PULP & PAPER MAGAZINE: Waging a war on costs

SAN FRANCISCO ,  (Viewpoint) - Reacting to the ever-present threat of high energy costs, North American mill managers say cost control will be their biggest challenge for the coming year, according to Pulp & Paper’s 2006 survey. Faced with extraordinary cost pressure not just from energy, but raw materials and health care as well, managers are less focused on capital concerns than they were in last year’s survey, galvanized by some loosening of corporate purse strings as spending in the U.S. reaches the highest level in five years. In fact, the vast majority of mill managers this year feel they receive enough capital to stay competitive (Figure 1), a dramatic shift from last year that recalls results of the late 1990s.

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