking and meeting suppliers, and they learn what’s out there and from each other.” — Steve Young, president, AICC

by TAPPI and AICC, with topics like “1500' per Minute Corrugators—Why Not 2000' per Minute?” and “Analyzing Production Numbers/Financial Impact” and “The Secrets to Becoming an Employer of Choice.” Round robin breakout sessions will cover topics such as “New Flute Profiles and Their Purpose” and “Corrugator Troubleshooting Methods.” And there’s the opportunity to simply unwind with the aforementioned Corrugated Classic Golf Tournament and an evening off-site visit to Madame Tussauds Wax Museum. Hey, you know what they say. All work and no play ... In fact, that’s one reason the conference is being held, for the first time, in Orlando. No offense to Atlanta, but it was thought that there might be more for families to do in the land of Disney. As for this year’s conference, Montague says, “It’s no Mickey Mouse operation.” This is true, and there will be keynote speakers offering inspiration, enlightenment, and humor. This year’s speakers are Ron Sasine, principal of Hudson Windsor LLC, who until recently was the senior director of packaging for Wal-Mart (see Sasine’s feature, “The Case for Corrugated,” on Page 44); Eduardo Posada, chairman and CEO of Grupo Gondi, based out of Mexico; Jonathan Kraft, president of The Kraft Group; and

Kevin Kallaugher, editorial cartoonist for The Economist. Not surprisingly, with the conferences matching up with election years, the final speaker tends to have some role in the political arena, a tradition Carville and Matalin started in a year with one of the most surreal, down-tothe-last-chad elections in history. This year’s election looks to be equally ho-hum. As for what happens beyond 2020, both Young and Montague say that they like the idea of continuing, so that there is a SuperCorrExpo® 2024, a SuperCorrExpo® 2028. … “I want to sign it so far out that I won’t have to mess with it,” Montague says. “That’s our intention.” He adds that a decision will be made soon after this year’s show, because everything has to be booked years in advance. “But, man,” he pleads, “let’s get through 2016 first.” Young is on the same page. He chuckles at the thought of all the work still left ahead in planning this year’s event: “When we’re finished, we’re always glad it’s over.” Geoff Williams is a freelance journalist and author located in Loveland, Ohio.

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THE CASE FOR

Corrugated The way consumers buy is changing, and packaging needs to change with it BY RON SASINE

BOXSCORE July/August 2016

ass production revolutionized the world in the last century, but it was mass distribution that made it possible. Without the packaging and logistics to convey products from farms and factories to retailers and homes, none of the innovation in mass production of consumer products and processed food would have seen the light of day. Since the beginning of this century, a new purchasing and delivery model has begun to challenge much of the orthodoxy of mass production and distribution. Online, mobile, and other forms of untethered shopping are enabling a new level of individuality and customization. No longer can we safely assume that products produced in one location will travel

in homogeneous groups of palletized shipments until eventually reaching a highly standardized and nearly uniform point of sale. Instead, consumers are increasingly demanding direct-to-home distribution, often over very long distances, challenging almost everything we have developed in the packaging industry in terms of uniformity, consistency, and repeatability. In this environment, corrugated packaging is playing a massively important role. Not too many years ago, conventional wisdom suggested that the corrugated packaging industry would be under increasing pressure as large consumer products companies and retailers moved toward closed-loop

systems that favored two-way crates, reusable totes, and other corrugated substitutes. While those trends continue, the explosion of in-home delivery has resulted in unprecedented shipments of corrugated boxes—filled with everything from apparel to food to cleaning supplies—to individual consumers. At any given moment, my garage might look like moving day, given the corrugated boxes that have arrived since our last trip to the recycler. With all of the innovation taking place in how best to serve consumers over the last mile of a product’s logistics cycle, it is a safe bet that corrugated will remain a preferred solution and far more practical than other methods under consideration. Continued on Page 46

DON’T MISS RON SASINE’S KEYNOTE SESSION AT SUPERCORREXPO® ! Who: Ron Sasine, principal, Hudson Windsor LLC Ron Sasine served as senior director of packaging for Wal-Mart from 2009 to 2015, where he was responsible for packaging design, execution, and sourcing for the company’s largest global brands. He created a new visual look for more than 7,000 items, bringing a national brand design standard to the Great Value, Spring Valley, Equate Beauty, and Parents’ Choice brands. He also created firstof-its-kind supply chain visibility for the global packaging market and Wal-Mart’s more than 5,000 packaging providers. He led Wal-Mart’s sustainable packaging initiative, achieving a 9 percent reduction in greenhouse gas impact.

Prior to joining Wal-Mart, Sasine was a marketing and manufacturing executive with MeadWestvaco (now WestRock). He directed international sales integration, business development, and design, and he served seven years as an expatriate leading mergers and acquisitions and marketing for MeadWestvaco’s packaging operations in Brazil and Latin America. Sasine is a graduate of the Johns Hopkins University School of Advanced International Studies and of Brigham Young University. In addition, he recently served as an adjunct professor at the Sam M. Walton College of Business at the University of Arkansas. He is a frequent commentator on the packaging industry and has been published in The New York Times, on CNBC, and in USA Today.

What: Sasine’s keynote speech will discuss big-box retail, e-commerce, the packaging supply chain, and key industry trends. Retail markets around the world are in transition. Has the era of big-box retailers finally come to an end? Will e-commerce change the way consumers consume and suppliers supply? How will the packaging supply chain adapt to the coming evolution in products, markets, and shopping? All these questions and more will be answered during this keynote address! Where: The 2016 SuperCorrExpo®, October 17–20, Orlando, Fla. When: Tuesday, October 18, General Session II, 9:30–10:15 a.m.

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Wal-Mart’s recent announcement that it is exploring ways to use ride-sharing services for home delivery only reinforces the company’s need for one-way-shipping packaging that will protect shipments of nonstandard products in nonstandard vehicles. Packaging needs to do three things: It needs to convey, it needs to communicate, and it needs to convince. In our modern society, most of what we consume comes from a much larger travel radius than ever before. So, it’s critical that packaging can convey a product from farm, field, and factory through a distribution network to a point of sale and eventually to a consumer’s home. That “convey” is critical. Throughout that process, a package needs to “communicate” to the channel partners about what it is, where it belongs, how it needs to be shipped

or treated, and what its eventual destination is. Those channel partners can be trucking companies, distribution centers, or FedEx and UPS. So, that’s the communicate part. Then eventually, it’s got to “convince” the consumer to buy the product, and then it has to continually convince the consumer, in the home, to consume the product and eventually go back for a repurchase. From a sustainability point of view, the corrugated industry’s chief raw material is essentially all naturally derived, is readily reusable, and sourced from renewable materials. The pine trees that form the basis of the corrugated supply network are hardy and great at sequestering carbon. The growth of those pine trees that foster and form the foundation of the corrugated industry is a huge success story.

On the other hand, it’s one of the most readily recycled and most broadly collected and recovered materials in the recycling industry today. Corrugated boxes generally use anywhere from 40 to 100 percent recycled materials, so it’s a great story in terms of where it originates. And it’s an even more outstanding story in terms of the recycling process that has been well developed over the years to create reuse and recovery of the underlying fiber. It’s great to be participating in SuperCorrExpo® this fall, and I look forward to meeting you in Orlando. Ron Sasine is principal at Hudson Windsor LLC and a SuperCorrExpo® 2016 keynote speaker.

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THE

BREAKDOWN OF

MAINTENANCE Proper machine maintenance is essential to ensure a healthy bottom line in the manufacturing sector BY JOHN KRAVONTKA

BOXSCORE July/August 2016

anufacturing has long been a linchpin of our economy. America’s greatest economic gains have traditionally been led by our manufacturing economy. And today, after taking a severe hit during the Great Recession, manufacturers are back on the move. According to the National Association of Manufacturers, in the most recent year for which data is available (2012), manufacturers contributed $2.03 trillion to the economy, which accounted for 12.5 percent of GDP. Furthermore, manufacturing accounts for 17.4 million jobs in the United States—or about 1 in 6 private sector jobs. In spite of the gains made in recent years, challenges still remain for manufacturers. One of the greatest, and one that is nearly universal within the manufacturing economy, is maintenance within the manufacturing process. The sad reality is that most manufacturers struggle to properly maintain the equipment on which they rely every day. As a result, they frequently suffer from safety, reliability, and productivity shortcomings. This is a pervasive problem throughout the manufacturing sector. Approximately 20 percent of manufacturing companies have effective maintenance programs in place to keep their equipment and related systems operating properly. The financial implications are sobering: American businesses lose more than $500 billion every year to equipment breakdowns or inefficiencies and the inevitable loss of productivity that comes with those breakdowns.

Trouble Starts at the Top Typically, maintenance troubles start at the top, with companies’ leadership. Executives often view maintenance as

a line item to be reined in rather than an essential element of the company’s operations. However, cutting back on maintenance is a costly mistake that brings significant financial and operational losses. Having a maintenance strategy is crucial. Effective maintenance keeps equipment running properly, keeps production schedules on target, and provides a safer work environment. And contrary to the conventional wisdom in the corner office, when it comes to the bottom line, maintenance can actually save companies significant money by avoiding costly equipment repairs or replacement losses caused by production shutdowns or slowdowns, not to mention unnecessary workers’ compensation claims. In fact, it costs companies five to 10 times more

maintenance programs to help corporate leaders understand the importance of providing maintenance in a proactive—rather than reactive— manner. This includes being able to quantify the financial and productivityrelated improvements and how they benefit the company’s bottom line. As important as upper-level buy-in is, it isn’t always enough. Many companies with a commitment to maintenance still struggle because of personnel issues. In fact, one of the most problematic challenges facing manufacturers is that there just aren’t enough experienced maintenance managers and technicians to go around. In addition, more than 90 percent of American maintenance workers today have not been formally trained.

The sad reality is that most manufacturers struggle to properly maintain the equipment on which they rely every day. As a result, they frequently suffer from safety, reliability, and productivity shortcomings. to act reactively to breakdowns than to implement a proactive maintenance program. Rather than cutting back on maintenance, companies should be incorporating it into their long- and short-term business plans. Of course, the problem doesn’t lie solely with company leaders. Maintenance managers often need to do a better job of communicating the importance of

The problem has been in the making for a long time, and it can’t be turned around in a week or a month. A generation ago, companies had formal apprenticeship programs in place, through which maintenance managers and experienced maintenance staff taught their craft to the next generation of maintenance professionals. These apprenticeship programs were grueling

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and often lasted as long as five years. However, at the end of the program, participants had the expertise and experience they needed to manage their companies’ maintenance needs. Unfortunately, these apprenticeship programs are largely a thing of the past. In recent years, companies have cut back on training, and maintenance

need answers to their manufacturing challenges today—not at some undeterminable date in the future. So, what can they do today? The first step is to conduct a maintenance audit. The audit permits companies to evaluate the effectiveness of their efforts against a world-class maintenance standard. The audit starts with the

Companies that treat maintenance as a priority can save millions by avoiding expensive equipment repair, productivity lapses, and safety-related losses. has suffered greatly. Now that the last generation’s trained professionals are approaching retirement age, there are too few trained and experienced people available to take their place. Some companies are already working to correct this deficiency, partnering with local technical colleges and community colleges to develop formal curricula that can be implemented in their long-term maintenance programs. This is a good first step. However, because of the complexity of the equipment and software systems that are in use at most manufacturing companies today, many won’t reap the benefits of these training programs for a few years. A Time for Action Obviously, companies can’t wait five or 10 years for their new training programs to get up and running. Companies

BOXSCORE July/August 2016

maintenance organization and then a visual evaluation of how the critical equipment is running, monitoring that equipment constantly throughout a workday and recording how effectively it is operating. The evaluation should also look at the speed at which the equipment is operating and whether it is working at full speed. Finally, it should evaluate the output and determine how much is good and how much is scrap. It’s often necessary to monitor the equipment only for a few hours to get a good sense of how well it is working and where potential issues can be found, both in terms of short- and long-term operations. The audit can be conducted either by in-house maintenance managers or experienced consultants who are experts on the maintenance process. Once the evaluation is completed, a short-term plan needs to be developed

for fixing problems identified during the audit phase. The plan should be created with the goal of getting critical equipment fully operational as quickly as possible. Half-solutions and Band-Aid approaches are not solutions at all because they typically lead to new problems further down the road, while hindering productivity in the short term. While these initial steps represent progress, they are still reactive. The goal of every manufacturer should be to have a proactive maintenance program in place. This doesn’t happen overnight; many companies find that they need to implement three- to five-year plans to move from reactive to proactive maintenance. Plans are created by establishing production goals for equipment and then determining maintenance best practices that will lead to that equipment being able to achieve those goals. Every company, every facility, and every piece of equipment is different, and the plans for meeting those goals must be built around the unique characteristics and challenges presented by the company and its equipment. Experienced maintenance managers who are familiar with the equipment that’s being used and its capabilities should have no trouble creating a workable and effective maintenance strategy. The question is: Where do these experienced managers come from if experienced and accomplished maintenance professionals are in short supply? Companies with inadequate maintenance resources can follow one of two routes for acquiring the experience they need to create and build a proactive maintenance program. The first is the human resources route— recruiting talent. This can be a good way to obtain proven, talented maintenance

managers quickly. However, there aren’t nearly enough experienced managers to fill all of the open positions in the marketplace, so companies should expect to pay a premium for the best managers. One advantage of this approach is that it provides a long-term solution, since the manager is likely to stay on with the company and implement the program after it is developed and once it is up and running. The second route is to bring in a maintenance consultant on a short-term basis. The consultant can create a maintenance plan and train the company’s maintenance staff to implement that

plan. The advantage of this approach is that companies can typically gain access to much more experienced maintenance professionals at a more affordable cost. The long-term success of this approach rests on the ability of maintenance staff to implement the program after the consultant has left. Companies that treat maintenance as a priority can save millions by avoiding expensive equipment repair, productivity lapses, and safety-related losses. It’s not difficult to make maintenance an important part of day-to-day operations, but it does often require

company leaders to change the way they think. Those companies that do make a commitment to maintenance don’t just save money—they also create a better work environment, produce a better product, and gain a competitive edge over their competitors that don’t understand the importance of maintenance excellence. John Kravontka, CMRP, CMRT, is president of TPM Unlimited, LLC. He can be reached at jkravontka@tpm unlimited.com.

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Special Section

THE DIGITAL TIDAL WAVE BY ROBERT BITTNER

Drupa event photos courtesy of Messe Düsseldorf/ctillmann

Drupa 2016 Moves Digital Printing From Folding Carton to Corrugated

rupa, launched in 1951, is the Düsseldorf, Germany-based international trade fair for print and paper, held every four years to showcase the latest innovations in hardware. The name is an abbreviation of Druck und Papier, German for “press and paper.” At Drupa 2016, held May 31–June 10, the presses were unlike anything that would have been on display 65 years ago. In the words of one attendee, “This was the inkjet Drupa—the mainstreaming of digital print.” While digital production printers have been making significant inroads with folding carton converters over the last few years, the corrugated side of the business has lagged behind—primarily because the hardware simply hasn’t been able to deliver competitive speed and quality

BOXSCORE July/August 2016

when compared with traditional flexo and offset printers. Digital has meant compromise: settling for reduced print quality and speed in favor of efficient short runs and ease of variation/customization throughout a single print run. “The digital I’ve seen in corrugated up till this point has been pretty slow,” notes Tom Andersen, CEO of P 2. “It requires multiple passes of the print head. That’s OK if you’re doing a hundred displays. But my business has always been more high volume.” Based on the equipment introduced in Düsseldorf, Andersen says, “I think digital now will be great at handling medium- and high-quantity jobs.” HP was among the major companies showcasing a new generation of high-speed, high-quality, large-format

digital printers. For Andersen, one of the stars of the show was HP’s T1100S, a “game-changing” machine that can transform how converters think about digital print. Bob Seay, business development director for packaging at HP, agrees, adding, “This show was a wake-up call for a lot of people. Everyone’s been saying that digital is ‘10 years away.’ It’s time to say it’s coming much faster. “Corrugated is about quality, speed, efficiency. Until now, print speeds have not been there. Most of the predecessor technologies have been flatbeds with scanning tech that requires multiple passes. What you’re now seeing in the T1100S is single-pass technology.” The result is a machine capable of handling 110-inch-wide

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Dynaric Has Been Providing High Quality Plastic Strapping And Strapping Equipment Since 1973 See us at Super Corr Expo Booth #2549 in Orlando, FL. October 17th-20th 5740 Bayside Road Virginia Beach, VA. 23455 | Phone: (800) 526-0827 | Web: www.dynaric.com

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media, printing 600 feet per minute, and delivering 1,200 dpi print quality. For Andersen, the T1100S is revolutionary, the leading edge of an impending digital tidal wave: “Comparing analog printing to digital is like comparing a steam engine to nuclear power.” It’s an apt comparison. Because while no one can dispute the power of the atom over mere water, not everyone is in love with nuclear power. Similarly, not everyone is convinced that digital printing will one day replace analog printing or that the advantages of digital sufficiently outweigh a long-term investment in analog equipment and training. Roughly 1,800 exhibitors from more than 50 countries attended Drupa 2016.

At C&M Conveyor, we’ve enhanced our ability to meet the demands of today’s corrugated marketplace by adding products and manufacturing capability. The benefit to you: maximum throughput with the flexibility to meet your customers’ ever-changing needs. Our project management approach means we’ll identify your requirements, manufacture to your specs and install on time. Contact us today; let us solve your toughest problem. Leading supplier to the corrugated box industry 4598 State Rd. 37 • Mitchell, IN 47446 812-558-7960 • 800-551-3195 www.cmconveyor.com

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SUPERCORREXPO 2016 • Orlando • Oct. 17-20

BOXSCORE July/August 2016

Complementary Technology “Right now, I think digital is complementary technology, very useful for certain applications,” says Jack Fulton, vice president of sales at Printron, a company

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focused on prepress work and making and mounting flexo plates. “Eventually, it will become disruptive technology; then it will challenge flexo as the primary printing method for corrugated.” When Fulton, who did not attend Drupa this year, describes the kind of equipment that could potentially lead to such a marketplace disruption, it sounds very much like the specs of the HP T1100S. “Since I’m in the flexo plate business, I hope digital never replaces analog completely. People are currently still investing in high-end flexo printers and converting equipment. KBA is getting back into the flexo corrugated business with the Corrugraph sheetfed printer. They feel there is still a market for high-quality flexo printing. Digital is not the end-all.” Printer manufacturers themselves are not taking sides. For example, HP’s

Seay points out, “It’s hard to say that any technology will replace other technologies. You’ll use analog where it’s more efficient, digital where it’s more efficient.” So the company will continue to produce equipment for both markets. Although KBA displayed a model of its new-era flexo Corrugraph at Drupa, it’s worth noting that the company also partnered with HP to produce the digital T1100S. A Significant Investment If there is an eventual shifting from analog to digital, it will not happen overnight. For one thing, the T1100S, while groundbreaking, is also beyond the means of many independents, with a price tag hovering around $10 million. Initially, it will sell only to the larger integrateds. It will take time for the technology to work its way down into more broadly affordable hardware.

BOXSCORE www.aiccbox.org

Special Section

In addition, independents have already made significant investments in building up their analog print capacity. That will not go away in the next few years. “I know the independents very well,” Andersen says, “and I’ve been in hundreds of box plants. Because of the investment they have now, I see them taking a waitand-see attitude toward digital; it’s not a ‘this quarter’ or ‘next quarter’ thing. But I don’t think I could listen to somebody saying it’s not going to happen at all. A shift is going to occur for independents’ business. When one of their customers says, ‘I need these 10,000 boxes, and I need variable data,’ that’s when this will become a burning fire for them. “Understand that brands aren’t looking at digital as a better way to print but as a better way to get data and metadata from their packaging. Digital delivers a much

bigger bang for their buck. Independents are generally not focused on it yet, in part because of their investments in analog printers and processes. But they will eventually have to focus on it. If I owned a box plant, I’d hesitate buying another piece of analog equipment today. I would not set my sights on growing from an analog perspective.” In fact, Andersen guesses that in 25 years, the industry will be 50-50 analog-digital. “In 50 years, I think there may be no analog print at all. Digital will be the only thing left standing.” Seay says, “I think these digital solutions will coexist with analog for a long, long time. But no matter who you are, you’re going to be impacted. Some folks will aggregate enough volume to buy their own digital sheet press. Others will buy the sheets from people who can provide

them.” Whether you partner with a larger supplier or you invest in your own digital equipment, Seay believes every converter needs to start building a digital strategy if they don’t already have one: “When customers start asking for it, you’ve got to have an answer.” Robert Bittner is a Michigan-based freelance journalist and a frequent contributor to BoxScore.

For extensive coverage of Drupa 2016, as well as information on the upcoming Drupa 2020, visit www.drupa.com.

Know-how makes your business, our business. Providing equipment financing to the corrugated industry for over 15 years. At People’s Capital and Leasing Corp., we offer: • Capital access for new/used equipment • Corrugated industry expertise • Comprehensive financial resources Our industry knowledge and understanding of your business can give you an edge in the marketplace.

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BOXSCORE July/August 2016

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The Associate Advantage

PLEASE SUPPORT SUPERCORREXPO® JEFF PALLINI FOSBER AMERICA VICE CHAIRMAN PALLINIJ@FOSBER.COM

KEITH R. UMLAUF THE HAIRE GROUP CHAIRMAN KUMLAUF@HAIREGROUP.COM

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

s a machinery supplier, our company is very excited about the upcoming SuperCorrExpo® this fall in Orlando. This show has proven to be the premier corrugated machinery and services show in the world. The decision to move the conference to Orlando will make it even more attractive to both domestic and foreign suppliers and converters. Our hope is that converters will make the time to attend this important event, which occurs only every four years. I thought I would take this opportunity to give you a little bit of background on what suppliers do in preparation for SuperCorrExpo®. Suppliers typically spend a significant amount of their sales and marketing budget to present at SuperCorrExpo®. Much like the preparations for a showcase home, we spend the years prior working to develop innovations. We organize the booth so that when the show opens on Monday, October 17, you will see the very best we have to offer. We do this because we believe it brings value to converters and thus ultimately to ourselves as

suppliers. We believe converters will receive the following benefits: • An overview of the latest in technology and innovations for machinery and services throughout our industry. • Discussions on industry trends—both domestically and abroad. • An opportunity to meet the full staff of key suppliers you may work with on a regular basis. • An opportunity to meet potential new suppliers. • Networking prospects with suppliers and converters, integrateds and independents. • Plenty of social opportunities outside of the trade show hours. • An opportunity to demonstrate your commitment to supporting the suppliers in our industry. So, the next time someone says to you, “Congratulations on your success! What are you going to do now?” the appropriate response might be, “I’m going to go to Orlando and attend SuperCorrExpo®! I’ll see you there.” This article was written by Jeff Pallini.

DAVE BURGESS JB MACHINERY DIRECTOR DBURGESS@JBMACHINERY.COM

This show has proven to be the premier corrugated machinery and services show in the world. BRIAN KENTOPP BOBST NORTH AMERICA INC. IMMEDIATE PAST CHAIRMAN BRIAN.KENTOPP@BOBST.COM

BOXSCORE July/August 2016

Financial Corner

BECOMING A VARIABLE PROFIT PREDICTOR AND RESPECTING YOUR MACHINE HOURS BY MITCH KLINGHER

n the last issue I introduced the concept of key reporting metrics (KPMs) and laid out certain concepts that will aid you in developing a system of KPMs that will help you keep your finger on the pulse of your business. We have already discussed the necessity of keeping your various profit-center and cost-center buckets pure, the need for understanding the difference between fixed and variable costs, and the need for understanding the total amount of fixed costs that you need to cover each day to make money. However, sometimes nomenclature gets in the way of what we are trying to accomplish. Everyone has some kind of a “cost estimation” system in their operations. The notion that we need to know how much something costs us to produce in order to determine a fair selling price is deeply ingrained in our business brains. But do potential customers really care what it costs you to make a particular product? Or are they interested in simply getting a good market-based price from a consistent and reliable supplier? If the latter is true—and I think we can all agree that it generally is—then your estimated and allocated costs are less important than the incremental profit that each order can contribute to your efforts to cover all of your fixed costs. This kind of thinking leads us to two conclusions: 1. We need to be able to accurately predict the incremental profit that can be derived from each order. 2. We need to know how many machine hours—and other finite

BOXSCORE July/August 2016

resources—each order will consume, since our machinery resources are finite. Variable Profit Prediction Systems If you agree with this thinking, then the first thing you need to do is rename your cost-estimating system. Let’s call it your variable profit prediction system (VPPS). If you’ve gotten your cost buckets cleaned up and have reorganized your costs as discussed in the last issue of BoxScore, then it should be pretty easy. But as I have found in my travels, old habits tend to die hard, and most people fear change. If you want to become a variable profit predictor, you need to stop worrying about the allocation of costs that will be there whether or not you accept an order. If you think a customer is going to pay more for your products simply because you have more expensive machinery, think again. Presumably you bought the expensive machinery because you think it will give you a competitive advantage. Hopefully it sets up faster, runs faster, prints better, etc. So, why bother allocating the costs associated with owning, crewing, and maintaining your equipment to each order that runs over it? In a world of cost estimation, these types of allocations are essential. In a world of variable profit prediction, they are irrelevant! If you want to be a variable profit predictor, then you need to “dumb down” your estimating system and stop worrying so much about full cost calculations. Simply make sure that the variable costs used in the VPPS are the same costs that

you actually incur—at least within a percentage point or two—and focus on the predicted variable profit (contribution) for each order. Once you take a lot of the labor and “variable” factory overhead that your cost-estimating system charges to each order and remove the rest of the fixed cost burden, you will have a pure estimate of the expected contribution of each order. By adding up the sum of all of this and comparing it to your daily fixed costs (your number), you will instantly know if you are profitable. But is this enough to enable you to make fundamentally good decisions? Is every order that has positive contribution and a decent contribution percentage a good order? I think we all know that the answer to this question is a resounding no. Measuring Resources We still need to evaluate how accepting an order will affect our finite resources, such as machine hours, warehouse space, delivery efficiencies, and others. Therefore, we need to devote some of our efforts to measuring the use of these resources and finding ways to relate them to the contribution dollars that they help us produce. The bulk of the capital investment that almost every converter has is in equipment, and equipment can run only a certain number of hours each day, week, and month. Most well-run converters do pay a fair amount of attention to their equipment. Lots of you measure setup times and run speeds, and devote a lot of time to analyzing downtime and waste. Some of you make overall equipment

Reduce your maintenance Reduce your costs Increase your production Rotary Die, Flat Bed Die and Printing Plate Storage and Cleaning Systems BCM has the most unique solutions to your storage problems. They can take advantage of space in your plant you previously thought unusable.

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Financial Corner

The notion that we need to know how much something costs us to produce in order to determine a fair selling price is deeply ingrained in our business brains. But do potential customers really care what it costs you to make a particular product? Or are they interested in simply getting a good market-based price from a consistent and reliable supplier?

effectiveness (OEE) or other efficiency calculations, and even incentivize your labor force based upon the results of these calculations. But very few of you account for each minute of machine time and charge them to orders. Imagine you are a two-shift operation. If you have zero downtime at a machine center—which is impossible—you have 16 hours a day that you can run each piece of equipment. If an order comes through that has $10,000 of contribution and a contribution of 50 percent, it’s probably a pretty good order. However, if it takes up 40 hours of machine time, then it will take you three full days to produce it—and nothing else—from that machine center. At the end of the day, the contribution dollars per hour will be $250 ($10,000/40). If this is a busy and important machine center for you, then this is probably not a good order to accept. If this is a machine center that sits idle most of the time, then this is probably an excellent order to accept. However, without relating the order to the machine time it will require, it is impossible for anyone to make an intelligent business decision. Important Resources If machine hours are your most important resource, then you need to start treating

BOXSCORE July/August 2016

them that way. I am certain that all of you have controls in place that preclude anyone from withdrawing cash from the company without proper authorization. A purchase order needs to be cut. An invoice needs to be received and matched up with receiving documents and departmental supervisor approvals. Then a check must be cut, approved, signed, and issued. An arduous process, but with very good reason—we need to protect our very finite cash resources. We need to start treating machine hours the same way. They need to be part of our books and records each month, and they need to be reconciled and closed out every day as though they were cash resources. Machine center 101 ran 32 jobs today, totaling 13.5 machine hours. There was downtime of 2.5 hours relating to x, y, and z. The 13.5 hours must be charged to the 32 jobs (both run and setup), and the 2.5 hours of downtime must be kept in a ledger and sorted by major downtime reason (maintenance, waiting for plates and dies, no orders to run, etc.). A database must be constructed for each order showing the sales price, the major categories of variable cost, the contribution and the machine hours (or other key resource time) utilized. This database can be keyed in or exported to a simple

Excel file, set up in a database application that lies outside of your core system, custom-programmed into your existing system, or done in some combination of the three, but it must be maintained every day, week, and month that you operate. Becoming a variable profit predictor— rather than being a cost estimator—and being able to instantly relate the variable profits to the resource hours utilized will enable you to come up with all kinds of KPMs to accurately measure the activity and profitability of your business. So, let’s change your mindset away from complicated cost allocations and focus your efforts on treating your machine hours like you treat your cash. You will begin making infinitely better business decisions. In the next issue we will talk about taking steps to unbundle your sales to help you build profit centers within your VPPS and utilizing the information within your financial reporting systems. Mitch Klingher is a partner at Klingher Nadler LLP. He can be reached at 201-731-3025 or mitch@ klinghernadler.com.

JOIN US IN ORLANDOâ&#x20AC;Ś to size up everything you need to work smarter, leaner and more profitably. Open yourself up to all the new ideas, connections and resources that await. Unleash the potential with the largest concentration of working machinery, tools, technologies and professional training tailor-made to meet your needs.

October 17-20, 2016 | Orlando Florida USA Register today at www.SuperCorrExpo.com

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

PACKAGING

CORRUGATED

F O U N D AT I O N

JB MACHINERY KLEENPLATE SYSTEM DONATED TO FOX VALLEY TECHNICAL COLLEGE

B Machinery has donated a KleenPlate system to ICPF that will be installed on the Workhorse press at Fox Valley Technical College (FVTC) this summer. ICPF and the Glynn Wilson family earlier provided the Workhorse press to FVTC in 1999, where it has been used almost daily for student instruction since installation. The KleenPlate equipment and installation, valued at $55,000, will enable significant increases in machine uptime and productivity through continuous printing break to break,

with virtually zero production stoppages for plate washing. The system additionally will offer significant improvement in print quality through minimized—if not eliminated—hickeys, plugging, bridging, and/or color variation. In making the donation to ICPF, JB Machinery President John Bird said, “ICPF’s partnerships and ongoing work with over 25 colleges and universities are impressive. We are proud to have earlier donated dryers for the presses that ICPF has placed at Fox Valley and Clemson University. We hope the

KleenPlate system will further support the work being conducted by ICPF.” Steve Landaal, ICPF chairman, thanked John and JB Machinery for their contribution: “We encourage other industry suppliers and corrugated manufacturers to continue to make donations to ICPF, like JB Machinery and so many other companies have done.” Visit www.careersincorrugated.org and www.jbmachinery.com for more information.

JOIN ICPF AT SUPERCORREXPO®

isit Booth 2871 at SuperCorrExpo® in Orlando (October 17–20) to learn more about ICPF educational initiatives and to meet packaging students and faculty. Students and ICPF corporate partners can schedule

a five-minute tutorial on using ICPF’s career portal that connects packaging, graphic design, business, sales, and related students and upcoming graduates with corrugated packaging firms that have student internships and entry-level

openings. Email info@icpfbox.org to schedule a convenient time for a tutorial. Visit www.supercorrexpo.org for additional information on participating in SuperCorrExpo®.

PROTOTYPE FOR PLANT FLOOR RECRUITING TO BE TESTED IN 2016–17 This past spring, ICPF, FBA, and AICC began working with SkillsUSA to determine whether the organization can offer a local platform for plants seeking to work with high schools, community colleges, and vocational schools to prepare students for a career in corrugated packaging

BOXSCORE July/August 2016

plant floor operations. A prototype is being planned for the Chicago region to ascertain whether a successful model can be created for duplication in other locations in the United States. Formerly the Vocational Industrial Clubs of America (VICA), the SkillsUSA program of work

is delivered through over 17,000 member sections (classrooms) in 4,000 public schools (chapters) in all 50 states. These schools are comprehensive high schools with career and technical curricula, regional career and technical education centers, and local two-year colleges.

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

PACKAGING

CORRUGATED

F O U N D AT I O N

Photo courtesy of ICPF

JEFF AND JANICE CHALOVICH TO SERVE AS HONORARY CO-CHAIRS OF HOLIDAY WEEKEND IN NEW YORK

Jeff and Janice Chalovich

eff and Janice Chalovich (WestRock) have been selected to serve as the honorary co-chairs of the 2016 ICPF Holiday Weekend in New York fundraiser. In its ninth year, the New York event serves as ICPF’s annual fundraiser, where manufacturing and supplier executives, with their spouses or guests, can support the International Corrugated Packaging Foundation while socializing and enjoying the best of New York City during the holiday season.

Jeff and Janice have attended each of the past three annual New York events and invite ICPF supporters to gather for ICPF’s ninth Holiday Weekend in New York on December 9–11, 2016. This year’s participants will begin with a Friday evening reception at The View, which provides a 360-degree panorama of Manhattan’s skyline (sponsored by Pratt Industries). After free time on Saturday morning for brunch, holiday shopping, sightseeing, and museums, participants will attend the Saturday matinee performance of the Broadway hit An American in Paris, winner of four Tony awards, including Best New Musical (sponsored by MarquipWardUnited). Executives and their spouses or guests later will participate in a Saturday evening reception and dinner at the renowned 21 Club (sponsored by Bobst North America). A special surprise that evening will be sponsored by Fosber America. There also will be the traditional ICPF surprise holiday gift for participants (sponsored by Equipment Finance Corporation and Gerber Innovations). Serenity Packaging also has contributed as a sponsor for the weekend. In addition to participating in the event, Jeff and Janice are asking industry executives to invite clients and potential ICPF Corporate Partners, and also to consider rewarding key executives from their companies with this special weekend holiday function. “It is a special opportunity to be able to interact with fellow industry peers in a totally informal social

environment. This ICPF holiday event is one of the most unique events in the industry. We look forward to it as both a special holiday getaway for the two of us, and a business social with longtime industry friends and new participants who become new friends. We encourage corrugated manufacturers and suppliers, and their spouses, to join us in supporting ICPF on December 9–11. Once you join us, you, too will want to return annually for each ICPF Holiday Weekend in New York.” The Muse Hotel New York, a Kimpton boutique hotel in the Theater District, will serve as ICPF’s host hotel again this year. Hotel rooms go quickly during this special time of the season, so executives are encouraged to register and make their hotel reservations through ICPF as soon as possible to guarantee inclusion before the announcement of the event “sellout.” Visit www.careersincorrugated.org for more information and to download a registration form. To learn more about hosting an ICPF benefit/fundraiser, contact ICPF at info@icpfbox.org, 703-549-8580, or visit www.careersincorrugated.org. Richard Flaherty is president of the International Corrugated Packaging Foundation.

BOXSCORE www.aiccbox.org

The Final Score

WHY IS SUPERCORREXPO® SO GOOD FOR OUR INDUSTRY?

“The Pittsburgh Accord,” May, 1997: Signing the first SuperCorrExpo ® agreement at the U.S. Air Club in Pittsburgh. Front, from left: Dale Dill, president of TAPPI’s board of directors, and Joseph R. Palmeri, Jamestown Container and AICC president. Rear: Wayne Gross, executive director of TAPPI, and Steve Young, executive vice president of AICC.

BOXSCORE July/August 2016

hroughout history, nations and entire continents have ended wars, achieved peace, and allied with each other through the use of treaties. Examples abound, from the minor Treaty of Nystad, which ended the war between Sweden and Russia in 1721; to the Treaty of Versailles in 1919, effectively ending World War I; or the Treaty of Rome, which established the European Common Market in 1957. Why do I bring up diplomatic history in relation to SuperCorrExpo®? Nearly 20 years ago, an alliance was formed in similar fashion between AICC and TAPPI, though perhaps not through such a grand instrument. Rather, the two associations, seeking to exploit synergies and leverage their clout, came together to create a corrugated industry trade show for North America—for the Americas, really— so that more members of our corrugated industry could have a firsthand look at a wide array of operating machinery, equipment, products, and services to improve their businesses. At the time, the only real opportunities for this were in Europe—at Drupa in Düsseldorf or the short-lived “Corrugated” show in Paris. And here, while AICC and TAPPI each had their own “trade fair”-style exhibits, neither was considered a “world-class” event. The answer came when Wayne Gross, then the executive director of TAPPI; Dale Dill, its president; Joseph R. Palmeri, then-president of AICC; and I met in May 1997 in the U.S. Air Club at Pittsburgh International Airport to sign the deal for the very first “SuperCorrExpo®,” held in 2000 in Atlanta. Hearkening back to diplomatic history, I called it the “Pittsburgh Accord,” and it began a unique and successful partnership to create a “show for the Americas.” For members, SuperCorrExpo® makes it possible to see an operating machinery show in our hemisphere and on our shores. It makes it possible to bring production supervisors, machine operators, and senior managers to a low-cost venue. It is an opportunity for suppliers to get in front of more customers in one place. Beyond this, because it is a show owned by the two associations, proceeds from the show benefit the associations and further their ability to serve their members. This is why SuperCorrExpo® is so good for our industry—it’s good for the members, it’s good for our suppliers, and it’s good for our associations. I look forward to seeing you in Orlando in October.

Steve Young President, AICC

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