Thursday, July 16th, 2015

What You Missed at SPI’s International Symposium on Worldwide Regulation of Food Packaging

FDCPMC_IntlSymp_PierAside from a chance to network with 150+ experts from government, industry and scientific institutions and the largest Chinese delegation in conference history, the 12th Biennial International Symposium on Worldwide Regulation of Food Packaging featured several valuable program and after-hours highlights:

-An Update on U.S. Food and Drug Administration’s (FDA) Regulation of Food Contact Materials, from the FDA’s Office of Food Additive Safety (OFAS) Itself:  Filled with direct, technical glimpses into the operations of the FDA and previews of updates to the Redbook and Chemistry Guidance the food packaging industry can expect to see in the coming months and years, the Symposium-opening presentation from Allan Bailey, from OFAS’ Division of Food Contact Notifications, delivered the insights that brought attendees to the conference in the first place.

FDCPMC_IntlSymp_Staff-An In-Depth Look at Food Contact Regulations Around the Globe: With panels organized according to region and representatives from Brazil, Argentina, Canada, China, Japan, Australia/New Zealand, Thailand and several from the European Union delivering presentations, this year’s program was among the most geographically diverse and thorough in Symposium history. Government officials from the various regions took this opportunity to compare their respective regulatory schemes and hear industry perspectives, an important exercise to increase alignment of the world’s food packaging regulations and allow for more efficient global marketing of these products.

-A Dinner Cruise Through the Baltimore Harbor: All attendees, speakers and guests gathered together on the Raven for a networking event and dinner cruise as the sun set on the scenic Baltimore harbor. This was just one of the event’s networking opportunities though, between breaks, lunches, dinners and receptions, the event offered attendees countless chances to meet and greet colleagues new and old and to discuss regulatory challenges with government officials at the event.FDCPMC_IntlSymp_Boat

-A Special Program on Regulation Related to the Use of Recycled Plastics in Food Contact Applications: Manufacturers and brand owners are increasingly demanding that their suppliers find ways to make their products and materials more environmentally-friendly. This opens up a new regime of requirements that suppliers have to comply with in addition to the existing food contact regulations they already have to navigate every day. Led by presentations from Jeff Wooster, global sustainability leader, performance packaging at Dow Chemical, and Dr. Forrest Bayer, Bayer Consulting & UW Imaging LLC, and enhanced by additional discussions on emerging technologies designed to make using post-consumer recycled (PCR) materials easier, this panel was full of tips and insights that attendees could put to use immediately, to start working PCR into their products and meeting brand owner-driven sustainability requirements.

FDCPMC_IntlSymp_HarborView-So many more relevant sessions and opportunities to network with experts in the field!

The International Symposium will be back in 2017, but in the meantime, SPI’s Food, Drug and Cosmetic Packaging Materials Committee (FDCPMC) offers members these opportunities throughout the year. Click here to learn more about what this committee can offer your company.

Monday, July 13th, 2015

Don’t Blame the Big Blue Bin

The Washington Post’s Defeatist Attitude Toward Recycling Harms Industry

By Kim Holmes, SPI’s Senior Director of Recycling and Diversion

SPI: The Plastics Industry Trade Association wants to clarify several points concerning recycling that were misrepresented in Aaron C. Davis’ June 20, 2015 article, “American Recycling is Stalling, and the Big Blue Bin is One Reason Why.”Blue Bin

Davis’ article states that, “recycling in recent years has become a money sucking enterprise,” and suggests that recycling cannot be done profitably.  It is true that some Material Recovery Facilities – or MRFs – are experiencing a confluence of factors that are creating an economically challenging business environment.

But, not all MRFs are operating in the red.  During difficult times, MRFs need to be agile, and sometimes willing to invest in equipment that will produce better quality bales of materials in more efficient ways. Unfortunately, many MRFs continue to use outdated equipment and would operate more efficiently if they invested in state-of-the-art machinery similar to what is more widely used in Europe and in some areas of the U.S. It is also important to note that Waste Management’s experience, as stated by Davis, is not representative of what is occurring at every MRF in America.

As a trade association representing the plastics industry, we work with our members to promote the benefits of recycled content to drive sustainability across the plastics manufacturing industry. In our industry, a reduction in the price of new plastics has at times narrowed the cost savings that might be found by using recycled plastics – but, that’s temporary. Indeed, there are key drivers that help sustain demand for post-consumer recycled (PCR) plastics, even when they don’t present cost savings.  Those include: publically stated corporate commitments to use PCR, use of recycled content as a market differentiator, and ecolabels that encourage, and in some cases, require use of recycled content for certain products.

And while it is true that some consumers unintentionally contaminate their blue bins by depositing inappropriate items, the use of blue bins results in a significant increase in desirable recyclable commodities.  The systematic increase in recyclables that come with “the big blue bin” is why we, along with many others, have invested in programs like the Recycling Partnership.  The Recycling Partnership helps communities transition to the blue bins to increase access to recycling, and that effort is coupled with proper consumer education so an increase in contamination can be mitigated. The claim made in the article that, “Consumers have indeed been filling the bigger bins, but often with as much garbage as recyclable material,” is a false generalization. Statements like this are misleading, and frankly dissuade people for participating in recycling.

Finally, we have deep concerns about the suggestion that government intervention may be necessary to “encourage investment and ensure that profit remain a public benefit.”  Market-based solutions that work with the public sector, such as the Recycling Partnership and the Closed Loop Fund, are growing and generating positive results.  We need to support these and other privately funded efforts rather than looking to the government for solutions. Government intervention can create systems that inadvertently pick winners and losers, meaning some otherwise profitable recyclers can be put out of business when the market is disrupted.  It’s not uncommon for government intervention to create unintended, and many times, unwanted externalities.

Thursday, July 2nd, 2015

California Industrial General Permit Enrollment Deadline Extended

California’s State Water Resources Control Board recently shared this alert:

NOTICE - As you likely have observed, the State Water Resources Control Boards’ (State Water Board) SMARTS Storm Water Program database is limiting new enrollments or annual submittals from existing enrollees as required by the Statewide Industrial General Storm Water Permit (IGP). State Water Board staff have identified a technical issue that is affecting bandwidth of the system and restricting access to the database. Due to these challenges, the July 1, 2015 deadline for enrollment under IGP Permit 2014-0057-DWQ, adopted by the State Water Board on April 1, 2014, and the deadline for submittals under the now expired IGP Permit 97-03-DWQ have both been extended to close of business on Friday, August 14, 2015. This database access issue does not impact saved work items in SMARTS. If you have any questions or need customer assistance, our staff will be available to assist you during our normal business hours – Monday through Friday, 8:00 a.m. to 5:00 p.m.”

A view of Sacramento, Calif.

A view of Sacramento, Calif.

SPI had earlier submitted comments to the Board speaking to the material handling requirements for facilities using resin pellets. We reiterated industry’s support for the employment of best management practices (BMPs) as prescribed by Operation Clean Sweep® in preventing the unwarranted release of pellets into the environment. Members are again strongly encouraged to review any BMPs they have in place related to resin pellets and make any necessary adjustments. Read more of SPI’s coverage here and here.

Wednesday, July 1st, 2015

Legislative Recap: A Big Two Weeks for Plastics on Capitol Hill

The last two weeks have seen big developments on Capitol Hill, particularly for the $380-billion U.S. plastics industry. Below is a quick recap of the legislative shifts and successes that have been on SPI’s radar for the last two weeks:

-TSCA Reform Approved in the House of Representatives

After 40 years (!), the Toxic Substances Control Act (TSCA) is closer now than it’s ever been to getting a much-needed update. In a 398-1 vote, the House approved H.R. 2576, the TSCA Modernization Act of 2015 on June 23. “The world is a different place than it was when the Toxic Substances Control Act was first enacted in 1976,” said SPI President and CEO William R. Carteaux in a statement issued after the vote. “The plastics industry has seen amazing growth and transformation in size and sophistication over the last four decades, but TSCA has remained largely unchanged. By approving H.R. 2576, the House of Representatives has taken a big step in the right direction, toward a regulatory regime that protects consumers without making the plastics industry comply with regulations that are redundant or based on outdated science.” Read the full statement here.

-Trade Promotion Authority Clears its Final Hurdle

A day after TSCA reform was approved in the House, and after one failed vote in the House and some behind-the-scenes legislative wrangling, Congress approved “fast track” or trade promotion authority (TPA), a critical step toward a strong, robust Trans-Pacific Partnership (TPP), among other trade deals that stand to be lucrative for U.S. plastics companies. “TPA will also make it easier for trade negotiators to reach other important free trade agreements (FTAs) that have the potential to further increase exports of U.S. goods. The U.S. only has 20 FTA partners currently, but they purchase a disproportionately high percentage of U.S. goods,” Carteaux said in a statement. “In 2014 these 20 countries received 47 percent of U.S. exports, worth a total of $765 billion according to the U.S. International Trade Administration. Furthermore the plastics sector enjoys a trade surplus of $20.6 billion with America’s existing FTA partner countries. Clearly, FTAs are good for U.S. manufacturing and for the U.S. plastics industry, and TPA will enable the U.S. to expedite more of them in the future.”

-Senate Approves Transportation Bill, SPI Urges Quick Action from the House

Before TSCA and TPA, the Senate approved, by unanimous consent, S. 808, the Surface Transportation Board (STB) Reauthorization Act of 2015. Specifically the bill aims to strengthen the STB by giving it the tools and flexibility to operate more efficiently as the economic watchdog of the nation’s rail shipping system. SPI and a coalition of other organizations applauded the approval. “Today, most shippers lack access to competitive rail service, and as a result railroad shipping rates have surged over the last decade, rising nearly three times as fast as inflation and trucking rates,” Carteaux said. “Accordingly, this has resulted in an increase in the number, cost and complexity of rate disputes. In its current state, the STB is ill-equipped to handle these developments, but the modest reforms in S. 808 go a long way toward fixing this problem by strengthening the STB and eliminating many of the inefficiencies that have hampered its ability to ensure competitive, sensible rail service to the nation’s plastics manufacturers. A stronger STB would help ensure that plastic materials and products can be shipped efficiently to both domestic and international markets.” Read the full statement here.

Stay tuned to SPI’s home page, Twitter feed and blog for future updates on any and all plastics-relevant legislative developments.

Tuesday, June 30th, 2015

Murphy builds up both Davis-Standard and NPE

By Bill Bregar, Plastics News

PAWCATUCK, CONN. — Jim Murphy, named in May as Davis-Standard LLC’s president and CEO, said industry activism is time well spent for machinery manufacturers.

“It’s important work,” Murphy said in a recent interview at Davis-Standard’s headquarters in Pawcatuck.

Murphy should know — he has served for 15 years in a leadership role at the Society of the Plastics Industry Inc. That work culminated when Murphy served as chairman of NPE 2015 in Orlando, Fla. He will remain on the executive committee through the 2018 NPE, as the immediate past chairman.

Jim Murphy, NPE2012

Jim Murphy, NPE2012

As an executive committee leader, Murphy worked with other members, and SPI officials, to research the decision to move NPE from its longtime home in Chicago to Orlando, beginning with NPE 2012.

“Whenever you make a change, there’s always an uncertainty around the unknowns, right? Clearly I think that everybody saw a lot of opportunity, a lot of upside to the decision,” he said. “And when the show came in 2012, everybody that exhibited and attended had a great experience. A positive experience. That kind of feeds it, and the 2015 show grew nicely.”

Davis-Standard, which makes extrusion and converting equipment, takes the top executive position vacated when Bob Preston left the machinery maker to become top executive at GSE Environmental last November.

Murphy is a 25-year veteran of the company, which generates sales of about $300 million. Davis-Standard runs plants in Pawcatuck; Fulton, N.Y.; Suzhou, China, and Erkrath, Germany.

A native of Canton, Ohio, Murphy graduated from the University of Akron, then worked for a small company before taking a field sales job at extruder maker NRM Corp. After three years at NRM, he joined Davis-Standard. His most recent position, before becoming president and CEO, was vice president of global sales and marketing.

The sales role prompted Murphy to get active with SPI, on the Committee for Equipment Statistics. He got involved with the NPE marketing committee for the shows in 2003 and 2006, then got deeply involved in the NPE operations side in 2006 and 2009. He chaired the operations committee for NPE 2009 — the final one at Chicago’s McCormick Place.

Moving NPE to Florida was a major undertaking, led by Bill Carteaux, SPI’s president and CEO, and Gene Sanders, senior vice president of trade shows and conferences. Together with the two SPI leaders, the NPE executive committee got to work before the final decision was made.

“We pulled together and evaluated a lot of that data regarding the services — do we have the right services in Orlando? Do we have infrastructure — electric, power, water, floor loading, the ability to move material. All the kind of things you need to do to get it accomplished,” Murphy said.

Murphy said Davis-Standard management has always supported the volunteer work of its employees on trade associations. Company engineers also take an active role on SPI’s safety standards efforts.

And Murphy said Davis-Standard is in a good position, as a business. More than half of its sales comes from machinery for the growing packaging market. The company employs 90 people in the Asia-Pacific region, including about 60 in Suzhou. The middle class in China and other countries in the region is growing, fueling demand for better food packaging — which fuels sales of more-advanced equipment, he said.

“Asia-Pacific represents about 25 to 30 percent of our sales. It’s been that way, and growing, for the last decade,” Murphy said.

Private equity firm Oncap, part of Toronto-based Onex Corp., bought Davis-Standard in 2011. “They’re extremely supportive in terms of providing financial strength, and extremely supportive of the business and the strategy of the business,” he said.

Murphy said Oncap expanded the number of Davis-Standard employees who hold an ownership stake to 100, from about 50 under the prior ownership. About 860 people work at Davis-Standard.

“Employees who are owners have a longer-term view of things, as an owner,” he said.

Davis-Standard’s veteran workforce is a big strength, he said. At the last service awards dinner, the company recognized one employee with 45 years at the company. Eight employees got 40-year awards. Many people have worked at the company for more than 20 years.

“We have a clearly dedicated group of employees that understand the business and the technology,” Murphy said.

This article may be accessed on Plastics News’ website by clicking here.