Board Converting News, February 7, 2022

Board Converting News, February 7, 2022

BoardConverting Serving the North American Corrugated and Folding Carton Industries for 38 years February 7, 2022 VOL. 38. NO. 6

Consumer Insights Crucial To Closing Complex Sales BY JILL J. JOHNSON

WestRock To Build New Corrugated Plant In WA

WHAT’S INSIDE 5 AICC To Launch First Podcast: Breaking Down Boxes 6 FBA: Shipments Drop In December 2021 10 NAM: Manufacturing Salaries, Wages Rise 4.1 Percent In Q4 24 Supplier Reports: Part 1 The new plant will serve all industry seg- ments and markets in the Pacific Northwest. When completed, the plant will replace the company’s existing corrugated operations in Longview. The new plant will be co-located with the Longview paper mill and will increase the integration of the mill’s containerboard. WestRock has more than 50,000 employ- ees at more than 320 manufacturing facilities, design centers, research labs, and sales offic- es around the world. Atlanta, Georgia based WestRock last week announced plans to build a new corrugated box plant in Longview, Washington, to meet the growing demand from WestRock’s region- al customers in the Pacific Northwest. “WestRock’s corrugated packaging busi- ness in the Pacific Northwest continues to perform well, with strong relationships with customers in attractive growth markets,” said David B. Sewell, chief executive officer, West- Rock. “Our new corrugated packaging plant will enable our team in this region to serve these customers even better in the future, with a state-of-the-art manufacturing facility that will provide new capabilities and efficien- cies for our customers.”

As sale is classified as complex when it involves a high degree of risk and uncertainty, as well as when it involves a larger number of people in the process than just the final consumer. As more people are in- volved in a sales decision, the more complex the sale becomes. Complex sales also do not resolve in one single interaction. When there are multiple decision points, the real goal is to keep the conver- sation moving forward toward the next decision. Recognize there are

competing goals at play too. Your goal is to make the sale; their goal is to make the right decision based on their wants, needs and budget. Your prospect also might be considering competitive offerings, so keep the conversations on going with you and what you offer. Psychographics Drive Buying Behavior In target marketing, there are eight different major variables you can use to define your target audience. When you are looking at a complex sale, the most critical component to understand is the psychological make-up of your prospect. This is referred to as the psychographics of your customer. What drives them and their buying behaviors? To effectively handle a complex sales situation, a deeper consum- er understanding that is matched to decision triggers and promotional strategies is required. These sales situations involve an intricate blend of matching your unique offerings with the competing concerns of mul- tiple decision influencers and stakeholders your prospect brings to the table. CONTINUED ON PAGE 14

2 February 7, 2022

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.

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

The Price is Right

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

More box makers and brokers are relying on the containerboard pricing in Board Converting News to negotiate their contracts with end users.

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.

SEE THE CURRENT PRICES IN PRINT OR ONLINE AT WWW.BOARDCONVERTINGNEWS.COM.

Len Prazych at 518-366-9017 [email protected]

42# Kraft Liner 26#

Semi-Chem Medium

East West

$970.00

$960.00 $995.00

$1,015.00

3

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February 7, 2022

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704-923-0990

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4 February 7, 2022

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AICC To Launch First Podcast: Breaking Down Boxes

AICC, The Independent Packaging Association, with hosts Gene Marino, Executive Vice President, Akers Packaging Service Group and AICC Board Chair, and Joe Morelli, Vice President of Sales & Marketing, Huston Patterson Printers and AICC Associate Board Chair is launching the Associa- tion’s first podcast, Breaking Down Boxes. During the podcast, Marino and Morelli will interview key individuals in the independent paper and board pack- aging space. Michael M. D’Angelo, AICC President, said “AICC members have so many compelling stories to share and with them lessons to embrace. The Independent ex- perience is fascinating and relatable on so many levels. Breaking Down Boxes with Gene and Joe is the best way to share these stories. Listen anytime. There is something of value in each one.”

Marino and Morelli share an interest in leadership and understanding the story behind the successes and failures of those in the independent packaging space. “AICC’s membership is full of people who have such powerful stories of growth, success and even failure,” said Morelli. “Gene and I have been fortunate over the years to hear first-hand what their experiences have been like and ultimately a lot of it has helped shape our own careers. We are both really excited to help share their valuable insight!” A podcast trailer is currently available online. A bonus episode that offers background and insights into the lives of the hosts will be released Monday, February 14. New episodes will be released the first Monday of ev- ery month. The first episode, available March 7, features an interview with Greg Tucker, Chairman and CEO, Bay Cities. The second episode, available Monday, April 4, will fea- ture John Bird, Chairman and CEO, JB Machinery. “Joe and I are excited to deliver to the membership sto- ries and advice from successful industry entrepreneurs. We have been fortunate enough to enjoy similar stories over the years and feel that sharing to a broader audience provides insights into being a better leader,” said Marino. Subscribe to Breaking Down Boxes on all major pod- cast platforms or visit www.AICCbox.org/boxes . Gene Marino, left, and Joe Morelli during a recording of AICC’s new podcast, Breaking Down Boxes.

5

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February 7, 2022

FBA: Shipments Drop In December 2021

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

According to statistics recently released by the Fibre Box Association (FBA), industry shipments of corrugated prod- ucts decreased 2.1 percent, from 34.916 bsf in December of 2020 to 34.195 bsf in December of 2021. Average-week shipments also decreased 2.1 percent, from 8.729 bsf in 2020 to 8.549 bsf in 2021. Shipments rose 2.8 percent year-to-date over 2020’s rate. Containerboard consumption decreased 1.3 percent, from 2.7727 million tons in December of 2020 to 2.7372 million tons in December of 2021. Consumption, howev- er, increased 2.3 percent year-to-date over 2020, from 33.0739 million tons to 33.8477 million tons. Container- board inventory at corrugator plants increased 2.4 percent from November to December 2021. Weeks of supply re- mained at 3.3, or zero percent. “U.S. retail sales dropped in December by the most in 10 months, suggesting the fastest inflation is taking a toll on consumers just as the nation confronts more coronavirus infections,” noted Dick Storat in his Scoring Boxes newslet- ter. “Retail sales declined by 1.9 percent last month, as 10 of 13 major markets and sales channels declined.” Manufacturing activity continues to expand across all industrial sectors and it appears there is evidence that supply chain issues are being resolved, Storat wrote.

Year

Actual

Percent Change Avg Week Percent Change

2021 2020

34.195 34.916

-2.1

8.549 8.729

-2.1

Industry Total

Year-to Date

December 2021

Year

Actual

Percent Change Avg Week Percent Change

2021 2020

416.338 406.776

2.4

8.294 8.071

2.8

Industry Total

Containerboard Consumption (Thousands of Tons)

Year

Month

Percent Change Year-to-Date Percent Change

2021 2020

2.7372 2.7727

-1.3

33.8477 33.0739

2.3

Container Board Inventory - Corrugator Plants (Thousands of Tons)

Corrugator Plants Only

Date

Percent Change Weeks of Supply

Percent Change

Dec. Nov.

2.256 2.203

2.4

3.3 3.3

0

Shipping Days

Year

Month

Year-to-Date

2021 2020

20 20

251 252

SOURCE: Fibre Box Association

www.boardconvertingnews.com 1/30/22 3:56 PM

6 February 7, 2022 BCN ad_JSBOT RDC.indd 2

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

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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

Greif Announces CEO Transition, Introduces New Leadership Team Delaware, Ohio based Greif announced last week that Ole Rosgaard has assumed the role of President and CEO, consistent with the company’s previously announced suc- cession plan. Rosgaard succeeds Pete Watson, who will become Executive Chairman of Greif’s Board of Directors. Rosgaard has also been nominated to serve on Greif’s Board of Directors. In addition, Greif announced a new executive leader- ship team effective February 1, 2022 that will lead ongo- ing growth and continuous improvement opportunities to drive additional shareholder value: • Executive VP, Chief Financial Officer, Larry Hilsheimer • Executive VP, General Counsel and Secy., Gary Martz • Executive VP, Chief Human Resources Officer, Bala V. Sathyanarayanan • Senior VP, Chief Supply Chain Officer, Tina Schoner • Senior VP, Global Operations, Kimberly Kellermann • Senior VP, Group President, Paper Packaging and So- terra LLC, Tim Bergwall • Senior VP, Group President, Global Industrial Packag- ing, Patrick Mullaney • VP, Chief Technology Officer, Doug Lingrel • Vice President, Chief Marketing and Sustainability Offi- cer, Matt Eichmann (effective March 1, 2022)

“I am pleased to announce our new executive leader- ship team,” said Rosgaard. “Their diverse set of skills, and backgrounds, along with proven records of performance, will drive even greater success at Greif in the future.” USDA Appoints Three To P+PB The Paper and Packaging Board (P+PB) has announced three new board members appointed by USDA Secretary Tom Vilsack. Scott Light, Georgia-Pacific; Beth Cormier, Sappi; and Richard Bennett, Pactiv Evergreen, will begin their three-year appointment immediately. An eight-mem- ber Board of Directors oversees the paper and packaging sectors’ national promotion program. 2022 officers are: • Chair, Scott Light, Executive VP, Packaging & Cellulose, Georgia-Pacific LLC • Vice-Chair, Jonathan Kraft, President, The Kraft Group • Secretary/Treasurer, Fred Towler, Chief Diversity Officer & VP Global Talent Management, International Paper. • At-Large Member, Rob Melton, VP and General Manag- er, Paper, Domtar • Beth Cormier, VP of Research, Development and Sus- tainability, Sappi • Richard Bennett, VP of Paperboard Sales & Marketing, Pactiv Evergreen • James Harrell, VP, Industrial Americas, Sonoco One seat remains to be filled.

8 February 7, 2022

www.boardconvertingnews.com

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NAM: Manufacturing Salaries, Wages Rise 4.1 Percent In Q4

decreased 4.1 percent and 1.7 percent, respectively. More encouragingly, personal spending has jumped 13.3 per- cent over the past 12 months. With spending lower, the personal saving rate in- creased from 7.2 percent in November to 7.9 percent in December. The saving rate averaged 11.9 percent in 2021, down from 16.3 percent in 2020 but up from 7.6 percent in both 2018 and 2019. The PCE deflator rose 0.4 percent in December. Over- all, the PCE deflator has risen 5.8 percent year-over-year, the greatest increase since July 1982. Core inflation has increased 4.9 percent since December 2020, the fastest pace of inflation since September 1983. Core inflation is likely to remain elevated, even if the first half of 2022 brings some stabilization. The current forecast is for the core PCE deflator to be roughly 2.8 percent year-over- year by the end of 2022. For its part, the Federal Reserve will wind down its asset

Private manufacturing wages and salaries rose 1.0 per- cent in the fourth quarter, an increase that translates into 4.1 percent growth over the past 12 months, the fastest pace in the history of 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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