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Quad Plus 2022-01 QP Siemens Masterdive Servicing

Options for Discontinued Siemens Masterdrive Systems 

With the beginning of the planned phase-out of Siemens Masterdrive in October of 2010, replacement parts  and units that have been refurbished became increasingly difficult to obtain. Plus, those parts and units that  were available began to climb in both price and delivery times. For owners of this drive system,  understandable anxiety set in. 

What Does the Phase-Out Mean? 

quad plus logo

Essentially, the phase-out means that the drive system has been discontinued by the manufacturer. For a  time, there were still replacement parts and reconditioned drives readily available, but as they were no  longer being manufactured, these stores would eventually run out.  

Options for Discontinued Drives 

After 2020, Siemens will no longer provide support for Masterdrive. One seemingly straightforward option  would be to change out the entire system, but this would likely mean upgrading the entire automation  system. This option comes with considerable expense and probably requires a great deal of time. 

However, because the drive system was so popular, there is a broad secondary market that will be self sustainable for many years beyond 2020. That means that there are plenty of opportunities to extend the  useful life for existing drives at a small percentage of the expense of a new system. 

Repair or Replace: Factors to Review 

Before arriving at a decision on whether to extend the life of a Siemens Masterdrive system or complete a  replacement and overhaul of your entire system, consider these key factors: 

  • Performance. The age of the drive will not affect its performance. The drive’s speed and torque will  remain consistent with as-built levels.  
  • Service Availability. Many service providers will travel to areas with no local providers available or  accept delivery of shipped drives for service.  
  • Spare Part Availability. Certain IGBTs pose a risk for spare parts, particularly those with very large  frame sizes. Still, the risk is reduced by devices stocked by Siemens and local service providers.
  • Reliability. This is arguably the most important factor to consider as it may not make sense to repair  an inverter that is already failing at rates greater than expected. 

Masterdrive Extension Programs 

Quad Plus has serviced well over 2000 Masterdrives throughout the years. Because of this extensive  experience, we have collected vast amounts of data regarding which components tend to fail first and which preemptive actions are most likely to maintain productivity. As a result, we are able to offer a proactive program that can help extend the life and preserve a high rate of reliability for these drives.

Some of these failure points include:  

  • Cooling Systems. Water coolant should be cleaned and flushed, hoses and clamps upgraded, and  heatsinks cleaned. Fans also tend to wear out after about four years.  
  • DC Bus Capacitors. These should be changed out after a maximum of 15 years, or sooner,  depending on the application and working environment. 
  • Power Supplies. Small contactors and electrolytic caps should be inspected or replaced as needed.  
  • Gate Drivers. Preemptive replacement of components including fiber optics (ivi, ipi, impi)
  • IGBT. These should be assessed for proper functioning based on the application and the working  environment.  
  • Internal Power Connections should be inspected.  

Through our own experience or that of others, most service providers have also discovered that using OEM  parts delivers the best outcomes. In the right environment, this kind of program can extend the working life  of the drive for ten years or more.  

Individual or Phased Replacement 

Another strategy to consider is a phased or planned replacement of one drive at a time over the course of a  few years. For example, many customers will have a displaced drive reconditioned and kept as a spare for  future use. This method will allow a complete system to undergo an upgrade over several fiscal years. That  

way, the customer can complete the overhaul during planned periods of downtime and from a planned  budget.  

The Right Choice for Your Operation 

Ultimately, the decision comes down to the reliability of your current drives, your budget for upgrades, and  the need for service or upgrades throughout your operation. If now is not the right time for replacement,  Quad Plus’s life-extending program for your discontinued Siemens Masterdrive systems can cost  approximately 70 percent of the total cost of a new system, including the cost of engineering and automation  costs associated with replacement. 

If you’d like additional information on our Masterdrive life-extension program or if you’d like assistance  developing a migration plan from your Masterdrives, please contact Jim Woulf at (920) 515-4155 or via  email at jwoulf@quadplus.com.

Quad Plus 

1001 West Kennedy Avenue Kimberly, WI 54136 

www.quadplus.com 

Sales Contact 

Jim Woulf 

(920) 515-4155 

jwoulf@quadplus.com 

All About Packaging Press Release Customer Letter

ANNOUNCEMENT

all About Packaging logo

We are pleased to announce that All About Packaging, LLC has purchased all assets of All About Packaging, Inc. (AAP, Inc.) headquartered in Appleton, Wisconsin as of 1/1/2022.  

All About Packaging, Inc. was founded by Tom and April Schein in Appleton, Wisconsin in 1997. The Schein’s have served as the leaders of AAP, Inc, while manufacturing and serving the Fox Valley Community for 25 plus years. AAP, Inc specializes in thermoformed packaging, including clamshells, blisters, trays and custom packaging solutions. At AAP, Inc. no job is too small and the mission is “Concept to Completion.”

The new owners, Chad Abel and TJ Thibert have spent the last 30 years innovating and leading companies in the paper, plastic and metal manufacturing industries. Per Thibert, “Chad and I couldn’t be happier with the acquisition of All About Packaging, Inc. The Schein’s have built a solid company that has stood the test of time for 25 years. We have a phenomenal group of employees and an excellent management team that strives to innovate and continuously improve each and every day. The future is incredible bright at AAP, Inc. as we look to continually partner with our existing customer base while identifying new products and markets.”

We look forward to meeting all our valuable customers, suppliers and vendors soon, please feel free to contact us with any questions, comments, or concerns.

Sincerely and Best Regards,

Chad Abel               

Chad Abel – COO/Business Development   

chada@aapack.com

(920) 830-2700

(847) 867-9525

TJ Thibert

TJ Thibert – President/CEO

tjthibert@aapack.com 

(920) 830-2700

(562) 500-7088

GBIG NEWS Bretting Company

GBIG NEWS Bretting Company

GBIG NEWS C. G. Bretting Manufacturing Co., Inc. tour on January 20, 2022 at their Ashland, WI facility.

Bretting logo

I recently had the opportunity to take a tour of C. G. Bretting Manufacturing Co., Inc. (Bretting) and have dinner with a few company representatives. I met with three members of the Sales Department – Randy DeMars, Troy O’Bey and Blake Bretting – at the 280,000 square foot manufacturing facility in Ashland, WI and had an interesting discussion regarding the Bretting company as well as manufacturing in general. Bretting is a well-positioned and diversified OEM in the design and manufacture of converting equipment (www.bretting.com). Bretting’s OEM business serves the Tissue, Towel, Napkin, Non-woven, Wax, Foil and Paper Bag (www.absolutmfg.com) markets; Supplying full converting lines from unwind stand to a variety of poly or paper packaging. Bretting also offers Contract Manufacturing Services (CMS) to a wide range of businesses including industries such as Oil & Gas, Mining, Logging & Wood Process and Food Processing Industries.

Bretting has served the converting and contract manufacturing industry since 1890. Bretting’s commitment to quality and dedication to service allows them to provide customers with the ability to operate some of the most reliable, durable, and innovative equipment in the industry.

The entire Bretting team strives to exceed customer expectations and to provide outstanding customer service.  One of their latest developments is the addition of Digital Printing capabilities to their converting lines, providing continuous high-speed production on a variety of napkin, tissue and towel substrates. This technology allows for variable data content and is the ultimate performer for low case count, customized print runs (Digital Printer On C.G. Bretting Manufacturing Co. Inc.). 

In addition to digital print Bretting offers a full line of LCi, Premium, and G-class (Gearless) Flexographic Printers which can be sold independently or as part of a complete converting line. The Green Bay Innovation Group will be covering a wide variety of Converters in the upcoming issues of the www.GBIGNEWS.com.  Wisconsin has over 200 Converters and is called the Converters Corridor of the United States.

Women in Business & Manufacturing

Women in Business & Manufacturing

A Round Table Overview for GBIG


This series of three features women in manufacturing and/or allied to industry.

Including in this, Part 1:

Hosted by Susan Stansbury, Industry Consultant

Susan Stansbury

Barb LaMue, President & CEO, The New North

Barb LaMue headshot

Cassie Diedrick, Business Development, Robinson Inc.

Cassie headshot

Mary VanVonderen, Marketing Manager, The CMM Group

Mary VanVonderen

Susan: What is your outlook for 2022? 

Barb LaMue:We anticipate that 2022 will see increased sales growth and capital investment within the region, but unfortunately supply chain disruptions will continue. The number of job opportunities will also continue to increase, but the tight labor market will also remain. 

Cassie Diedrick: We see more collaboration, automation, and custom tailoring to meet market needs. Customization, for example, does not need to be expensive when you consider the gains in efficiency and productivity that result.

Mary VanVonderen: We see markets are opening up in the industries we serve. Money is being spent on long-delayed projects. Companies are spending on new equipment and expanding production in many of our core markets.  We also see an uptick in companies taking proactive steps for preventive maintenance and upgrading existing equipment.

Susan: What do you see regarding workforce issues?

Barb: Companies are investing more in technology and increasing job training to grow from within, along with increased workplace flexibility. Our institutions of higher learning are also increasing the methods of learning with more certificates and shorter-term focused curricula. 

Susan: Not too long ago, the focus on fuller employment was the major workforce issue with companies. Now, with automation and lean manufacturing, the difficulties in finding workers with current low unemployment, may be overcome somewhat.

Mary: While companies are expanding their production, the concerns remain for finding qualified people to fill positions and finding new ways to retain them. We believe in listening, really listening to teams—they have good ideas. I’d advise; Don’t be afraid to try new ideas brought forth from your team. Build relationships within your team.

Cassie: Our approximately 500 employees are more productive than ever by cross training in our segments including robotics, smart controls, and custom tailoring solutions for customers. Our expertise in double stacking items like wipes; product handling that has become automated; and modular metal fabrications—are some of our diverse offerings.

Susan: Where are the growth areas?

Barb: We expect to see increases in the number of diverse business opportunities in our region, as this becomes more of a focus within organizations and corporations. We expect continued growth in transportation and logistics as consumer buying habits trend to on-line activity.  

Mary: We are offering regenerative thermal pollution control systems and industrial ovens and dryers where use of less energy is a major benefit to our customers. Aftermarket services that help customers upgrade; improve their production equipment; and extend the life of existing equipment are another growth area.

Susan: Markets ranging from retail packaging and printing support to business-to-business supplies continue to grow among Northeast Wisconsin manufacturers. With the last two years’ growth in hygiene disposables like antibacterial wet wipes and masks, line extensions will occur as converters branch out into other areas using similar technologies.

Look for Part 2 next, featuring three women with the spotlight on the converting industry.

Green Bay In Person Event Feb 23rd 2022

Green Bay In Person Event Feb 23rd 2022

Headshot of Anindya Mukherjee

The Green Bay Innovation Group and the Greater Green Bay Chamber will be hosting an IN-PERSON event on Wednesday, February 23, from 2-4 p.m. at the Urban Hub 340 N. Broadway Ste. 200 downtown Green Bay.

A powerful new wave of transformational innovation is about to sweep across the pulp, paper, packaging, plastics, and printing (5P) Industry.  Given Wisconsin’s uniquely high concentration of 5P companies, we should expect disproportionately high positive impact from this disruptive wave of innovation. A dramatic shift away from conventional plastics in paper coatings and eventually in inks by the next generation of “bioplastics” will transform the paper converting, printing, and packaging industries, propelling product competitiveness into the next century and beyond.

PHAXTEC, a start-up in biopolymers with proprietary technology, is leading the way.  PHAXTEC plans to offer PHA materials and coatings as a solution to the growing global plastics waste crisis.  Trademarked PHAX®, these products would be competitive to plastics, compostable, and recyclable, and would biodegrade when left in landfills or leak to the environment. We will introduce Anindya Mukherjee, Founder and CEO of PHAXTEC, Inc. (www.phaxtec.com).  PHAXTEC is looking for collaborations with strategic partners interested in these new generation of coatings!  After the presentation, we will follow up with networking for all attendees!

Phaxtec logo

Please confirm your reservations to:  Marty Ochs – martinpochs@gmail.com or text to 608-698-3333 or email Kelly Armstrong Greater Green Bay Chamber at KArmstrong@greatergbc.org.  You can also register online by going to: www.greenbayinnovationgroup.com – EVENTS and sign up.

We look forward to your participation.

Thank you,

Marty Ochs, Executive Director, Green Bay Innovation Group

Kelly Armstrong, Vice President Economic Development, Greater Green Bay Chamber

GBIG NEWS | 76 Stories and Links on the Internet 02/09/22

GBIG News Banner

Get links to the latest news, events, stories, and interviews from our 5P news members. Our goal is to remind the decision makers in Wisconsin of the importance of our industry both historically, and more importantly, into the future.

Industry

Ahlstrom-Munksjo commences construction of new glass fiber tissue expansion of $68 Million dollars

How Bad Are Plastics

Supply Chain Chaos Help Ocean Carriers Reap $150 Billion in 2021

Top 12 Graphic Design Trends For 2022

Plastic Recycling Market Rapidly Growing Aided by Government and Industry Support

Is the Paper Industry on the Precipice of a Capital Investment Boom?

Georgia-Pacific committed to only sourcing from sustainable, legal and responsible sources

2022 predictions for the Label Industry

This 3D-printed wood guitar is made from recycled sawdust

Amazon pioneers artificial intelligence machine learning for packaging waste reductions

Lignin-Based material could replace fossil plastics and adhesives

Mactac to Acquire Spinnaker Coating for $40 Million

Total U.S. Printing-Writing Paper Shipments Essentially Flat in December 2021

Working Through Challenges with Today’s paper Stocks and Coatings

Chipping Away at Supply Chain Issues

Expanding Advanced Packaging Production In The U.S.

Supply chains in 2022: Shortages will continue, but for some sellers the problem will be to much stock

The rare spots of good news on climate change

Wisconsin

WEB HANDLING: The Keys to Optimal Control presentation

ST. Paper & Tissue: Our History founded by Sharad Tak and his son Sahil Tak in Oconto Falls, WI.

Gov. Evers Provides Financial Aid to Help the Paper and Forestry Coalition Receive $100M Federal Grant

On Broadway, Inc. announced details of the $30 million redevelopment projects

Converters Expo April 26-27 Lambeau Field

SC Johnson, Racine, WI: Plastic Bank Stops 2 Billion Plastics Bottles From Entering the Ocean

Lakeshore FIRST Robotics expands its STEM outreach program to Brown County

How Continuous Improvement Principles Help Manufacturers Embrace Uncertainty

Economist says state seeing record low number of unemployed

Glenroy Inc. Announces the Addition of Brian Hodek as Director of Food and Beverage

GLAC: News: Call for Action: Paper and Supply Chain Shortages

Appvion – MISSION ZERO line of food services products

Belmark Brand Colors

ChemDirect Transforms Chemical Purchasing with New B2B Marketplace

Approximately 2,300 Georgia-Pacific employees work in Green Bay

The Largest Used Book Warehouse In Wisconsin Has More Than A Half Million Books

UWEC alumni create company aimed at reducing carbon emissions

UW Platteville to support rural entrepreneurs with now prototyping services

Testimony of WEDC Deputy Secretary and COO Sam Rikkers: Forestry, Parks and Outdoor recreation

Whiting Paper Mill site demolition more costly

Entire state meets 2010 air quality standard after Rhinelander mill reduces sulfur dioxide pollution

UW-Madison ranked first among public universities by Washington Monthly

UWM breaks ground for $118 million chemistry building

Infinity launches VISION G3 Wrapper

Kimberly-Clark net income decreases 34% in the fourth quarter

Printers

Printing Outlook Survey with business being up

Reaching Consumers in a Environmentally Responsible Way: The Return of Printed Catalogs

Pantone Launches World’s First Validation Program for Skin Tones

Production Inkjet Press Adoption Is Gaining Ground Across Printing and Packaging

Seaway Printing – A world Class, Award Winning, Full Service Publication Printer

LSC COMMUNICATIONS – Strategically designed with your needs in mind

ROYLE PRINTING’S CONTINUED GROWTH

Sheridan Group – A heritage of Printing Excellence in Publisher Services

Quad: Magazine Printing Reaching loyal readers with high quality publications

Schumann Printers a specialty publication printer

Arandell Corporation – A world class printer for catalog printing.

Who We Are..Worzella

Labor

The No. 1 reason people quit jobs during the Great Resignation, according to MII research – and it’s not pay

Burnt Out Amazon Employees Are Embracing the Great Resignation

Covid Drove Workers to Quit. Here’s Why From the Person Who Saw It Coming

The Great Resignation a myth, says local workforce development leader

Myths and Realities of Automation and Labor-Shortages

Companies fire employees for these personality traits, but maybe they should be getting bonuses

Automation the only answer to labor shortage problem, CEO says

How Leaders Can Build Connection in a Disconnected Workplace

Here’s Why the US Labor Shortage may not be such a bad thing

First Business Bank Named Top SBA Lender

Korber helps the manufacturer of toilet paper with minimal production downtime – Marty

Bretting: Digital Printer: Continuous stream ink jet provides high-speed production

Robinson is unique among high pressure vessel manufacturers

Anderson & Vreeland names Andy Gillis as VP and General Manager

WEDC Grant Helps Box Latch Products Worldwide

Paper Council leader optimistic about federal grant proposal

Paper Council leader optimistic about federal grant proposal

The head of the Wisconsin Paper Council says he’s “very optimistic” about securing an up to $100 million federal grant after Gov. Tony Evers announced the state would provide matching funds for the effort.

Wisconsin will be pitching in up to $8.2 million in matching funds to support the federal grant application spearheaded by the Paper Council, Evers said yesterday in a release.

“This is one piece of the puzzle for our application,” Wisconsin Paper Council President Scott Suder told WisBusiness.com.

The proposal from state paper and forestry industry stakeholders was among 60 around the country to get a $500,000 planning grant last year through the federal Build Back Better Challenge Grant program. The release shows applicants were asked to show they can provide at least $20 million in matching funds to qualify for the next round of $100 million grants.

“We asked the governor to assist us in that effort,” Suder (pictured here) said yesterday in an interview. “We’re very pleased that he has accepted that challenge and is going to provide some measure of matching funds should we receive that grant.”

Evers and WEDC Secretary and CEO Missy Hughes wrote a letter to U.S. Department of Commerce Secretary Gina Raimondo expressing support for the proposal. They noted the coalition has already raised more than $11.8 million from other sources, including businesses, individuals, nonprofits, and tribal and local governments.

“We want to assure you that the State of Wisconsin remains resolutely committed to ensuring the success of this project as well,” they wrote in the letter.

The Wisconsin coalition’s initial proposal, titled “A Wisconsin Forest Products Cluster: A Catalyst for Sustainable, Enduring Transformation,” highlighted the 35-county region of northern Wisconsin. It referenced proposed projects including a new research and development facility for the industry, training programs and efforts to create new markets for forestry products.

By implementing these and other projects in the proposal, the coalition estimates 2,500 new jobs and $2 billion in new economic output will be created over the next decade. The release from the guv’s office shows the state’s paper and forestry industry employs nearly 63,000 workers and makes up nearly $18 billion of Wisconsin’s manufacturing output.

Suder emphasized the bipartisan support for the application, calling the state pledge “part of a much larger effort from our diverse coalition.” He noted Republicans and Democrats are backing the application, and said a related legislative resolution is expected from both the Assembly and Senate “very soon.”

“This is really all hands on deck, and it is a really great example of bipartisan cooperation toward a goal of making certain that we’re ready for the future, to focus on innovation, and future markets, and research and development, diversification and diversity for Wisconsin’s forest products industries,” he said.

The application for the $100 million grant is due March 15, Suder said. He added coalition members will “work right up to the application deadline to make sure that we have every resource available to qualify for this.”

The Paper Council-led coalition also includes Mid-State Technical College, the Great Lakes Timber Professionals Association, the Sustainable Resource Institute, UW-Stevens Point’s Institute for Sustainable Technology, Menominee Nation Tribal Enterprises, and the Department of Natural Resources’ Division of Forestry.

See the letter: https://content.govdelivery.com/attachments/WIGOV/2022/02/01/file_attachments/2064201/BBBRC%20Award%20LoS%201.28.22.pdf

See the coalition’s proposal overview: https://eda.gov/files/arpa/build-back-better/finalists/concept-proposal-narrative/Wisconsin%20Paper%20Council.pdf

See the release: https://www.wispolitics.com/2022/gov-evers-pledges-state-support-for-wisconsin-paper-forest-production-industrys-federal-grant-application/

–By Alex Moe

Combined Locks Paper Mill Sold

Combined Locks Paper Mill Sold

Mckinley logo

COMBINED LOCKS (WLUK) — A Fox Valley paper mill has been sold.

McKinley Paper Company, a U.S. subsidiary of Mexico-based Bio PAPPEL, announced the purchase of Midwest Paper Group from investment fund IOP. Terms of the deal were not announced.

Midwest Paper Group makes packaging-grade paper at its mill in Combined Locks. The mill has a capacity to produce 500,000 tons per year.

“The acquisition of Midwest Paper Group is consistent with our business strategy to continue building a powerful integrated paper and packaging company, convinced that North America is the best region to invest and create shared value over the long term,” Bio-PAPPEL board chairman Miguel Rincón said in a news release. “We enrich our culture and competitiveness by warmly welcoming the people of Midwest Paper operations into the Bio PAPPEL- McKinley family.”

Midwest Paper is the former Appleton Coated mill that made printing and writing-grade paper until it closed in 2017. The next year, it was converted to be able to produce packaging-grade paper.

State tax credits covered $1.8 million of the $30 million conversion cost.

Discerning Talent in Challenging Times: Why HR Needs to Look Beyond Skill Set 

Discerning Talent in Challenging Times: Why HR Needs to Look Beyond Skill Set 

Electrician fixing a wire

Competition for labor is intense. In the nationwide Great Resignation, workers left their jobs by the millions. Baby Boomers also exited the workforce. “Help Wanted” signs are posted everywhere. In many instances, as quickly as a candidate accepts a job, another resigns or retires from the company. In today’s tight labor market, hiring managers and HR professionals struggle with the unenviable task of finding workers. When job candidates are identified, it becomes particularly important to assess talent accurately and efficiently, matching job candidates to the roles where they’ll excel. With so many employees exiting the workforce, new hires will be asked to adapt and advance quickly to fill the gaps. 

What is the difference between skills and abilities? 

Although skill sets are one of several predictors of job performance, they are not the best indicator. Abilities are. Abilities are classes of behaviors established early in life and relatively stable; they are resistant to change. Skills on the other hand are other classes of behavior built on or developed from abilities and are not stable; they wax and wane. 

An example of an ability is mechanical ability and an example of a skill based on mechanical ability is troubleshooting. People who have high verbal ability often develop skill as writers or editors. The abilities and skills graphic below provides additional examples of the relationship between some abilities and their related skill. 

15dots Powerpoint slide with listed abilty and skill examples

Skills often vary widely because of a candidate’s life experiences. Even when an applicant has a particular skill related to a job opening, the candidate may not be a good fit for the job, because a combination of other skills will be required. Skills are more difficult to determine or assess because they typically require some demonstration of behavior. Examples of measurable, observable behaviors that involve skill include replacing a bearing on worn equipment or proofreading a blog article. If skill assessment is not done in a consistent, controlled fashion, the reliability of the data gathered can vary widely. Skills can also vary due to use or non-use. If someone learns French, but does not speak or write French, their skills will wane. The same is true for a skill such as driving or putting a golf ball. Golfers often find their putting stroke or driving skill is rusty at the start of a golf season. 

In the changing world of manufacturing, assessing job skills that will change dramatically is folly. Abilities on the other hand are the foundation to build the needed skills for the future. What we need to do is to look for and select manufacturing operators and maintenance personnel based on their underlying abilities. 

How do ability and skill relate to employee selection?  

If you select candidates who demonstrate the abilities for an open role, you’re hiring candidates with a solid foundation. They are likely to perform well in their initial role with the company and successfully advance into new roles. The employee has the underlying ability to perform well across-the-board.  

Having the means to discern and accurately measure abilities in these times where it’s difficult to find needed talent is therefore critically important. Organizations should assess abilities accurately and efficiently, matching job candidates to the role requirements where they’ll excel. The necessary skills will be built on the foundation of abilities. 

We at 15dots use a sophisticated job analysis tool called a Positional Analysis Questionnaire to identify and confirm the abilities associated with a given job role. 15dots has analyzed over 30,000 jobs, mainly in manufacturing settings. Obviously, certain jobs require specific abilities. For example, to be proficient in troubleshooting, individuals need mechanical ability, in addition to several other abilities. They also need the ability to visualize the process or equipment they’re troubleshooting from all perspectives. Someone who possesses mechanical ability can more readily learn to trouble-shoot equipment and machinery. They adapt more easily to working on different equipment. Essentially, they possess the foundation to learn skills that require mechanical ability. 

How does 15dots help ensure the best hire? 

15dots trains organizational personnel to administer ability tests and moves organizational personnel at all levels toward interviewing expertise. Rock-solid employee selection identifies and maximizes the potential of a company’s most valuable resource – people. Identifying a candidate’s potential through validated ability tests – not skill set alone – is a strong predictor of job performance now and in the future. 

Although hiring managers and HR personnel face challenging times in today’s economy, hiring decisions have consequences.

 Competency or skill set matter less than an underlying, all-around ability to perform well.  

Contact Joe Nowlin, Joe@15dots.com or (812) 332-1102 to learn how employee selection is the key to hiring highly motivated, highly able employees – even with a limited pool of applicants.  

GBIG NEWS PAPER UPDATE MARTY OVERVIEW

GBIG News Paper Industry Update Marty Ochs

What Happened to The Paper Industry in Wisconsin, The USA And Overseas Suppliers?

Marty Ochs

The printing industry is feeling the FULL effect of the current paper and supply chain crises. We have never seen anything like it. Over the years, we have seen a shortage of printing papers, especially from Wisconsin, with paper companies moving production into liner board and closing some mills that were not productive. We see companies like International Paper exit the printing paper markets. 

In 2020, we saw a major decline of 20 percent in the offset printing markets due to COVID-19. In 2021 and early 2022, we have seen the market gain momentum with surprising surge in demand for paper printing grades market along with very good demand in the packaging paper products markets. 

There are BIG challenges for the printing industry, and paper merchants are on strict allocations on all paper products. We will see a large number of the smaller printing companies simply go out of business. The printers can’t absorb paper costs going up 20 to 35 percent plus freight up 15 to 20 percent and ink costs up 10 to 20 percent. 

We have not seen any new paper machines for the past 40 years for the printing paper in the USA.  Simply, the USA has become dependent on the foreign paper mills to fill the gap for paper. However, the foreign mills are shutting down capacity, and the cost for shipping, along with a lack of containers available to ship paper to the USA, is problematic. We see container prices at $20,000 plus! 

Our current outlook is that we will not see anything fundamentally changing for 2022, with it easing up a bit for 2023. We expect all of the mills to try to meet the challenges in front of them.  Foreign paper makers are minor players at this point in time. 

This is a great opportunity for the former VERSO mill in Wisconsin Rapids to reopen to produce more paper. However, BillerudKorsna has indicated that they will sell the mill. In addition, BillerudKorsna will be converting two machines into packaging board products. The Wisconsin Rapids mill has a huge capacity for coated printing paper, with a tremendous opportunity for an American supplier to produce these products. 

Unfortunately, SAPPI and other foreign paper mills are not able to fill the gap for 2022-2025. We need to reach out to the 5P and Converting Industries to support more paper and pulp capacity based in Wisconsin! Why, this will really hurt the Printing Industry in Wisconsin and the Midwest dependent on printing papers. 

We are seeing these decisions are having a big impact on the Wisconsin Converting plants that focus on paper products with long lead times and NO paper. Wisconsin has over 200 converters with an estimated employment of over 10,000 employees who are directly affected. Wisconsin is called the Converting Corridor in the USA. The Wisconsin Printing Industry has over 30,000 employees. GBIG will be compiling the number of employees in the label, corrugated and packaging industries over this coming year to educate all of us on the impact of the 5P and Converting Industries on Wisconsin.

The major issues are:

  1. COVID-19 has had a major impact on their production capacity
  2. Simply, demand exceeds supply, especially for printing grades of paper
  3. The foreign mills can’t fill the gaps, due to logistics and supply for their own customers
  4. The USA paper mills, especially the Wisconsin paper mills, have shut down mills over the past 20 years due out-of-date equipment or NO market for their products.
  5. Labor shortages. Employees, especially skilled technical individuals, are needed to replace a large number of individuals retiring from the industry. We are seeing the graying of America. The population is steadily becoming older without being replaced by younger people.
  6. Paper merchants are experiencing strict paper allocations with allocations being cut back, too.
  7. The lack of investment into the paper industry, and USA companies are focused on short-term profit.
  8. The challenges of opening a new mill with strict environmental requirements placed on them.
  9. The cost of transportation in Wisconsin and limits on the trucking industry weight limits.
  10.  We are fortunate to have BPM, Inc. in Peshtigo and former Domtar Paper Mills in Wisconsin. Pixelle Specialty Solutions has a mill in Stevens Point. They are the largest and fastest-growing manufacturer of specialty paper in North America. Ahlstom-Munksjo with paper manufacturing facilities in Wisconsin is a global leader in fiber-based materials supporting the packaging industries with USA headquarters in Kaukauna.  Paper Excellence has purchased two of the former Domtar Paper Mills in Wisconsin, and we can’t anticipate their future.
  11. The paper companies are focused on profitability, producing high volume items with NO interest in producing a wide variety of paper as in the past, limiting or discontinuing the selection of paper products. 
  12. The paper mills are being converted to liner board, tissue or packaging products which are in high demand.
  13. Supply chain back-up for chemicals, coating, pulp, etc. are hurting the production of paper and increasing prices. 
  14. We will see long lead times with paper delivery over the next year.  We see the transportation and logistics as a big issue, especially with the supply of paper from overseas. In addition, our ports are backed up with a lack of transportation and drivers in the USA. 
  15. The investment in building new paper manufacturing facilities is very expensive. Green Bay Packaging has over $500 million in its new plant. However, we are seeing paper and pulp mills opening up across the world, so Wisconsin has to get back on track with get new or updated plants to meet ALL of our demand for paper products.
Green Bay Innovation Group

Bringing Green Bay Companies Together. Green Bay Innovation Group is committed to building an authentic networking experience where innovation can thrive.

Contact Information

Phone: 608-698-3333 
martinpochs@gmail.com
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