What Will It Take to Survive?

The paper products industry has seen substantial consolidation that is likely to continue. The industry has taken many painful steps to reduce overcapacity that will have long-term benefits. In a Jan. 12, 2009 Longbow Research (www.longbowresearch.com) report “Paper & Forest Products Weekly Summary,” Longbow analysts—who rate 168 companies in the sector—rated 47 (28 percent) as “buy,” 119 (70.8 percent) as “neutral,” and only 2 (1.2 percent) as “sell.” This is a testament to the work the sector had done before the economic downturn.