As I have said many times before, the pulp and paper industry is a place of constant change (I suspect other industries and businesses are, too, I just happen to know this one).

Just look at what has happened so far this year....

We've gone from a covid-centric world to an energy-centric world. This is an old story, but the cost of transportation energy is once again exacerbating the less than optimized location of some mills. I particularly dislike mill locations that tend to be unidirectional in their sources of raw material, energy, and customer base. When I think of this, the US state of Maine comes to mind (no need to write me, I have heard your arguments before). There are other locations that have the same problem.

Rising interest rates are back on the table. Inflationary pressures on capital projects are like those we haven't seen since the 1970's/early 1980's.

Possible tipping points in tissue capacity and containerboard. Off brand tissue is already feeling the pinch. Those of us working in linerboard are looking for signs of overcapacity, primarily because we have come so far so fast, yet there has been no softening in the market. Personally, I think containerboard has become the new steel--very strong, economical, and can be used to substitute in physically demanding applications formerly covered by other materials.

Employee shortages everywhere. Not only in our industry but throughout whole economies. What makes this particularly difficult for us is that many young people today do not see manufacturing environments as a place they want to spend their waking hours.

War. The Russian--Ukraine War has caused disruptions in capital project equipment sourcing and other areas.

So, things change. As you can see from above, some of these problems are old, and perhaps one needs to be my age to see them as repeats, but nevertheless, a year ago none of us would have had any idea that we would be facing these topics in a short twelve months.

Jim Thompson is CEO of Paperitalo Publications.