Q1 Paper Outlook — The Price Is Right

The proposed postal rate hike, which will most likely go into effect in the fourth quarter of next year, will also impact paper demand. Publishers are expected to counter the increased postal costs by lowering catalog and magazine page counts, by choosing cheaper and lighter basis weight grades, as well as smaller product trim sizes. Many catalog publishers are also planning to refocus their sales efforts on existing clients, and lessen their efforts to recruit new customers through bulk mailings.