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We have spent a lot of time lately talking about obsolete pulp and paper mills. From conversations I have had directly with a number of you, there is a mistaken notion that old and obsolete are synonymous, interchangeable terms. Not true. Let's look at a few examples outside of our industry.
Start with the London and the New York subways. These are old systems (at least the holes in the ground are old, and so are some of the stations). However, they are not obsolete by any definition of the word. They both very efficiently move large numbers of people daily, with a reliability and safety record other forms of transportation can only envy.
The Panama Canal. It is old, but not obsolete just yet. It may be when the new, parallel canal is finished, but even then portions (the artificial lake, Gatun) will not be.
Other examples of old but not obsolete abound.
Some paper mills are old but not obsolete, while others are relatively new and are. What makes the difference? Markets and competition are the discerning factors.
Crane, for instance, makes US currency (and other) paper in some very old facilities. However, US currency is a highly sought commodity and the US Congress continuously awards the contracts to Crane. Old yes, obsolete, no. They probably make the most sophisticated paper in the world, by the way.
Newsprint mills are an example of obsolete but not necessarily old, although most likely we will see the patterns continue of the oldest and most logistically challenged mills going out of business first. The markets are going away because of the electronic competition.
I have mentioned in speeches and past articles the peculiar case of a machine I visited many years ago while it was being dismantled. From ground breaking to dismantling, this machine was only around for about 32 years, a mere "child" in our industry. Yet, when one examined the records, one found this machine had the last model of everything, from the day it was first installed through several rebuilds. It did not help it was on an island. It was one of the first major printing and writing grade machines to disappear.
We can also make the mistake of replacing something old that is not obsolete. Most of us in the 1st world are guilty of this behavior with respect to automobiles, clothes, and now, cell phones.
In the town in which I live, the city fathers decided to replace the city hall. The old one was perfectly functional, but neighboring communities had replaced theirs, so they "had to" react. Of course, it helped that all these scoundrels had figured out how to obtain federal funds for most of these projects in other neighborhoods as well as ours. We now have a city hall that looks like the one in the old Michael J. Fox movie, "Back to the future." But my taxes did not go down nor did my city services improve (the only two ways I measure all government). I would prefer they work out of tents.
The two keys are competitiveness and functionality. There are many examples in our industry of erring on either side. That is, believing we are competitive when we are not and replacing something needlessly because something new has arrived. The astute management team will examine the root cause needs and act appropriately.
Now, the human body has not gone out of style, nor is it obsolete. So, let's make sure we take care of them, all of them.
Be safe and we will talk next week.
Second Page...
[Adv.] Edge
This week, we want to remind you of our fine friends at Edge Wallboard Machinery Company. In business since 1956, the words "Wallboard Machinery" in their name at first described all they did. Soon, however, their fine reputation caused papermakers in need of superior components value-priced to seek them out. The rest, as they say, is history.
Contact Edge to learn more about their ability to fill your needs for paper machine components. And when you talk to Edge, tell them you saw them on Nip Impressions.
Jim
Riddles by Travis:
2 "laws", one an adage relating to romance, the other a naturally occurring oddity among first-digits share the same name. What are they?
Note: Emails are organized in the order received, with first received at the top.
***
One of the best ways I have found to keep connected to the younger and future members of our industry is to get involved with a local TAPPI Section and a pulp and paper school. Younger members of the industry are more likely to be able to attend Local Section meetings than national TAPPI events (or any event that takes them away from the mill for more than a day). It doesn't matter what the feature topic is, just be there and intentionally network with the "youngsters" in addition to your old cronies. Pulp and paper schools and their supporting Foundations are always looking for industry members to mentor, speak to and of course, interview and hire their students. If there isn't a school close by (within your state), try to detour to their location when on a trip in their area. I am fortunate to the have my alma mater, the University of Washington Pulp and Paper Science and Engineering School, just 30 miles away. Foundation meetings, alumni gatherings, research project involvement and an occasional teaching opportunity allow me to meet the current students. And believe me, they are smart, enthusiastic about their future in the industry and grateful for time industry members can give them. Getting to know students while they are in school will give you an added benefit. You will have a better chance of hiring "the best and the brightest".
Bill Fuller Federal Way, Washington USA
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Bill:
Your letter above in response to a column a few weeks ago is on the mark. The foundations, in particular, have been an inspiration to me over the years.
Jim
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A convenient shortcut:
Have you cancelled your phones and email accounts?
Many have decided they can not afford to advertise in conditions such as we find ourselves in now. This is like saying one cannot afford phones or email. There is no more cost effective way to communicate with your prospects than adverting on Paperitalo Publications.
And call me today to talk about your marketing and advertising program for 2010. (See our Media Kit at "More" below). We reach the pulp and paper industry worldwide every week--no exceptions.
Regards,
Jim Craven Associate Publisher, Nip Impressions, PaperMoney and Capital Arguments
As I travel, I am always looking for someone to go to dinner with, share a barbeque sandwich lunch and so forth. If you are in the area of any of these events (or along the way, since I often drive), give me a call on my cell phone (404.822.3412). I would be delighted to visit with you.
Also, I accept a limited number of trips per year to mills for reimbursement of travel expenses only (I am a cheap date). I like to visit mills and talk, and I'll be happy to hang around a day or two and talk to your professionals, shift teams and so forth, in a formal setting or just out in operations. Contact me for arranging such a visit.
One caveat: clients may require my presence at a time or place that conflicts with these. Clients get priority for every date but my wife's birthday or our anniversary.
13 - 22 Mar 10: Brussels and Paris
30 Mar 10: Miami University, Oxford, Ohio
15 Apr 10: Shreveport, Louisiana
16 April 10: Engineering Manager of the Year Banquet, Forney, Texas
1 May 10: Light Green Machine Workshop, Atlanta, Georgia
From the bottom of our hearts, we thank you, the readers, for you are the source of our success at Paperitalo Publications. You avidly read Nip Impressions, PaperMoney and Capital Arguments. You pass them on to others. You save them in your own electronic files for future reference. We are deeply grateful for your enthusiastic support.
There are a few suggested actions we would like to offer you to assure our continued success in the future.
First, be vocal with your suppliers--tell them what you read! Suggest to them that if they have an advertising budget, they just might want to spend a tiny bit of it in the family of publications that you actually read--Paperitalo Publications. If you are really enthusiastic, email our associate publisher, Jim Craven (jcraven1@charter.net) and he will be happy to provide you with the email for the advertising manager at the supplier(s) of your choice so you can email the decision maker directly to let them know how you feel. You, the reader, have more influence on current and prospective advertisers than anyone else.
Second, some of you have actually asked if you can pay for our publications. Wow! Not to deny you this opportunity, here is a paypal link that you can use if this is your desire:
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Again, we thank you for all your support and encourage you to keep reading, passing and filing.
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We are going to take a break on new questions for a couple of weeks while our quiz wizards think up some new questions that will inspire you to vote.
(note: all respondents are confidential; the software is programmed in such a way that neither we nor anyone else can determine who responded)
Last week we asked: How confident are you in your corporate management?
28.6% said "Very Confident"
19% said "Somewhat Confident"
14% said "Neutral"
9.5% said "Somewhat Unsure"
28.6% said "Very Unsure"
Comments included:
May have a vision, but whatever it is, it is not communicated in a way that helps the mill allocate capital in the best manner possible. The usual low cost, best customer service is there, but business unit leaders seem to change often enough to assure that long term commitments won't be needed.
Very confident. But, I'm in equipment insurance business - all equipment, not just pulp & paper. Although, nearly everything I do is pulp & paper - at this time.
Want to be heard on other subjects? Be sure to watch for "Paperitalo Second Tuesday Surveys."
Travis Hale
A test of intuition (and mouse skills)
http://www.bartbonte.com/duck
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Submitted by Mickey Nell McMahon, Tell City, Indiana, USA
For your reading pleasure...
What Clients Love by Harry Beckwith
Beckwith has written several sales and marketing books that are superb; not your usual sales blather.
Available at amazon.com
How Capitalism Will Save Us: Why Free People and Free Markets Are the Best Answer in Today's Economy by Steve Forbes and Elizabeth Ames
Available everywhere.
Team of Rivals, the Political Genius of Abraham Lincoln by Doris Kearns Goodwin
It may seem strange to have a "popular" book here, but this is one of the best books on management (by example) I have ever read. It is also a very well researched book, assembled in a remarkable manner. It is five stars for sure.
Available everywhere.
Chemical Additives for the Pulp and Paper Industry by Professor Stephan Kleeman, Ph.D. et al.
If you have a new work you would like rated and featured, please email jthompson@taii.com for information.
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In order to have your picture added, please follow the instructions on this form. We can not accept any photos without the form being complete and submitted. Please use either jpg or gif formats.
Green, Chuck (view from Chuck's winter office, Fort Walton Beach, Florida, USA, 12 Jan 10)
Thompson, Jim (taken in my office, Duluth, Georgia, USA, 6 Jan 10).
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The characters from the novel "The Osage Mill" are fictional and copyright, 2006, 2007, 2008, 2009, 2010 Talo Analytic International, Inc., all rights reserved.
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Paperitalo Publications has recently experienced a situation where emails and articles purportedly published by Paperitalo Publications have been circulated to various persons by others not associated with our staff. If you are in receipt of any email or article carrying one of our logos but which you believe may be fraudulent, please email jthompson@taii.com for verification.
Be safe, and we will talk next week,
Jim Thompson
Paperitalo Publications Publications people read (TM)
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