New York, NY (PRWEB) April 08, 2014
Over the five years to 2014, the performance of the Coated and Laminated Paper Manufacturing industry has been damaged by the mounting durability of substitute products and the industry's highly globalized nature. While the industry generates revenue from a myriad of clients, downstream demand levels remained mundane throughout the duration of the five-year period. According to IBISWorld Industry Analyst Stephen Hoopes, “Improvements in plastic packaging products and the increased use of electronic communication have structurally dampened the need for coated and laminated paper products.” Consequently, industry revenue is expected to decline at an annualized rate of 1.2% over the five years to 2014 to $2.6 billion.
Imported industry-relevant products also present an escalating threat to domestically produced coated and laminated paper. While imports have declined slightly as a share of domestic demand in recent years, reaching 39.2% of the total in 2014, this masks a long-term trend toward increasing import penetration. While exports represent the largest single market for industry operators, with 92.0% of these products destined for the United States, the industry has operated with a trade deficit since 2005. Yet, exports are anticipated to increase in 2014 after failing to do so in the previous two years, partially explaining the 1.7% rise in revenue expected in 2014.
In order to compete in this increasingly competitive industry, coated and laminated paper manufacturers have invested in laboursaving machinery as a means to reduce variable costs. Consequently, wages have declined as a share of revenue from 2009 to 2014, and this trend is anticipated to continue in the years to come. However, these measures have not stemmed the long-term trend of falling industry participation; as such, the number of industry enterprises is expected to decline at an annualized rate of 3.6% over the five-year period.
“Over the five years to 2019, improvements in consumer spending levels and industrial capacity utilization are expected to benefit the industry,” says Hoopes. Moreover, upstream supplier cost savings from forecast declines in the world price of wood pulp are expected to be passed along to industry operators to the benefit of profit margins. As such, industry revenue is forecast to increase during the next five years. However, foreign imports are anticipated to increase as a share of domestic demand, forcing operators to improve quality and cut costs to effectively compete.
For more information, visit IBISWorld’s Coated and Laminated Paper Manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
The Coated and Laminated Paper Manufacturing industry purchases raw materials, such as paper and paperboard, and processes them with plastic, clay, latex and metal to create products that include coated or laminated paper and packaging, paper and multiwall bags and laminated aluminum foil for flexible packaging. This industry does not include firms that manufacture paper from pulp, photosensitive paper, textile bags or plastic laminated bags.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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