May’s Resin Market Reviw
As we’ve all seen, the market took the first price increase. I’m sure that all the folks in high hats and monocles who passed GO and collected 200.00 are laughing at each other because they received another gift, a second increase. I don’t predict this increase will hold long term, but like anything, increases are implemented in gushers and will only slip in trickles. The market will remain stable for about a month or two and will allow for a couple of pennies to melt away in July and possibly August. Business inventories gained at a faster rate than many expected but, despite that news, many are looking at the robust job gains and other economic indicators to show that our economy is chugging along stronger than other countries. The outages from the resin producers did cause real shortages and are just coming back into production. Evidently, the resin producer’s move to full production is slower than anticipated, delaying any dramatic drop in pricing.
The Paper Market
Paper is a tight commodity right now. The availability of scrap and other items are being bid up and I believe that those who are lucky to have long and stable relationships, like our partnership, are doing much better than the sporadic and frenzied commodity buyer. I don’t forecast increases but I do forecast shoddy quality on the horizon for many of our competitors.
A view from Ron’s desk
So, I have to concede, much like Cruz and Kasich, my bold prediction that a contested Republican Convention is evidently not going to happen. I did say Oil would be in the mid 40s when most were telling me it would go down into the low 30s, and at least that prediction has proven to come to reality. I suppose the American way is always to clamor for change.
We are the greatest innovators the world has ever seen, even if we don’t invent the world changing technology, it’s our banks that fund it, our systems that perfect it and our ingenuity to mass produce it and drive the pricing lower for the world’s benefit. We are in the midst of major changes in our own little company. We hired new people that came from the ever efficient automotive industry and the ways we are changing are incredible. We, like anyone else, have to be faster, better and advance the art of innovation more so than any of our competitors.
When I met with my financial advisors, we talked about the vast amount of new products, present and past that we introduced. Some were hits and some were misses, that silly string we tried to hold pallets with in a can, that was a losing proposition. However, it was my banker who pointed out that we were the innovators in our industry who created new markets. We came out with our Steelflex Xtreme product line utilizing the advancements in higher end films; our competitors called us liars and thieves. The next thing we know, they introduce their own product lines to compete against ours. We came out with a better vented film to enlarge the aeration area in the film; our competitors would soon follow. We invented a down-gauged cornerboard. We proved to the market it works and saves the customer money, but more importantly, ensures product security and safety. Everyone said it was too expensive to develop but we did it anyway. Guess what? Our competition followed. Recently, one of the largest stretch film companies almost stole completely our film name and all but stole our packaging, more so, they even took some of our marketing. I worked for this company when I was younger, so I realize they don’t have an original brain in the bunch, but did I get mad? No, I suppose that it’s a compliment and I chuckle because I know they are eagerly awaiting our next invention. I have news for them, we are just getting started.
My employees are working so hard and like any change that happens, I know that they are tentative about what we are doing here. Since I rely on parables like my hero, Abraham Lincoln, to help tell them and assure them, we are all going to be better and change sometimes is a good thing. I brought all my employees in a room, and I told them the story of Alexander and the Gordian Knot.
The Gordian Knot was this impossible puzzle that for centuries confounded people. Legend has it, that who ever could untie the knot, would rule the world. So many people tried to untie this knot, it became a pilgrimage for many a ruler, king and prince. The perception of being the one to solve this puzzle that no one before them could solve and to have the prize, the Ruler of the World was too great a prize for someone to pass up. None were able to ever untie the knot and it remained a great tourist attraction.
Young Alexander who marched his army into the Persian Empire and with his 50,000 troops beat back a force of 250,000 Persians, not once but twice, marched his troops upon the site of the Gordian Knot. As his troops all stood around and a crowd of people came to watch this boyhood King of Macedonia study the knot, Alexander simply pulled out his sword and hacked the knot apart. And as we all know, Alexander would go on to conquer the world. You see, Alexander looked at things differently than all those others that came before him. He saw the solution and in a very decisive and simplistic manner, he solved it. All those before Alexander that came to the knot were conquered by the puzzle. Alexander was someone who always thought outside the box. He saw a problem and the easiest fix and went into immediate action.
At Alliance we are marching forward with new people and new plans to help you conquer more of the market. We have taken some casualties, but our little company is growing faster every day. Like Alexander, we are going to see the solution and take action so we can continue to deliver the very best in service, quality and new technologies.