Tony's Corner
The perplexing, pestilent
paper problem
Will a lack of paper pose an existential threat to the printing
industry in the future? Printing Impressions has reported
on the current tightness of the market for paper that commercial
and in-plants rely on. “As demand-supply relationships for
communication papers grows strained, not all paper mills
can handle those unexpected conditions,” it said. “When
printers face temporary shortages from their regular
sources, shop owners may not have many other options.”
Other negative influences include paper manufacturers’
decisions to close mills, take papermaking machines offline,
or rededicate them to grades for uses other than printing
that are more profitable. Plus, electronic communication
has reduced overall demand for paper products. Conclusion:
The paper industry is currently delivering less of the papers
that we need, but it’s not a crisis situation – yet!
However, actions by paper producers aren’t solely responsible
for current market conditions – and news from the mills
hasn’t been all that bad. For example, Catalyst Paper of
Richmond, BC has five mills across North America with a
combined annual production capacity of 2.3 million tons.
Domtar’s pulp mills in the US and Canada produce about
1.8 million metric tons of market pulp every year. And yet,
according to IBISWorld, the paper mill industry in Canada
seems to be in decline.
Over the 10 years to 2023, industry value added (i.e. an
industry's contribution to the economy) is projected to fall
at an annual rate of 2.7%. In contrast, Canada's GDP is
forecast to grow at an annual rate of 1.9% during that same
period. So the industry is shrinking when our overall economy
is growing – which is traditionally indicative an industry in
decline. However, experts say that a strengthening economy
and improving corporate profits will likely prompt some
mills to expand and invest to handle demands for printing
paper and other print-related products.
Folks, this is a fluid situation with a lot of moving parts. But
it’s a vitally important one to closely monitor. Rest assured,
we’ll be doing just that in the months to come.
Until next time, always remember that we’re here to help.
Tony Curcio
Editor, Graphic Arts Magazine
[email protected]
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6 | April 2019 | GRAPHIC ARTS MAGAZINE
graphicartsmag.com