Catalog and Publication Outlook : Moving Forward Cautiously

Many print-based publishers have also opted for paper basis weight and grade reductions, while others that mail outside of the United States are exploring the use of digital editions to reduce their international mailing costs and to deliver product faster.

The paper market has also seen its share of price increases this past year, with further hikes looming in 2011. "Although it's difficult to predict with certainty whether paper price increases will stick in a challenging economy, several factors make higher prices probable," Transcontinental's Jensen remarks. "In addition to the likelihood of an improving North American economy, the paper market is very global and there is an increased demand in other parts of the world. Add to that the reduced North American manufacturing capacity that occurred over the past few years and a devalued dollar that raises the price of imports, and you have a pretty good scenario for higher paper prices in 2011."