The effects of the current recession on the pulp and paper industry, though painful, are no worse than those suffered by other parts of the industrial sector. Since the beginning of the recession (January, 2008) production of pulp, paper and paperboard has declined by 18.7%. This is somewhat less severe than the corresponding decrease in the production of textiles (23.2%) and is almost enviable when compared to the 62.5% loss in iron and steel production during the same period.

The month-to-month changes in production of these three industries since 1999 are compared in Figure 1, where periods of economic recession are represented by the shaded areas. The 2002 recession had comparable effects on all three industries. During the 2002 -2007 period, steel rebounded, paper held steady and textiles suffered from offshoring and foreign competition. The severe effects of the current recession, especially on the steel industry, are apparent. The optimists among us will interpret the recent upticks in all three graphs to mean that better times will soon be upon us.

Fig. 1. Steel, Paper & Textiles Production Since 2002