Over the last twenty years, U.S. corrugated demand has been sideways at best with periodic and permanent drops during each recession. Furthermore, personal consumption of corrugated – that is, the amount of corrugated an average household consumes through the purchase of products – fell throughout 2000 to 2009 and was flat in 2013. The best many industry suppliers could hope for was single digit growth, or maybe a fortunate contract for one of the few “big” projects that came along. But that has changed. Demand for corrugated is growing at a rate rarely seen in any year over the past two decades. Moreover, corrugated demand for e-commerce is growing at double digits and adding an estimated 50 basis points or more to total industry growth alone.
The U.S. economy is strong, energy prices are low, and the prospect of future infrastructure spending and corporate tax cuts suggests investment in the U.S. may bring durable-goods manufacturers back to the region, adding even more to corrugated demand.
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