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Wood Pulp Mills in the US Industry Market Research Report from IBISWorld Has Been Updated
  • USA - English


News provided by

IBISWorld

Sep 25, 2013, 02:00 ET

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Rising pulp prices and strong global demand will drive marginal growth for the industry

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Los Angeles, CA (PRWEB) September 24, 2013 -- The Wood Pulp Mills industry has experienced volatile contraction in the midst of stagnant domestic demand over the past five years. This industry provides pulp to downstream paper manufacturers, such as paper mills, sanitary paper product manufacturers, cardboard mills and office stationery manufacturers. In addition, this industry is highly globalized and exports are a major driver of demand. According to IBISWorld Industry Analyst David Yang, “Over the past five years, strong growth in the paper products sectors of emerging economies bolstered exports, helping US pulp mills recover from the recession.” In 2009, wood pulp prices fell 25.1%, causing revenue to fall 19.2%. However, exports grew strongly in 2010 and 2011, resulting in revenue growth of 14.4% in 2011. Nevertheless, an appreciation of the dollar over the past two years has limited export growth. As a result, revenue is expected to fall at an average annual rate of 0.1% in the five years to 2013. In 2013, recovering wood pulp prices should benefit revenue. IBISWorld expects revenue to grow 2.7% over the year.

Similar to revenue, profit exhibited some volatility over the past five years. “As the economy deteriorated, profit only marginally declined in 2008 and 2009,” says Yang. Successful restructuring and downsizing efforts helped operators in the Wood Pulp Mills industry mitigate costs during the recession. Since then, profit has recovered as pulp prices and downstream demand picked up. Industry operators also increased investments in automation and technology to bolster efficiency and profitability. Furthermore, firms cut wages as automation technology helped reduce labor demand. Despite falling revenue, the number of enterprises marginally increased over the past five years.

In the five years to 2018, revenue is projected to grow slowly, due to steady demand from emerging economies' paper manufacturers. However, wood pulp prices are anticipated to fall, which will cut into profit and revenue. The dollar is also forecast to appreciate, causing industry exports to lose competitiveness on international markets. As a result, industry profitability is anticipated to fall over the next five years, providing incentive for firms to consolidate.

For more information, visit IBISWorld’s Wood Pulp Mills in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld.
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189.

IBISWorld industry Report Key Topics

The Wood Pulp Mills industry primarily manufactures pulp without processing it into paper or paperboard. The pulp is made by separating the cellulose fibers from impurities in wood or other materials, such as used or recycled rags, linters, scrap paper and straw.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld 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.

Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]

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