Crouching Tiger, Hidden Opportunities
Where the Paper Industry Stands Today
Currently, international printers have a fundamental advantage over those in the U.S., according to Terry Hunley, acting president of the Americas for Singapore-based Asia Pulp & Paper (APP), a major exporter of coated paper from China and Indonesia.
"Paper can represent 30 percent to 50 percent of a print job's cost. Paper is less expensive outside the U.S. because tariffs and environmentalists have artificially raised the cost of imported paper. Since 2008, the U.S. printing industry has lost more than 75,000 jobs, and the number continues to increase. But, to preserve their sales here at any cost, three of North America's largest paper producers recently won a legal battle to impose tariffs on coated paper from both China and Indonesia, artificially raising the price," he said. "These tariffs have disrupted paper supplies, raised the cost of paper and forced many customers to seek cheaper printing solutions in Canada, China or Mexico—or [to] forgo printing some printed products altogether. By sourcing their print jobs internationally, companies here benefit from lower paper and production costs while avoiding the artificial mark-ups imposed by tariffs."