The Final Word by Jim Thompson

Someone once started a book with “It was the best of times, it was the worst of times.” I think such words are applicable to our industry now. We have recently completed a transformation of our industry from the pre-ubiquitous electronic communications age to the first phase of the connected-all-the-time-via-electrons-and-radio-signals age.

While the electronics era will go through many startling phases in the future, I think we took most of our lumps in Phase 1. We did not handle this phase with finesse, but we got through it.

Now we enter the fiber shortage phase. Fortunately, this is occurring at the same time our main competitor, plastics, is experiencing near record high raw material prices (petroleum). Can we handle this with sophistication and expertise or will we stumble drunkenly forward?

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Members Opinions:

genekathy

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January 15, 2008 at 1:00am

Perhaps we'll trip along only slightly tipsy. After all several have spun off their fiber supply to third parties who now hold those cards ...
Gene Canavan

NeilMcCubbin

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January 16, 2008 at 1:00am

Unfortunately, I feel that Gene hit the nail on the head. The bean counters have made a number of balance sheets look better in the short term than they otherwise would by selling the family farm.
The revenue generated has not been used to modernize mills, leaving the industry much more dependent on enegy costs than the European or S American competiton.
Only the low dollar is keeping many mills alive. Notice how much tougher things are in Canada.

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