Paper Outlook — Cutting the Bottom Line

There hasn’t been any one big development in the paper sector this year, but a number of smaller forces are combining to move the marketplace. What’s having the greatest impact, though, is the longer term trend of globalization of the supply chain.

Volatile Markets

Globalization has the dual impact of making the paper market potentially more volatile, since it can be buffeted by a greater number of factors, but also dampens the ability of suppliers in any given region to drive pricing. Strikes, plant shutdowns and changes in demand that occur in one region can have a ripple effect on others. Broader economic issues, such as oil prices and exchange rates, also come into play.