Flying high

Pulp & Paper, Jun 2008 by Rodden, Graeme

from the editors

AS WELL AS IT BEING BASEBALL SEASON, in this industry, it's also conference season. I'm just back from TAPPI/PIMA's very successful PaperCon in Dallas. I'm about to head off to Sweden for SPCI, still the world's largest exhibition/conference, as SPCI celebrates its 100th anniversary.

Then, as soon as I return, it's off to Quebec City for the International Pulp Bleaching Conference. And, that's just three of a lengthy list of planned events. If we wanted, I'm sure our staff could attend a conference virtually every week in spring.

It's no secret that over the years conferences have become smaller and fewer, a reflection of the fortunes of the industry as well as the decreased number of people who work in it. Finding the opportunity to leave the mill for any length of time can be difficult. And, there is the soaring cost of transportation.

Still, these events can be valuable places to network and exchange ideas. As is often said, just finding that one idea that would work for your mill more than pays the costs.

Sometimes, it is difficult to say what makes an event successful: good program, right time at the right place. But, whatever the reason, the recent PaperCon was a success with more than 1,000 delegates registered and, it has to be said, a very high percentage came from producing companies, a very welcome change from recent years at many conferences when suppliers could outnumber mill delegates by as much as four to one. Not that there is anything wrong with suppliers, but even they will say they do not want to attend events when the only people they talk to are other suppliers. And, without supplier support, most conferences would be dead in the water.

Net so different

I don't know about you, but I was very taken with Gary Kelly's keynote address. Kelly is CEO and vice chairman of Southwest Airlines, which helped revolutionize the aviation industry with its fare structure, no-frills operation and routing. Although it may seem like pulp and paper and aviation have nothing in common, Kelly was able to skillfully draw parallels.

He told delegates about the challenges facing his industry: high labor and fuel costs (accounting for 70-75% of Southwest's operating expenses; it's a cyclical industry; high fixed and capital costs; "brutally" competitive with new startups happening all the time; highly regulated. In many aspects it is very commodity-like: Travelers want the lowest fare. Does all of this sound familiar? Isn't it nice to know we're not alone?

How did Southwest succeed? As well as low fares, the airline became famous for its customer service, including on time delivery. Its employees are a very satisfied lot. Although 80% unionized, there have been no strikes and unlike most other airlines, job security has not been an issue. The pulp and paper industry is not an island. We can look outside to see if other business models can help. The long line up of delegates wanting to speak with Kelly after his talk was over attests to that.

Looking back

It has been said that those who can't remember history are doomed to repeat it. Then again, considering the tough times we've been through recently, maybe repeating some of our historical successes would not be a bad idea. Anyway, although we won't be repeating history, in this issue, we are bringing it back with a new column, called Growth Rings. The column will feature a look back at events that took place and were chronicled in Pulp & Paper four or five decades ago. In this issue on page 22, we take a look back at what made the news in June 1978. We hope you enjoy.

On the lighter side, a recent BBC poll in the United Kingdom asked for the worst ideas of all time. Perhaps not an unexpected choice, the atom bomb topped the list. It was followed by reality television, capital punishment and, wait for it, plastic bags. Maybe there is hope yet.

Finally, speaking of polls, in next month's Pulp & Paper, we will unveil our first Top 50 list. We want your choices for the 50 most influential people in this industry and it does not have to be someone from a producing company. It can be a supplier, university researcher, government figure or NGO representative. More information can be found on page 4.

To read more industry opinions or give your own opinion, please visit our RISI Blog and Forums online at www.risiinfo.com

GRAEME RODDEN is Editor, Pulp & Paper