Tree to Box: The Billion Dollar Cardboard Business
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- Опубліковано 7 чер 2024
- The world runs on cardboard. Produce, snacks, electronics, beverages, merchandise, household goods, everything is shipped in cardboard. Cardboard can be made into different properties, strengths, and shapes - everything from heavy-duty bins that can hold watermelons or merchandise, trays for fresh produce, food-safe boxes for pizzas, candy boxes that double as in-store displays, to Amazon boxes tough enough to survive the back of a Fedex truck.
International Paper and WestRock are two biggest players who have taken a lion’s share of the American cardboard market in the past decade. The next time you come across a cardboard box, take a second to flip it over and look for a logo at the bottom, and you’ll likely find that it came from 1 of these 2 companies.
International Paper and WestRock are massive business empires hidden in plain sight whose products not only enable American commerce, but also extend into the political landscape and shape foreign countries. In this episode, we’ll cover the business of cardboard, how it’s made, and the contrasting strategies of these 2 cardboard giants.
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🎧 Audio Editing & Mixing: Sonalf
0:00 The World Runs on Cardboard Boxes
5:07 Forests as Natural Resources
8:05 How Cardboard is Sold
11:50 The Slow King
15:50 Shaping Brazil & Russia
18:02 The Nimble Heir
0:00 The World Runs on Cardboard
1:36 The Science Behind the Material
3:40 How Cardboard is Engineered
5:07 Forests as Natural Resources
6:29 Supply Chain of Raw Materials to Finished Goods
8:05 How Cardboard is Sold
9:28 Tree to Box Vertical Integration
11:50 The Slow King
14:32 The Secrets of Recycling
15:50 Shaping Brazil & Russia
18:02 The Nimble Heir
20:02 Supply Chain & Product Differentiation
Great video !
do you need help researching for these videos? I have an MBA/Market Research Background looking for a PT gig.
@@yokomesome the channel can be called Modern MBAs
@@yokomesome mail him directly man
My World doesn't "run on cardboard". Earthlings need clean air and water, first.
This channel is arguably one of the most valuable gems on YT.
indeed
if only they filter their sponsors
@@yeetboi268which bad ones have they had?
I found this to be fascinating. I'm a truck driver, and back when I was "over the road", I frequently delivered to International Paper, WestRock, Kimberly-Clark, Georgia-Pacific, etc. I have opinions on the various companies based on their efficiency of shipping/receiving, but it's cool to learn more about the inner workings of the companies.
Who was the best and who was the worst?
Yeah, and why? What kind deliveries did you make?
40 years in this industry and this video was spot on! Great job!
hey id like to contact you about paper business, u got any socials?
I work at Pratt Industries in Northwest Indiana by Chicago and this video was constructed PERFECTLY. From how a corrugated sheet is made into all the background nuances like sales and accounting and down to the recycling process was amazing to say the least 10/10.
I also happen to work at Pratt Industries in Northwest Indiana by Chicago , I know john I know everybody and I also agree that the recycling process was amazing to say the least 10/10.
Hey there! I work for Visy, which is owned by Pratt in Australia/New Zealand. I'm a corrugator operator. Also used to work for one of Oji's factories in New Zealand.
@Roy Pearse I worked on the converting side of our plant. I was a machine operator for a rotary die cutter, but I no longer work at Pratt left a couple of months ago:/
Don’t forget the tapes and adhesives used to close the boxes! You hardly notice them, but the science behind their formulation and application is fascinating.
3M GANG🤘
Dunder Mifflin is also one of the paper industry giants. and their Scranton branch is exceptionally well managed under one Mr. Michael Scott.
❤😂
😆😆😆 we need a modern mba video about dunder mufflin 😆
@@csanton3946 One for April Fool's
Not as good as Wernham Hogg!
and QA department was handle by Creed...
It always blows me away at the amount of research that must have went into this. Interesting topic too
Make a video how Western Union pumps billions of untaxed employee money into South America.
blows 😂😂
large warehouses, stores and packaging converters may be able to sell their used cardboard back to the recyclers as it is just that valuable. B2B paper tends to be cleaner and therefore slightly more valuable than post consumer paper.
I work in this industry and I have to say this was really well done. I will be passing this along
Any other insights not touched on in the video?
@@MegaJuniorJones Automation in this field would be interesting.
Walmart and Sams Club make money from the cardboard / boxboard they receive their products in.
I always click instantly when you post - your insights and the amount of value that I get from these videos... I can't believe this is even free!!
I agree, I didn't even want to watch this video until I saw it was made by Modern MBA!
@@codycast No
Please create a series of business empires hidden in plain sight
Would definitely be interesting. Cardboard is covered here. Plastics I don’t think is a good one. But other ones would be good. I’d rather see things like the cardboard video though than seeing something about Luxotica owning all the eyewear retail companies or whatever. That’s been done multiple times elsewhere and isn’t super interesting.
Could Do a story on Carlyle group or other big PE that don’t do heavy startup stuff but more buy business and such.
Best business analysis on youtube by a long mile!! Well documented, presented and entertaining
Make a video how Western Union pumps billions of untaxed employee money into South America.
Wow I feel like Martin and Principal Skinner at The Box Factory.
Excellent content and presentation as always
do you have a team of people is is it just one person? because the quality is amazing
Just me! Thank you very much for your kind words and continued support.
the fact that this guy can make a youtube video about cardboard boxes interesting is ASTONISHING.
Shipping containers is also very interesting.
Man these videos are so freaking good. I wouldn’t mind if you went into even a little more depth. If you felt like you were trimming some aspects, you could go longer/deeper.
The only other thing I would ask for is more content if possible, without losing quality!
Great stuff!
you want this contentt creator to go deeper and longer for uou
I worked 14 years as an electrician/mechanic in a corrugated box plant, and let me tell you, I haven't a single regret about being retired today
I LOVE CARDBOARD!!!! A GREAT MATERIAL FOR ANYTHING!!!! CHEAP, STRONG AND EASY TO GET!!!! ALSO GREAT FOR ARTS AND CRAFTS.
Never thought going to the cardboard factory might be interesting. Something the Simpsons got wrong.
Always a treat watching your videos. Very succinct and without much fluff, while being extremely informative with a delivery tone and speed that is just right.
Hope to see more of your videos.
Make a video how Western Union pumps billions of untaxed employee money into South America.
"In spite of the antiquated rail network of the US..."
I believe it's generally agreed that the US has the best rail network in the world for industrial purposes. Where the US is seen as lacking is its passenger rail network, which would not be relevant here.
I immediately checked the comments when I heard that off comment. Glad I wasn't the only one, the US freight rail network is by far the best in the world
Agreed
Its a shame how many people don't understand this.
Uh oh, someone’s butthurt
I was in Corrugated for 4 years as a Packaging Graphic Designer in print quality control. I worked closely with the Structural Designer of various boxes we made. I’d like to push back on the source of strength of the box being “triangular.” As I understand it the strength of the box comes from the flutes, or ARCH-like shape that is formed by heating up the paper and running it through Combining rolls. The associate images when learning the process were colonnades or examples of Roman aqueducts. Not all walls of the box are made equally as flutes run in one direction. The walls that have vertical running flutes are the strongest load bearing sides.
Man this has convinced me that when in the Simpsons Bart’s class goes to the box factory it was actually a really cool field trip that the kids didn’t appreciate.
Thank God for the man who invented permission slips!
I haven’t thrown a box away in years 🤣 i stash up every single one for my eBay store and I’ve noticed a lot of differences in boxes over the years lol
Are you a hoarder?
what kind of differences?
@@lelagrangeeffectphysics4120 boxes i order tile and stuff in are a lot thicker and more heavy duty , sometimes have stables. Worse quality stuff gets shipped in worse quality cardboard
@@WSFM_Rex how much worse?
@@lelagrangeeffectphysics4120 it depends how crappy the product is , there’s heavy duty boxes like i described. There’s normal boxes which are like what Amazon used. But there are certainly much worse quality boxes you get sometimes from things online, nothing i use regularly tho.
this is my new favorite channel, so much quality info for free, its insane!
I keep all my cardboard and use it to mulch my garden or keep it flat and plant raised beds on it. If I knew how to do biz I’d start Fake Timothy’s Cardboard Mulch Biz. In my experience it’s been a very effective weed and grass suppressant. I’m sure people would buy it.
They wouldn’t because it’s essentially free and has little demand. You can go to recycle depot and just grab some out of the bin if you need it.
Recent mba grad and your videos are more informative and entertaining than any class I took. Keep it up!
To be honest most business school professors are pretty garbage. They’re professors for a reason. Think about it.
My dad worked for Westrock for pretty much his whole life, we knew it as Westvaco for years before the merger with RockTenn. The mill in our city has made the air and water around us toxic but if it didn't provide so many jobs, our small mountain community would literally be a ghost town.
The companies that make the kraft paper (Fiber board) are numerous. The largest here in Florida is Container Corp. which owns huge swaths of land in Florida & Georgia to grow the Southern Pine trees used for paper. The other companies include Rayoneer, Jefferson Smurfitt, Seminole Kraft (Formerly St. Regis) and Hercules. These are just the ones I know of.
Jacksonville used to be known for "The stink" from the raw paper plants located here: St. Regis, Alton Box, Container Corp. and the Union Camp turpentine (Made from the pine tree bark) plant which was once used for sewage treatment. The smell was from the caustics (Alkaline bases) used to break down the wood chips into wood fiber pulp. St. Regis (Now Seminole Kraft) switched to recycling and still operates today. The turpentine plant is still operation but seems to have made changes to reduce the smell.
I've never seen a more thrilling documentary about companies that produce... cardboard,
This is a fantastic channel. I watched a couple videos so far. They are packed with good solid facts & figures, and provide great insights to subjects I wouldn’t have been able to learn independently so easily. The videos are really well made in length, well edited and the narration is very nice. The producer keeps things very interesting. Great job.
given how invested everyone is in sourcing virgin wood pulp, how possible is disruption by replacing it with a cheaper or faster-growing source of virgin fiber? (grasses, bamboo, etc)
not much. In a way they are not that much cheaper. Sure they grow faster. however
harvesting and processing them form the raw material to ready to use fiber. Takes a lot more work.
like for the wood of 1 tree trunk you might need up to 50 bamboo shoots.
the shipping of said bamboo will require more overall transportation.
You are slow, aren’t you?
@@sirBrouwer right also the bamboo have hollow inside, what matter is fiber density/volume for paper/board industry unless your bamboo is planted around the plant it was not economical
The trees used for pulp production grow pretty quickly. You plant new ones every year so you have a continual supply. People sometimes think we are cutting down redwoods for newspaper which is definitely not the case.
If you’re interested checkout fungi packaging. It will probably make sense so long as pests don’t find it attractive to eat.
I have read hemp has a chance.
how does this video only have 65 comments the quality you put out is amazing. keep up the amazing videos bro
Dam this guy will be the next big UA-camr with the quality he’s shipping too us !
Q:Can you do a video on Costco as I was always curious how they are surviving with Amazon and Walmart.
@@TheDinoKitteh thanks for the info!
Costco usually sells things in bulk that is not competitive to mail and their focus is on gaining the membership fees.
@@johnl.7754 so like the Netflix of retail ?
Costco makes money from its membership not from you buying stuff. Secret success solved.
Your videos are so good I just spent 23 mins watching a video about cardboard boxes
you should do something with your life kid
Haven't watched this yet but looking forward to it. I remember hearing when I was a kid that one if US largest exports was the paper used to make the cardboard boxes that products they import can go into lol
Your videos are always so interesting and introduces me to the business side of a lot of things I never really thought about. Keep up the good work!
Make a video how Western Union pumps billions of untaxed employee money into South America.
I’m getting a degree in marketing/business right now and this video was very insightful! It was cool to see the step by step processes and how they work. Thank you for the great content!
Such an underrated channel. Loving the content!
This channel is incredibly well done.
Thanks for the great video.
Westrock has 9B in debt (market cap is 11B) and issued a ton of shares in 2016. That's how they're able to grow so quickly
This channel is fantastic. Such well organized, insightful information about important topics. Well done.
I love that this is objective and information-first but there's an optimism in how this is presented, showing a mature but still evolving industry that balances economic strategy with sustainability in a reasonable way. I didn't know so many people were as ready as I am to stop with the single-use plastic, although there will be at least a few industries where that probably won't happen, as plastic has some unique applications. Great video!
in 1995 my two Vancouver, BC roommates were young bucks on the way up in the pulp mill world. The three mills ALL went zero pollution in BC ; Fletcher--Challenge NZ, Mac. Bloedel Canada, and Crown-Zellerbach USA. And the priced of Number 78's (liquor box size for apts) went from 78. per 100 to 325. per 100. Consumer picks up the bill All the @off market mills in Canada closed (Dryden, Fort Frances, Thunder Bay( where all my country cousins worked (just in time to retire) and THAT work went...........to China.
Surprisingly interesting. and well presented
That was a great summary and analysis of a usually overlooked industry.
Great job sir.
There are currently more trees in the United States than there were in 1900. The old growth forests and hard woods which take hundreds of years to grow are not used in paper production. The fibers are shorter - the quick growing trees have longer fibers - but they should be using hemp, it takes less energy to process, has long fibers, and most often does not require any brightening (Peroxide Bleaching currently used for wood pulp)
Westrock - Westvaco & RockTenn - both very old companies which were themselves combinations of other companies, the last 40 years of the paper industry have seen a HUGE consolidation from many private family owned companies to publically held massive companies. Gulf States was acquired from the founding family by Rock Tenn, which was then acquired by Westvaco. Mead Containerboard was acquired by Westvaco a decade prior. Gilman Paper was sold by the family , Federal Paperboard was sold to International Paper by the founding family. Union Camp & James River Corp became part of Georgia Pacific which was taken private by the Koch's. Champion Pulp and Paper was sold to management and they divested part of the operations.
I missed more than I mentioned...
My grandfather designed built and then acquired mills for Caraustar Industries, his first job was rebuilding the boilers for the only mill in the late 1940's. they owned Star Paper Tubes and Paragon Plastics and were acquired by Grief Brothers Box in the past 15 years. My father and I converted warehoused processed bleached paperboard seconds /joblots for 25 years, (been retired near 15 years) we bought sold machinery and paper to India, Phillipines, China, Korea, Vietnam, Estonia, South Africa, Central and South America, Canada and the entire United States mainland. I sold a few hundred tons a week to China. 600 tons a month of gypsum wallboard facing into Russia through Estonia.
Working on my MBA right now and am stoked to have found your channel.
GREAT VIDEO AND EDUCATION. THANKS FOR SHARING!!! I LEARNED SO MUCH!!!!
I am a fan of recycling cardboard as a construction material. It really is far more sturdy than most people think. Not only is it great for general crafts, it makes great lightweight shelves, drawers, end tables, and even other furniture. As someone who has arthritic and elderly family members, having lightweight items around the house makes it easier for them to move them around if they need.
Cardboard with a greater percentage of recycled pulp tends to have a grayer color, and is a bit weaker, but nothing a few coats of PVA glue and layers of Kraft paper or paperboard can't fix! The real jackpot is when I find a nice bit of honeycomb cardboard from a TV box, that stuff is so strong. Ikea even uses a form of it in some of their cheaper desks.
In Australia, Visy is one of the major players in the cardboard box industry. In 2007, it was fined $40million AUD for plotting to start a cardboard cartel with its competitors. Who would have thought this could happen to something as mundane as cardboard!
Mainly a reminder of how proud I am of the US protecting our forests so vigorously. Also big thank you to cardboard companies for helping in the fight against microplastics. I have a feeling some plastics will come out soon as the next led paint, asbestos, ect.
Who would’ve thought I’d be watching a video on the economics of cardboard at 1 AM on a work day
Great video!! It seems like it‘s still very much unknown that not all cardboard can be recycled after use. Cardboard that got in touch with food and oils actually harm the recycling machines and therefore belong into the general waste, which means it‘ll be burned or put on landfill. So it‘s really not as sustainable as one might think. I‘ve especially focused on this issue with pizza boxes and have therefore created a reusable option (PIZZycle). It‘s actually much more sustainable, even though its made from plastic!!! Food for thought :)
genius.
black soldier fly larva
such boxes can be fed to the Termites.
Yes, termites munch on these Cardboard boxes, Wood, Paper and Clothes(cotton, linen, natural/artificial fibres, etc).,
or could be used for Growing Moulds/Mycelium (specifically why not grow Edible Mushrooms👀).
This is such a dope video! Never thought about this field til now
Great video, as always! Thank you!
This is awesome, a refreshing content on UA-cam
Amazing content all around!
Awesome video. Great information and education throughout.
You always make great videos!
Extremely well done.
You are awesome and your choice of topics are awesome keep it up 👍
You are awesome, very intricate analysis much appreciated
A MUST WATCH!!!!
Hi, this video is very insightful. Thank you. All the best.
huh never knew about international paper, and I didn't know westrock was so big. The only place i've seen the westrock logos was at my old job since they supplied the boxes we used to pack our merchandise.
Great video, I learned something this morning
Such an insightful video!
I just started working at WestRock 2 weeks ago. Great place so far!
Your videos are exceptional, Thank you so much! Would you be willing to do a video on the phone industry ? Mainly comparing the two big players Apple and Samsung and their respective strategies, etc?
been loving your channel mate
Very well done and solid video. Thank you for taking time to do this the right way.
SUCH A INFORMATIVE VIDEO LOVE THIS
never knew its this big, i thought the product manufacturers create the cardboard box themselves
Love this channel :)
lol i google about pizza box printing and next day this is on my algorithm. gotta love it
i love these videos so much
Toilet paper and paper towels are forms of “tissue” paper; corrugated cardboard, and single layer box material are laminated from container board and liner board, which is derived from layering “craft paper”
Logger here and card board is great. We are doing a lot of thinning units and a lot of the little trees that cause over crowding and massive forest fires. Can’t make Boards out of these trees so the little trees and dead trees are turned into chips which then get turned into cardboard. Great for our forest. If there isn’t any market for these trees then you can’t cut these over crowded forest that cause massive fires.
Great Videos, really good
Thank you for this video
Wow this video show up after i analyze some logistic companies to buy their stock later, great video
THANK YOU SO MUCH!!!!
I love your videos ❤
The industry never ever uses the term cardboard. Corrugated, Folding Carton or Paperboard/Containerboard.
Truly empires hidden in plain sight: comparable in revenues all the US professional sports leagues combined, yet never given a second thought by the typical consumer.
Exelente pieza informativa.
Great Content !
I had a cousin who worked at Crown Zellerbach in Tampa for over 30 yes, he was in charge of making the glue to manufacture boxes
I wa able to go to the plant several times over the years, very noisy, but cool to see how boxes are manufactured.
I live in a little hamlet that transforms virgin trees into lumber & container board (at one time it produced the most lumber for housing in the world!). The latter puts out an unbelievably awful smell (that fortunately doesn't go over my house very often, but still enough that I have to tape my windows to keep out the smell), but I put up with it because the housing prices are super rock-bottom.
I don't understand how you do research this good, and is able to make it publicly available to people out UA-cam
This is professional report level of work. How do you do it!?
Curious how the "political connections" part makes it into these businesses operations. Are they in the form of leadership and the access they get, or something else?
You do it by putting in effort and asking why. Another term is called drilling down. At the same time not losing perspective of the big picture. The guy is obviously fairly intelligent at a baseline including critical thinking skills which are one of the keys to intelligence.
@@MegaJuniorJones That's very vague (do I detect some sarcasm?).
I'm talking about which specific sources. Like for big picture ideas, does he search on The Economist, or another publication? For industry papers, what does he use, like Annual Reports or Market Research Papers? This stuff is hard to locate unless it's your job.
There are a lot of sources out there, but it's not clear which types are best for whatever.
Very interesting and informative
very informative.
Trees??! Wow , I’d never have guessed that where it came from, I always thought it was dried out octopus brain
I have a bone to pick with what you say at 6:08. It is not a matter of "despite the antiquated rail network of the US". Rail freight in the US is cheaper and more reliable than just about anywhere else in the world. It is only "antiquated" if you are comparing it to HSR like the LGV--which are designed to move relatively few people over relatively short distances in a relatively small amount of time, rather than move many thousands of tons of cargo over many thousands of miles. They are different systems, with different purposes and different economic consideration.
I know it's trendy to dunk on the US for the lack of intercity passenger rail, but it comes off as uninformed when you apply the same stereotypes to rail freight.
Correct. A minor oversight. Next video: RAIL NETWORKS! Haha
I Love your videos
Truly a fascinating video on what seems rather dry/boring at a surface level
I had this idea, I was wondering if you introduce a weave of cotton strings into the 2nd recycle with about 2" spacing between the weave. Does this strengthen the recycling box?
Great video
Why does he say America has an antiquated rail network? It is by far the most efficient freight rail network in the entire world.