Board Converting News, September 28, 2020

BoardConverting Serving the North American Corrugated and Folding Carton Industries for 36 years September 28, 2020 VOL. 36, NO. 39

Converters, Packagers Respond To Changes In COVID-19 World BY KATIE LUNDIN Corrugated and folding carton product packaging has developed a vi- tal role in the Covid-19 world. Early shelter-at-home orders made food delivery and e-commerce a necessity, driving increased packaging de- mand. And concerns over surface contamination changed the way that many people interact with the packaging that arrives in their homes. These trends continue, even with states re-opening and most expect that these changes will persist even after the pandemic is behind us.

NAM: Manufacturing Rose One Percent In August U.S. manufacturing production increased 1.0 percent in August, easing from the 3.9 per- cent gain seen in July but rising for the fourth straight month, according to Chad Moutray, Ph.D., Chief Economist at the National Associ- ation of Manufacturers (NAM). Despite recent progress, output in the sector remained 6.7 percent below the pre-pandemic pace in Feb- ruary. Manufacturing capacity utilization was 70.2 percent in August, up from 69.5 percent in July but still down from 75.2 percent in Feb- ruary. Real median household income, however, soared to a new record, up 6.8 percent from $64,324 in 2018 to $68,703 in 2019. The av- erage American working full-time, year-round earned $52,000 in 2019. The official poverty rate was 10.5 percent in 2019, down for the fourth straight year and down from 11.8 per- cent in 2018. The New York and Philadelphia Federal Re- serve Banks each reported expanding manu- facturing activity, with the sector continuing to show signs of recovery since the spring and orders strengthening in both areas. Respon- dents were upbeat in their outlook.

Packaging design is responding to the new normal in three ways: 1. Product packaging is adapting to shifting buying patterns: The coronavirus has changed the way that people shop. Running out to the store now carries inherent risks that simply weren’t a consideration before. Online shopping has become the safest choice. Thus, e-com- merce traffic has spiked significantly. This means that it’s more import- ant than ever for packaging design to accommodate the rigors of ship- ping but also preserve that important “unboxing” experience. Going forward, packaging designers must be mindful of the addi- tional physical demands being placed upon packaging to accommo- date shoppers’ preference for online buying. 2. Product packaging must meet heightened health and safety stan- dards and expectations: The novel coronavirus has prompted people all over the world to question the safety of the products they bring into their homes. The impact of coronavirus on retail e-commerce website traffic worldwide as of June 2020, by average monthly visits. Credit: Statista

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WHAT’S INSIDE

6 x x 8 x x 12 x x 26 x x Register For Free Virtual SCE Session Of ‘Tech Talks’ 12 Doug Volk, Formerly Of Volk Packaging, Completes Trilogy 34 Identity Crisis: Overcoming A Poor Industry Reputation 40 Return On Investment Vs. Return On Influence

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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 indi- cated 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 $885.00-890.00 $900.00-910.00 $900.00-910.00 $900.00-910.00 $930.00-940.00 $903.00-912.00

26# Semi-Chem. Medium

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

$820.00-850.00 $835.00-855.00 $835.00-855.00 $835.00-855.00 $865.00-875.00 $838.00-858.00

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

122.76

148.46

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

$920.00 $965.00

$910.00 $945.00

AVERAGE CONTAINERBOARD PRICES.indd 1

3/7/19 2:04 PM

Peachtree Packaging & Display for being named a 50 P.O.P. Company by CREATIVE Magazine Top

“Advantzware's corrugated ERP plays a big role in helping to optimize our workflow on a daily basis. We are extremely grateful for the support and innovation they provide."

Chad Wagner, CEO Peachtree Packaging and Display

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September 28, 2020

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NAM: Manufacturing Rose (CONT’D FROM PAGE 1 )

Core Competency

Retail spending rose 0.6 percent in August, slowing from the 0.9 percent gain in July but increasing for the fourth straight month. Americans continue to spend mod- estly, with activity above pre-pandemic levels for the third consecutive month. Over the past 12 months, retail sales have risen 2.6 percent, but with motor vehicles and parts and gasoline excluded, spending has increased by a rela- tively decent 4.0 percent since August 2019. Consumer confidence increased to a six-month high, according to preliminary >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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