Printing Quality - Ace in the Hole

Slow start out of the box

The 2.5 percent average growth over the 2005 time period will have some catching up to do from a sluggish start out of the box. Calender year 2001 was not a good year, and by all accounts, the struggle is continuing well into 2002.

Folding carton manufacturers are working hard to manage inventories and profit margins as evidenced by some of the curtailment activities at some of the major players in the market. International Paper/Shorewood took market-driven curtailments in 2001 amounting to about 100,000 tons of bleached board, while consolidating the operations of two Shorewood plants. IP was not alone, as both MeadWestvaco and Smurfit-Stone curtailed operations last year and reported the likelihood of reductions continuing in 2002. These moves were in response to a business environment characterized by weak demand, pricing pressures, and higher energy costs.