Paper industry expected to grow slowly, steadily

American papermakers are expecting slow but steady growth during the next four years, according to a survey of the nation’s paper companies released this week.

Based on data from more than 200 paper, paperboard and pulp producers, the survey shows the industry is preparing for an annual average growth of 2 percent, below the annual rate of 2.4 percent experienced during the past decade.

Richard Storat, vice president for economics and materials with the American Forest and Paper Association, said the industry is “confident of its future,” despite rising costs and competition.

Storat spoke to reporters in a teleconference Thursday, the day the association formally released its 35th annual capacity survey.

Among the findings was that, in total, paper companies are expecting to increase production by about 7.6 million tons between 1993 and 1997, from 90.6 million tons to 98.2 million tons.

While growth in paper production is below historic levels, use of recycled paper in the production of new paper products is growing rapidly, about three times as fast as capacity, and will grow about 25 percent by 1997.

The report doesn’t include data specific to Maine but shows that in New England, growth in total paper and paperboard capacity will be slower than the nation as a whole. New England is expected to produce 6.5 million tons of paper and paperboard in 1997, up about 5.6 percent from 1993. Nationally, production is expected to grow about 8.4 percent.

Storat’s optimism was shared by David Sargent, manager of communications for Maine’s Paper Industry Information Office. Sargent spoke seperately from the teleconference and had not seen the forest association’s capacity report.

With continued growth in the economy, Sargent said demand may increase for more of the high-quality paper produced in Maine mills and used in magazines. With help from state government, U.S. papermakers may see Maine as a good place to expand their mills already in the state.

Storat said the improving U.S. economy prompted the optimism in the paper products industry. In addition, the General Agreement on Tariffs and Trade and an increased reliance on recycled paper are expected to aid the prospects of American papermakers, he said.