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Canadian Industrial Outlook: Paper Products—Autumn 2018

The Conference Board of Canada, 18 pages, December 11, 2018
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This report examines the short-and medium-term economic and profitability outlook for Canada’s paper products industry.

Document Highlights

Windfall Gain in Profits—Against the backdrop of unprecedented price growth for paper products, industry profits are forecast to expand by 50 per cent in 2018 and reach $2.8 billion. This represents the industry’s strongest financial standing since 2000, when profits peaked at $3.3 billion.

Duties Rescinded—Amid pressure from U.S. newspapers and print outlets, Washington rescinded duties on Canadian glossy paper and newsprint. Affected Canadian exporters can look forward to restored price-competitiveness of their products in the U.S. market. At the same time, the U.S. Department of Commerce will return duty deposits, freeing up cash for industry firms.

Navigating Boomer Departures—With more than one in five workers expected to retire over the coming decade, the industry is facing an impending labour shortage. This situation is made worse by the industry’s failure to attract an appropriate number of new labour force entrants in recent history as recruitment efforts were put on hold in the face of relentless downsizing.

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