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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
 
Be Careful What You Wish For

Kristin Reynolds

Boxboard Containers International, Nov 1, 1997
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Human beings touch one another in various ways throughout the course of life, some more powerfully than others. To what degree we are touched by others often depends on the nature and extent of our relationship and our level of contact.

I recently spoke with a gentleman that I have never met in person. And although it can be very challenging to capture what makes a person tick while never having made eye-contact, I don't think that it's impossible. In fact, I know it's possible, because I am certain I've grasped the essence of this man, for I am touched by the compassion and energy he exudes and the immense degree of commitment he has shown in his lifetime to his family, his business and his community. I learned quite quickly that he sets his sights on achieving excellence in everything he does. Though our relationship has been short, I feel I know Marvin A. Pomerantz quite well.

Our conversation was engaging from its onset, then even more so as both he and I realized we had a few things in common, including the same alma mater. Once past my initial information-gathering, in fact, just minutes into our conversation, I easily sensed a dedication to life and to the pursuit of its challenges, of which he has had many. Then, after subsequently reading his impressive biography, at which point I realized-to my dismay-that our commonalities ceased, I was able to confirm my intuition-this is a very intense man.

Current CEO and one of two co-founders of Gaylord Container Corp., initiated in 1985, Marvin Pomerantz's innate intensity drives him to exert 110% into every activity, mysteriously without having to sacrifice any of the many different facets of his life for another. That isn't to say that he hasn't endured sacrifices in his lifetime, for his situation is actually quite the contrary. In fact, his childhood was ridden with sacrifice, including the tragic loss of his mother at the age of 10. Despite many impediments, his unending efforts to achieve and accomplish were self-evident even in his youth.

"You couldn't have had a more a humble beginning than I-there were plenty of days in a large family of nine children, where there may have been just enough food to go around, but there wasn't any surplus. And we moved a lot, because we couldn't afford to pay the rent, but we were able to improve as a family and grow stronger," said Pomerantz.

As a result of that family fortitude and cohesiveness, his present-day tenet-to be the best that he can be-was instilled upon him at a very early age. "I think I was born with it," he said. And with that inner drive, he forged the beginnings of a successful career in packaging.

"My father was in what one might consider an early phase of the recycling business," began Pomerantz. "We bought used textile grocery bags-sugar bags, bean bags and coffee bags-and recycled them. And that's where my packaging industry experience started. From there, it went into new textile bags and then to multi-wall paper bags. I started so young, I can't even remember how old I was."

As a product of a large, immigrant family, Pomerantz grew up working. He tends to consider everything he does a form of work, which for him is a good thing, for he loves it all. He works at family unity; he works-not only for his, but for many different political, educational and religious communities; and he works at his job. One recent example includes a study for a pre-K-12 excellence in education commission put together by the Governor of Iowa. "I've had a huge interest in education for virtually a lifetime," said Pomerantz. "As children, we were able to receive good training and a good education, with the mandate that education was of critical importance. I don't think that's ever been forgotten."

Learning at an early age the significance of learning itself helped form a solid foundation upon which Pomerantz has pursued knowledge continuously ever since. And although he has never taught formally, he takes on the role of teacher each and every day, for he is by nature, and by job description, a leader.

Pomerantz, 67, and his wife of 47 years, Rose Lee, together raised four daughters in Des Moines, Iowa. His children, Marcie, Sandy, Lori and Vicki, now have nine grandchildren ages 5 to 19. "My family is my most important possession," Pomerantz expressed, with a clear note of pride in his voice. It is obvious that his sense of family is indeed strong, a value that he attributes to his youth.

He thinks he has encouraged similar values in his own children that he himself has had since he was young, but he realistically recognizes that children don't always inherit motivation and values from their parents. "They couldn't possibly have, because their situation is so radically different from mine as a child. They are all great kids, that I can tell you," said Pomerantz. His family has played an important motivating role throughout his life.

Growing up in a family business often translates into significant pressure to grab the reigns, so to speak, and carry on the family tradition. His children, however, have not taken up the business; and for that matter, Pomerantz continued in the packaging industry not as a result of obligation, but rather of inspiration. "I was smitten by it. It is a very intriguing industry, and it's always been very motivating for me, as well as a huge challenge. I've always enjoyed it," he explained with a smile in his voice.

Nine years after graduating from the University of Iowa in 1952 with a bachelor's of science degree in commerce, Pomerantz founded his first company-Great Plains Bag Corp. In 1971 he was named vice president of Continental Can Co. Inc. It was there that he worked closely with Warren Hayford, who would later become the other co-founder of Gaylord.

Hayford, still a member of Gaylord's Board of Directors considers Pomerantz a very close friend for whom he has great business respect as well. "Marvin is probably one of the keenest operators in the paper industry today. His tremendous sense of timing is a crucial element in this industry," he said, adding, "I think he's done a fantastic job with that company. It's just beautifully positioned."

There was a point early in his career when Pomerantz realized that he thrived upon management and that he was quite good at it. "Starting Great Plains Bag Co. was a major turning point in my career," explained Pomerantz. "When that company later merged and I went to work for large, publicly-held companies, I was an entrepreneurial manager moving into a professional management organization. It was a unique and wonderful experience. And, by the way, I didn't see much difference."

How did Gaylord, a relatively small business founded by two men, virtually explode into a multi-million dollar company competing in the same integrated arena with the likes of Stone Container and International Paper? "Gaylord was put together by a combination of three acquisitions, the first, a relatively small one, was Pine Bluff-an Arkansas mill and a multi-wall bag plant," explained Pomerantz. "About a year later we acquired the brown paper assets of Crown Zellerbach-which was the main thrust of Gaylord-and then an acquisition from Louisiana Pacific, or really, Fibreboard. There have been other smaller acquisitions since."

Starting a business is frequently a large-scale process of trial and error, and though Pomerantz has made some very successful decisions in his lifetime, he, like any other human being, has made some mistakes. "Be careful what you wish for," he said. "We made some acquisitions we shouldn't have, and you learn from that; you learn from the things that haven't succeeded that may have seemed wonderful when you did them. But much like a banker giving loans, they're all good when you make them, but some of them turn bad."

Some of the less positive business experiences Pomerantz has had in his lifetime are those from which he has ultimately drawn valuable knowledge. Other experiences, not so hard on the wallet, have been more positive from the start, and affect both his professional and personal success. Said Pomerantz, "I've learned many valuable lessons in my lifetime, but one thing I know for sure is that no one can succeed without support and assistance from others, and I've been blessed with a great deal of support and assistance from the organizations I've been involved in."

In that respect, Pomerantz is particularly proud of Gaylord and the people who work there. "I'm proud of it from top to bottom. The management group there is an extraordinary group-it is highly talented, motivated and committed. We feel that that's an accomplishment."

Similarly, members of Gaylord management are proud of its CEO. "He's why I'm here at Gaylord," said Dick Storat, vice president of corporate affairs. Storat further described the unique motivation spawned by Pomerantz that seems to permeate throughout the Gaylord team. "The company is very entrepreneurial. It's a single-focused company, and it's not very far from the shop floor to the top. Marvin is an infectious optimist," he said.

Pomerantz is indeed very optimistic, even though his challenges continue to be numerous. He feels he has overcome most previous barriers while simultaneously attaining many goals even after starting with very little. "We started (Gaylord) with very limited capital, something that's always been true in my business career. So we've had to overcome the idea of high leverage, and we've learned how to deal with being a high-leverage company, because we've had a fair amount of experience in that vineyard."

With respect to the packaging industry in general, Pomerantz still remains markedly optimistic, which in this rocky day and age of ups and downs, seems to be relatively unusual. "I am more optimistic than others. I don't think I'm wildly optimistic but actually more realistic than others. People tend to project their current status. If things are terrible they think they will always be terrible; if they are great, they think they'll stay great. The fact is, neither prevails on a continuum. We're in a cyclical business, and that probably will go on, but the severity of the down-cycle will be moderated," said Pomerantz.

With this said, Pomerantz further expounded upon his industry outlook, which underlined the upward focus he has on the industry and his company, a focus to which he attributes much of his success. "We've been under a lot of pressure in our industry for the last decade with very little upside. I think we look forward to brighter days and a more level playing field," he said.

Pomerantz stated that he feels industry opportunities will become significantly better than they have been in recent years for many reasons, some structural reasons, such as the limitation of fibre, increased worldwide demand, and the recognition that each company in the industry needs to earn its cost of capital. "All of those things will come to the floor, and I think we'll see a significantly improved environment as we move into the next decade and the new millennium. I think it's happening as we speak," said Pomerantz.

But people in the packaging industry see a huge difference in the way integrated and independent companies approach business, and Pomerantz's heartening comments don't appear all-inclusive. To a certain extent, he agrees. "There is a difference," he began. "When I was a converter, I longed to have a mill. Now, I long to have a converting company back. It's always greener on the other side. There are advantages and virtues on both sides of the equation." But he thinks that the principles of management and the fundamentals of running a business are similar, whether it be a non-integrated, independent company, or an integrated company. He added, "Management talents have to be brought to bear, depending on the situation, and I don't see a whole lot of difference in that."

A company's management can and should be critical to its success or demise, and although he is modest, it is obvious that Pomerantz's ability to lead has been integral to the success of his companies. Pomerantz thinks that his employees find the leadership they need within him, but hopes that they also recognize him as a person who cares about and believes in people. He describes himself this way: "I'm not always wonderful, but I am always the best that I can be. I also think my colleagues would consider me to be highly motivated, and one who is a considerate, though tough, competitor."

One of those colleagues, Mike Fiterman, of Liberty Carton in Minneapolis, underscores Pomerantz's self-evaluation. "I would say that what I admire most about him is his sincerity and warmth," he said. "He is a person that truly cares about people, and it's impossible not to see that when you are with him." But can a man's humanity be enough to make him a good leader in a highly competitive industry? Fiterman answered, "I think those qualities have served him very, very well, but I would suggest that his entrepreneurial spirit and his calculated risk is probably what has made him successful. He is a very well-respected man."

Contrary to the often repeated assertion that the packaging industry has lost its luster, particularly in light of the recent struggles it has experienced, Pomerantz wouldn't hesitate to do it all over again were he starting anew. "We tend to become myopic, thinking that in our industry we have all the maladies of the world and no one else has them," he said. "The fact is, there are enough to go around. Most industries have negatives. If you get caught up in those negatives and let them become your focus, then I think you have a very strong possibility of failing."

Pomerantz has a similar outlook on his non-industry related involvements. It is his unobstructed hopefulness that has inspired his interest in the civic arena as well. From chairman of his own university's $150-million improvement campaign to Iowa manager of President Gerald Ford's election campaign; from president of Tifereth Israel Synagogue to recipient of the People of Vision Award from the Iowa Society to Prevent Blindness, Pomerantz has spread his efforts generously around the community, a talent for which Jack Creighton, president and CEO of Weyerhaeuser, praises him.

"I admire his ability to balance a very strong business career with public service and a good sense of humor," said Creighton. "I think people in the industry respect his political instincts as well as his astute business instincts and are impressed at the same time with what he has done in his home state of Iowa for education."

So it isn't all business that sparks Pomerantz's energy but more the quality of life that he has experienced in the past and present. Though all very significant experiences, the happiest time of his life wasn't just a grandchild's first tooth, his induction into the Iowa Business Hall of Fame, or his first successful acquisition, but a combination of each of those successes and many more.

"Every time is the happiest of my life. I've had great pleasure in the activities I've participated in," said Pomerantz. "The diversity in my life has offered me a great deal of contentment, and I think that's kind of my hallmark. The interests I've had over the years have provided me with a very high quality of life."

Professionally, Pomerantz wants to make his company a major packaging company. "We're well on the way to achieving that goal," he said, "even with difficult times. I would like to see this objective reached and have Gaylord be considered one of the more outstanding companies in our segment of the industry." On a personal level, Pomerantz aspires to continue to maintain a good balance in his life. "I have worked very hard first at my family and then at my business and civic interests," he said. "I hope to continue to go down life's path in that way. And I'll take care of each goal I come upon along the way."

I think my initial suppositions were correct and my ensuing interviews with Pomerantz's colleagues further reinforced what I already thought to be true. He has touched many people in the past, and even in the so often untouchable role of upper management CEO of a major corporation that he plays, I think he has allowed himself to be touched as well.

The adjectives used to describe him by those who know him well were very to-the-point: compassionate, respectable, warm, sincere, optimistic and caring. These qualities of a man of Pomerantz's uncontested integrity alone may or may not be every man's definition of success, but perhaps they should be. Coupled with inner drive and forward thinking, they certainly wouldn't hurt the aspiring entrepreneur-they seem to have served Marvin Pomerantz quite well.

"What do I want to be when I grow up? I'm already doing it," he said. Pomerantz is young in mind and young at heart. Though he may eventually retire from the business, he can never retire from his role as motivator, role model and leader, nor does he want to-those qualities are intrinsic, and vital. So, be careful what you wish for, or, as in the case of Marvin Pomerantz, be careful to include everything you truly want in that wish, because with the will to do, an inner drive and a lot of hard work, your wish might actually come true.



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