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IamA 28 year old owner of a box factory AMA!
My short bio: I am a 28 years old, and am a part owner of my families 3rd generation corrugated box company. I saw that there was already one AMA done for a cardboard box factory in the past, so I figured I would see if anyone wanted to know more. Indeed, it is exactly like the time Bart went on a field trip to a box factory. The industry is highly competitive based on the commoditized product. Profit margins are low, but business is steady. Feel free to ask me anything!
EDIT: Wow, I definitely didn't expect this wave of people! I have to get back to work, but I will check back to answer some more questions. This made lunch interesting!
SIGNING OUT Happy Friday & Saturday World,
The moral of this AMA is to do something you truly enjoy, and feel close to your expressive spirit. Challenging oneself with hard work builds a strong base, but ultimately one must explore. The business world has tried to lasso this stallion, but for now this wild buck has to roam free or he will die.
_Billup148 karma
Someone said my girlfriend has a nice box. How can I tell if it was purchased from you?
werterty66 karma
Unfortunately an employee injured their hand quite badly last year, and up until that point we had a perfect safety records for about 20 years. It was pretty intense.
9999999999999999998982 karma
Do you make the boxes that you use to ship the other boxes that you make in?
werterty51 karma
Only for prototypes that we send via mail for a customer to test out (if it isn't convenient for our salesmen to personally deliver).
werterty32 karma
As mundane as a box may seem, it is thing that ships the iPhone to your door, or the parts inside the iPhone to the different assemblers, or the refined & processed raw materials to manufacturers, etc.
Everything we make is custom based on the individual product that we are packaging. We use a CAD cutting system which quickly makes more complex designs based on a computer design. We can still do it old school, and make them by hand too.
If you are putting 1,000,000 things in boxes over the next 12 months, you're going to want to be damn sure that the boxes were well thought for the entire supply chain (warehouse, shipping, end user).
werterty76 karma
Not as often as I see a competitor using that as their companies slogan. "XYZ Box Company....thinking outside the box since 1973"
waaaa waaaaaaaaaaaaa
werterty65 karma
" Call It Like You See It ............. boxesssssssss " (with kind of sssss snake sound at the end)
Slazman99951 karma
What is the protocol for a cat invasion seeing cats are attracted to boxes. Has this ever been a problem?
werterty64 karma
I simply sound the alarm for our emergency supply of catnip, and take over the city helped by my army of cats. Then we take naps.
Shaeos14 karma
Can you make a specialized box for my cat?
.... nvm. I can probably build something he will like better.... weird cats.
TRget8838 karma
I assume you get your corrugated fiber board delivered in large sheets. What kind of ft2 do you need to run a box factory? How many styles of boxes are you making at one time? Does each box style require a specialized machine (I mean more of fixtures etc.) or can multiple styles be made without retooling? How often to the large scale consumers change their demands on boxes?
werterty37 karma
Yep, we purchase our board based on the job and relay specs to the mill. We purchase ~9,000,000 ft2 per month depending on how business is.
Each run consists of 1 style ( say an order for 10,000 of x). We are capable of producing an infinite number of styles, but there are roughly 10-15 industry standards that are the most consistent.
Different styles & sizes do require different machinery.
Once a large scale customer orders a design, they typically purchase the same design until their product is no long active.
fastfreddy79 karma
This is pretty interesting. I work for Pratt Industries and we convert about 12 million a day. I'm not sure how much we corrugate between the two corrugaters. I knew we were big, but wow.
werterty18 karma
You're talking about running a corrugator, not a sheet converting operation. Our supplier runs 240 million per month (12 million per day no weekends).
werterty5 karma
I believe it, the integrated sector is huge!
How many flexos do you have on site?
fastfreddy73 karma
Pratt in Valparaiso, IN. We have 10 machines total and I believe 5 of them are flexos. We do a lot of sheets for outside sales as well between the two BHS corrugaters.
werterty17 karma
I always thought that was only a corrugating facility.
I have a Pratt story though.......
Anthony Pratt, the Australian Billionaire/ Chairman & CEO of Pratt strolled into our office about 3 years ago and laid an offer down on my pops to buy our business. My pops politely declined, and Pratt returned to his limo that he double parked outside the door.
werterty11 karma
No, we hold a solid niche market and have a very profitable customer base. Those big companies are constantly running on fumes and large cash flows. That, and the purchase price would be pocket change for him.
Edit: The meeting wasn't arranged, and we had no idea he had any idea we even existed. It was pretty surreal, to be honest. I thought it was cool that my dad just calmly welcomed them into his office, sat across from him at his desk and said "no thanks".
brokenmandible34 karma
"Do any of these boxes have candy in them?" "No." "Will they Ever?"
werterty24 karma
haha, yes, we actually do make boxes for a few small scale candy companies. ;)
TecumsehSherman22 karma
Is it true that Milhouse's Dad is a Big Wheel down @ your factory?
werterty55 karma
I believe that was his stepfathers Cracker Factory, but I could be mistaken. I do sleep in a racecar though.
whisky_dickerd14 karma
do you only make square and rectangle boxes? or can they get funky?
werterty15 karma
The specifications are always changing. We rarely run square boxes, as those are mostly run for companies that inventory a massive quantity and slowly sell them over time.
whisky_dickerd15 karma
also, do you get mad when people call corrugated fiberboard "cardboard"?
werterty24 karma
I personally do not care, and actually use cardboard if I feel it benefits a potential customers understanding of what we do. The older guys though, they definitely get mad. haha
WolfSwag6 karma
As a packaging student who did an internship in corrugated I get mad when someone else in the packaging industry calls it cardboard. But a lot of people don't know what you are talking about if you say corrugated. So it's a lot easier to just say cardboard.
werterty10 karma
haha, I really like that this question comes up. Unfortunately, our material is just stacked on pallets, loaded on a truck and sent out the door.
The same goes for receiving our raw material.
coolplate10 karma
What do you think of this kinds of packaging? http://inhabitat.com/ingenious-cardboard-packaging-folds-to-fit-any-shape/
werterty12 karma
I think that looks really useful for some purposes. Perhaps an ebay seller or someone who consistently ships items of varying sizes.
tim40410 karma
Part of my job involves interfacing with and programming automated machinery that takes stacks of unassembled boxes, forms them, packs them with cartons, and then tapes them up.
Sometimes the boxes we get are really terrible. Like, poorly cut such that there's hanging bits still there at the corners and such. This royally hoses my machinery. I am told by the operators "Oh yeah, they switched vendors and you can tell these are way worse."
My question is this: can I tell by looking at my boxes what quality they might be? And why does it seem so hard to make sure all the boxes come cut and glued the same? I understand some variation, but I have way more than I'd consider acceptable.
werterty9 karma
This really helps outline the importance of sticking with a good supplier, even if the boxes are a few cents more. Think about all of the lost productivity every time your packer needs to be shutdown. A few years ago, I went on site to a national beverage distributor who said they were having problems with our boxes (and they were livid). I showed up, put on all of their food safety gear and walked over to the problem machine. I took one look at the boxes, and said "we didn't make these......we made those...."
The purchasing agent turned beet red, asked me my opinion as to what was wrong with the other companies product and asked if we could quote them on running the other job. We have that business to this day. ~150,000 boxes per month.
The paper would be the most important. Does the paper look mottled? Dry? Torn? Cracked? Then after that, assess the depth of the scores on the box. If they are not folding well, request 'deeper scores'. It sounds like the supplier your company chose is working with suboptimal equipment.
This is a perfect example as to why saving a few cents on the front end, can lose you lots of dollars & time on the backend.
GearHead1009 karma
What machinery do you run at your plant? Do you run corrugators, or buy your sheets and convert? I've been supplying parts and service to box plants for 15 years (the company I work for has been doing it for 30 years) and find that there are a TON of mergers and acquisitions taking place recently (at least in the U.S.)
werterty6 karma
We are a sheet plant, so we purchase material and convert. You are damn right. The industry, like many others, has been whittling itself down over the past 25 years. We're one of the last independent sheet plants in our city (major city).
werterty5 karma
Like Rocktenn, International Paper, Pratt Industries, Smurfit Stone (which sold operations to Rocktenn and launched Smurfit Kappa Group). The number of mergers and acquisitions is dizzying.
Pratt put an offer on the table to buy us out, but we declined.
ITravelin_Man8 karma
Do you have economist keeping track of your productivity? Since almost every consumable product is packaged in a box of sorts, it is said that your productivity is a good measure of how the economy is doing.
werterty15 karma
That's cool that you picked up on that. We don't have this happen as a regular occurrence, but we are avid investors in our personal lives. Having our finger on the pulse of the economy definitely helps our understanding of what is happening on the ground.
My pops was invited to sit down with a group of investment bankers who were looking to research an acquisition, and needed expert advice. That's about the closest we'd get. I'm sure the larger integrated companies have valuable data to economist, traders and bankers though.
werterty23 karma
No, but we’re prepared for that. We’ve lined up a fabulous type of gorilla that thrives on snake meat. (not true)
ichbineindonut12 karma
Need two "e's" for the type that would have a box.
Fiancée = girl engaged to marry
Fiancé = guy engaged to marry.
werterty10 karma
National food companies, auto parts manufacturers, metal fabricators, bakeries, brokers, etc etc
Drunk_Narwhals6 karma
Do you guys design pakaging for other companies?
What goes into the design of a box? Is there an engineer involved or do you just have standard "this box should work for you" type stuff.
What's the biggest box you've ever made?
Do you use recycled materials?
Do you purchase your raw material as wood or pulp?
I think packaging design is awesome and I really appreciate a well designed box.
werterty9 karma
Well, the process is different depending on the customer's needs. Sometimes brokers call with the exact specs that they want quoted and ran, but other times our designers use CAD/ experience/ and customer's wants & needs to make the designs.
Our designers interface with engineers to create solutions that tackle logistical needs, product based requirements (weight, hazardous/ non hazardous, end user (warehouse, retail, commercial). etc
The largest box we are currently making is about the size of 2 washing machines stacked on top of each other.
Depends. All of our board contains a minimum of 30% recycled materials, but that number can go up to 100% if the customer desires that. It does reduce the structural integrity a bit, so you have to beef up the grade of paper being used.
No, the general supply chain is forest (or recycled boxes), paper mill, corrugated mill, sheet plant (us)
simmonsg6 karma
It has been said that only about 30% of family run businesses survive the 2nd generation, 12% the third. SO, what is your plan, box man?
werterty4 karma
This statistic has definitely challenged me in the late hours of the night........ The main goal I have for my company is stay relevant and improve efficiency. This means making wise capital investments (purchased a new machine last year for $1 mil that allows us to run our existing business 150% faster with less machine maintenance/ smoother production runs), maintaining a high level of service, and keeping in tune with the business trends in our market.
In summary....... low prices, on time deliveries, keeping costs down, directing salespeople in the right direction and not over compensating ourselves. In this industry, the winners are consistent and conservative. It's a grinders game. Time will only tell, but things have ben looking pretty good for last 3 years (with a bump during the recession).
fishandchips205 karma
What's the hardest part about running/owning a box factory? Are there any issues you have to deal with you never thought you would? Or is it all pretty straightforward since you were raised in that family?
werterty6 karma
Good question.
It's a highly competitive industry where unsatisfied customers quickly leave for other producers when mistakes are made. Customers need their packaging at EXACTLY the right time, otherwise their production/ shipping stops so things can get tense.
You don't really expect any of the problems until you've experienced them. They can be related to sales, suppliers, maintenance, employees, logistics, production, insurance...etc
We're not a huge company, and we run the place very lean. This means that we all 'get our hands dirty' when keeping operations smooth. We are owners, but we certainly aren't out playing golf 24/7. It's hard work.
daftpunkfunk5 karma
How much do you guys charge for each unit? I'm in the clothing business and we use boxes all the time.
werterty9 karma
It is an ever changing price based on customers delivery location, quantity and specifications (size).
troutonafly5 karma
Do you use rotary die boards to produce the boxes? Is there newer technology/material than a round piece of hardwood plywood?
werterty6 karma
Yes, we use rotary and flat tooling to run die cuts. The wooden dies have probably stuck around due to being generally low cost, and easy to produce. Our tooling guy can make a new cutting die in about 6 hours.
As of today, this is still the cheapest and most efficient method to create flexible designs that can run at high speeds on the machinery.
werterty9 karma
Nothing extravagant, but enough to be more than comfortable. When my father retired, he was making about $280k per year from company related compensation.
needmoretape4 karma
That's really cool. Hopefully your kids can take over the biz one day as well. Have you ever had interest in doing anything else other than making boxes?
werterty17 karma
Yeah, I never had the intention of going into the family business, but was motivated by the challenges of keeping an old school American manufacturing company alive in the current business climate.
I'm a musician, studied chemistry & economics, and love to travel.
werterty7 karma
A squarish domicile by a large freshwater lake (one of the largest bodies of freshwater in the world).
UnsubstantiatedClaim7 karma
Would you classify this great lake as one that is also superior?
Perhaps your relatives don't visit because it is a bit erie?
Are huron the water?
Uhh... Ontario? Michigan?
ItsDarts3 karma
I gotta ask... You said you were near a large lake, is it Michigan? If so, is the family name Ballard? If so is Dave your Dad? If so, tell him John said hello. I worked for a family owned box company back in the mid 70's, making the boxes for AMT model cars. I know the chances are slim to none and if you don't want to reveal that info publicly, it would be cool if it was the same family biz and a PM would do. Thanks, it just brought back a lot of good memories.
werterty2 karma
Nope, not a Ballard ;)
There is a lot of camaraderie in this industry, so I'm surprised that you have fond memories of your days in the biz. Regards
RRettig3 karma
A. Do you work in the factory or are you just part owner?
B. If you do work for the factory is it more of an executive position or a labor job?
C. Are you rich?
D. How large is the company employee wise and scope of your production?
E. Did you go to school or work at the factory to earn a share in the company or did your family just groom you for ownership personally?
werterty4 karma
I work in the office (same location as factory).
It is more of an office position, but I'm out in the plant all the time going over details about production with our plant manager.
I am not personally rich at this point in my life, but I'm above average for a 28 year old.
The company employs around 45 people. We are considered a small to mid market company.
I worked in the factory for a summer in high school, and then took a low level administrative position for 5 years building experience & creating improvements/ bringing in new forms of revenue before I became management.
psillocyb3 karma
What is the biggest order you've had? What are your gross sales per year?
werterty2 karma
We're not a huge company, but we've averaged about 14 mil per year over the last 5 years.
Edit: Biggest order ~ $145,000 for one project.....combination of varying inner packing parts and outer cartons. We get that order once a year.
werterty3 karma
edge crush test, mullen test........
mullen = 1" radius circle applies force until paper burst, result measured in PSI
E.C.T = paper placed on side with weight applied until paper collapes
omnibus342 karma
Do you do all/any of the 4 color printing on your boxes? Silk screen, litho?
CentaurOfDoom2 karma
How much effort/RnD goes into making a box...? Like, it seems like pretty simple stuff. Also, how many boxes do you make per... say... second? I've seen some videos of factories when they go blindingly fast, and then the narrator is like "And this is at 1/5 speed!", do your machines go mega fast?
werterty2 karma
Depends on the customer's product, and the customer's industry in general. Some products require quite a bit of certification, and lab testing to be verified for consistency & quality when they will be packaging hazardous materials (lithium ion batteries, chemicals, etc.). You saw what happened in Tianjin, China, right? It's tragic, but that was most likely from loose packaging regulations within the logistics facility.
Design wise, some products take more hand holding. Metal fabricators often need a new custom design that is measured out and tailored for the individual products shape.
that's making boxes
Captain_Quinn277 karma
Have any of the workers had their hands cut off by the machinery? And then the hand started crawling around and tried to strangle everybody?...Any popped eyeballs?
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