 October 2001 Issue
Please Note: In order to view the PDF file, you will require the Adobe Acrobat Reader.   Paper Clips Bulletin Overview
 Welcome to Webcom’s October issue of Paper Clips, a bulletin dedicated to simplifying the vast amount of information available regarding pressures affecting the book paper market. Back issues can be requested via our web site at www.webcomlink.com. Webcom Paper Developments:
Investigating Environmentally Sound Papers With increased worldwide attention focussed on environmental issues, industrial sectors are seeking ways to source renewable material and process them by less hazardous means. One initiative of the book and publishing industry is to continue to research environmentally sound papers. To demonstrate its commitment to providing these types of papers, Webcom has begun to source and test papers with up to 100% post-consumer waste. These include:
Industry Trends and News
Due to the current global political and economic situation, most industrial and consumer market sectors are in a state of flux and it remains to be seen how the market for book papers will be affected. According to the Book Industry Study Group Trends 2001, the overall book market was still expected to grow at an average rate of 3.2% as of June of this year. However, even prior to the events of September 11th, direct mail, newspaper and magazine advertising were all projecting negative growth rates. Despite mixed market signals, capacity management (managing supply and demand) seems to be the most reliable strategy in minimizing the impact of a general economic downturn. Take the example of newsprint: in the month of June the slowing North American economy had been felt in the newspaper industry where demand was down 12%, consumption was down 11% and production came down 12.5%. Evidence of the trend towards manufacturing reductions is presented in the chart below. It is interesting to note that for book papers, major producers are still producing and shipping at capacity. In a related trend, mergers have slowed somewhat. The success of Weyerhaeuser’s hostile takeover attempt of Williamette is tenuous, but it is worth noting that Domtar is well on its way to taking over the management of four Georgia Pacific mills and there is speculation that the world’s #1 and #2 paper producers, International Paper and Stora Enzo, are engaged in merger talks. Pricing Trends
It has been widely published that there are some price concessions in some paper market segments, such as direct mail and newspaper advertising. The lower demand in these segments may result in buying advantages: newsprint producers have fully rescinded their March 2001 increase. (Our July issue reported a 2.5% roll back of the original 5% proposed increase). Weyerhaeuser: Restoring Fish Habitat
Webcom takes seriously its responsibility to pursue printing, inking and paper processes that will not damage the environment. We thought it worthy to recognize the efforts of one of our paper suppliers, Weyerhaeuser Company, one of the world’s largest forest products companies, for its efforts to restore fish habitat in Oregon, just one of many examples of efforts made in environmental research and development. Wood debris jams will be constructed in the upper Siuslaw River to simulate natural jams where wood accumulation would typically occur. Recent research has shown that large wood in the stream is critical to fish habitat. Over the past several decades, this stream channel had lost most of its large wood. We applaud Weyerhaeuser’s efforts in helping to restore this important ecosystem. |
WEBCOM LIMITED – books and beyond
3480 Pharmacy Avenue, Toronto,
Ontario M1W 2S7
1-800-665-9322 Sales
Offices in Canada and the U.S. Head Office: Toronto, ON
Questions or comments regarding this site?
e-mail the WebMaster