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November 1997
Feature Stories
New Literature
Boxboard Containers International Staff

Equipment and Supplies
Air Chucks, Shafts
Boxboard Containers International Staff

Carton Printer
Boxboard Containers International Staff

Case Opener, Loader, Sealer
Boxboard Containers International Staff

Corrugated Containers
Boxboard Containers International Staff

Digital Drive
Boxboard Containers International Staff

Electric Mixer
Boxboard Containers International Staff

Flexo Press System
Boxboard Containers International Staff

Fold Roller
Boxboard Containers International Staff

Glue Line Camera
Boxboard Containers International Staff

Hydraulic Bender
Boxboard Containers International Staff

Labeler
Boxboard Containers International Staff

Packaging Ink
Boxboard Containers International Staff

Photopolymer Plate Material
Boxboard Containers International Staff

Quick Change Press
Boxboard Containers International Staff

Radio
Boxboard Containers International Staff

Ream Wrapper
Boxboard Containers International Staff

Testing Kit
Boxboard Containers International Staff

Thermal Transfer Printer
Boxboard Containers International Staff

Thermochromic Ink
Boxboard Containers International Staff

Top Entry Mixers
Boxboard Containers International Staff

Orders & Deliveries
Seeing is Believing
Greg Kishbaugh

Market Watch
Ashton Box Used for White Paper
Boxboard Containers International Staff

Corrugated Products Joins Pet Revolution
Boxboard Containers International Staff

ECMA Holds Annual Congress
Boxboard Containers International Staff

EFTA Makes Internal Changes
Boxboard Containers International Staff

Europeans Sign for Signature
Boxboard Containers International Staff

K.W. Doggett Installs Sheeter
Boxboard Containers International Staff

L&W Introduce New Tensile Testers
Boxboard Containers International Staff

Montalvo Ships Brakes to Finland
Boxboard Containers International Staff

Rena Kartonfabrik Buys Trim Handler
Boxboard Containers International Staff

Roda Macchine S.A. Intensifies Sales
Boxboard Containers International Staff

S.C.A.O. Installs New Equipment
Boxboard Containers International Staff

Silva Brand Wins Accolade
Boxboard Containers International Staff

Van Leer Installs New Equipment
Boxboard Containers International Staff

Price Point
Personifying an Industry
Robin Litwin

Coming Events
Employer Has a Duty to Explain Benefits
John T. Leahy, J.D., LL.M.

Newsmakers
Acting on Instinct
Christine Lyall

Be Careful What You Wish For
Kristin Reynolds

Big Waves with Small Flutes
Greg Kishbaugh

Newsmakers
Boxboard Containers International Staff

Taking Success In Stride
Robin Litwin

Industry News
AccuDie and Die-X Form High-Tech Joint Venture
Boxboard Containers International Staff

AICC Recognizes Innovation at Fall Meeting
Boxboard Containers International Staff

ARC International Builds New High-Tech Facility
Boxboard Containers International Staff

Converting Machinery Asia to Become CMM Asia
Boxboard Containers International Staff

Doublebacker Drive Conversion Improves Corrugator Performance
Boxboard Containers International Staff

Graphics Microsystems Completes Color Control Installations
Boxboard Containers International Staff

Michigan Box Acquires Hess Packaging
Boxboard Containers International Staff

Print 97/Converflex Draws Record Attendance
Boxboard Containers International Staff

Seattle Packaging and Pamarco Celebrate Best of Show
Boxboard Containers International Staff

Stop-It Named AICC Innovator of the Year
Boxboard Containers International Staff

TAPPI Rewards Technical Achievement and Service
Boxboard Containers International Staff

Tulsack, Fibre Containers Install Ink Systems
Boxboard Containers International Staff

Union Camp Purchases Phoenix Display and Packaging
Boxboard Containers International Staff

Industry News International
Domtar Absorbs $10-Million Net Loss
Boxboard Containers International Staff

The Big Picture
Kristin Reynolds

U.S. Packaging Industry Forecast to Lag
Boxboard Containers International Staff

Westvaco Shares Third Quarter Results
Boxboard Containers International Staff

 
Article
 
Big Waves with Small Flutes

Greg Kishbaugh

Boxboard Containers International, Nov 1, 1997
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The personal attributes that often translate into business success are many. One must be hard-working, intelligent, self-motivated and resourceful. But for every attribute of success that can be clearly defined and recognized, there are an equal amount that are intangible, qualities that are beyond simple description. One of those traits-a characteristic that cannot be taught nor learned-is far-sightedness.

Gary Sotebeer, executive vice president of B.F. Nelson, Minneapolis, Minnesota, surely exhibits all of the hard-driving qualities normally associated with successful managers. But in conjunction with a self-deprecating sense of humor and a tremendous belief in fair play and decency, Sotebeer's coup de maitre is surely his ability to see trends far in advance of the rest of the industry. A case in point: small-flute corrugated.

Today, this market is arguably the most exciting and fastest growing segment in corrugated. Over the past several years a number of plants have become involved in the process, and business is booming for sheet feeders that supply this product. Within the past year, particularly, it has become a subject on everyone's lips. That is why Sotebeer's company's decision to enter this market is so extraordinary on two separate counts. The first is that Sotebeer and Larry Ross, the president of B.F. Nelson, anticipating a trend before it was even in its infancy, began actively pursuing the small-flute corrugated market nearly 10 years ago. The second is that B.F. Nelson is not a corrugated facility, it is a folding carton company.

"One of the greatest challenges involved in operating a folding carton company is that of differentiation-how can you differentiate yourself from your competitors?" said Sotebeer. "When the whole issue of just-in-time delivery first hit our industry, a great many of our competitors raced toward smaller-sized equipment that allowed them to reduce makeready times. At that same time, however, we made a cognizant decision to stay with the larger equipment. This provided us a point of differentiation and continues to until this day. We are one of the few converters in this part of the country that operates with this size equipment, which gives us a significant benefit with some specific accounts that need the larger format machinery to do their jobs efficiently."

Of course, some of the specific accounts that Sotebeer alludes to are those interested in small-flute corrugated. B.F. Nelson's decision to stay with larger machinery may well be an historic one for it has positioned the company as one of the original pioneers of this concept in North America.

It was, however, a careful analysis of the European market that first prompted Sotebeer and Ross to theorize the application of small-flute corrugated stateside.

"At first it was very frightening because we are a folding carton manufacturer and corrugated was foreign to us," Sotebeer stated. "It contains flutes, and it's a much more challenging material to deal with. It just wasn't natural to us."

But instead of shrinking away from the challenge and allowing the fear to become a hindrance, Sotebeer and B.F. Nelson forged ahead, touring corrugated plants throughout Europe in an attempt to gain a better understanding of the technology involved in small-flute production. "What we expected to see was corrugated plants trying to behave like folding carton facilities," Sotebeer explained, "but what we witnessed in one converting operation after another was a very distinct folding carton mentality. That was very motivating to us because it so closely resembled our philosophy."

B.F. Nelson has experienced enormous sales growth since Sotebeer joined the company 16 years ago, while simultaneously reducing its workforce. And Sotebeer credits the company's entry into the small-flute arena as one of the biggest reasons for its recent growth.

With the luxury of hindsight, Sotebeer is now able to look back at the developmental days of this product line with a great deal of pride and, also, to ponder why more corrugated and folding carton competitors did not throw their hats into the ring. "I am surprised that the market did not develop more rapidly in North America," he said, "and I am, quite frankly, still amazed that more folding carton companies have not chosen it as an extension of their product line."

Sotebeer recognizes, however, that competition in this market will become more intense in the coming years. But he does not see it as a threat. "The market is developing in such a way that it can accept new competition," he said. "B.F. Nelson is doing more and more business with national accounts, and as I see the applications for this product, the market continues to expand. We are still in the infancy of this product category, and there remains a lot of room for growth. As long as that remains the case, there is room for more participants."

Sotebeer feels compelled to point out, however, that the entry into this market is not easy, and it is not without significant challenges-both philosophically and financially. "I would be remiss if I made it sound as if a company could jump into this market lightly. The learning curve is extensive-and expensive."

Sotebeer began his career at B.F. Nelson in 1982, coming on board two weeks before his father, who had worked himself up the corporate ladder from folding carton salesman to the president of the company, retired. It was an important time of learning for Sotebeer, not only about the carton business but about his family's patriarch, as well. "In retrospect I wish I could have joined the company five years earlier so that I could have spent more time working side by side with my father. I learned a great deal about him by talking to other people in the industry, such as customers and suppliers, which was paramount in understanding the type of man he was and the importance of his work."

Sotebeer spent the early days of his career in advertising and marketing, a core of knowledge that surely helped in his successful pursuit of the small-flute market, but the art of cartonmaking was introduced to him at a young age. Along with his position at B.F. Nelson, Sotebeer's father was also part owner of a small folding carton company in Minneapolis called Pioneer Paper Box.

Consequently, Sotebeer spent a great deal of his formative years around folding carton machinery and is convinced-at least on some conscious level-that the industry is in his genes. "When I was 12 or 13, trying to earn some summer money, I worked in my father's plant feeding gluers and sweeping up around the place."

Sotebeer also fondly recounts days of his father bringing home damaged or substandard cartons that the whole family would repair by hand in the basement of their house. "If the desire to work in this industry is not in your genes," he proclaimed, "then it certainly gets in your blood."

No matter how often he is prompted, Sotebeer never addresses anything related to business as a "problem" or a "difficulty." Every obstacle, large and small, is neatly referred to as a "challenge." And it is clear that Sotebeer did not learn this term from a best-selling tome on management techniques nor is he subconsciously mouthing the mantra of some high-paid business consultant. It is simply the way he feels. He is a rarity on the world of business-an unrepentant optimist.

The sources of his optimism are plentiful-his religious faith and work with various ministries are one, his 25-year marriage to wife Jan certainly another. But one can uncover Sotebeer's deepest source of motivation by the simple two-word response he gives to the question, What is your greatest accomplishment? Sotebeer is a thoughtful man, one who carefully considers every question asked of him before answering, very meticulous and deliberate as he properly phrases each statement. But when asked this question-of what accomplishment are you most proud-he does not hesitate even a second. He answers simply: "My kids."

Sotebeer speaks of his two children with the sort of unabashed joy and appreciation that comes when a man has been successful at clearly identifying life's more important elements with those that are not. Having just turned 50 in July, Sotebeer finds humor in looking back on situations that caused him anguish in the past. "It's very true that as you get older, you tend to reflect back on the things that seemed so important to you at the time and you laugh at how inconsequential they seem now."

One of the life lessons that Sotebeer most appreciates is one that he learned before coming to B.F. Nelson, and it has served him well throughout his career in folding cartons. "I learned early on, although not without some pain along the way, that I do not have the answer to everything. No one does. As a general rule, the job gets done better and quicker the more people that are involved. It is difficult to do sometimes, particularly when you are certain you know the right path to take. But it seems the more positive I am about a certain direction the company should be taking, the more likely that input from other people can change my view. I find greater success and joy operating this way, and I know that other employees experience greater enjoyment from taking a more active role in problem-solving."

In the future, Sotebeer's overriding desire is that the industry can find a way to train, hire and retain its employees. "Finding and keeping qualified people is the biggest challenge we face right now. Larry Ross is very committed to this issue to the extent that our vice president of manufacturing, Brian Bosma, has begun work with various technical and vocational schools in the area to assist in planning their curricula. The schools are cooperative, but there is a definite propensity on the part of the students and schools to lean more toward high-tech aspects of business such as computers. I don't think the students realize the kinds of opportunities that are available for those interested in a hard trade.

"We need people, and we are willing to pay them a very respectable salary," stated Sotebeer. "What more could someone coming out of school want? If I knew of a program that was cranking out qualified pressman, B.F. Nelson and every other facility within the area would literally be beating their doors down."

There are no easy answers when it comes to the folding carton workforce; Sotebeer understands and accepts that. But he also understands that no one ever succeeded by standing still. His vision still remains clearly focused in the future, trying to pinpoint-and react to-the trends that will be affecting his company.

"There is no question that changing technology will play a huge role in our industry in the next few years," said Sotebeer. "The whole digital, direct-to-plate concept is going to affect us sooner or later. The speed with which this technology impacts the industry will certainly be a function of equipment costs, but there is no question that it will be a tremendous area of growth."

While Sotebeer has a clearly defined sense of what is important in life-and he must surely experience some sense of pride over the accomplishments he has achieved-he does not spend a great deal of time looking in the rear view mirror. He is much more concerned with what might be up ahead, just past the reach of his headlights.

"Before I retire and my responsibilities become those of someone else, I have a strong need and desire to identify one more huge market opportunity, like that of small-flute. I don't know what that opportunity is at the moment, but my antennae are constantly up searching."

Given Sotebeer's far-sightedness, and his determination to do things right, one could safely assume that his antennae will not be up for long.



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