December 4, 2017
AICC’s 2017 fiscal year ended on June 30, and it was a banner year in terms of revenue, member participation, and influence in our industry. Completing the first year of a four-year “strategic agility” plan known as “Destination Modeling,” AICC achieved or exceeded its targeted goals in four principal functional areas of operation and laid the foundation to build on those in the years ahead. The following report details 2017’s results in membership, education and training, meetings and conventions, and governance.
Membership
AICC membership numbers continued to grow in the past year, despite a growing trend of consolidation in the industry. Dues revenues reached a record $1,299,352 in FY 2017, up from $1,144,791 in FY 2016. AICC welcomed 12 new corrugated general members, three folding carton general members, and 25 associate members in the fiscal year, and enjoyed a general member retention rate of 94 percent. The total number of corporate member entities worldwide was 490, up from the previous year’s 476.
Education and Training
AICC’s industry-specific education and training programs reached almost 2,000 employees in the industry and brought $410,267 in revenue in the 2017 fiscal year. This was up from $330,000 in FY 2016, or an increase of 24 percent. The increases were fueled in large part by the introduction of new onboarding courses, such as Corrugated Fundamentals and Folding Carton Fundamentals, both introduced in 2016. In addition, new partnerships with Clemson University’s Sonoco Institute provided a dedicated Designers’ Workshop as well as a Flexographic Printing Press Maintenance workshop.
AICC’s webinars continue to reach a larger number of member company employees due to their relevant subject matter and relatively low expense and time commitment. In FY 2017, AICC introduced a series of HR compliance webinars with Christine Walters, JD, MAS, SHRM-SCP, SPHR. These webinars covered topics such as employee drug testing, hiring and firing practices, and audits of employment policy manuals.
The major development in AICC’s Education & Training program was the announcement in March 2017 that all AICC online courses would be included free of charge as part of AICC’s membership benefits. This transition from pay-as-you-go to “all-included” was directed by AICC’s board, and has been made possible by a unique partnership with The Packaging School, Greenville, S.C., a leading online educational platform for the material handling, packaging, and processing industry. At the end of the 2017 fiscal year, the Packaging School and AICC partnership provided members with nearly 30 online courses free of charge in disciplines covering production, sales, design, and general leadership and management topics.
National Meetings, Summits, and Special Events
Attendance at AICC’s national meetings and regional summits and other events topped 6,000 people in fiscal year ending June 30. The 2016 Annual Meeting and AICC/TAPPI SuperCorrExpo, held for the first time in Orlando, Fla., attracted more than 5,000 people to the combined quadrennial event. AICC’s 2017 Spring Meeting was held in Austin, Texas, and saw an attendance of 628 people. AICC’s annual legislative fly-in—this year rebranded to The Print & Packaging Legislative Summit—attracted 65 participants. This year, AICC continued its partnership with Printing Industries of America (PIA) and collocated the event with the National Association of Manufacturers (NAM) Manufacturing Summit. Representatives from the National Association of Printing Ink Manufacturers (NAPIM) and the International Association of Diecutting and Diemaking (IADD) also attended.
In 2017, AICC introduced the idea of regional summits, national events that are smaller in scale but focusing on specific topics to attract a wider audience. One of the first, “Distilling the Digital Print Market,” was held in June in Louisville and attracted 71 participants. Total attendance at the U.S. regional summits was 749.
Combined income from AICC/TAPPI SuperCorrExpo, national meetings, regional summits, and the Print & Packaging Legislative Summit was $2,415,886. AICC’s fourth annual Independents’ Cup Charity Golf Tournament, held in conjunction with the 2017 Spring Meeting in Austin, raised a combined $46,500 for Ronald McDonald House Charities of Central Texas, Project Healing Waters Fly Fishing Inc., and the Austin Music Foundation, up 19 percent over the previous year.
AICC’s regions remained active in FY 2017, with 22 events held domestically and internationally. The U.S. summits were attended by more than 668 members and guests.
Publications and Advertising
AICC’s publications and advertising contributed positively to AICC’s steady growth in FY 2017, bringing in a combined $354,135, up from $334,970 in FY 2016. This was made up of $318,858 in website and print (BoxScore) advertising, and $35,277 in publication sales.
AICC Canada
AICC Canada encompasses Ontario, Québec, and the Maritime provinces. It is run by an independent board of directors chaired by President John Franciosa of McLeish Corr-A-Box Packaging & Design. AICC Canada hosts a number of events annually and provides various services to its members locally. In 2016–17, events included general member meetings, an annual Christmas party with 120 attendees, and the winter president’s luncheon, at which local business leaders are inducted into the AICC Canada Hall of Fame. This past year, AICC Canada honored Ross Nelson of Royal Containers and recognized his lifelong support of the industry. In March 2017, AICC Canada co-hosted a regional conference and table-top fair with the CCCA (Canadian Corrugated & Containerboard Association). And completing the year, the highly attended golf tournament was also co-hosted with CCCA, where up to 180 golfers participate. AICC Canada publishes its own regional membership directory and biennial salary survey. John Franciosa also serves as regional director on the AICC Board of Directors. For more information on the activities of AICC Canada, contact Jana Marmei, executive administrator, at 905-727-9405, or jm@aiccbox.ca.
AICC Mexico
In 2017, AICC Mexico celebrated its 16th annual meeting June 7–9 in Monterrey, Mexico, with 178 people in attendance. AICC Mexico has 25 members, and in 2017 began planning for the hiring of a full-time executive to manage its affairs and grow membership. Founded in 2001, the region continues to be a vital and growing part of AICC’s international family. AICC Mexico was represented on AICC’s Board of Directors in 2017 by Yair Caballero of Corrempaques in Querétaro, Mexico; he is succeeded by Pedro Aguierre of Tecnología de Cartón in Gómez Palacio, Durango, Mexico.
Executive and Governance
AICC’s Executive Committee in FY 2017 began consideration of ways to restructure the AICC Board of Directors. The purpose of this exercise, consistent with our Destination Model goals, is to improve the recruitment, education, and training of board members, as well as to look at the size of the board and its governing effectiveness. As part of the improved training and education of officers and directors, AICC President Steve Young and then-First Vice Chair Al Hoodwin attended the American Society of Association Executives Symposium for Chief Elected Officers and Staff Officers in Chicago in April. This symposium will be an annual part of AICC officers and directors’ orientation, an effort that will create a more effective governing board of directors for AICC.
AICC continued its annual outreach to and coordination with related industry trade associations, including TAPPI, the Fibre Box Association (FBA), Flexographic Technical Association (FTA), and others. Internationally, AICC maintains membership in the International Corrugated Case Association (ICCA), where we are represented on its board of directors by Kim Nelson, CEO of Royal Containers Ltd. and AICC overseas director. In addition, AICC participated in the annual convention of ACCCSA, the association for corrugated manufacturers in the Caribbean and Central and South America. In September of 2016, then-AICC Chair Tony Schleich, Immediate Past Chair Mark Williams, and AICC President Steve Young attended the annual conference of the Sheet Plant Association in Birmingham, England.
Financial Results
AICC’s operations in FY 2017 brought in $4,711,837 in revenue and realized expenses of $3,632,811. This resulted in a net operating income of $1,079,026. This income, combined with $36,070 in nonoperating income from AICC regional activities, resulted in a total net income of $1,115,096. AICC’s auditors are Councilor, Buchanan & Mitchell, PC, of Bethesda, Md. AICC members who wish to receive a copy of AICC’s audited financial statement should send a request in writing to Steve Young, President, AICC, PO Box 25708, Alexandria, VA 22313, or email syoung@aiccbox.org.
