How has the North American economic slowdown affected the water & wastewater market for the pulp & paper industry?
You might say the pulp & paper industry is between a rock and a sharp place. As the industry faces a downward spiral, market participants struggle to bounce back. From paper manufacturers to equipment suppliers, it has been in a cyclical downturn that has heightened in recent months due to swelling of global inventories, combined with increasing operational costs. Several North American plants, and various global plants, have been forced to cease operation or reduce production output. According to the Conference Board of Canada, for example, the paper products industry suffered a loss of about $435 million in 2008 – a direct impact on the once thriving water and wastewater services and equipment industries. Indirectly affected by the declining marketplace, core vendors to this industry seek ways to survive. Pulp & paper industry costs also are increasing for operational and regulatory compliance, while an overall decrease in spending has pinched areas such as capital expenditure budget
