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Shopping Overseas?
September 1, 2005 By: Mark Arzoumanian Paperboard PackagingHere's How to Buy Right
When was the last time you purchased a piece of converting equipment? Where was it made? Don't be embarrassed to answer "overseas" to that second question. Corrugated box makers are finding it's getting harder and harder to buy "Made in the U.S.A." And that's why now more than ever they must ask the right questions and be satisfied with the answers if they want to keep their customers happy.
 Capitol Converting Equipment Inc. is the U.S. distributor for the Model WTNS-2500 (67 by 98 in.), the largest automatic platen diecutter in the world. It is manufactured in South Korea by the Wook Il Co. |
"Domestically there are a lot fewer companies with equipment available," says Marty Field, president of Jet Age Container, a sheet plant in Bedford Park, Ill. "As of late there are even fewer, now that McKinley Machinery has been bought by Emba. So a lot of decision making as to whom you're going to buy a piece of equipment from is based on who makes it. Since the machinery manufacturers in this country haven't done particularly well [recently], the choices are more limited. You're forced to buy overseas."
Forced is a strong word. Nevertheless, if you're going to buy a piece of converting equipment from a foreign manufacturer you need to follow some do's and don'ts.
 Hitek Equipment, Inc. sells the Lian Tiee rotary diecutter in the United States. |
"The most critical 'do' is to make sure the service and the parts are readily available," says Dour Muller, president, Haire Group, Merrillville, Ind. "The other 'do' is to investigate the solvency and longevity of the manufacturer. I would ask for current customers who have the equipment. Ask them what their treatment has been."
Keep Talking to People
Determining the quality of foreign-made equipment can be hard, especially if there aren't any U.S. installations.
"If there aren't installations here it's kind of a crap shoot because you really don't know what you're getting," states Bryon Singer, president of Capitol Converting Equipment, Park Ridge, Ill. His company has been selling foreign-made converting equipment in the United States for years. "If there are installations here you want to talk to the people who have the equipment or view it in operation. You have to hope that their product line is similar to what you want the machine to do. It doesn't do any good if they're using a machine in a different way than you intend.
"You also want to guard against dealing with a company that doesn't have representation or a home office here. You want someone in the States to address any of those after sales needs."
One issue that buyers and sellers of box converting equipment agree on is the improving quality of machinery coming out of China.
"The Chinese are getting better, there's no doubt about that" Singer says. "But today it has come to the point where even the large integrated companies are looking at every nickel they spend and are willing to accept machinery that 10 years ago they would never ever consider."
Changing Climate
Muller agrees the overseas climate has changed. Whether a part is overnighted from New York or Shanghai doesn't make much difference.
"Several foreign manufacturers, particularly those in the Far East, have very westernized operating philosophies and in fact are very responsive to the marketplace," he says. "But that's why you have to check them out. For every one that's good there are probably eight that aren't. You really have to investigate who it is you're working with and you have to depend on that company to follow through.
"I was at the Sino-Corrugated show in Shanghai last April. There were maybe four [machinery] providers that had westernized quality. Frankly, the equipment didn't look any different from a Bobst or a Ward. But there was some equipment that just looked miserable."
Run Your Own Boxes
Jim Haglund, president, Central Container Corp., Minneapolis, points out that you should go beyond inspecting foreign-made equipment. It's also worth having the equipment manufacturer (or a current owner of the machine here in the United States) run some of your boxes on the machine you're considering. That way you see firsthand how everything runs on it. He has some advice for American box machinery manufacturers.
"In order to compete in this marketplace, have some of your larger components, like the frames or some of the gears, made overseas," he says. "Bring those in and you can save money. But do the assembly, the electrical, the lead edge feeders, here on U.S. soil. This will help you on price but still allow you to market locally. That's what these automobile companies used to do. They said they're not foreign-made only because they had a U.S. presence. Now, of course, [overseas-based car companies] are making cars here. But by doing this, box making machinery manufacturers could have the spare parts and service here and we could deal with the reputable dealers we know."
When you're investing hundreds of thousands of dollars in a new (or used) piece of converting equipment, making assumptions about quality is dangerous, no matter where it's made. But if it is made overseas, the best advice is to see it run yourself before believing what anyone tells you about it. Investing time up front, even if it takes an airline ticket to a foreign destination, could save you multiple headaches, not to mention tens of thousands of dollars.
