Emerging Leader

In 1986, my grandfather and father made a life-changing decision: They risked everything they had to start a business. They had a dream that was fueled by a variety of factors. These factors were based primarily on their experience in the marketplace of selling corrugated paper boxes and an opportunity to obtain used equipment. The dream was just the starting point. They then needed to find capital to fund the dream. When they did seek the capital, they put everything on the line with the hopes that this business would succeed and be able to provide a comfortable life for their families.

They started Wisconsin Packaging Corporation—a corrugated converting business—with minimal, used converting equipment and invested conservatively in machinery as they grew in order to accommodate their expanding customer base, which at the time was pre­dominantly buyers of brown boxes with minimal print. The decision to invest in new equipment was a balancing act of meeting customer needs, staying competitive in the marketplace by doing things better and more efficiently, and staying within budget. This frugal attitude has proven to be successful for us, but today, many other forces are at play.

Probably the biggest factor is that integrated mills are growing and realizing there are opportunities for them to compete in the converting side of the paper business. Current estimates have these large integrated paper companies accounting for approximately 60 percent of the market that was once available primarily to independent corrugated companies. These large integrated paper companies have the advantage of size and resources, so it is becoming more and more difficult to determine where to invest to continue to prosper alongside the integrated behemoths.

Every employee in every company seems to have an opinion on what their company needs to do to be successful. I myself have a personal wish list of machines and various add-on components for existing machines. This list is fueled primarily by my opinion as a salesperson and what I think would make me better and more competitive in the marketplace. My opinion is just one factor in the successful management of the business. I also have the unusual perspective of growing up in the business and witnessing firsthand the building of the business. The family values given to my siblings and me were that you do not spend money that you do not have. The same, in a much larger sense, has always been true for the business. Investments have always been carefully reviewed and were executed only when justified.

Attitudes of the past are not the same as those of the present. The millennial generation has been bombarded with a culture of consumerism and instant gratification. Credit has been easy to get, which has fueled the attitude of “Why wait when I can have it now?” This is a dangerous position in the business world, especially given the possibility of overspending and overextending company resources with the speed at which technology changes. A brand-new state-of-the-art machine you buy today may be obsolete in two to four years; can that machine pay for itself and earn a profit in that time?

Businesses also need to invest in talented people. Many AICC meetings and articles focus on “filling the bench” with the right people. Our business has always made it a priority to provide fairly for our employees and has been rewarded with the loyalty of those employees. Unfortunately, the attitudes of the younger generations have changed. They profess to want more home life–work balance. While this is a good thing, it sometimes clashes with the perceptions and values of the older generation, who have sacrificed to achieve success. It is becoming necessary for employers to offer additional benefits to new hires—including perks such as flexible hours, more vacation days, and stronger insurance benefits. Evaluating the return on investment with people is significantly more difficult than it is with equipment. This is particularly true when you consider generational differences.

This family history has been presented to illustrate the challenges that face small independent companies. To throw up our hands and say that we cannot compete in an ever more competitive marketplace and meet the needs of the upcoming generations would be an insult to the success of our company and the founders who risked everything for their dream. Investments need to be carefully considered from a variety of perspectives. Communication with all members of the team who have a stake in successful outcomes is the key component in making good decisions. Stay educated with trends and advances in the business. The interesting thing is, this is exactly what my father and grandfather did to be successful. Change is inevitable, and the ability and inclination to adapt is the key to success.

Jessica Negus is an account manager at Wisconsin Packaging Corp. and an AICC emerging leader. She may be reached at 920-563-9363 or jessnegus@wisconsinpackaging.com.