Steady Improvement:
We are now halfway through 2011 and our business has steadily improved; returning more to pre-recession levels. Our improvements have been driven more by new projects that began in 2010 that are now showing steady results, while our traditional customers are slowly and cautiously returning to historical levels.
Those that have done the best are companies that have diversified their product offerings and invested in new processes and improvements. Doing only what has worked in the past will not work in the future.
I have just returned from a global meeting of the International Packaging Association (IPA) in Italy. Independent Can Company is one of the 15 members of this organization. The IPA membership is made up of independent can makers located around the world. There were a number of reports from all showing steady economic improvement globally. The key points of discussion were as follows:
o Consumer trends
o Alternative packaging
o Sustainability
o Product safety
o Value
o Investment
The season has begun:
2011 to date has been a good year and we are looking for this trend to continue. By of May 1st each year we begin to have strong indications as to what the gift-giving season will look like. At this time the major tin users begin to place printing orders for their fall requirements. From this data we are able to judge the fall activities by the printing backlog, and this year is shaping up to be a good year.
We want to thank those who have placed orders for their initial tin requirements and ask all customers to think and plan ahead for what you might need for the season. If we are aware of a potential needs we will be able to factor in your specific requirement, inform you of scheduling information and meet your critical dates.
On the tooling side:
This has been a very active first half of the year. With our normal overhaul schedule we have made extensive improvements in a number of areas although the tapered popcorn lines have had the most attention improving quality and automation.
We have two new can lines being established that will begin operations in the next 3-6 months. One line will automate a round can assembly that was semi-automatic and the second line is a new product offering which will open an entirely new market for Independent Can.
Lithography: Coating and Printing:
Over the past several years we have focused on becoming the most effective metal decorator in the United States. Currently we are the only company operating the latest continuous grip Metalstar II lines having a 6 color and 4 color line. The 6 color has a UV coater trailing the prints allowing one pass work for up to 6 colors.
This spring we installed the latest pre-press software allowing the fastest and most accurate art and plate development available.
Currently we are preparing for the arrival of a new coating line which will be the latest coating and oven system available. This line will be rated at 120 sheets per minute and the oven is reported to operate utilizing 20- 30% less energy than the older drying ovens while providing the cleanest exhaust. Corporate Governance and Corporate Social Responsibility must run hand in hand; generating less Co2 while also using less energy is good for everyone.
The new line should start up on or about November 1, 2011.
A global observation:
As many of our customers are aware we are one of the largest specialty tin manufacturers in the United States, although you may not know we are also one of the largest importers of decorative and specialty packaging from around the world (tins, plastic packaging and glass). We want to supply the packaging that our customers need whether we make it or source it for them, while acknowledging that an increasing percentage of our customer base is consistently asking for packaging “Made in America.”
Users of tins and other packaging from Asia and other low cost countries have recognized that costs are going up rapidly due to inflation along with the cost of logistics (moving the goods from Asia). We are proud to say that products once only competitive from overseas are now being competitively made here in the United States.
Thank you to all of our customers for your loyalty and for challenging us to be as good a supplier as we possibly can be.
Rick Huether
President and CEO
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