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MediaBuyerPlanner: Companies that use direct mailing or catalogs to market products can expect to see an increase in their paper expenditures. Three corporations, Stora Enso North America, International Paper and Fraser Papers, recently announced they will increase prices, according to Multichannel Merchant.
David Goldschmidt, vice president of Strategic Paper Group, a Newport, CA-based paper brokerage, said he expects costs to rise, especially with recent fuel and energy costs increasing. International Paper and Fraser Papers will both increase prices beginning July 1. Several other paper companies are also considering a price increase, meaning a continuation of price increases during the third quarter.
In addition to fuel and energy costs rising, the industry is experiencing a reduced supply which may add fuel to the fire. According to John Main, vice president of RISI, a Missouri-based forest industry research group, capacity closures in Canada and Europe during the third quarter will reduce the supply of paper to consumers.
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