Industry Analysis & Industry Trends
Pulp and paper mills are big business around the world, taking in $575.4 billion in revenue during 2012 and showing annualized growth of 4.2% over the past five years. Some 4,007 mills operate globally, employing approximately 428,757 people. In 2012, the industry is expected to continue recovering from 2009, the worst year in the past decade. A global drop in demand caused revenue to contract in 2009, with major adjustments to capacity and employment. This indicated tough operating conditions for most companies, and the inability to cut costs and capacity at a fast enough rate to match a drop in demand. Production is expected to increase during 2012, while the world price of pulp is forecast to grow by 4.3%. As a result, industry revenue is forecast to grow by 6.0% in 2012... read more
Industry Analysis
The Global Paper & Pulp Mills industry has endured volatility over the past five years. Skyrocketing commodity prices and woodchip shortages during 2008 shook up company profitability, while a significant drop in demand since has pushed companies to cut capacity and close mills. In 2012, there is expected to be a recovery in demand for paper and paper products, and favorable price growth. Price growth can be attributed to the fact that while demand for paper products will grow, there has not been any growth in production capacity. Due to global economic uncertainty, companies are still wary of increasing capacity... read more