Printing Process Inputs -- Consumables: A Mixed Bag

Today, paper companies are taking downtime in an attempt to manage inventories, rather than trying to continue to run mills at as close to 100 percent capacity as possible to lower their total costs, the analyst explains. Papermaking is such a capital-intensive business, that in previous downturns, companies would maintain production to spread out their fixed overhead and, thereby, create sharp increases in inventories that lead to severe price declines.