Is The Paper Industry At Risk Of Going Out Of Business Because Of The Digital Age?

It is an undeniable fact that people nowadays are using less and less paper. A perfect illustration of this is the rapid decline in the subscriptions for newspapers and magazines. Media outlets that used to publish their content on print are now slowly making their transition to the web. And of course, more and more people these days prefer reading their news from their iPads, tablets, and laptops. The reign of print publications is nearly over. This decline in paper usage is also seen in businesses and various institutions. For instance, accounting firms are now storing data from their clients digitally instead of having them filed on paper folders. Most documentation processes these days no longer require paper. Digital storage cards have replaced paper files and folders.

The most obvious question now is this: "Is the paper industry at risk because of the digitalization of data management and storage?" And the obvious answer would be: "Yes, because decline in paper demand means less orders for paper and related companies (e.g. The PaperMill Store or  Artonery)." However, the effect would be not as immediate or complete since people and businesses will take time to transition from paper to digital storage. However, the effects on the paper industry have already materialized. Most paper companies and their suppliers are seeing lower and lower profit/output every year.

According to the Pulp and Paper Products Council in the United States, the demand for three types of supercalendared and coated paper in North America has declined 21% during the past decade. Furthermore, according to the same council, this significant decline will likely get worse in the coming decades as more people and businesses embrace the digital age. However, it's worth mentioning here that there are some sub-industries in the paper industry that are not grossly affected by the digital age. For instance, manufacturers of daily products that are made mostly of paper are not that affected because their products are not related to technology in any way or form.

Industry analysts also project that by the year 2024, demand for paper that will be used for newspapers and magazines will decline by another 18%. Because of these, a lot of paper mills and companies are starting to shift their focus. For example, some mills are starting to make other products from wood instead of paper. Others who are grossly affected simply call it quits and shut down their operations. According to the Center for Paper Business and Industry Studies which is located at the Georgia Tech University, 117 American mills have closed since the year 2000. This had a ripple effect because it caused around 223,000 people to lose their jobs. Some companies implemented drastic cutbacks and consolidations but they still can't keep up with the rapid decline in demand for paper.

In conclusion, the paper industry is definitely being affected by the decline in paper demand. Is the industry at risk? Yes, it is but it will take some time before the industry will finally crumble under the pressure of the digital age. And as was mentioned earlier, there are some paper-based companies that are not as grossly affected because they manufacture products that have nothing to do with data management, dessimination, or storage.