Verso Paper - Competitors

Verso Paper Competition

Now Viewing Verso Paper's competition in: Paper Products Manufacture (primary)

Recent Developments

Sales Decline, Inventories Rise - US wholesales sales of paper and paper products fell 9.3 percent in December 2007 compared to the same month in 2006. A 6.4 percent increase in paper and paper product inventories during the period indicates that paper and paper product production may decline.

Demand for Frozen Food Packaging Expected to Increase - US demand for frozen food packaging will rise 4.1 percent per year through 2011, according to the Freedonia Group. Demand for convenience-type foods, along with the prevalence of microwave ovens and technological advances in packaging, will drive the growth. Growth in demand for convenience-type foods will be driven by demographic trends such as smaller households, the aging population, and rising numbers of households where all adults work.

Some Products may not Need to Go Green - Not all products bought by US consumers who are concerned about environmental issues need to be environmentally friendly, according to a consumer packaged goods (CPG) study by Experian Research Services. The buying behaviors of green consumers vary, so CPG companies and marketers should examine their consumers' reaction to the green movement. Paper products manufacturers may be affected by changes in how consumer goods are packaged and marketed to US consumers.

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.

Full Industry Overview For Paper Products Manufacture

Paper Products Manufacture Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US pulp, paper, and paperboard products manufacturing is forecast to grow at an annual compounded rate of 4.2 percent between 2007 and 2012.

Paper Products Production Growth Fairly Steady

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.