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Economic activity in the manufacturing sector grew in December, with the overall economy notching an eighth consecutive month of growth, say the nation’s supply executives in the latest Manufacturing ISM Report On Business.

The report was issued last week by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee:

“The December Manufacturing PMI registered 60.7 percent, up 3.2 percentage points from the November reading of 57.5 percent. This figure indicates expansion in the overall economy for the eighth month in a row after contracting in March, April, and May, which ended a period of 131 consecutive months of growth. The New Orders Index registered 67.9 percent, up 2.8 percentage points from the November reading of 65.1 percent.

“The Production Index registered 64.8 percent, an increase of 4 percentage points compared to the November reading of 60.8 percent. The Backlog of Orders Index registered 59.1 percent, 2.2 percentage points higher compared to the November reading of 56.9 percent. The Employment Index returned to expansion territory at 51.5 percent, 3.1 percentage points higher from the November reading of 48.4 percent. The Supplier Deliveries Index registered 67.6 percent, up 5.9 percentage points from the November figure of 61.7 percent. The Inventories Index registered 51.6 percent, 0.4 percentage point higher than the November reading of 51.2 percent. The Prices Index registered 77.6 percent, up 12.2 percentage points compared to the November reading of 65.4 percent. The New Export Orders Index registered 57.5 percent, a decrease of 0.3 percentage point compared to the November reading of 57.8 percent. The Imports Index registered 54.6 percent, a 0.5 percentage point decrease from the November reading of 55.1 percent.”

“The manufacturing economy continued its recovery in December. Survey Committee members reported that their companies and suppliers continue to operate in reconfigured factories, but absenteeism, short-term shutdowns to sanitize facilities and difficulties in returning and hiring workers are causing strains that are limiting manufacturing growth potential. However, panel sentiment remains optimistic (three positive comments for every cautious comment), an improvement compared to November.

“Demand expanded, with the (1) New Orders Index growing at a strong level, supported by the New Export Orders Index expanding, (2) Customers’ Inventories Index remaining in ‘too low’ territory and at a level considered a positive for future production, and the (3) Backlog of Orders Index achieving a 2½-year high. Consumption (measured by the Production and Employment indexes) contributed positively (a combined 7.1 percentage point increase) to the Manufacturing PMI calculation. The Production Index hit a 10-year high, as the last reading above 64.8 percent was in January 2011 (65.3 percent), with five of the top six industries reporting moderate to strong expansion.

The Employment Index moved into expansion after a single month of contraction, due to the inability to attract and retain direct labor. Inputs — expressed as supplier deliveries, inventories and imports — continued to indicate input-driven constraints to production expansion, at higher rates compared to November, as indicated by minimal gains in inventory levels and difficulties in expanding imports. Supply chains continue to struggle compared to November, contributing moderately to the Manufacturing PMI calculation. (The Supplier Deliveries and Inventories indexes directly factor into the Manufacturing PMI, the Imports Index does not.) The Prices Index jumped dramatically in December, to a level last reached in the summer of 2018, the peak of the last manufacturing expansion cycle.

“All six of the biggest manufacturing industries — Fabricated Metal Products; Computer & Electronic Products; Transportation Equipment; Chemical Products; Petroleum & Coal Products; and Food, Beverage & Tobacco Products — registered moderate to strong growth in December.

“Manufacturing performed well for the seventh straight month, with demand, consumption and inputs registering strong growth compared to November. Labor market difficulties at panelists’ companies and their suppliers will continue to restrict the manufacturing economy expansion until the coronavirus (COVID-19) crisis ends,” says Fiore.

Of the 18 manufacturing industries, 16 reported growth in December, among them: Fabricated Metal Products; Machinery; Computer & Electronic Products; Paper Products; Chemical Products; Petroleum & Coal Products; Primary Metals; Textile Mills; Electrical Equipment, Appliances & Components; Food, Beverage & Tobacco Products; and Miscellaneous Manufacturing. The two industries reporting contraction in December are: Printing & Related Support Activities; and Nonmetallic Mineral Products.

Ross Buford Ausburn, co-founder of SMC Packaging Group, formerly Southern Missouri Container, passed away on Saturday, December 26. He was 88 years old.

Ausburn was born on February 27, 1932, in Tulsa, Oklahoma, and graduated from Will Rogers High School in 1950. He attended the University of Oklahoma on a football scholarship and played for the legendary coach Bud Wilkinson.

After graduating with a BSBA, he enlisted in United States Marine Corps, attaining the rank of First Lieutenant. After his stint in the Marines he returned to the Tulsa area and began his career in the corrugated packaging industry at Hoerner Boxes. Following several promotions he ended up in 1963 in Springfield, Missouri, as the General Manager of the Hoerner sheet plant at Battlefield and Scenic. It was here that he started his long-term business relationship with his partner Charles R. “Chuck” Bachus, and in 1972 they founded Southern Missouri Containers, Inc.

The company has grown to encompass four operations in Springfield and Kansas City, Missouri; Conway, Arkansas; and Tulsa, Oklahoma, and has been rebranded as SMC Packaging Group. Today SMC Packaging Group is the largest independent corrugated box manufacturer west of the Mississippi River and east of the Rockies.

Ausburn was active in many business organizations over the years, including the Springfield Area Chamber of Commerce, Associated Industries of Missouri, AICC, The Independent Packaging Association, and Rotary International. He served on the Board of Directors of AICC from 1985-1991, first as a Regional VP for the states of Missouri, Kansas, Iowa, Nebraska, Minnesota and the Dakotas, then as a Director at Large. He was active on AICC’s Containerboard, Regulations & Sheet Supply Committee, the Safety Committee and Membership Committee.

He was also active in community affairs, volunteering his time and resources. He served on the Springfield Park Board, Springfield Family Y Board, and was a big supporter of the Ozark Trails Council, Boy Scouts of America. He is a recipient of the Distinguished Eagle Scout Award.

He is survived by a son, Kevin Ausburn, and a daughter, Kristin Schneider; one brother and one sister, as well as several grandchildren, great grandchildren, nieces and nephews. He was preceded in death by his wives Mary Ann Ausburn in 2002, and Sally Fisher Ausburn, in 2012.

Expressions of sympathy may be made to Covenant Presbyterian Church Foundation, 2441 S. Lone Pine, Springfield, MO 65804, or the Ozark Trails Council Boy Scouts of America, 1616 S. Eastgate Ave., Springfield, MO 65809.

Westport, Connecticut based JB Machinery recently installed ColorDry XL3000 IR dryer systems on the 3-color Isowa Ibis Flexo Folder Gluer at Abbott-Action Packaging facility in Attleboro, Massachusetts. With over 3000 JB IR dryers installed in 56 countries on diecutters and flexo folder-gluers from all major OEMs, this marks the first JB installation on an Isowa. “It was a pleasure to celebrate this milestone event with our great friends and valued partners at Abbott-Action”, said Warren Bird, President of JB Machinery. “We congratulate Sam and his team on their installation and look forward to celebrating their success with the new capabilities ColorDry will bring to their Isowa and the added value they will create for their customers.”

AICC, The Independent Packaging Association, has opened registration for Which Flexo Folder Gluer is Right for the Job?, a new webinar created with the support of AICC Education Investor Sun Automation, to be held Tuesday, February 2, at 2:00 p.m. EST. This webinar will help attendees evaluate the features of various flexo folder gluers to find the machine that best meets the needs of their company.

There are several quality FFG manufacturers in the market. However, not every machine offers the features that each company needs to produce the boxes in their current or aspiring order mix efficiently and economically. There are many things to consider when purchasing a flexo folder gluer. Participants will learn how to audit print jobs and process aspirations to understand the machine features they need to achieve their goals, for long runs or small orders.

This webinar will help attendees perform their due diligence and avoid costly mistakes for their company. Registration is $250 for members and $500 for non-members. This webinar is part of the All Access Pass. Pass holders can use their promo code to register at no additional cost. Register at www.AICCbox.org/Calendar. 14 January 11, 2021

Green Bay, Wisconsin based Fosber America announced that Bob Lantz, the company’s Midwest Regional Sales Manager, retired effective December 31, 2020.

Lantz began his career in the corrugated industry with Ringwood Starch Equipment in 1980 as a Project Engineer. He eventually transitioned to sales and joined Fosber in 2010.

“We’d like to thank Bob for his 40 years in the corrugated industry and for the last 10 years he spent with us here at Fosber,” said Jeff Pallini, President of Fosber America. “We were fortunate to have him as an integral part of the Fosber family and we wish him the best of everything in retirement!”

What a year to remember! As I think about 2020, the pandemic surely took center stage, driving changes at work, home, businesses, schools, and places of worship. Working from home has become a norm for many workers. Is the need for individual offices or even office buildings a thing of the past? On-line shopping has accelerated for retail sales and many restaurants boast that curbside take-out service is more profitable than seated dining. Our education system is undergoing a radical change with virtual classrooms accessed from home. Will that lower the cost of secondary education in the future and allow for more students to attend? These questions and lots more have challenged the traditional norms of daily life.

Personally, 2020 has pushed me out of my comfort zone and forced me to do things I normally would not do. Not flying on airplanes has almost doubled my capacity for productive work and given me an opportunity to explore historical industry documents. I spent half a day reviewing twenty years of FBA Board meeting minutes. Looking at the meetings following Y2K (remember that?), I found it interesting that the agenda items from 2000 were essentially the same as today, but with redefined meanings and varied importance.

For example: FBA has been providing data and statistics since its founding in 1940. Some reports have been eliminated, while many new reports have been developed to meet members’ needs. There are more benchmark reports today than ever before and members use them to gauge their individual progress. Each year, more than 108 reports are available for FBA members who participate in the benchmark reports.

In the early 2000s, FBA was focused on water and air compliance in the converting facilities. Over time, this focus, including recycling and responsible use of raw materials, was defined as sustainability. Today, the buzz phrases are circular economy and regenerative practices.

In the mid-90s, telling the corrugated industry story resulted in the formation of the Corrugated Packaging Council, which later became the Corrugated Packaging Alliance and was the precursor to the Corrugated Industry Promotion Program (CIPP) today.

FBA Chairpersons: Leadership And Service

What caught my attention the most, however, was the list of individuals who have served this industry and the association. These folks are leaders within their own companies and somehow found or made time to lead FBA. Here are the chairpersons of FBA for the last two decades:

• 2000-2001, Jim Keller, Weyerhaeuser

• 2001-2002, Bart Doney, Inland

• 2002-2003, Dennis Willman, York Container

• 2003-2004, John Lilac, Greif

• 2004-2005, Steve Klinger, Georgia-Pacific

• 2005-2006, Bob McIlvaine, The Royal Group

• 2006-2007, Tom Herlihy, Green Bay Packaging

• 2007-2008, Bill Akers, Akers Packaging

• 2008-2010, Tom Hassfurther, PCA

• 2010-2011, Christian Fisher, Georgia-Pacific

• 2011-2012, Tom Shallow, Fitzpatrick Container

• 2012-2013, Jim Porter, RockTenn

12 January 4, 2021

• 2013-2014, John Davis, Great Northern Company

• 2014-2015, Mike Waite, Menasha

• 2015-2016, Bill Hoel, International Paper

• 2016-2017, Pete Watson, Greif

• 2017-2018, Doug Bosnik, Buckeye Corrugated, Inc.

• 2018-2019, John Kelley, Dusobox Corporation

• 2019-2020, Jeff Chalovich, WestRock

• 2020-2021, Cathy Foley, Pratt Industries I want to thank them for serving and giving of their time

and energy to make our industry great. It is the collective wisdom of these individuals, along with a dedicated and talented FBA staff, that has made our association what it is today. Hopefully, anyone looking back on our time in leadership (2020) will acknowledge that the FBA Board and staff made a difference to protect and enhance the corrugated industry. Here are our accomplishments for 2020:

January

In January, FBA, as part of the Corrugated Packaging Alliance (CPA), introduced member companies to the latest Full Disclosure software model. The cost analysis tool can be used with corrugated packaging customers who may be considering different packaging materials. The tool tracks all the costs associated with packaging a product allowing manufacturers to make informed decisions about packaging materials. Dennis Colley and Rachel Kenyon also attended the Waste Management Sustainability Forum and participated in an AMERPIEN/Arizona State University Walton Sustainability Solutions Workshop on modeling the future of recycling. Beginning in January 2017, FBA highlighted a different market segment each month.

February

FBA joined a collaborative work group of industry leaders led by the American Forest & Paper Association (AF&PA) to develop design guidance for the recyclability of paper-based packaging. Dennis and Rachel met with Mary Anne Hansan and staff at the Paper + Packaging Board and agreed to collaborate on new forestry and recyclability sell sheets for the P+PB Sales Channel Toolkit.

March

FBA, along with CPA partners AF&PA, AICC – The Independent Packaging Association, and the Technical Association for the Pulp and Paper Industry, urged Federal and State government to recognize corrugated operations as “essential businesses” during “Stay at Home” orders. CPA sent letters to the governors of all fifty states and the Department of Homeland Security.

FBA issued a press release on the essential work of the industry and launched a web page tracking COVID-19 information, including Essential Business Designation, Guidance for Employers, Food Safety and Packaging, and Surface Transmission of the virus.

April

With the FBA Annual Meeting cancelled, FBA held its spring Board of Directors’ Meeting by conference call. During the call, FBA ratified the membership’s election of new Board members and officers. Cathy Foley, Vice President Industry Relations and Supply Chain at Pratt Industries, became the Association’s 2020-2021 Chairman. Additional officer elections include First Vice Chairman Bob Landaal, Landaal Packaging Systems; Second Vice Chairman Doug Bosnik, Buckeye Corrugated; Immediate Past Chairman Jeff Chalovich, WestRock; President Dennis Colley; and Senior VP Rachel Kenyon.

May

The Fibre Box Association (FBA) and AICC, The Independent Packaging Association, recognized 422 corrugated industry plants for safety achievements in 2019.

FBA created a video thank you to the industry’s essential workers who helped keep transport packaging flowing to markets including packaging for food and other consumer products, medical and pharmaceutical products, tissue and hygiene products and more.

Members of the Technical, Safety & Health, and Environmental Committees met by video conferencing to conduct their business. Agendas and minutes for each of the three meetings can be found on the FBA website.

June

The North American Industry Classification System (NAICS) report was updated on the FBA website and distributed to members showing where boxes were used to ship products in 2019. FBA published the Corrugated Container Industry Annual Report of Occupational Injuries and Illnesses and the Fibre Box Association Membership Report was sent to members recapping the Association’s 2019 accomplishments. The Membership Report included a letter from Jeff Chalovich, past FBA chairman, who shared his thoughts on leading FBA and the impact of the Coronavirus on the industry.

July

FBA released the 2019 Operating Ratio Survey of Independent Sheet Plants. AF&PA confirmed pizza boxes can be recycledand FBA began promoting the news to consumers, recyclers, and pizza purveyors through targeted advertising in pizza publications and across social media.

August

The FBA Board of Directors Executive Committee met by video conferencing. Shar Huske retired from FBA after 17 years of service.

September

FBA published the E-Commerce Trends and News Report and the Economic Trends and Outlook for Corrugated Products report, which contains a U.S. and Canadian economic overview and information about several box consuming markets.

Rachel began sending e-mail advertising updates containing the monthly social media theme and ads to look for in upcoming trade publications.

October

The FBA fall Board of Directors meeting was held by video conference. A cease and desist letter was sent to TOSCA regarding incorrect claims about corrugated boxes and OCC. As a result, TOSCA modified their communications.

FBA published its third quarter Advertising and Social Media Impact Report. At the request of the Board, the dashboard report was developed earlier in the year with 1Q and 2Q reports also available.

Rachel spoke at the NERC (Northeast Recycling Council) Fall 2020 Virtual Conference held October 20-22, 2020.

FBA welcomed new member Corrugated Concepts & Packaging, Inc. to the association.

November

Both AF&PA and FBA announced a change in the frequency of reporting shipments, consumption, and inventory. Beginning in 2021, monthly reports will become quarterly reports. The first report of 2021 will be published on April 15, 2021.

The Key Performance Indicators (KPI) report was published for participating members.

December

The wax alternative coating survey was published in December. FBA shared social media posts about the role of corrugated boxes in the distribution of the coronavirus vaccine. FBA also announced a “Save the Date” for the 2021 FBA Annual Meeting to be held at Montage Laguna Beach, Sunday, May 2 – Tuesday, May 4, 2021 (a Sunday to Tuesday format).

Dennis Colley is President & CEO of FBA.

The Corrugating Machinery Division of Hunt Valley, Maryland based Mitsubishi Heavy Industries America (MHIA), a supplier of corrugating and box-making machinery, has announced the assignment of Hiroyuki Kikumoto as new Vice President, Sales for North America,

Kikumoto is replacing Yasushi Kitahara, who will be assuming a leadership role in the Sales Department of Mitsubishi Heavy Industries Machinery Systems (MHI-MS) in Mihara, Hiroshima, Japan, after a successful three-year tenure as VP, Director of Sales for North America.

Kikumoto will be leading sales efforts for the North American market, comprising the U.S., Canada, and Mexico, beginning on January 4, 2021. The 29-year Mitsubishi veteran will work in close collaboration with Christine Little, the division’s Senior Sales Manager, and regional sales managers John Bacot, Greg Kukla and David Moulder.

Kikumoto’s appointment is MHIA’s most recent move designed to strengthen its robust machinery sales, allowing the company to deliver on its commitment to grow market share and brand preference as the corrugating industry emerges from the COVID-19 epidemic in 2021.

“We’re thrilled to welcome Kikumoto to the North American MHIA team,” said Shoji Isoai, President, MHIA Corrugating Machinery Division. “His nearly three decades of global management and sales experience, understanding of our industry’s unique value chain, and proven leadership across multiple Mitsubishi divisions will help the corrugating machinery division continue to grow and deepen our customer partnerships.”

Kikumoto most recently served as General Manager, Printing & Packaging Machinery Sales Department, at Mitsubishi Heavy Industries Machinery Systems, Ltd., where he was responsible for global sales of its printing and paper converting machinery businesses.

AICC, The Independent Packaging Association’s first virtual plant tour was a walkthrough of Dusobox in Orlando, Florida, with company President John Kelley. More than 360 registrants were able to watch the video tour of Dusobox’s 250,000-square-foot facility in Orlando and ask questions of Kelley, as well as featured suppliers.

After a brief company history highlighting the achievement and Dusobox during their near 70 years of operation, the tour brought attendees through the company’s administrative office, highlighting their data analytics team, before moving on to showcase several of their design successes for displays and industrial packaging.

After explaining their facility’s layout and the increased collaboration they have seen with their open floor plan, the tour moved on to the production floor. When Dusobox moved to its current facility in 2016, it focused on material flow and workflow.

In the maintenance department, Kelley espoused the importance of maintenance, especially on high-tech machinery. Dusobox has achieved an uptime of 95 percent. Its system uses Artificial Intelligence to bring predictability to its maintenance plan. All parts data, electrical schematics and machine drawings have been digitized, so its team of five maintenance technicians can access the information wherever they are in the plant.

Kelley then walked attendees through the ink kitchen and around the floor to see Dusobox’s five-color Gopfert, laminating section, autoplaten cutting and creasing area, specialty folder gluers. He ended the tour in the company’s digital space.

Following the tour, breakout rooms were open to allow participants to ask Kelley questions and get more information from the suppliers highlighted in the video, which included Bobst, JB Machinery, Bahmuller, Gopfert, Poteet Printing Sytems, HP, Esko, and Kiwiplan.

The tour was sponsored by Dusobox, HP, Kiwiplan, Poteet Printing Systems, and JB Machinery.

AICC’s next virtual tour, Thursday, January 14, at 2:00 p.m. EST, will feature Wasatch Container. Founded in 1995, Wasatch Container is a premier custom packaging design and manufacturer in Salt Lake City, Utah. Wasatch specializes in corrugated shipping boxes, retail boxes, point of purchase displays, foam fabrication, and wooden crates.

The virtual tour will feature a video tour of the facility with time for questions from attendees. For more information on upcoming virtual plant tours and to register, visit www.AICCbox.org/VirtualTour.

Questions about the Virtual Plant Tour Series can be directed to Cindy Huber, AICC Director of Conventions & Meetings, at chuber@aiccbox.org or (703) 836-2422 or Laura Mihalick, Senior Meeting Manager, at lmihalick@aiccbox.org or (703) 836-2422.

St. Paul, Minnesota based H.B. Fuller says it has readily available adhesive grades with hot melt advanced technology for extreme cold storage of vaccines and medication packaging. Advantra adhesives provide a secure bond at -70 C with tamper evident fibre tear.

Proper packaging is essential to securely and reliably preserve and transport pharmaceutical products, including vaccines and medication, from the time they are filled until they get to a patient. Adhesives play a key role in packaging performance, especially in the face of strict storage requirements. Some vaccines need to be kept at -70 C (-94 F), which leads to complex packaging requirements and the need to set up ultra-low-temperature freezers at vaccination centers. These storage requisites create logistics and transportation challenges for carriers and a wide preparation for national health systems.

H.B. Fuller offers extreme cold resistant adhesive grades with Advantra 9280 EU and Advantra BOLD 9480. These have been designed for tough surfaces and harsh conditions such as high speed pharmaceutical packaging lines without counterpressure. Both solutions are commercially available in Europe, India, Middle East, and Africa (EIMEA) and with equivalent performance grades available globally. Visit hbfuller.com for more information.

AICC, The Independent Packaging Association, has opened registration for How to Reduce Risk in Major R&D Projects with Confidence, a new webinar, to be held Thursday, February 9, 2021, at 2:00 p.m. EST, with Kelly Lawrence, Founder & CEO, Lawrence Innovation and Dan Adams, Founder & President, The AIM Institute.

This webinar will give attendees a new approach to managing large, high-impact R&D projects. With this method, participants will confidently uncover and defuse “landmines” that blow up schedules, projects, and careers.

Kelly Lawrence is the Founder and CEO of Lawrence Innovation and a coach for The AIM Institute. For more than two decades, she has delivered results for B2B innovators around the world, including Berkshire Hathaway’s Lubrizol & Fortune Brands’ Moen.

A widely recognized marketing expert who truly understands industrial B2B, Lawrence’s teams typically deliver hit rates that dramatically exceed industry averages. Driven by the voice of the customer, she has a career history of converting insights into practical action plans that yield higher revenues, higher margins, and increased ROI for her clients and their downstream customers.

Dan Adams is the Founder and President of The AIM Institute and author of New Product Blueprinting: The Handbook for B2B Organic Growth. He is a chemical engineer and holder of many patents and innovation awards, including a listing in the National Inventors Hall of Fame. One of the foremost experts in B2B innovation, Adams has taught B2B professionals in every region of the world in hundreds of workshops. An award-winning speaker, he has lectured at Wharton’s Executive MBA program and other North American & European universities and is a popular industry keynote speaker.

Registration for How to Reduce Risk in Major R&D Projects with Confidence is $250 for members and $500 for non-members. This webinar is part of the All Access Pass. Pass holders can use their promo code to register at no additional cost.

AICC members lower training costs and streamline payments with the All Access Pass. For one payment of $1,695, participating companies are given a code that all employees can use to register for every webinar scheduled through August 2021. Each company also receives a recording of each webinar. With more than 50 webinars scheduled, the All Access Pass represents a value of $12,500. Learn more at www.AICCbox.org/Pass.

Register for How to Reduce Risk in Major R&D Projects with Confidence at www.AICCbox.org/Calendar. Questions about training and the value a well-trained workforce brings to a company can be directed to Taryn Pyle, Director of Education & Leadership Development, tpyle@ aiccbox.org, or Chelsea May, Education and Training Manager, cmay@aiccbox.org or (703) 836-2422.