30 · SBJ.NET MAY 6-12, 2024 NEWS EXECUTIVE MARKETPLACE gift subscriptions call 417.831.3238 or go to sbj.net/subscribe KEEP YOUR COMPANY INFORMED! Get your weekly print edition and give unlimited access for up to ten readers at SBJ.net with our Premium subscription SBJ.net/Subscribe PURCHASE YOUR SUBSCRIPTION TODAY! Access award-winning local business news on any device Stay connected with daily email insights and breaking news alerts Dive deeper into the week’s biggest stories and focused industry coverage with the weekly Print Edition Cultivate professional connections with the printed Book of Lists give the gift that is appreciated throughout the year. COMMERCIAL REAL ESTATE REPRINTS are an essential tool. Order today. ©2022 Springfield Business Journal REPRINTED FROM by Karen Craigo · kcraigo@sbj.net A half-century ago, Ross Ausburn and Chuck Bachus, two local employees of corrugated box manufacturer Hoerner Waldorf Corp. had the same idea at the same time. Bachus had been flown to the St. Paul, Minnesota, headquarters of the company, which was interested in hiring him as a regional sales manager. He came back and told his friend Ausburn that he maybe would rather start his own company instead. Thdat’s when Ausburn opened a desk drawer full of plans and cost estimates for just such a company. Eventually, 18 employees from Hoerner Waldorf came to start Southern Missouri Containers Inc., the precursor to SMC Packaging Group. The first box rolled off the line on April 1, 1972 – decades before a rise in e-commerce created a boom in the packaging manufacturing industry. It’s a story Rich Bachus, president of SMC and Chuck’s son, likes to tell. Rich’s brother Randy Bachus is the executive vice president, and Kevin Ausburn, Ross’ son, is chair and CEO. Fifty years later, the sons carry forth the vision of their fathers with four SMC locations in Springfield, plus satellites in Kansas City, with Arrowhead Containers Inc.; Conway, Arkansas, with Wonder State Box Co. Inc.; and Tulsa, Oklahoma, with Sooner Packaging Inc. While the pandemic stalled some industries, the opposite is true for corrugated packaging, which surged with the increase in e-commerce. Randy Bachus noted the corrugated industry value is up 45% in the last 18 months. For its part, SMC is on pace to sell $200 million in the fiscal year ending Oct. 31, 2022, according to Ausburn, and 1.5 billion square feet of corrugated boxing material will be produced by SMC’s 600 employees. Box boom Research firm Mordor Intelligence reports the worldwide corrugated board packaging market was valued at nearly $173 billion in 2021, and it’s expected to reach $212 billion in 2027. In addition, Shopify reports global ecommerce was projected even before the COVID-19 impact on the market to hit nearly $5 trillion in 2021. That’s almost a 400% increase in seven years. SMC serves some 2,000 companies, almost all of them in the United States, Canada or Mexico. Local firms make up less than a third of customers, Rich Bachus said. SMC’s website lists a handful of customers, such as Smith Titanium, Empire Candle Co., Munro Shoes, Big Blanket Co., Snap-on, Red Monkey Foods and Vital Farms. Shopify notes one of the market drivers in the corrugated surge is convenience foods. Additional drivers, according to market research firm Technavio, are a heightened demand for packaging as more tech-savvy customers move to online shopping. Another trend is a rise in boutique online sales and subscription services, many of which use printing both inside and outside their boxes for a bespoke touch. Rich Bachus said boxes are an important part of the marketing for companies that are sold solely online instead of in retail stores. SMC made a fortuitous purchase of its 145,000-square-foot plant at Partnership Industrial Center East and added 20,000 square feet to the building, increasing its size to 415,000 square feet. The plant opened in February 2020. The facility was purchased in 2018, before COVID-19. Rich Bachus said in March 2020 and for two months after, SMC, like other companies, took a step back, but then customers worldwide ramped up e-commerce purchasing, and the company found itself busier than ever. Expansion work finished in July with some equipment purchases, and HEATHER MOSELY BOX STARSAt 50-year mark, SMC is equipped for packaging surge From left, Chair/CEO Kevin Ausburn, President/CEO Rich Bachus and Executive Vice President Randy Bachus lead SMC Packaging Group, started as Southern Missouri Containers by their fathers. For more information email aegger@sbj.net or call 417.831.3238 Presented by GERALD ZAMORA Broker / Senior Advisor Cell: 417.522.9940 105 W Church Street Ozark MO 65721 Gerald.Zamora@zamora.pro www.zamora.pro 2,740 SF RETAIL / RESTAURANT BUILDING FOR SALE ON SOUTH GLENSTONE 2058 S Glenstone Ave. Springfield, MO 65807 RESTAURANT BUILDING FOR SALE 100% LEASED Regarding interviews at SGC, he said the members of Gen Z he talks with are interested in the culture of the company, as well as what they’ll be doing as longterm employees. “I don’t get a lot of standard questions I used to get from an older generation, such as, ‘What are the benefits?’ That’s not something that comes up with Gen Z,” he said. “They’re more interested in what’s the culture of the company and the amount of time that they have to give up as far as work hours.” Young perspective Jonathan Bell, 19, who owns his own business, Bells Marketing Consultant LLC, said he’s experienced struggles getting hired as a member of Gen Z in Springfield. “When I initially got into the market, I was extremely ambitious. I wanted to work. That’s all I really wanted to do,” he said, adding he got denied for numerous fast food restaurant jobs, including several that didn’t even want to interview him. Through his marketing firm, he hosted an April 12 event at the Efactory. It largely focused on bringing together regional employers with Gen Z workers, Bell said, adding many people his age feel a disconnect when seeking jobs. Springfield Public Schools, Big Momma’s Coffee and Espresso Bar LLC and Taney County Partnership were among those with representatives in attendance. “I’ve seen a lot of generational divide in our community, and I know that’s a national issue, even possibly global,” he said. “I’ve just noticed that a lot of people within the younger generations who are eager to get into the workforce are continuously being denied because there’s just some stereotypes out there speaking directly toward Generation Z. There’s some that think we’re lazy. There’s some that think that we don’t want to work, and we don’t show up to interviews.” For Bell, whenever he applied for the restaurant jobs, he said he asked what his daily tasks would be, the team culture and if he would get to meet the company’s owners. “If I was a job seeker, I would care more about enabling a company to allow me to be creative within their workplace so I can thrive rather than a salary,” he said. “We don’t want to come to work and feel like it’s just work. We want to actually enjoy the process.” Kendrick Edwards was at Bell’s event representing Central Bank in Springfield, where he works as a marketing assistant. Noting Bell also was a classmate of his at Parkview High School, Edwards said he was hired by the bank in 2021 after starting there as an intern. The 2021 PHS graduate received his associate degree in business at Ozarks Technical Community College last year, then started last fall at Missouri State University. He’s studying business and marketing management while maintaining his bank job. “I feel like us as a generation, we value work that offers autonomy. We prefer not to be micromanaged,” Edwards said. “We want a flexible work schedule, fair compensation, obviously, and benefits, and also a strong work-life balance. I feel like it’s a lot of people within Gen Z almost see it as you’re interviewing the company you’re wanting to work at and make sure that they’re a good fit for you and that they align kind of with your goals and your overall aspirations.” He said Central Bank gives him work that’s meaningful and allows him to form a strong connection between his job duties and his college studies, adding his employer also is providing him the worklife balance he seeks. Generation connection The Missouri Job Center works daily with Gen Z applicants, said spokesperson Katherine Proctor. Much of that work is through its Aspire Youth Services program, which serves young adults ages 1424. Some of that includes job-readiness activities, mock interviews, resume building and occupational skills training. The U.S. Bureau of Labor Statistics projects Gen Z will comprise roughly 30% of the U.S. workforce by 2030. “A big thing for that generation, and I would say for a lot of others, is the flexibility in the job feeling valued,” Proctor said, adding there’s also a desire to make a livable wage. The Job Center hosted an employer roundtable discussion in September 2023 that focused on better engaging employees ages 18-24 and keeping them in the workforce. Around 40 Springfield-area employers talked about their shared experiences, according to officials. The need for better soft skills development were among concerns employers brought up, Proctor said. “How to treat someone in an interview and shake their hand and how to always not just rely on texting, check your emails, those types of different types of communication,” she said. “That’s what we heard from the employers is just they were just lacking some of those soft skills that were needed for the job.” As a follow-up, the Job Center hosted a two-week workshop for young workers in January that covered topics such as resume building, basic interview etiquette and interview skills. While turnout was low with just five attendees, who met for five hours per weekday, Proctor said officials want to hold the workshop again at a yet-to-be-determined date. One of the attendees at last September’s roundtable discussion, Jesse Lovelady with MaMa Jean’s Natural Food Market LLC, said Gen Z employees are an important part of the grocer’s workforce. She estimated about half of its 150 employees are members of Gen Z. Of those who seek jobs with the company, she said Gen Z represents about 80% of applicants. Lovelady, the company’s growth manager, used to interview applicants when she was a store manager a couple years ago. She said most of the conversations with Gen Z during the onboarding process are less about the paycheck and shift toward asking how they can earn more paid time off and what the company offers for mental health support. MaMa Jean’s has started offering leadership classes to its employees as well as volunteer opportunities. “We’ve started offering paid volunteer time for our employees,” Lovelady said. Additionally, management is having more success at getting applicants to call back – a previously longstanding problem with Gen Z. “We’re starting to text message a lot more, so we’ll text to have scheduled interviews and not even bother calling because a lot of times it’ll go straight to voicemail anyway and they won’t call back,” she said. “So, we’ve shifted some of our practices to make it easier.” Although Bryant Young, director of business development at Insurors of the Ozarks, said his company doesn’t employ anyone from Gen Z, he’s familiar with the younger workforce through volunteering with The Network, a networking and advocacy group for professionals under the age of 40. He’s the immediate past chair of the Springfield Area Chamber of Commerce organization. “We spend time on campus, we send representatives from our organization to a lot of campus events,” he said. “We’re inviting students to network with our organization so that we can kind of introduce them to talk to them about what it’s like to live in Springfield as a person who graduated within the last 10 years.” He said there’s a bit of a generational gap between Gen Z and employers as needs and wants, as well as motivations, are different for both parties. That might look like flexible work environments, being good citizens of the community and providing engaging work or opportunities for upward mobility. “All those things are things that Gen Z wants, but then it’s also convincing Gen Z that they have to make some concessions toward what their managers or what the ownership is looking for as well,” Young said. “So, it’s finding a good fit for everybody.” • Gen Z: Demographic values culture, work-life balance Continued from page 3 Jonathan Bell: Stereotypes about Gen Z impact job opportunities. Katherine Proctor: Missouri Job Center works daily with Gen Z members. Bryant Young: There’s a generational gap for employers and younger workers.
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