Q1 Paper Outlook — Market Taking Stock

"As the economy recovers, we do expect gradual and modest increases in prices," Miller continues, "but they won't be nearly as extreme as they were in the past. The industry is not recovering from as extreme of a downward trend as we were in 1995."

Changes in buying patterns have put the market on a thinner edge with regard to the domino effect, however. Over the last few years, many merchants and printers have switched to just-in-time inventory management and have learned to operate on much leaner inventory pipelines, Miller points out. As long as buyers don't stray too far in their paper inventory management practices, the combination of sensible demand levels and greater stability on the supply side should minimize the market swings, he says.