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Market Update October 2019 News & Updates

Alliance Plastics

Resin Market

I said that prices would rise only with a natural disaster and that the resin companies had God on their payroll. Well, not to say that they have a speed dial to Iran, but I give to you a new explanation, a natural disaster or an act of terror. I am in awe of such great power that they also can buy any kind of disaster and put it to work for them. So, before I play DEXTER and dissect this increase, let’s look at Oil which has leveled off already to pre-attack pricing. The disruption was a blip in the oil supply which was overfilled with capacity already. Now the resin suppliers have, and I say this with some chuckles here, put out a second increase behind the rather smallish 3 cents, and they are backing it up with an 8 cent increase behind that one. I can only gather that they bullied the poor people at CDI to accept this as gospel and they are paranoid to not screw up again, so they published the 3 cent increase. I hope you are catching my skepticism but, sigh, I guess we have to play ball here. Everyone has nominated a 5% increase for some time this month and meanwhile, they have the same problem they already had before, they have too much capacity. So, whether they are paying 3 cents more for resin, they are eagerly trying to fill those pounds through those even larger capacity extruders and they are more and more desperate. Who will blink first? If you have a thought, send your answer to:

First Blinker
2 Much Capacity Way
Fort Mill, SC 29716

The award is a bag of resin, which I would say is going down in value and not up.

I do want to stress to you, as the prices are going up, our greatest reward to you is our new 33 layer and 55 layer nano-stretch film that we actually lowered pricing to help you fight the increase. Get the highest technology for lower pricing than the competitors. Being unique is what we are and making you stand out versus your competition is what we do.

Paper Market

Can you believe that I pay someone to take away my scrap paper? I actually pay an employee for many hours to bale it, we stack it and then when someone comes to pick it up, they settle on the price, yes, the price for me to pay for them to haul it away. I could send it to the landfill for much less, but we are responsible and want to do the right thing. So, tell me why the bending chip market has not bent yet? I know with the amount of solicitation that we are getting from companies, I can smell it on the Sales Reps, they are under pressure to sell the material but they are only given the most modest of offers to change anything. Come on guys, the market for export is gone now, your capacity is high and your demand is low – anyone knows what that means in economics? If you know the answer, reply to:

Economic Phenomena
Fort Mill, SC 29716

Win a roll of URB chip and dip! The dip is Delmar and he works for us and will deliver the award.

Ron’s view:

Stop the Merry go Round and remember…
I think we have all taken the merry go round, around and around and around and somehow, we can all relate to the inevitable mistakes, repeat hires and missed intentions. Funny how a hustler is always a hustler, the absent employee is always the same, the self-proclaimed expert is the one who elevates themselves by putting someone else down, he who spins his wheels in every direction has no value and those who speak without listening will only hear themselves.

Let me share what I have learned on the playground…
I had an employee who I brought in with a title…
If they can not oversee, the title has no value
I paid the employee more than any other…
And the other team members did his work
I gave him tasks to implement…
None were completed
The written policies he signed as his own…
Were written by others
I praised his intelligence…
He knocked those who were a threat
I asked what he had accomplished…
He presented graphs with unknown data
To he and those alike I say, there’s no indispensable man:

The Indispensable Man
(by Saxon White Kessinger)

Sometime when you’re feeling important;
Sometime when your ego ‘s in bloom;
Sometime when you take it for granted,
You’re the best qualified in the room:
Sometime when you feel that your going,
Would leave an unfillable hole,
Just follow these simple instructions,
And see how they humble your soul.
Take a bucket and fill it with water,
Put your hand in it up to the wrist,
Pull it out and the hole that’s remaining,
Is a measure of how much you’ll be missed.
You can splash all you wish when you enter,
You may stir up the water galore,
But stop, and you’ll find that in no time,
It looks quite the same as before.
The moral of this quaint example,
Is to do just the best that you can,
Be proud of yourself but remember,
There’s no indispensable man.

… And the most important lesson I learned is the gratitude I have for those in my team who have taken the merry go round, around and around and around… and continue to offer their…

  • Resolve to go on
  • Their commitment to continue when they have seen it all before
  • The willingness to pick up the pieces when they saw them breaking
  • The continuing without praise

I thank you all from the bottom of my heart for being here and doing everything you do – you are valued and appreciated. It is our people that make up our company and our people make our company great.

Ron Grubbs, Jr.