Paper Forecast — Calm Seas Ahead

"These companies are not making a large impact now, but they are providing a great deal of information. As the online companies achieve greater scale in terms of transactions cleared, they should make a significant impact on the market," he says.

Karen Kelty, of King of Prussia, PA-based XYAN.com, also foresees a time when online paper buying will have a strong impact on paper prices. She agrees with Noe's philosophy that increased access to information will mean lower prices. "When you look at the e-commerce model, you see that the consumer has access to a lot of information. And when you have that kind of access, it gets highly competitive," Kelty explains. She also believes that more online purchasing of paper will require the paper industry to become much more streamlined and will help wring the current inefficiencies out of the market.