2012 Global forest, paper, and packaging sector outlook |
The Deloitte Touche Tohmatsu Limited’s (DTTL) Global Manufacturing Industry group has developed the 2012 Global forest, paper, and packaging sector outlook to provide insights on the future of the industry. The forecast for this sector is closely tied to economic and operational dynamics at the regional level, and how they impact the global supply chain of the industry.
According to the report, China is expected to lead the sector in growth for 2012 due to increasing demand in the Asia Pacific region. However, Chinese companies are confronted with profitability challenges because of raw material cost and producer fragmentation. Europe is facing a potential economic recession due to declining demand and overcapacity for paper products. Meanwhile, growth in South America is slowing, with only an incremental increase in pulp and paper demand expected for 2012. Modest growth is anticipated in North America overall, but several subsectors will still face difficulties ahead.
The global forest, paper, and packaging companies that have made the necessary adjustments to strengthen their position through liquidity, operational efficiencies, and opportunistic growth will likely have a strong performance year in 2012 and will continue to influence the on-going evolution of the industry.
2012 Global forest, paper, and packaging sector outlook