Board Converting News, December 13, 2021

Board Converting News, December 13, 2021

BoardConverting Serving the North American Corrugated and Folding Carton Industries for 37 years December 13, 2021 VOL. 37, NO. 50

Hall Of Famer Mariano Rivera To Keynote At EFI Connect 2022 Fremont, California based Electronics For Imaging, Inc. (EFI) is collab- orating with the Mariano Rivera Foundation to support a substantial printing training program for underserved minority youth. The Foun- dation, led by Major League Baseball Hall of Famer Mariano Rivera, is providing in-depth, hands-on technology training for high-demand graphic arts and imaging technology jobs. EFI is providing financial and

Nashville Box To Invest $3.3M In TN Operation

Lebanon, Tennessee based Nashville Box, LLC reported that it will invest $3.3 million to establish new operations in Wilson County. Tennessee Gov. Bill Lee, Department of Eco- nomic and Community Development Com- missioner Bob Rolfe have confirmed the an- nouncement. According to a press release, “Nashville Box will be utilizing an integrated business and manufacturing approach to service busi- nesses with high volume corrugated pack- aging needs at both a regional and national level.” The corrugated box manufacturer will create 48 new jobs in Lebanon. In recent years, the growth of e-commerce and the Tennessee economy have taken cor- rugated packaging demand to a generational high, and thus, creating a demand surplus. By locating operations just outside of Nashville in Lebanon, Nashville Box will have a strategic advantage to service both Tennessee’s busi- ness growth and many major markets within a day’s drive of Nashville. “Tennessee’s geographic location is a ma- jor advantage when it comes to connecting to customers and suppliers quickly. Nashville

CONTINUED ON PAGE 3

WHAT’S INSIDE 5 Five Lessons Learned For The Post-Pandemic Supply Chain 10 NAM: Mixed Employment News Despite Manufacturing Gains 14 Corrugated Rides E-Commerce Demand To Continued Growth 20 Neuroscience Of Innovation: How Your Brain Limits Creativity

technology training support to the Foundation as it further expands its efforts to provide youth with a path into solid careers. The Foundation’s new graphic arts industry-sponsored activities be- gan earlier this year with a training program in Gainesville, Florida, and will continue its activities through a new Mariano Rivera Foundation center to be built in New Rochelle, New York. CONTINUED ON PAGE 26 New York Yankee Hall of Famer Mariano Rivera will make a keynote presentation at EFI Connect 2022, during which he will discuss the drive that led him to becoming MLB’s all-time saves leader, as well as the passion behind his foundation to support underserved youth.

Machinery and Handling for the Corrugated Board Industry

Machinery and Handling for the Corrugated Board Industry

2 December 13, 2021

Nashville Box To Invest (CONT’D FROM PAGE 1 )

AVERAGE CONTAINERBOARD PRICES The average prices reported are tabulated from prices PAID by various sources throughout the United States the week previous to issue. Prices in some areas of the country may be higher or lower than the tabulated average. The prices tabulated here are intended only for purposes of reference. They do not connote any commitment to sell any material at the indicated average. Transactions may be completed at any time at a price agreed upon by seller and purchaser.

Box’s decision to locate in Lebanon will help the compa- ny serve its regional market, while creating nearly 50 new jobs in Wilson County. I thank the company for choosing our state and look forward to seeing its success in Tennes- see.” said Gov. Bill Lee. “The Nashville Box team is thrilled to put roots down in the Nashville area,” said Scott Lawrence, President and CEO of Nashville Box. “Like most B2B manufacturing companies, we thrive on the health of our given business environment. The healthy, fast-growing business climate that Governor Lee and Commissioner Rolfe are creating is a driver for Nashville Box to immediately thrive. This provides a secure and exciting start for our 48 plus team members and their families.” According to the company’s website at nashvillebox. com and echoed by Scott Lawrence, “We give customers a competitive advantage by customizing solutions that solve real business problems. Whether it’s a better understand- ing of box performance or seeing gains in palletization utilization, the boxes you buy directly affect your supply chain. We have the industry experience you’re looking for in a packaging supplier. We put people first and provide a service they can rely on. Our team produces custom boxes out of our 100,000+ square-foot facility and serves cus- tomers across the nation. Bring your packaging challeng- es, and we will put our experience and know-how to work.”

REGION E. Coast Midwest Southeast Southwest

42# Kraft liner

26# Semi-Chem. Medium

$1005.00-1010.00 $1020.00-1030.00 $1020.00-1030.00 $1020.00-1030.00 $1050.00-1060.00 $1023.00-1032.00

Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del. Short Ton Del.

$940.00-990.00 $955.00-975.00 $955.00-975.00 $955.00-975.00 $975.00-995.00 $958.00-978.00

West Coast U.S. Average

SHEET PRICES BY REGION (AVERAGE) Per 1MSF, local delivery included, 50MSF single item order, truckload delivery. Sheets

E. Coast Midwest South-SW S. CA N.CA/WA-OR US Aver.

200# 275#

$62.26

$72.05

$62.69 $82.80

$85.35 119.54

$73.13 101.29

97.32

99.89

90.86

113.65

OYSTER UP-CHARGE 8.34

8.34

8.34

8.34

8.34

8.34

275# DBL-WALL 350# DBL-WALL

107.46 118.45

114.69 129.32

116.54 137.25 117.82 145.56

141.08 148.46

122.76 131.80

CANADIAN SHEET PRICES (AVERAGE) In Canadian Dollars, per 1MSF, local delivery included, under 50MSF single item order, truckload delivery. 200# 275# Oyster UC 275#DW 350#DW $78.56 $99.18 $9.00 $96.32 $105.83 CANADIAN LINERBOARD & MEDIUM The average prices reported are tabulated from prices PAID by various sources throughout Canada. Prices may be higher or lower in various areas of the country. The prices tabulated here are intended only for purposes of reference. They do not connote any commitment to sell any material at the indicated average. Transactions may be completed at any time at a price agreed upon by seller and purchaser. Prices are Canadian $ and per metric ton.

42# Kraft Liner 26#

Semi-Chem Medium

East West

$970.00

$960.00 $995.00

$1,015.00

3

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December 13, 2021

Calling Profero Systems just another equipment supplier is like calling the Tour just a bike ride. Profero Systems

Proven unsurpassed customer service over the long run, commitment to our customers is second to none!

Add value to your Corrugating Process, be the go-to Company for your customers.

DON’T GET LEFT BEHIND!

www.ProferoSystems.com

704-923-0990

PO BOX 950 DALLAS, NC 28034

4 December 13, 2021

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Five Lessons Learned For The Post-Pandemic Supply Chain BY DALE YOUNG

The current global trade crisis has highlighted weaknesses within the supply chain and forced the industry to assess,

evolve and often transform their operations to meet the needs of today’s marketplace. Many chang- es are here to stay and should be embraced as the industry plans for the supply chain of the future. David Bowie once said: “To- morrow belongs to those who hear it coming,” meaning we need

Dale Young

to listen to the market to anticipate what will come next. While no one can predict or prevent the next global crisis, we can build stronger, less vulnerable supply chains by learning from past mistakes and adding positive changes into day-to-day operations. Following are five real-world examples that show how shippers are relying on flexibility, investment, and alterna- tive solutions to navigate the current supply chain disrup- tion and why these changes are here to stay. 1. Staying open to new and unconventional ways of doing business: Pandemic-related disruption forced stake- holders throughout the supply chain to look at alternative ports, non-traditional routes, and different processes. Be- ing open to new and unconventional ways of doing busi- ness not only served as a solution to an immediate need, but also underscored the importance of having an open mind about alternatives that could potentially save time and money compared to the traditional routes that have been impacted by congestion and capacity constraints. 2. Broadening networks; expanding connections; deep- ening relationships: Using alternative ports and consider- ing new routes forced shippers to expand outside their comfort zones, making new contacts and building new relationships. Port congestion and capacity issues also highlighted just how important it is for shippers to have a diversified vendor base for all the links in their supply chain (ocean, air, warehousing, and trucking). That way, as roadblocks pop up, they have alternative options and additional capacity they can dip into to keep their freight moving. While sticking with “what has always worked” has its benefits, continuing to build strong connections outside of the traditional process is one way for shippers to build resiliency into their supply chains. 3. Allocating resources to equipment and partnering with asset-based providers: No one wants to pay for as- sets that are underutilized, but the weaknesses of the pre- vious model taught us that without building in contingency equipment, capacity, and warehouse space, your supply chain may not be strong enough to withstand adverse conditions, which can result in huge financial implications.

CONTINUED ON PAGE 6

5

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December 13, 2021

Five Lessons Learned (CONT’D FROM PAGE 5)

Box Shipments ( U.S. Corrugated Product Shipments) Industry Shipments In Billions of Square Feet Month September 2021

The pandemic saw many large retailers buying their own equipment to avoid delays and issues caused by con- tainer and chassis shortages. The demand for additional warehousing space to hold buffer stock and delayed sea- sonal merchandise also increased dramatically. Looking ahead, expect logistical planning to include managing equipment (containers, trailers, etc.) as well as warehousing space, and for shippers to select partners who will invest in equipment and space to meet demand. 4. Increasing inventory levels: While the industry knew the “just-in-time” model was getting too lean and too tight to be sustainable, the realization of its fragility was brought to light in a loud and unmistakable way during the pan- demic. This has resulted in what we now consider the “just-in-case” model, whereby shippers build extra inven- tory into their planning so they have goods on hand when they need them. Increasing inventory levels ensures you have contingency goods available to meet unexpected demand or unexpected delays in your supply chain. The last couple years have shown it is too risky to keep in- ventory levels low . You can no longer assume cargo can quickly be delivered from a distribution center hundreds of miles away. To meet customers’ needs, it is necessary to invest in solutions that allow you to have inventory on hand where and when you need it. CONTINUED ON PAGE 8

Year

Actual

Percent Change Avg Week Percent Change

2021 2020

34.261 34.901

-1.8

8.157 8.310

-1.8

Industry Total

Year-to Date

September 2021

Year

Actual

Percent Change Avg Week Percent Change

2021 2020

312.632 300.767

3.9

8.227 7.873

4.5

Industry Total

Containerboard Consumption (Thousands of Tons)

Year

Month

Percent Change Year-to-Date Percent Change

2021 2020

2.7786 2.8459

-2.4

25.4959 24.5672

3.8

Container Board Inventory - Corrugator Plants (Thousands of Tons)

Corrugator Plants Only

Date

Percent Change Weeks of Supply

Percent Change

Sept.

2.312

3.8

3.5 3.4

2.9

Aug

2.2272

Shipping Days

Year

Month

Year-to-Date

2021 2020

21 21

190 191

SOURCE: Fibre Box Association

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6

December 13, 2021

40 ft of paper travel from preheater to hot plates 3 seconds of heat, glue and bonding 1 chance to get it right! the ZONE

Design & Production

Chicago Electric offers 10 technology solutions to control ‘the Zone’ CORRUGATOR Sectoral preheating plate

Our sectoral preheating plates provide direct heat by means of a double steam circuit, allowing for efficient heating in hard-to-access locations, as well as to act as a steam shower to open the paper’s fibre, making it receptive to absorbing the heat and the glue.

This translates into increased speed and improved quality of the cardboard sheet finish.

The system’s main advantages are as follows:

• The plate may only be used to heat, only to humidify, or both options at the same time. • The plate is sectored, which allows for applying humidity to the sections. • It provides temperature in previously inaccessible locations and near the location needed. • It compensates the loss of temperature dissipated due to distance, speed or limitations of the exiting preheaters. • Quick transferring of heat to the paper. • The combination of the hot plate and steam shower allows for providing heat even to the hardest papers to heat. • Does not dry out the paper. • Possibility of operating as a humidifier and pre-conditioner. • Maintains and improves the fibre’s elasticity. • Acts according to the operator’s needs. • Facilitates the paper’s hygroscopy to absorb the glue and improve rubberising.

CONTROLLABILITY

1. Wrap Arm - Position & Temperature 2. Preheater Direct Drive

DOUBLEBACKER IMPROVEMENT

3. Steam Plate 4. Contact Roll 5. Glue Machine Direct Drive Touch Productivity Issue—Glue Unit Many glue units run with a rider roll or a guiding bar system. The rider roll with paper gap allows a precise glue application, but requires frequent Contact Roll

PRODUCTIVITY

C/ Orfeó Català 13-15 · 08440 Cardedeu (Barcelona) telf: +34 93 846 01 06 · [email protected] WWW.AL-GAR.COM

DOUBLEBACKER IMPROVEMENT

calibrations and settings. Bar systems avoid this, but compensate this with the risk of exces- sive glue application. The system contains many wearing parts. Solution The contact roll combines the ad antage of both systems and ensures minimum contact between board and applicator roll. The system uses small pneumatic cylinders in order to achieve a “soft touch.”

6. Gap Control 7. Curved Plate 8. Roller Shoe Press When it comes to a short-term increas of web tension, spring loaded systems with shoes or airpressure activated system have problems in compensating these. The system is lifted for a short time. This may result in de-lamination and in the ‘double kiss’ effect. Solution For a defined and exact bonding point of the web fiv weight rollers will be installed usually over the first flat hotplate of the heating section. The rolls are mounted into a frame, which is actuated by means of two pneumatic cylinders. P oductivity Issu —Double Kiss Bonding

PRODUCTIVITY

PRODUCTIVITY

DOUBLEBACKER IMPROVEMENT

Roller Shoe

DOUBLEBACKER IMPROVEMENT

9. Thin Wall Hot Plates 10. Pressure System Benefits —Exact glue application due to defined contact of applicator roll to web. Web is in contact to less flute tips compared to bar systems. • High precision glue application • Less moisture applied to web —No wear of shoes and springs —No adjustment of shoes or paper gap —Uniform glue application over entire w orking width for all flutes by use of pneumatic cylinders instead of springs — Less contamination by paper dust and glue remains —No jam of board because of web breaks caused by splice joints going through 630-784-0800 Benefits —Rollers secure exact defined first point of contact of liner and single-faced board - No double kiss —Frame design avoids unintended lifting of roller shoe (compared to spring or air loaded systems) - No double kiss —Pressure can be increased or released for special grades or products 490 Tower Blvd., Carol Stream, IL Contact Chicago Electric to GET IT RIGHT 630-784-0800 [email protected] chicagoelectric.com Solution The ProPress system ensures an optimum heat transfer to the board. It offers a wide range of set- tings. The loadi g pressure can be varied, the number of shoes can be lifted in accordance t the line speed. The outer shoes can be lifted in accordance to the paper width. The shoe bars will be delivered pre-assembled for a short installation time. —Liftable for easy paper infeed and for cleaning of the machine —Position adjustable in paper direction to avoid grooves in hotplate Press Productivity Issue—Poor Heat Transfer Rollers are usually limiting the heat transfer, since they often have contact mainly on the edges of the plates due to wear or bent plates. They also cause often loss of caliper and bearing need to be replaced frequently. Airpressure actuated systems can only supply a limited pressure and have com- pared to shoe systems a closed surface. Pressure Shoe

Plate vity Issue—Poor Heat Control l hotplates are slow to react to pressure due to high steam volume and massive y also have high heat radiation and heat profile. Worn plates can damage crease edge crush.

Thin-Wall Hot Plates

t by peripheral drilled hot plates. anufactured out of special wear and nt steel, through which a continuous is drilled, with one inlet and one outlet. ecured by a massive steel frame.

CORR24usa.com

ance from steam to paper surface results in fast heat flow

Corrugated Solutions Launches New Website To Improve User Experience Lake Forest, Illinois based Corrugated Solutions, a U.S. manufacturers’ representative, completed a total refresh of its website at www.corrugatedsolutions.com to im- prove user experience for boxmakers nationwide. As many converters continue to embrace digital technology, Corru- gated Solutions is committed to making capital equipment sales easier, smarter and a better experience for all. The company reps manufacturers opf flexo folder gluers, rotary die cutters, material handling , IIoT, and more. “Engaging the current and next generation of decision- makers has always been a priority at Corrugated Solu- tions,” said Michael Klear, President of Corrugated Solu- tions. “We are a modern company and we needed a site that showcased the value of our team and our solutions partners. With this new site, we hope to elevate our brand, while modernizing the capital equipment sales process through digital mediums - as it should be in the digital age.” The new site features in-depth product pages, videos, e-commerce capabilities and online quote requests. Man- ufacturers and suppliers represented by Corrugated Solu- tions and featured throughout the new site are SUN Auto- mation Group, Latitude Machinery, PARA Srl., Helios IIoT, Highcon, Arco Murray, and C&M Conveyor and Ohio Blow Pipe – now rebranded as Innoveyance.

Five Lessons Learned (CONT’D FROM PAGE 6)

5. Adding more storage space in multiple markets: Sup- porting the strategy of having inventory when and where you need is the movement toward diversified storage solu- tions, including increasing the number of locations, adding multiple new markets, and looking at storage near pop- ulation centers. Having product or merchandise in multi- ple locations builds in more agility and flexibility allowing you to get those goods to your customer more quickly. What’s more, being closer to population centers is almost a requirement in today’s “next day delivery” e-commerce marketplace, which will continue to be a driver for where and when to build warehouses in both the short- and long- term future. The pandemic affected the global supply chain in a va- riety of ways, presenting weaknesses, challenges, oppor- tunities and solutions. Being open to new ways of doing things, building new relationships, adding buffer stock, increasing domestic inventory, and adding more storage space in multiple markets closer to population centers are just a few of the ways today’s modern shippers are suc- cessfully navigating disruptions. While the future of the supply chain remains uncertain, we believe many of these changes are here to stay. Dale Young is Vice President of World Distribution Ser- vices (WDS), a provider of nationwide distribution and lo- gistics solutions. Visit worlds.net for more information.

8 December 13, 2021

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NAM: Mixed Employment News Despite Good Manufacturing Gains Manufacturing employment rose by 31,000 in November, and year to date, hiring in the sector is on track for the best annual job growth since 1994, rising by 315,000 in

from $24.14 in October to $24.24 in November, with a 4.9 percent increase over the past year. Nonfarm payroll employment increased by 210,000 in November, which was well below the consensus estimate of around 575,000. That figure comes from the “Estab- lishment Survey” from the Bureau of Labor Statistics. The separate “Household Survey” shows employment growth of 1,136,000 for the month, and that stronger figure more accurately depicts the current strength in the labor market. Along those lines, the unemployment rate dropped from 4.6 percent in October to 4.2 percent in November, a post-pandemic low. Despite ongoing challenges, production strengthened in November at the fastest pace since April, buoying the ISMManufacturing Purchasing Managers’ Index. The head- line index edged up from 60.8 in October to 61.1 in Novem- ber. Hiring growth was also the strongest since April. The sample comments and the >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44

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