Los Angeles, CA (PRWEB) October 17, 2013
“Printing and writing paper is a commodity in the decline stage of the product life cycle”, according to IBISWorld procurement analyst Andrew Rogers. Despite high market concentration, specialization is low and buyers should not have difficulty finding suppliers that can meet their needs. Switching costs are also low because the product is identical among suppliers. In addition, many substitutes for printing and writing paper exist through internet services, tablets and smartphones. The availability of alternatives increases buying power, as buyers can simply use these substitutes if printing and writing paper prices are too high. With the advent of internet services, suppliers of printing and writing paper have seen declining revenue in recent years, which translates into suppliers with increased bankruptcy and financial risks. Printing and writing paper suppliers also have significant supply chain risks. Printing and writing paper productions requires materials with severe price volatility, such as wood pulp and inorganic and organic chemicals. Buyers can mitigate these financial and supply chain risks by increasing and diversifying the number and type of suppliers from which they source printing and writing paper.
IBISWorld forecasts prices to rise moderately in the three years to 2016. “Input costs will rise as prices of wood pulp, the raw material used to make printing and writing paper, increase” says Rogers. As the economy improves, the number of businesses is expected to rise, generating demand for printing and writing paper. This heightened demand will allow suppliers to raise prices. Due to low profit margins in the market, buyers may have difficulty negotiating lower prices, but they can still offset price increases by negotiating volume discounts and package deals.
Prices for printing and writing paper vary based on global wood pulp prices, the type of wood pulp used, and paper brightness and density. Suppliers produce a variety of finished paper products, including paper pads, notebooks, labels and printer paper. In addition, companies also sell specialty paper products, such as manuscript papers, tracing paper, index cards and cash register paper. One of the primary pricing determinants for printing and writing paper is the price of global wood pulp; wood pulp can be produced by either mechanical or chemical processes, and the production method affects the type of finished paper product. The major venders in this market are Cenveo, Domtar, International Paper Company, NewPage, and Staples.
For more information, visit IBISWorld’s Printing and Writing Paper procurement research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of printing and writing paper. Printing and writing paper includes a wide variety of paper goods, such as stationery, printer paper, paper pads and notebooks, tracing paper and labels. This market excludes envelopes and finished packaging and paperboard products. Printing and writing paper is either coated or uncoated and is mostly produced domestically. Vendors include paper and paperboard manufacturers and office supply retailers.
Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Vendor Financial Benchmarks
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.