Printing and Writing Paper Capacity 1Q2018-1Q2023
Source: FisherSolve
Consequently, many companies are now investing in conversion projects in reaction to the decreased demand for printing and writing paper and switching to grades experiencing relatively consistent demand. For example, ND Paper just recently finished converting one of its machines at its Biron, Wisconsin mill from producing lightweight, coated publication papers to producing recycled brown packaging grades. The line recently started up.To state the obvious: market conditions have been less than ideal recently. And unfortunately, we saw these worsening market conditions accelerate in the latter part of the first quarter of 2023.
As discussed earlier, the printing and packaging segment took a downward turn as capacity and shipments experienced an overall decrease. And while a decline in printing and packaging might be something we already expect at this point, we saw other, somewhat unsuspecting, segments weaken as well.
For example, the packaging market, containerboard demand and consumer board are all showing signs of declining.
Construction challenges are also still occurring, with a lower number of issued building permits and new housing starts. In turn, we expect this to have a temporary impact on demand for the wood products sector during the rest of the year.
With cost pressures and market uncertainties expected to be significantly more challenging in 2023 than 2022, this market situation will continue to weaken consumer confidence. This could ultimately result in lower consumption.
The only way to combat the industry’s volatility is with reliable, historical data, transaction-based raw material price forecasts, and the industry experience to connect the relevant dots and provide meaningful insights – all things Fisher International offers.
Fisher International can provide you with a deeper analysis into these industry developments and how they might impact your business and influence your decision-making. Our consulting services help give you answers to important questions by explaining market movements in verifiable, fact-based and common-sense terms that industry professionals find useful.
To alleviate some of the pressures that have impacted your business over the last several months or years, you need not only a collection of enhanced business tools, but a team of experts with a vast range of experience and expertise. This will enable you to make better decisions with a high degree of confidence.
For more information on how Fisher’s Leveraged Consulting services can help you with your next project, contact us today.