Last Run: Converters Brave Rough Economic Waters

Converters are also caught in an interesting pricing anomaly. Most consumers (especially purchasing people) are keenly aware of the price of oil. The price of a gallon of gas is the most well-known commodity price in the world today. Last summer when oil soared to $147 a barrel (www.oil-price.net), prices were increasing everywhere. Today, oil is a fraction of that cost and purchasing professionals expect price reductions everywhere. However, the largest commodity in the converting world is paper, and the paper suppliers have been solidly focused on taking capacity out of the system. So, converters are being caught in a squeeze between customers that demand price reductions and suppliers that demand price increases.