Q2 Paper Outlook — Run of the Mill Demand

The global picture does have some potential to drive up costs independent of demand, Davis concedes, but he thinks the impact would be short term—assuming any military action is successful and over quickly. However, the industry economist points out that all increases are magnified because printers buy so much paper—typically equaling about 20 to 25 percent of revenues for a sheetfed printer and 30 to 40 percent for a web printer.