Meetings & Training
25

The marketplace dynamics over the past several months have moved very swiftly pushing pricing upward 3 times since 4th quarter of 2017 to the present representing 15%. The key indicators driving this momentum are logistics, fiber, currency and capacity and will be covered in the upcoming webinar.

  1. Logistics - With the implementation of the Electronic Logging Devices (ELD) to support Phase 3 of the Carrier Safety Agenda whose primary initiative is to further reduce the number of motor vehicle fatalities and injuries. The costs associated with these devices and the rules of engagement that apply along with the fines for noncompliance have reduced the amount of companies and drivers for over the road transportation, hence increased costs.
  2. Fiber - Fiber the primary raw material in making paper has seen 8 increases over the past 12 months with market supply-demand dynamics strong and remains very tight. Upward pricing pressure in Europe and China’s tissue and packaging manufacturing capacity continues to increase, which is the main driver for incremental demand. This has an adverse effect on most foreign suppliers who are reliant on market pulp.
  3. Currency - In addition, the weaker US dollar has made it less attractive for the foreign producers already plagued with higher freight and pulp prices along with the stronger economies of their domestic market and surrounding countries has forced them to reduce the amount of capacity they are exporting into the USA.
  4. Capacity - The leading paper manufacturers’ in North American continue to evaluate their assets and have taken steps to improve their profitability through paper mill shutdowns and product conversions. Packaging Corporation of America (PCA) who owns Boise, International Paper (IP) and Georgia-Pacific (GP) have all announced white paper withdrawals.

Please join Peter Tilearcio, President JP Gould Office Papers in a webinar hosted by Independent Stationers to review how the current market can and will impact your business on Wednesday, May 30, 2:00 PM Eastern.   

https://isgroup.webex.com/isgroup/k2/j.php?MTID=t9f389a0de31d68c540d7c6bc397fcdaa