So you think the paper industry and its suppliers have it bad. Well listen to this, "These are unsettling times if your job is selling, or building, plastics machinery to customers in the United States. It's ugly out there."
Sound familiar? This was the opening statement from a recent editorial in Plastics News, describing the business environment from the machinery supplier-side of the plastics industry.
More importantly, the author goes on to say, "
this is not the time to just hunker down and wait to see what happens." Amen to that—in every industry.
For over eighteen months now, pulp and paper makers have slashed capacity, reduced their workforce, shutdown inefficient mills and machines, cut costs, and refocused on core products. Add three to four years of consolidation to the mix and, ironically, many companies are better positioned today to take on risk than they were in the latter half of the surging 90's.
But the economic fear factor, or more specifically, the situation with Iraq, has many businesses waiting to see what will happen in the coming months. 'We'll increase our spending when things get better,' is the current line of thinking. The problem is, things won't get better until business starts to spend again—sort of a "Catch-22".
The fragile economy? Well maybe it's not as fragile as some might paint it to be. Think for a minute the blows it took in 2001 and 2002: September 11, the war on terrorism, Iraq, corporate impropriety, a crippling dock strike. Yet, after being hit with everything but the kitchen sink, it proved remarkably resilient.
It's time now for the industry to shake the economic fears and invest in itselfplants, equipment, new products and most of all people. Whether your company produces plastic milk jugs or rolls of paper, it's time to stop watching from the sidelines and get back into the game.
And speaking of getting back into the game. . . there are a couple of big events coming up. The first is Exfor 2003 at the Palais des Congrès in Montreal, January 27-30. Exfor offers close to 200 technical sessions and over 400 exhibitors showing-off the latest paper making technology.
Next is AF&PA's Paper Week in New York City March 9-12. Over 1000 paper industry executives get together to discuss business conditions, problems facing the industry and future solutions. Paper Week is open to all segments of the paper industry, including domestic and foreign companies, customers, suppliers, and industry analysts.
Both events present invaluable opportunities for paper industry people to meet and shape their company's future. Push the budget process and get yourself to these events. It might be the first step on the road to recovery.
