The start of 2025 has become very challenging with the announcement of tariffs that impact much of our supply chain. These tariffs are increasing costs and reducing demand as customers slow orders amid recession concerns. To counter this, we must protect our business by controlling spending, reducing expenses, driving EIP and SIP programs, finding solutions to offset tariffs and adjusting our operations to reflect the current economic climate.
While these challenges are beyond our control, our success in 2025 depends on delivering on key priorities set at the year’s start. I am enthusiastic about the projects and initiatives underway that support these goals and position us to succeed despite economic uncertainties. Our products are essential to many aspects of everyday life, and no other company matches our scale in sustainability through our extensive network of collection, reconditioning, and recycling services. Together, we can achieve great things.
Achieving growth within our sales teams
Our sales teams are crucial in providing the volumes needed to operate our facilities at full capacity. We are dedicated to investing in the right tools and support to ensure we have the best people in place to attract and retain customers. Our efforts are focused on three key areas: reimagining new customer development, expanding inside sales, and streamlining sales deployment1.
New plants, capacity and growth
As we challenge our sales teams to seek new customers and business opportunities, we are also investing in growing our capacity with new equipment, plants, and capabilities. We are redefining our operations to make Mauser more efficient and easier to do business with.
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- We are actively developing plans to enhance, modernize, expand, and improve our operations.
- In 2024, Mauser partnered with Rheem to exclusively market their "Quick Manufacturing System," which enables on-site production of new steel drums. We have installed these lines in Roseville, California, and Seattle, Washington, and will expand to multiple additional facilities. We are also adapting this system for fiber drums, with a line expected to be operational at a customer location this summer. This system will help us expand capacity and meet customer needs directly at their locations.
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Expanding the distribution business
In the distribution segment of our business, the Questar and Canada distribution are pivotal in advancing our e-commerce strategies and initiatives to attract new suppliers. This year, we also plan to fully expand the small packaging product line to Questar, enhancing its ability to deliver a broader range of the Mauser product portfolio.
Reconditioning growth
For reconditioning, we are exploring ways to enhance washing capabilities and integrate automation to boost productivity and ensure employee safety. Recent automation investments at the Cannon Falls, Minnesota. IBC reconditioning facility illustrate how these advancements can create a safer, less labor-intensive work environment using robotics.
Safety and compliance
Our people are the backbone of everything we do and keeping people safe will always be a core value providing a foundation for all operational decisions. In 2025, we are continuing to drive toward a Total Recordable Incident Rate (TRIR) of zero which was a goal reach by 65% of our facilities last year. As we progress toward our goal of zero incidents, our business unit TRIR target for this year is 2.12.
Our commitment to continuous improvement underpins all of this. By thinking outside the box, anticipating future customer needs, and making Mauser easier to do business with, we can adapt to a dynamic marketplace and economy. EIP is a cornerstone of our business and a driver for continuous improvement. Your ideas through EIP deliver millions of dollars in improvements, allowing us to invest in people and assets to grow the company.
Mauser is a fantastic company with significant growth potential. We have incredible people who drive our success. By embracing the spirit of 'One Mauser' and uniting behind our shared purpose of being the most sustainable packaging company in the world, we can achieve our goals and priorities.
David Vergo
President, North America Industrial Packaging