When we all talk about how rapidly the world is evolving and how fast we must meet these challenges, 2009 will go down as a year of very dramatic change.

2010 Stock Tin Catalog

We are very excited about the new catalog. The first responses from our customers have been very positive. Most all of the goods are now in stock and ready for shipment. Please call your sales representative to discuss your needs and expectations. We do have some closeouts from the 2009 catalog that you can order now and save money on popular designs.

Ø Moved into a 90,000 sq ft. new plant in Ft Madison, Iowa. The new plant is energy efficient and the layout allows us to be more efficient in manufacturing.

Ø We closed our plant in Wilkes Barre, Pennsylvania and moved the equipment to Ft Madison, Iowa.

Ø Added sheet feed presses for component production

Ø Add a 4 color Metalstar II printing line

Ø Added robotic packing and palletizers

Ø Right sized staffing

2009 forced all companies to look inward at all processes and systems to make sure that overhead and all costs were correct. We did right size our company which was painful although now the actions taken are showing some really positive results.

We now have the end of year numbers and are able to identify a definite trend. The bottom of this recession, for our business, seems to have been in mid to late last summer; since then there has been a steadily improving market place. I am writing this update the 1st week of February consequently I have a first look into what 2010 will be. January 2010 was a significant improvement over January 2009. We also have many more projects in the works then we had one year ago. It appears that all segments of the market are seeing better time ahead and realize that they must at least begin to innovate so that when the markets truly return to whatever “normal” is they will be repositioned.

The global perspective:

I traveled around the world in January visiting packaging companies in the Middle East and China. I have found a similar story everywhere: 2009 was a difficult year although there appears to be steady improvement. The costs of materials and labor in China have been creeping up and are forcing those companies to look for efficiencies and process improvements. Labor has been a challenge in China; securing skilled and reliable staff and then keeping that staff is a problem.

The manufacturers in the Orient have to learn to manage issues that a rapidly developing industrialized nation must learn to deal with as they mature.

It is my belief that creative, effective, well managed manufacturers in the U S will see significant demand for United States made products against those made in the Orient due to difficulties and challenges that they are just beginning to uncover. There are some projects that will be best serviced from that part of the world although mass produced production systems will be very successful in the United States.

What have we done to thrive as we come out of the economic crisis? As mentioned above in 2009 many projects were completed.

·         Trail UV coater on the 6 color line (very productive and environment friendly). This will start up by March 1, 2010

·         New high speed end compounder and oven

·         New sheet fed blanking press for popcorn pails

   

Thank you to all of our very loyal customers and please continue to challenge us to provide new and innovative packaging solutions. We are working hard to innovate but since you are closest to the ultimate customer your ideas are needed and welcomed.

 Sincerely, 

Rick Huether