Business Management - Industry Trends

Despite enormous amounts of attention directed towards digital efforts in the magazine industry, many independent publishers still count print as their main business and most reliable source of revenue. As the paper market continues to fluctuate, publishers are finding new ways to keep the price of materials for their print issues at an affordable level.

Working with their previous printer, Quad/Graphics, Nevada Magazine discovered a paper option often not immediately offered to publishers.

“Most printers have their own stock paper, which they use when people don’t request a specific kind,” says publisher Janet Geary. Converting to the stock option saved almost 15

If there is any good news for printers, it is that paper prices may be bumping up against a ceiling. Coated paper does have continuing overcapacity, putting pressure on prices, and uncoated prices have risen to the point where coated prices are sometimes lower than uncoated.

According to RISI’s new “European Uncoated Woodfree Papers Risk of Closure Study,” declining Western European demand and new capacity in Eastern Europe, Asia and Latin America could force the closure of up to 25 machines (1.5 million tonnes of capacity) by 2015.

Dead Tree Edition’s long—some would say obsessive—campaign to raise awareness of the “Son of Black Liquor” giveaway to pulp companies paid off big time today in the form of a major Washington Post article. Steven Mufson, a Post reporter who helped bring the original black-liquor credits to light in 2009, wrote today of “a new binge of tax breaks” for companies that burn the pulp byproduct to produce energy, as they have been doing since the 1930s.

The new tax breaks come in the form of cellulosic biofuel credits, he noted, which “can be applied in future years

Prices are up for a number of paper grades, not just the coated papers that are the subject of the import duties. Yes, duties are part of the story, but they are not the whole story.

Due to shortages and cost increases of raw materials, effective May 1, Sun will raise prices on all solvent- and water-based white inks by a minimum of 10 percent and Violet 23 inks by a minimum of 20 percent.

According to the American Forest & Paper Association’s latest report, total printing/writing paper shipments decreased 2 percent this January compared to January 2010. Two of the four major printing/writing grades posted increases. Inventory levels increased 4 percent compared to December 2010.

The First Rule of Holes is: “If you find yourself in a hole, stop digging.” To my way of thinking, the Second Rule of Holes is: “When you stop digging, you’re still in the hole.” The Great Recession was a great big hole in the economy.

Sabine reveals the top five ways to use paper in the new year. Direct Mail—Astonishingly enough, even young consumers (the 18- to 34-year-old demographic) prefer to learn about marketing offers via postal mail and newspapers rather than online sources, according to national survey research from ICOM.

We know direct mail is not the cheapest way to try and get your customer’s attention, but interestingly enough, catalogs for example, have the lowest overall cost per lead, as found in a recent study by the American Marketing Association.

With mailing costs increasing—if not now, give it a few more months

Up! That is not a misprint. There will be a slight appreciation in real pricing and raw demand for our medium in the New Year. A GDP of $15.4T will support nearly $204B of print. Seven of the Top 25 categories will demand 4 percent to 8 percent more print in 2011.