SAPI’s New Chairman Discusses the Challenges and Opportunities Facing the Industry in the Coming Year

An interview with Alfred F. Walden, SAPI Chair, 2006-07 and President, Walden-Mott Corporation

Q: Tell us how you got your start in the industry and what you consider to be your key accomplishments along the way?

A: I started working for Walden-Mott Corporation in 1989 upon graduating from St Lawrence University. Walden-Mott is a family business now in its 121st year thanks to the support of manufacturers, converters, brokers and distributors in the paper industry. The Internet age has changed our company’s focus from being a traditional publisher to an information provider.

Q: Looking back over your career and professional development so far, which individuals have had the most influence on you?

A: Clearly my father, Alfred S. Walden has meant the most to me along the way. I was brought up with the old-school philosophy that your word and your relationships dictated where you go in life. After 18 years in the business it is the people that interest me the most. It is a great honor to take over SAPI from Doc Maiorino who I have learned a great deal from and have much respect for. Others who have mentored me along the way are Bernie Mathieu, National Envelope; Bob Anderson, Gould Paper; Joe Mironov, SAPPI; Gerald Curran, Stora Enso and countless others who I have had the pleasure to work with.

Q: From a sales perspective, what do you feel are some of the greatest challenges to the distribution channel in the next three to five years?

A: The distribution channel will continue to face serious challenges over the upcoming years. Mergers and acquisitions will continue as the global economy sorts itself out. China and Asia are expanding capacity making it difficult for North American companies to compete. Because demand in China has not kept up with the growing capacity, excess capacity winds up in the European and North American market.

I believe private labels will become more important to the distributor’s portfolio. Many distributors have started working with offshore companies to provide their customers with high quality papers at more competitive prices.

Environmentally friendly papers are a big hit in today’s marketplace. End users want to be known as stewards to the environment. We have seen many companies adopt socially and environmentally responsible platforms in the manufacture of paper. Whether it comes from recycled material, certified forests or alternative energy resources, the end user and manufacturer end up with a clear competitive advantage in today’s changing marketplace.

Q: You’ve detailed some of the challenges that face the industry. What do you see as the areas with the greatest opportunity?

A: I believe the greatest opportunity will come from the supply chain’s ability to share information among their joint customers. Although many printers buy from merchants, the end user is both a customer of the distributor and the mill that manufactures the paper. Companies who respect this, and work closely together, will find stronger relationships and strengthened loyalty.

Information management and data collection are increasingly important for executives and sales personnel. They need to make quick decisions based upon the knowledge available. Some companies use services such as Pulp and Paper Network, www.pulpandpaper.net, to obtain critical market data and analysis on the industry.

Q: In recent years the only constant in the industry has been change. How has the role of the salesperson changed compared to when you first started in the industry? What conditions have contributed to these changes?

A: The role of a salesperson is to educate the consumer and drive business to their company. In the information age the market has become transparent with end users having more information and a broader scope of choices. Although price may be a top variable in making a purchase or a sale, I would argue that the relationship is more important than the industry perceives at the moment.

Q: How can supplier sales representatives and distributor sales representatives work together more effectively to serve the customer?

A: One thing that will not change moving forward is the value of communication. No relationship can thrive without successful communication. Printers and publishers want a commitment from both the distributor and the manufacturer.

Q: What value do you feel SAPI offers to individuals in the sales profession?

A: It provides a platform for the sales side of our industry to network and educate each other on the current issues in the paper industry.

Q: As the new chairperson of SAPI, what are your priorities for the SAPI organization as you take over in 2006?

A: As this year’s chairman, I am in a unique position coming from a trade publishing background. I have worked with both manufactures and distributors. It is my job to continue to strengthen SAPI through the network of its members. The merger of The New York Paper Club and The New England Paper Trade has brought a strong base of distributors and brokers to the association. The result is greater networking opportunities for all parties involved.

I look forward to working with you this year and appreciate your continued support.