The signs of a slowing economy already show at Lawrence Paper Co.
The manufacturer of corrugated paper is running its die-cutting machines at 3,000 boxes an hour, half their normal capacity. The company's 330 workers are being called in less often for weekend and overtime shifts, as production has dipped about 10 percent compared with a year ago.
David Cavender loads cardboard into a bottom lock machine Wednesday at Lawrence Paper Co., 2801 Lakeview Road. A slowing economy has sapped the company's volume by 10 percent in recent months.
And it's no surprise.
"I'm no economist, but I can see that things are slowing down," said Dave Wiese, production manager for the company that occupies 850,000 square feet of space on Lakeview Road, north of the Kansas Turnpike. "We're not pressed as much as we normally would be. Normally there's an intensity to move product through. Now it's more of a relaxed atmosphere.
"It's kind of nice to have a breather."
Officials at Lawrence Paper know they're on the front lines of an economic downturn in the United States, serving as a barometer for the pressures brought on by reduced consumer spending, decreased manufacturing activity and increased investor apprehension.
With 1,500 customers, Lawrence Paper's sales touch virtually every corner of the economy. Its cardboard boxes are bought by companies large and small, who use them to ship, package and display everything from envelopes to video cassettes, computer software, light bulbs and T-bone steaks.
At this time last year, Lawrence Paper was running at capacity. Employees had extra work, racking up overtime to keep up with orders brought on by a white-hot economy.
Now, with energy costs three time higher and orders down "considerably," Lawrence Paper is waiting for the economy to turn around, said Justin Hill, the company's secretary and treasurer.
"(Federal Reserve Chairman) Alan Greenspan is claiming it's starting to pick back up again, but at our level we haven't seen any of that yet," Hill said.
The company's 2000 sales held steady at $50 million to $60 million, Hill said, which was similar to recent years except that the boom during the first ninth months of the year masked the downturn during the final three months.
Unlike some of its competitors, Lawrence Paper thus far has managed to avoid cutting shifts to less than 40 hours a week or laying off employees to cut costs.
"It just depends how much it slows down," Hill said. "If we have a significant slowdown, we may have to do that."
In recent years Lawrence Paper has managed to diversify its operations to help handle the market's ups and downs. The company's Packaging Solutions handles some packing responsibilities for others companies' products.
Last year the division had sales of $2.5 million to $3 million.
"We're just going to trade shows trying to drum up more business," Hill said. "We're hoping to expand that part of our business some more."
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