Playing it Prudently

But is this segment taking negative economic hype too much to heart? "So much visibility and talk of an economic slowdown creates psychological pressure and heightened sensitivity in the industry," observes Terry Clark, director at consulting firm Crescent Associates. "End-users almost always resist price increases from converters, but now the pushback may be more challenging than usual. Converters will find it hard to pass on not-so-visible cost increases such as those for energy and labor. They may be pressured to hold inventory for customers."