Q4 Paper Outlook — Cuts in Capacity

Interest Rate Cuts
While key indicators appear to have stabilized for now, the economy's next move will depend on how well it responds to the stimulus that the U.S. Treasury and the federal government have applied.

The result of this current economic uncertainty is serving to fuel the merger fever that the paper producers have been caught up in this past year. "The market is extremely competitive and, given a stumbling economy, this could negatively impact the smaller mills and merchants, as they will not be able to survive the down cycle. We forecast more acquisitions and consolidation," states Brodock.