Dealing with paper industry challenges.

Dear Alan,

I found the December 2004 issue of Solutions! most interesting, beginning with Peter Duncan's letter to the editor. He clearly states the problem with jobs in the industry; thus the reduction of student enrollments at paper schools by some 50%. This is unfortunate because the industry needs these bright young engineers for survival, but the paper companies do not seem to understand this. Whether he is correct about the current resurgence in need being sustainable is, I believe, problematic.

This letter and Harry Cullinan's excellent piece on the future of both the schools and the industry, "Where are our universities headed?", were most enlightening; although not news to me. Even though retired, I serve on the Boards at both the University of Wisconsin--Stevens Point and University of Minnesota paper programs, and thus have first hand knowledge of the problems. Frankly, Minnesota changed its program for, in my opinion, the better. Students demanded a better chance of placement upon graduation and the University could not continue the program as it was with lower enrollments. This actually helped, I believe, since all engineering programs nationwide have a dearth of students, e.g. Chemical Engineering. Harry challenges the industry to realize the need for these graduates, but I feel as he does that the increased demand will be temporary, based on recent performance.

The paper companies seem satisfied to allow the supplier side do the vast amount of technical work, but suppliers also feel the economic crunch and must restrict hiring, which is a Catch 22. For the paper companies, there is the question of where is middle management going to come from if there are too few new people from which to choose. I am not sure there really is a desire to reinvent the paper companies; thus, the schools may end up being the driving force rather than vice versa, which might not be a bad thing.

Two other articles had comments I thought very insightful. In "North America: The European connection," by Jim Kenny, it is referenced in several places that the European companies are making investments while U.S. companies are holding investment below depreciation. The former approach surely is looking positively down the road; whereas the latter is a portend of disaster. At some point, the investments must be made and if one is too far down the slippery slope of obsolescence, the cost to improve becomes too great. The industry must take a long-range view or go the way of other basic manufacturing sectors of our economy.

This is borne out in my mind by the comment in Chuck Klass's article, "Is curtain coating ready for prime time?", that the book value of existing coaters is such that conversion to curtain coating, or perhaps another technology, is an impediment for upgrading. Sorry, but that is false reasoning for if the new technology offers that much improvement in quality and operation there should be no impediments.

Our industry seems to be in a malaise of cost cutting above all other considerations. Paraphrasing Dr. Deming, an entity that makes cost reduction the primary focus is sure to fail. I am not sure he has been proven wrong; thus, a change in our industry's thinking appears to me to be an absolute necessity and sooner rather than later.

Sincerely,

Art Rankin

Appleton, Wisconsin 

(Past president of PIMA)