The US paper products manufacturing industry includes about 4,000 companies with combined annual revenue of $160 billion. Major companies include Avery Dennison, Georgia-Pacific, International Paper, Kimberly-Clark, and Neenah Paper. The industry is concentrated in specific product segments, in which the largest 50 companies generate up to 70 percent of segment revenue.
COMPETITIVE LANDSCAPE
Demand is driven by general commercial activity and population growth. The profitability of individual companies depends on efficient operations, as products are sold mainly based on price. Big companies have advantages in distribution and can supply large customers. There are few economies of scale in manufacturing; large and small producers operate the same kinds of plants -- large producers just have more of them. Small companies can compete successfully by making specialty products or serving a small geographical market. The industry is capital-intensive: average annual revenue per worker is close to $300,000, although the figure varies by product segment.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major product categories are paperboard containers, coated papers, tissue products, stationery, and paper bags. Paperboard containers include single-layer boxes and multi-layer corrugated boxes and account for about 30 percent of industry revenue. Coated papers account for 15 percent of revenue, tissue products for 5 percent, stationery for 5 percent. Tens of thousands of different paper products are produced, but most manufacturers concentrate on a very limited product line.
The manufacture of paper products is mainly a commodity business. Manufacturing ...
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