Office Stationery Manufacturing in The US Industry Report

Office Stationery Manufacturing in the US May 2011 1
WWW.IBISWORLD.COM
Paper cuts: Competition from the internet and

cheap imports will hurt demand
IBISWorld Industry Report 32223
Office Stationery
Manufacturing in the US
May 2011
Caitlin Moldvay
2 About this Industry
16 International Trade
36 Regulation & Policy
Industry Definition
19 Business Locations
36 Industry Assistance
Main Activities
Similar Industries
22 Competitive Landscape
38 Key Statistics
Additional Resources
22 Market Share Concentration
38 Industry Data
22 Key Success Factors
38 Annual Change
22 Cost Structure Benchmarks
38 Key Ratios
3 Industry at a Glance
24 Basis of Competition
4 Industry Performance
25 Barriers to Entry
Executive Summary
26 Industry Globalization
Key External Drivers
Current Performance
27 Major Companies
Industry Outlook
27 Cenveo Inc.
10 Industry Life Cycle
39 Jargon & Glossary
28 MeadWestvaco Corporation
30 National Envelope Corporation
12 Products & Markets

12 Supply Chain
33 Operating Conditions
12 Products & Services
33 Capital Intensity
14 Demand Determinants
34 Technology & Systems
15 Major Markets
35 Revenue Volatility
www.ibisworld.com | 1-800-330-3772 | info @ibisworld.com
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About this Industry

Industry Definition
Operators in this industry process

purchased, uncoated paper and
paperboard. Companies produce a variety
of stationery products that are used for
writing, printing, filing, artwork and
Main Activities
The primary activities of this industry are
similar applications. Industry products

are sold to stationery wholesalers and
retailers and directly to large enterprises.
End users include businesses, students,
home offices and households.
Converting paper and paperboard into office supplies

Manufacturing envelopes of any material, including combinations
The major products and services in this industry are

Die-cut office stationery
Envelopes
Stationery, tablets and related products
Similar Industries
32212 Paper Mills in the US

Paper mill operators manufacture paper from pulp and may convert the paper they make into stationery.
32213 Paperboard Mills in the US
Cardboard mill operators manufacture paperboard from pulp and may convert the paperboard they make
into stationery.
32229b Labels, Egg Cartons & Other Paper Product Manufacturing in the US
Operators in this industry convert purchased paper and paperboard into finished products and pulp into egg
cartons, food trays and other food containers from molded pulp.
42212 Office Stationery Wholesaling in the US
Wholesalers of office stationery purchase the products from manufacturers and sell them to retailers or
directly to customers.
45321 Office Supply Stores in the US
Office supply stores purchase stationery from manufacturers or wholesalers and sell them to end consumers.
Some commercial customers may purchase directly from wholesalers or manufacturers.
Additional Resources
For additional information on this industry

www.afandpa.org
American Forest and Paper Association
www.envelope.org
Envelope Manufacturers Association
www.nam.org
National Association of Manufacturers
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Office Stationery Manufacturing in the US May 2011
Industry at a Glance
Office Stationery Manufacturing in 2011
Key Statistics
Snapshot
Revenue
Annual Growth 06-11
Annual Growth 11-16
Profit
Exports
Businesses
$7.6bn
-3.5%
-0.4%
406
$151.5m $1.2bn
Downstream demand from office

supply stores
Revenue vs. employment growth
Market Share
MeadWestvaco
Corporation 10.2%
National Envelope
Corporation 8.1%
% change
% change
Cenveo Inc. 14.1%
4
8
12
Year 02
5
10
04
Revenue
06
08
10
12
14
16
15
Year
04
06
08
10
12
14
16
Employment
SOURCE: WWW.IBISWORLD.COM
p. 27
Products and services segmentation (2010)
13.3%
Stationery, tablets and

related products
Demand from office

supply stores
Price of writing and
printing paper
44%
Trade-weighted index
Number of broadband
connections
National
unemployment rate
42.7%
Envelopes
p. 4
SOURCE:
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SOURCE:
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Industry Structure
Life Cycle Stage
Regulation Level
Medium
Revenue Volatility
Medium
Decline
Technology Change
Medium
Capital Intensity
Medium
Barriers to Entry
Medium
Industry Assistance
Low
Industry Globalization
Medium
Concentration Level
Low
Competition Level
FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 38
High
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Industry Performance
Executive Summary | Key External Drivers | Current Performance

Industry Outlook | Life Cycle Stage
Executive
Summary
Reading this report from a computer

screen, rather than paper or stationery,
effectively illustrates the primary
challenge that the Office Stationery
Manufacturing industry faces. The rising
use of electronic communication has
reduced the demand for traditional
paper-stationery products, such as
envelopes, letters and file folders. As a
result, industry revenue contracted at an
average annualized rate of 3.5% to $7.6
billion from 2006 to 2011. Revenue
declines were substantial during the
Renewed
business activity will spur increased

demand in the short term
recession, with reduced business activity
negatively affecting the demand for paper
in the workplace. Furthermore, per capita
income declined during the recession,
which reduced consumer purchases,
meaning businesses bought fewer paper
rolls for cash registers. Combined with
ever-increasing internet use, industry
operators faced considerably curtailed
demand during the recession. Revenue,
however, has begun to increase over the
last two years, as rising business activity
Demand from office supply stores

The majority of the stationery produced
by industry operators is sold to end users
through office supply stores. Activity in
the office supply retail industry is
important to manufacturers because it
indicates changes in demand for the
products and in price levels. If the retail
division experiences an increase in
revenue, this factor is expected to reflect
positively on demand for products from
manufacturers. This driver is expected to
increase during 2011, which is a potential
opportunity for the industry.
and household incomes spur increased

spending on paper products. During
2011, revenue is expected to rise 3.5%.
Even with some renewed demand,
profit margins are expected to fall from
2.6% in 2006 to 2.0% in 2011. Unstable
demand conditions, growing input prices
and difficulty in passing rising costs onto
customers have led to volatile profitability
for the average industry operator.
Companies have been forced to shut
down, consolidate, merge or be acquired
over the five years to 2011. As such, the
total number of firms declined at an
average rate of 2.4% per year to 406. Not
surprisingly, many producers have moved
operations offshore to take advantage of
cheaper labor and operating costs.
The outlook for office stationery is not
good: Over the five years to 2016,
IBISWorld expects revenue to decrease at
an average annualized rate of 0.4% to
$7.4 billion. Low profitability and further
downsizing and consolidation are
expected over the coming years.
Stationery will not completely disappear,
however, because it is a complementary
product to many electronics. To offset
declines, companies will increasingly
explore offshore markets for exports and
develop higher-quality niche products.
Price of writing and printing paper

The domestic price of writing and
printing paper represents the price of
paper rolls produced by mills. Paper and
paperboard are the main material costs
to the industry. Some small operators
may not be able to pass increases in the
price of paper on to consumers, in effect,
lowering their profit. Even if larger
corporations are able to compensate for a
rising cost of production, the markup is
generally reduced. This driver is expected
to increase during 2011.
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The trade-weighted index (TWI) is a
measure of the value of the US dollar
relative to the currencies of its largest
trading partners. It is an important
measure of the relative price of the
industrys products in the global market.
If the TWI decreases, this factor leads to
a lower relative price of exports and more
expensive imports. Industry operators
benefit from a weak US dollar, partly
through an increase in demand for
exports and partly through weaker
import competition. This driver is
expected to decrease during 2011.
Number of broadband connections
The widespread global prevalence of the
internet has had a negative effect on the
industry. The internet has reduced the
demand for letters and envelopes as well

as administrative paper support. Any
further penetration by internet
connections is expected to continue to
take away from stationery consumption.
This driver is expected to increase during
2011, a potential threat to the industry.
National unemployment rate
The demand for stationery depends on the
level of business activity and household
expenditure. The unemployment rate is
indicative of both: a low unemployment
rate is usually connected with solid
economic growth and increased
consumption. When unemployment rises,
the demand for stationery is negatively
affected from both the business and
household sectors. This driver is expected
to decrease during 2011.
Downstream demand from office supply

stores
5
120
110
Index
% change

continued
5
10
15
Year
100
90
04
06
08
10
12
14
16
80
Year 02
04
06
08
10
12
14
16
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Current
Performance
Declining profitability
The Office Stationery Manufacturing

industry suffered over the five years to
2011. Since the majority of the industrys
products are sold to the commercial
market, a drastic fall in economic activity
during the recession negatively affected
demand for stationery products. The
industry, however, benefited from robust
export growth during the period, which
tempered revenue declines. From 2006 to
2011, revenue declined at an average
annualized rate of 3.5%. However,
renewed activity in the commercial
sphere, along with rising employment, has
increased demand for office stationery
products, resulting in 3.5% revenue
growth to $7.6 billion for 2011.
While domestic demand briefly
flourished during 2006, due to robust
business activity and increased household
expenditure, the spike was short-lived.
Industry revenue declines were consistent
for the next three years due to business
closures and continued competition from
the internet, which reduced demand for
traditional stationery products. During
2008 and 2009, amid declining demand
for paper products from businesses and
consumers, revenue decreased at a

respective 6.5% and 12.6%.
Reduced demand for stationery
products reflects rising competition from
the internet and increasing environmental
awareness. Each new generation is likely
to further reduce the use of paper for
communication, and anti-logging
campaigns and lobbyists protesting the
use of wood in paper production have
increased environmental concerns among
businesses and consumers. Paperless
offices have become more prevalent and
do-not-mail legislation has been
introduced in 16 states. In the past few
years, most major airlines have ceased
printing paper tickets and started using
electronic tickets instead. These changes
have resulted in a gradual decline in
demand for stationery products in the
United States.
Industry profitability is expected to be

weak in 2011, with profit margins
averaging 2.0%. In contrast, profit
averaged 2.6% in 2006. All the major
players in the industry reported increases
in the cost of production during the past
five years, which has restricted profit
levels. The average price of paper rose at
an annualized rate of 2.5% during the five
years to 2011. While large stationery
producers are able to pass the full price
increase along to consumers, small
operators have not been as successful.
According to a survey by the National

Association of Manufacturers, only
22.0% of operators managed to pass on
the full price increase in 2007.
Profit margins were also hampered by
increased commodity prices during the
past five years. Oil prices spiked during
2008 and have continued to rise in 2011.
Meanwhile, the price of electricity has
been growing each year since 2004,
raising operating expenses for office
stationery manufacturers and reducing
profit margins.
Business
closures and
continued competition
from the internet have
been hurting revenue
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Firms pack up and go
Entering the global

sphere
Plagued by declining industry revenue

and corporate profitability, many
companies were forced to exit, merge or
be acquired by other operators during
the five years to 2011. The number of
companies in the industry fell at an
average annual rate of 2.4%, to an
estimated 406 enterprises in 2011. Plant
closures were slightly more modest,
declining at an average annual rate of
2.3% during the same period.
Companies in the industry were forced
to close poorer-performing
establishments in order to reduce their
operating expenses. Merger and
acquisition activity was also prominent
over the five-year period, particularly
with major player Cenveo Inc. The
company acquired label manufacturer Rx
Technology Corporation in 2006, giving
Cenveo a leading position in the
pharmaceutical-label manufacturing
business. In 2009, Cenveo also acquired
major competitor Nashua Corporation
and in February 2011 acquired the
envelope segment of MeadWestvaco,
making Cenveo the largest player in the
industry. Additionally, the National
Envelope Corporation, another major
company, acquired the Atlantic Envelope
Company in 2006. These acquisitions
have led to an overall increase in the
market share held by the top four
companies. From 2006 to 2011, market
share among the top four players
increased from 30.3% to 36.4%.
The industry is increasingly moving into

the global frontier. As domestic demand
falters, industry operators are focusing
more on new markets to sell their
products. While the majority of industry
exports are destined for Canada and
Mexico, due to favorable trading
conditions under the North American
Free Trade Agreement, the fastestgrowing market has been the European
Union. Production levels have fallen in
the region, prompting increased exports
from the United States. A key driver for
industry sales is the trade-weighted index
(TWI) of the dollar: A lower TWI
increases exports, whereas a higher TWI
increases imports. The general trend over
the five years to 2011 has been a
depreciation of the dollar, driving export
sales growth of 4.2% per year.
Competition from imports has
remained a consistent challenge for
industry operators. US manufacturers are
increasingly threatened by the presence
of cheap imports in the market due to the
lower production costs that overseas

companies enjoy. However, over the five
years to 2011, the depreciated US dollar
caused imports to be relatively more
expensive for US businesses and
consumers, which caused imports to
decline at an average annual rate of 3.5%.
Currently, Portugal has the highest level
of imports at 26.3% of office stationery
products coming into the United States.
The countrys stationery exports
increased at an impressive average
annualized rate of 13.0% over the past
five years, largely due to increased
investment in the countrys export
industries. Brazil was the top importer to
the United States in 2009, and it
currently holds the number-two spot,
with 22.6% of total industry imports.
Major companies in the industry have
continually turned their attention abroad
over the past five years. Major player
National Envelope Corporation entered
into a strategic alliance with other
international companies in 2008 to
M&As
have been common

as major players look to
increase revenue
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Entering the global

sphere
continued
create a global single-source supply

agency for companies with international
mailing and delivery requirements.
Another major player, MeadWestvaco
Corporation, recently acquired Grafica
Ltd, a stationery manufacturer in Brazil,
Industry
Outlook

industry will continue to face difficult
conditions over the five years to 2016.
Industry revenue is projected to fall at
$7.4 billion. Relative to the past five
years, conditions will improve slightly
for industry operators, with revenue
declines slowing over the period.
Increases in business and consumer
spending will fuel some positive growth
for the industry, specifically in 2012;
revenue is projected to expand 3.0%
during the year. However, the prevalence
of electronic alternatives, such as e-mail,
video-conferencing and credit-card
scanners, will continue to lower demand
for stationery products. While office
paper will continue to be used in the
workplace, other stationery, such as
notebooks and letters, wil continue to
face declining demand.
Increased import competition for
domestic operators is likely to push the
industry to produce more innovative
products, such as stationery made from
higher-value grades of specialty paper or

recycled paper. Increased product
innovation will allow companies to raise
the prices of their products to combat
decreasing sales volumes.
Larger firms will drive much of the
development as they acquire smaller
innovative firms, in addition to having a
greater capacity to finance research and
development. Strategic alliances
between domestic and international
operators within the industry could also
be an important driver for new product
development. National Envelope
Corporations partnership with the
Global Services Group is an example of
such an alliance; it will enable the
National Envelope Corporation to work
cooperatively on research, development
and global marketing for new products.
Although profitability is expected to be at

a low point of 2.0% in 2011, profit
margins for the industry are expected to
expand to 2.3% in 2016.
Despite weak domestic growth, the
industry will become increasingly
productive. Technological improvements
and growing capital investment are likely
to contribute to increasing production

volumes of higher value-added industry
products. Increased capital investment
will reduce the reliance on labor over the
next five years; therefore, the number of
employees is expected to rise just
marginally an average annualized rate of
0.2% to 28,215.
Profits expected to
rise slightly
and opened a manufacturing plant in

China. As domestic demand falters,
companies in the industry are continually
focusing their sights on new markets to
take advantage of large consumer bases
in emerging economies.
Rising
imports will spur

development of highermargin niche products
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Increased merger and acquisition activity

is expected to continue over the five
years to 2016 as larger companies
attempt to improve profit margins, while
other companies leave the industry
altogether in favor of more profitable
endeavors. Consequently, the total
number of companies operating in the
industry is forecast to decrease 1.6% per
Global frontier
Over the next five years, companies will

continue to move into the global realm.
With saturated domestic demand,
internationally based companies will look
abroad to foster demand for industry
products. Because Asian and Latin
American sales have suffered
comparatively less than the United
States, the regions are likely to be targets
for operations over the coming five years.
During the five-year period, industry
exports are projected to rise at an average
annual rate of 1.9%, making up 17.1% of
industry revenue by 2016.
IBISWorld expects that the US
industry will lose a share of global office
stationery production. Large and lowcost paper-product sectors in China,
Brazil and Portugal are expected to
increase production volumes. The lower
operating expenses abroad will result in
cheaper imports, which will challenge the
competitiveness of US office stationery
products. As such, import competition is
year to 375 companies. Plant closures

will continue as the industry faces
decreased demand for office stationery
products. The reduction will be much
more modest than the past five years,
however, with the number of
establishments projected to decrease at
474 in 2016.
Revenue vs. exports

200
150
% change
Consolidation
continues
100
50
0
50
Year 02
Revenue
04
06
08
10
12
14
16
Exports
expected to rise over the next five years to

an estimated 8.8% of total demand. US
manufacturers will be aided slightly by a
weak US dollar; however, the dollars
depreciation will slow over the next five
years. The dollar is forecast to depreciate
at an average annualized rate of 0.4%
over the period.
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Life Cycle Stage
Industry value added is underperforming the economy as a whole

Competition from substitute electronic
communications has restricted demand growth
Participation in the industry is falling due to
import competition and low profitability
Technological developments are largely cosmetic
%Growthofprofit/GDP
Per capita consumption of office stationery is declining
Maturity
30
QualityGrowth
Company
consolidation;
level of economic
importance stable
25
High growth in economic

importance; weaker companies
close down; developed
technology and markets
KeyFeaturesofaDeclineIndustry
Revenue grows slower than economy
Falling company numbers; large firms dominate
Little technology & process change
Declining per capita consumption of good
Stable & clearly segmented products & brands
20
15
QuantityGrowth
Many new companies;

minor growth in economic
importance; substantial
technology change
10
ElectricPower
Transmission
PaperMills
Shake-out
5
Shake-out
PaperboardMills
Printing
OfficeStationeryManufacturing
Decline
PaperWholesalingPotentialHiddenGems
Crash or Grow?
10
10
TimeWasters
Future Industries
5
10
Hobby Industries
15
20
25
30
%Growthofestablishments
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Industry Life Cycle

This
industry
is Declining
The industry is in the decline stage of its

economic life cycle. Indicators of the
stage include: declining industry value
added, decreased revenue, a falling
number of companies and establishments
and decreased employment levels.
Industry value added is projected to
decrease at an average annualized rate of
1.6% over the 10 years to 2016.
Comparatively, GDP is forecast to
increase at 2.0% over the same period,
which indicates that the industrys
contribution to GDP is shrinking over
time. Industry value added has fallen
because of declining profitability,
employment and capital investment.
Profit margins contracted because of
increasing commodity prices on top of
the weak demand conditions. Capital
investment has been falling for years due
to companies downsizing operations and
firms leaving the industry because of low
profit margins.
Over the past five years, businesses and
consumers have been increasingly buying
less domestically produced stationery,
resulting in falling production volumes.
With reduced demand for office stationery
products, many companies have been
forced to exit the industry. Over the past
five years, the number of companies is
estimated to decline 2.4% per year.
Although office stationery is a wellestablished product, there has been some

new product development in the past five
years. Developments include new
envelope styles and different grades of
paper. Such changes are considered
cosmetic, however, and do not necessarily
provide the industry with new markets.
The product mix has also diversified,
nearly eliminating outdated calculator
rolls and single-line printing papers.
Considering that the vast majority of
sales are through domestic channels,
developments in alternative export
markets have provided some growth for
industry operators. The weak US dollar
aided industry exports, since US products
were relatively less expensive in
international markets. Between 2006 and
2011, industry exports began making up a
greater share of revenue, rising from
10.4% to 15.1%.
The ownership structure of companies
operating in this industry has not changed
significantly in recent years. Although the
average enterprises size increased slightly
over the past five years due to merger and
acquisition activity, most are small to
medium-size private corporations. These
consolidations were on the back of rising
cost pressures, weak profit levels and
downsizing of plant operations.
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Products & Markets
Supply Chain | Products & Services | Demand Determinants

Major Markets | International Trade | Business Locations
Supply Chain
KEY BUYING INDUSTRIES

32311
Printing in the US

This industry purchases stationery to print on.
42211
Paper Wholesaling in the US

This industry purchases printing and writing paper from office stationery manufacturers and
distributes it to retailers or directly to consumers.
42212
Office Stationery Wholesaling in the US

This industry purchases paper and paperboard stationery products from manufacturers and
distributes it to retailers or directly to consumers.
45321
Office Supply Stores in the US

Large office stationery retailers with significant purchasing power may negotiate contracts
directly with manufacturers.
KEY SELLING INDUSTRIES
Products & Services
22112
Electric Power Transmission in the US

All manufacturing industries require a reliable supply of electricity in order to maintain
production.
32212
Paper Mills in the US

Office stationery manufacturers purchase paper rolls to convert into paper products.
32213
Paperboard Mills in the US

Office stationery manufacturers purchase paperboard to convert into paperboard products
33329b
Printing, Paper, Food, Textile & Other Machinery Manufacturing in the US
Office stationery manufacturers purchase machinery for use in production of paper products.
Products and services segmentation (2010)
13.3%
Stationery, tablets and

related products
44%
42.7%
Envelopes
Total $7.3bn
The industry manufactures a range of
products, including file folders, paper
rolls, envelopes and other stationery
products. The value of sales for each
product and product segment is

dependent on the quantity sold and the
price of those items. The quantity sold is
primarily influenced by demand factors,
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Products & Markets
Products & Services

continued
while product prices reflect input prices

and the cost of production. The Office
Stationery Manufacturing industry has
been experiencing a drop in domestic
demand, and consequently, revenue levels
have fallen across all segments of the
industry. These declines have led to
production mix changes that cater to
shifting demand trends and competitive
pressures.
The die-cut stationery segment is the
largest in the industry and accounts for an
estimated 44.0% of total sales. Die-cut
stationery includes file folders, report
covers, letters and paper rolls for business
machines and cash registers. During the
past five years, revenue growth from these
products was more favorable compared to
other segments. Robust economic growth,
strong consumption and expanding
white-collar employment increased
demand for paper for business activity. In
addition, strong consumption
expenditure growth during the economic
boom resulted in buoyant growth in
register roll usage. Despite the fact that
the recession has caused falling demand
for such items, the decrease has been less
drastic compared to the rest of the
industrys products. This fact is evident in
the price of die-cut office stationery,
which is estimated to increase at 3.1% per
year during the five years to 2011.
In the future, this product segment is
likely to experience a slowdown in sales,
largely due to the many industries going
paperless. Many airlines and other
ticketing businesses, such as shows,
movies and sporting events, have already
scraped paper tickets and are opting for
electronic ticketing. In the future,
shopping is also expected to become less
reliant on paper and more electronically
managed, reducing the demand for
paper rolls in registers.
Envelopes
The industry produces envelopes for
business and personal letters, direct mail
and packages. This segment used to be
the biggest seller in the industry;
however, it has lost part of its share of
the market over the past five years.
Currently, this segment contributes
42.7% of total sales. Although
developments in online shopping and
paper advertising have increased
demand for shipping and direct-mail
envelope production in the past decade,
commercial and personal letter envelope
use has declined because of the growing
use of electronic communication. There
was also a sharp decline in direct-mail
advertising during the recession,
particularly during 2009. Furthermore,
the price of envelopes has experienced
lower-than-average growth in the five
years to 2011, increasing at an estimated
2.1% per year. This rate is lower than the
average price of industry products, which
is projected to expand by 2.5% annually.
The most recent data from the
Envelope Manufacturers Association
shows that the total number of envelope
shipments declined by 3.8% per year in
the five years to 2009, falling to 154.0
million. This claim is supported by the
2008 US Postal Service Household
Diary Study that reported that
household correspondence has declined
by 14.0% since 2002. Direct-mail
advertising accounts for about 57.0% of
all mail received by households, and the
volume of these letters declined by 4.4%
in 2007 and 1.0% in 2008.
Stationery, tablets and related products
The stationery, tablets and related
products segment of the industry
accounts for 13.3% of industry revenue
in 2011. This segment includes bond
paper, school and art supplies, loose-leaf
fillers, notebooks, paper pads, writing
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Products & Markets
Products & Services

continued
tablets, office paper for printing and

photocopying and similar products.
Within this sector, technological
developments have led to the
substitution of writing paper with
printing paper. While printing paper is a
popular product among consumers, for
both commercial and personal use,
demand for it has also fallen over the
past three years. This decline is due to
the sharp increase in unemployment
between 2008 and 2010, which led to
less demand for commercial printing
and declining sales for the industry.
Before the economic bust, there was
growth in the printing papers segment,
but it was offset by a decline in the use of
writing tablets, notebooks, paper pads
and similar products. The price of
stationery, tablets and related products

is estimated to have increased at an
average annual rate of 2.7% during the
five years to 2011.
Printing paper is currently used
regularly in offices and government
departments, something that may
change in the near future, however. In
October 2009, the Senate vowed to make
its office paperless for a month in an
attempt to make a positive impact on the
environment and encourage other
departments and businesses to do the
same. They used electronic options for
many of the printouts that they required
in their day-to-day business. With
Generation Y consumers entering the
workforce, the goal of a paperless office
may be more achievable.
Demand
Determinants
The demand for office stationery is

predominantly affected by changes in
business needs and educational activity as
well as everyday personal and household
use. The commercial sector accounts for
the majority of stationery consumption;
therefore, employment levels, company
profits and business activity are the main
determinants of commercial stationery
demand. In times of economic prosperity
and falling unemployment levels, demand
for this industrys products grows. The
opposite is expected during a downturn.
Activity in the retail sector affects
demand for register rolls and credit card
dockets. During times of high
consumption expenditure, demand for
these paper products is buoyant because
retailers print receipts for more
customers. However, a slowdown in the
level of consumption results in retailers
demanding less register tape, which will
create a drop in demand for these
industry products.
Schools and colleges also provide a
strong source of demand for stationery.
Even though there has been an increase
in electronic means of communication,

traditional paper-based educational
support remains integral. With a higher
emphasis on the importance of education
in the future, solid annualized growth in
the number of elementary and secondary
students is forecast. The education sector
is projected to continue supporting
stationery product demand, adjusting
toward technology-complementing
supplies like printing paper.
Technology friend or foe?
It seems as though the electronic
revolution is taking over all means of
communication and entertainment. But
can technology and tradition coexist?
Office stationery has had its share of
competition with the world of electronics;
however, it has also benefited from new
opportunities that technology has created.
Developments in personal computers
and the internet created robust demand
for printing paper, fax paper and
associated stationery. Direct-mail
advertising also created a growing
demand for envelopes, with the ability to
WWW.IBISWORLD.COM
Products & Markets
Demand
Determinants
continued
Major Markets
create multiple copies of letters being

more cost effective. Envelope demand
also grew as online shopping became
popular through eBay. At the same time,
fax machines, e-mail, video conferencing
and similar applications are reducing the
need for traditional letters at work and in
the home. Writing paper has lost its
appeal compared to printing paper, and
diaries are often electronic. Consumers
are growing increasingly environmentally
aware too, substituting paper for
electronics when possible. Environmental
concerns about cutting trees for paper
production have pushed some
organizations and businesses to reduce
their use of paper and replace it with

electronic alternatives.
The overall effect of technology on the
Office Stationery Manufacturing industry
has been an expansion in the number of
products offered; however, industry
revenue has become more and more
limited by the strong prevalence of
electronics. Demand for industry
products has shifted away from
envelopes, writing paper, letterheads and
related products and focused more on
printing paper, business forms, filing
materials and register rolls. There has
also been a demand shift toward recycled
paper products.
Major market segmentation (2010)
4.6%
14.3%
Other
industries
Export
17.4%
Retail trade
Total $7.3bn
The majority of the products
manufactured by the industry are
finished and ready for use. They are then
sold to wholesalers for domestic and
international distribution, retailers or
directly to large corporations. Stationery
is also sold to other industries, such as
the Printing industry (IBISWorld
industry report 32311).
The middleman is shrinking
Wholesalers that distribute to the
domestic market purchase the largest
63.7%
Wholesale trade
proportion of manufactured stationery.

They are a crucial link between
manufacturers and the final consumers,
providing an easy and effective means of
distribution to retailers. However, during
the five years to 2011, middleman
companies have lost some of their market
share. In order to cut costs and attain
more control over purchases, retailers
have increasingly purchased directly
from manufacturers, bypassing the
distributors. Adding to this trend are
technological improvements, such as
WWW.IBISWORLD.COM
Products & Markets
Major Markets
continued
online ordering, which have made

ordering and distribution more cost
effective for retailers.
Stationery retailing is dominated by a
few large-scale companies, including
Staples, OfficeMax and Office Depot.
These companies have a high degree of
purchasing power, allowing them to
negotiate lower rates based on the
volume of goods that they buy. These
trends have resulted in fewer sales to
wholesalers over the five years to 2011.
Industry connections
Large corporations with significant
purchasing power also purchase directly
from manufacturers. These companies
reside in other industries that consume
significant volumes of paper and
stationery, such as government
departments, schools and similar public
organizations. However, over the five
years to 2011, this market has reduced its
International Trade
Level & Trend
xports in the
E
industry are
Medium and
Increasing
Imports
in the
industry are
Medium and
Decreasing
The majority of domestically-produced

office stationery is consumed locally, with
only a medium level of trade. The industry
has traditionally been a net importer;
however, during 2002, the tables turned.
This was largely due to increased exports
to Canada. The Canadian dollar began to
appreciate significantly beginning in
2002, making imported US stationery
products relatively less expensive to
Canadian consumers and businesses.
Between 2002 and 2008, the Canadian
dollar appreciated against the US dollar
by 60.0%. Demand for exports has also
been favorably impacted by the
depreciating US dollar relative to its major
trading partners, which makes exports
relatively cheaper and imports relatively
more expensive. The US dollar
depreciated consistently between 2003
and 2008 and again during 2010 and
2011, favorably impacting the US office
stationery trade balance.
share of industry product purchases.

Increasingly, these customers are opting
for electronic alternatives.
Exports
The export market has provided some
favorable trends over the five years to
2011, with the percentage of sales from
foreign buyers increasing from 10.4% in
2006 to 15.2% in 2011. The growth in
demand has been aided by the weak US
dollar, which has depreciated almost
consistently since 2003. Because of weak
demand domestically, manufacturers are
increasingly exploring foreign markets.
Strong economic growth and large
consumer bases in developing countries
have contributed to the growing demand
for exports, a trend that is likely to
continue with the domestic shift toward
electronic communication. (For more
information on exports, please refer to
the International Trade section).
The Bigger Picture

Of
the 692 industries in

the US economy, 119 have
medium exports and 62
of those are experiencing
an increasing trend as
is the Office Stationery
Manufacturing industry
Imports
The total value of imported industry
products is forecast to decrease during
the three years to 2011 at an average
annualized rate of 3.5%. Imports
declined considerably during the
recession due to decreased domestic
consumption of office stationery
products. Furthermore, the dollar
depreciated at an average annual rate of
WWW.IBISWORLD.COM
Products & Markets
1.0% during the three-year period, which

made imported office stationery products
relatively more expensive. Import
penetration is forecast to decrease from
8.8% of domestic demand in 2008 to
8.6% in 2011.
Portugal is the top stationery exporter
to the United States, accounting for
26.3% of total industry imports. The
value of imports from Portugal increased
at an average annualized rate of 16.1%
over the three-year period. Imports from
Portugal increased dramatically in 2010,
largely due to a high degree of
investment in the countrys exports,
which the government hopes will aid the
Portuguese economy as it scales back its
government spending in other areas.
Brazil was the top stationery exporter to
the United States as of 2009, but it
currently holds the number-two spot,
with 22.6% of total industry imports.
Brazils paper industry has developed
solidly in the past decade, leading to
competitive products and prices and
Exports To...
3%
9%
Netherlands
Industry trade balance

1500
1000
500
$ millions
International Trade
continued
0
500
1000
Year 02
04
Exports
06
08
Imports
10
12
14
16
Balance
rising industry imports.

Exports
Although the value of exports is forecast
to increase at an annualized rate of 0.8%
over the three years to 2011, export sales
have been particularly volatile during the
past three years. During 2009, exports
plummeted, largely due to the
Imports From...
3%
United
Kingdom
Mexico
72%
Canada
9%
China
13%
34%
13%
Other
Canada
Other
19%
Brazil
26%
Portugal
Year: 2010
SIZE OF CHARTS DOES NOT REPRESENT ACTUAL DATA
Total $1.1bn
Total $521.0m
SOURCE: USITC
WWW.IBISWORLD.COM
Products & Markets
International Trade
continued
appreciation of the US dollar during that

year as well as weakening demand
conditions globally. Following that,
however, export growth had been
substantial, driven by a cyclical
weakening of the US dollar. This has
encouraged operators to move into global
markets, where they can offer a wide
variety of products. More than 80.0% of
all industry exports are destined for
Canada and Mexico due to the lack of
tariffs from North America Free Trade

Agreements implementation and
decreased transportation costs due to the
two countries proximity. The fastestgrowing market in the past three years
has been the European Union, where
production levels have fallen,
encouraging export growth from the
United States. Exports as a share of
industry revenue currently account for
15.2% of industry revenue.
WWW.IBISWORLD.COM
Products & Markets

Business Locations 2011
West
New
England
AK
0.0
WA
Rocky
Mountains
ID
1.1
West NV
0.6
3.2
SD
0.4
WY
0.0
MN
0.2
0.0
OR
Great
Lakes
ND
MT
1.3
Plains
0.8
UT
CO
1.5
2.5
1.0
7.1
KY
12.0
OK
1.0
AZ
NM
0.6
0.6
Southwest
TX
6.3
HI
0.0
AdditionalStates(as marked on map)

1 VT
2 NH
3 MA
4 RI
5 CT
6 NJ
7 DE
8 MD
0.0
0.6
0.4
5.0
3.8
0.0
NC
1.3
SC
Southeast
MS
AL
0.6
0.6
GA
2.7
1.9
LA
1.0
FL
4.0
NumberofEstablishmentsbyRegion(%)
0.2
1.3
0.6
0.2
TN
AR
WV VA
2.3
1.7
CA
West
OH
1.7
MO
KS
1.1
1.9
5.9
IN
5.9
0.2
PA
3.1
IL
0.4
1 2
3
NY
8.8
5 4
MI
2.7
IA
NE
0.2
WI
ME
MidAtlantic
9 DC
0.0
Lessthan3%
3%tolessthan10%
10%tolessthan20%
20%ormore
WWW.IBISWORLD.COM
Products & Markets
Great Lakes
The Great Lakes region comes in a close
second, with 20.7% of industry
establishments located there in 2011.
Establishments are fairly evenly
distributed throughout the region; though
Ohio is the most significant producer, with
7.1% of the nations total establishments
located in the state. Manufacturers choose
to locate in the region partly because of its
proximity to major paper mills; the region
has traditionally been one of the largest
paper manufacturing areas in the United
30
20
10
Southwest
Southeast
Rocky Mountains
Plains
New England
Mid-Atlantic
0
Great Lakes
Mid-Atlantic
The Mid-Atlantic is home to the highest
percentage of industry establishments,
estimated at 21.0% of the total in 2011. In
the Mid-Atlantic, establishments are
heavily concentrated in the industrial
centers of the region, i.e. New York,
Pennsylvania and New Jersey. Industry
operators choose to locate close to large
population centers where many
businesses and individuals purchase
stationery products. Furthermore, this
region is home to 17.5% of the countrys
paper mills, which produce the raw paper
and paperboard materials that are
required for making stationery paper
products. Additionally, the regions
proximity to ports facilitates exports to
Europe. Since 2006, the share of industry
operators in the region has held fairly
steady, rising only slightly from 20.1%.
Establishments vs. population
West
The Mid-Atlantic, Great Lakes and

Southeast regions are home to the highest
number of stationery manufacturing
establishments. Together these regions
hold almost 60% of all stationery
manufacturing facilities in the United
States, which is consistent with the
concentration of paper mills (65%).
Population density in these regions is
another factor influencing the geographic
spread of industry establishments because
manufacturers typically locate close to
larger consumer bases.
Percentage
Business Locations
Establishments
Population
States. Furthermore, its proximity to

eastern Canada makes this region a
popular destination because Canada is the
industrys largest export market.
The proportion of industry
establishments rose slightly over the past
five years, with the region holding 19.9%
of the total in 2006. The rise is largely
due to fewer establishment closures in
the region due to its importance for
exporting industry products.
Southeast
The Southeast has 18.6% of total
establishments, and Florida dominates
the region with 4.0% of total industry
facilities. The Southeast has always been
a popular destination for paper-related
manufacturing due to its availability of
wood chips and access to eastern ports
destined for European markets. The
Southwest has been expanding its
population and the labor force,
contributing to developments in all
industries in the region, including paper
product manufacturing. However, its
share of establishments has stayed
roughly constant over the five-year
WWW.IBISWORLD.COM
Products & Markets
Business Locations
continued
period. In 2006, the Southeast had 18.7%

of total industry manufacturing facilities.
West
In the West, California dominates the
industry, accounting for about 12.0% of
manufacturing establishments in the
country. Advantages for this state include
the availability of raw materials and
ready access to the import and export
markets in the Pacific. The region is also
home to a high concentration of office
supply stores, which typically locate near
large consumer bases. The West region is

expected to account for about 15.0% of
industry establishments in 2011.
The New England, the Rocky
Mountains and Plains regions account
for 5.4%, 2.8% and 8.3%, respectively, of
industry establishments in 2011. The
Rocky Mountains and Plains have
experienced little change over the past
five years; however, New England lost
0.4% of the industrys establishments
due to above-average establishment
closures in the region.
WWW.IBISWORLD.COM
22
Competitive Landscape
Market Share Concentration | Key Success Factors | Cost Structure Benchmarks

Basis of Competition | Barriers to Entry | Industry Globalization
Market Share
Concentration
Level
Concentration
in
this industry is Low
Key Success Factors

IBISWorld
identifies
250 Key Success
Factors for a
business. The most
important for this
industry are:
Market share concentration within the

is low, with the top four producers
accounting for 36.4% of industry revenue
in 2011. The level of concentration within
the industry increased over the past five
years; in 2006, the top four players held
only 30.3% of revenue. Over the past five
years, increased merger and acquisition
activity by major companies increased the
industrys market share concentration
level. Cenveo Inc., in particular, increased
its market share substantially with the
acquisition of Rx Technology Corporation
in 2006 and the purchase of Nashua
Corporation in 2009. Furthermore, in
February 2011, Cenveo acquired

MeadWestvacos envelope product group,
which resulted in Cenveo becoming the
largest company in the industry.
The industry has an estimated 406
companies operating in 2011, with the
majority employing fewer than 70 people
and holding less than 1.0% of market
share. This number is a significant
decrease from 2006, when 459
companies operated in the industry. Due
to falling demand for office supplies and
rising cost pressures, the industry has
experienced significant consolidation
over the years, which has increased the
size of the average industry operator.
Access to niche markets

A degree of specialization within a firm
can provide access to niche markets, such
as direct-mail envelopes. This ability
enables operators to reduce revenue
volatility over time.
Provision of superior after sales service

Good response time to clients needs will
help industry operators stay competitive.
Service is one of the defining factors for
firms in a highly competitive industry like
Office Stationery Manufacturing.
Access to the latest available technology

Investment in advanced technology will
enable companies to have a better
response time to changing consumer
tastes. Technological changes can also
improve the efficiency of production.
Ability to pass on cost increases

When the price of paper or paperboard
increases, operators need to be able to
charge more for the end product in order
to cover rising cost pressures. This can be
difficult in a market where the demand
for stationery is falling.
Ability to optimize capacity utilization

Efficiency and cost effectiveness depend
on the operators ability to maximize
manufacturing capacity. A high level of
capacity utilization and long production
runs will help ensure a reduction in costs
per unit and higher returns on sales.
Cost Structure
Benchmarks
This industry has a similar cost structure

to other paper product manufacturing
industries. Purchases make up the
majority of expenses, with wages
constituting the second highest expense
for industry operators.
Establishment of export markets

As the demand for stationery products
declines in the United States, export
markets provide new revenue
opportunities for manufacturers.
Industry profitability has decreased

over the five years to 2011 due to
declining demand for office stationery
and increasing input costs. Larger
industry operators have managed to pass
the majority of cost increases on to
WWW.IBISWORLD.COM
23
Cost Structure
Benchmarks
continued
customers, which has caused the overall

cost of industry products to increase. In
2011, however, the price of paper, which
is one of the primary input goods, is
expected to increase 2.4%, which is more
than the price of office stationery. As a
result of rising input costs, profitability
has been challenged. The peak in
profitability occurred in 2006, when
strong economic activity in the business
sector increased stationery consumption.
Net profit margins decreased over the
past five years, from 2.6% in 2006 to
2.0% in 2011. In an effort to enhance
profit margins, industry operators have
increasingly focused on reducing
overhead expenses by closing
unprofitable facilities and reducing their
labor expenses.
Under the pump
The rising cost of materials, such as paper
and paperboard, has challenged industry
profitability. As a percentage of revenue,
purchases of materials are forecast to
account for 58.2% of revenue in 2011.
Materials used in stationery
manufacturing are either produced
domestically or imported. Regardless of
the cheaper price of imports, a weaker US
dollar exchange rate over the past five
years has contributed to growing cost
pressures by making imported materials
relatively more expensive. The depreciated
US dollar is expected to continue raising
the cost of imported paper and
paperboard products for industry
Profit
Rent
Utilities
Depreciation
Other
Wages
Purchases
operators. At the same time, commodity

prices skyrocketed in 2008, and have
begun to rise strongly again in 2011.
Labor and capital
Because labor is an integral part of the
production process, wages are a significant
cost to the industry. Wages as a share of
revenue have fallen over the years as
operators have restructured their
operations in order to achieve greater
labor efficiency and reduce operating
expenses. Wages have fallen from 14.8%
in 2006 to an estimated 13.8% in 2011.
Depreciation expenses are expected to
decrease over the five-year period as well,
from 1.9% of revenue in 2006 to 1.6% in
2011. This decline is the result of
downsizing by companies, facility closures
and falling levels of capital investment in
the industry. Capital expenditure is
forecast to decline at an annualized rate of
3.5% over the five years to 2011, falling
rapidly in 2008 and 2009. Capital
investment took a hit during the recession,
partially due to the tight credit market and
partially to weakening demand conditions
that created an unstable investing
environment.
Utilities and rent
Utilities account for an estimated 1.1% of
industry revenue in 2011, increasing from
1.1% in 2006. These expenses include
water, electricity, gas and fuels and other
similar commodities. Although prices
skyrocketed over the three years to
IndustryCostsandAverageSectorCosts
Industry
Costs
(2011)
1.0
2.0 1.6
Profit
100%
22.3
13.8
58.2
1.1
1.1
8.9 3.3 14.9
AverageCosts
ofallIndustries
Profit
insector(2011)
2.1
11.3
58.4
WWW.IBISWORLD.COM
24
Cost Structure
Benchmarks
continued
August 2008, widespread plant closures

during the recession curtailed some of the
increased utility expenditures. The price of
fuel, however, has continued to rise
throughout 2010 and 2011, which has
increased utility expenses for industry
operators. Rent expense is projected at
1.0% of industry revenue in 2011, which is
the same compared to 2006. Other minor
costs associated with running a
manufacturing facility include: taxes,

interest on debt, insurance, advertising,
general administrative and others.
Downsizing combined with merger and
acquisition activity has led to significant
restructuring costs for industry players
throughout the past five years. With
restructuring comes increased legal
expenses, good will write downs and
similar costs.
Basis of Competition
The industry is experiencing high levels

of competition from both industry
operators and external influences. When
new companies enter the industry, the
level of competition with existing
operators increases. However, there are
currently enough producers in the
market to ensure that not one firm has
sufficient market power to control
production or pricing across the industry
as a whole. Companies in the industry
also face competition from imported
industry products, which are increasingly
playing a role in the US market.
withhold their contracts, along with

providing exceptional service to their
clients in order to communicate any
changes and delays. The location of a
manufacturing facility and its proximity
to key customers is also important with
regards to meeting delivery deadlines
and reducing transportation costs.
Product versatility and the ability to
alter production to meet changing
demand conditions are a large
determinant of a firms competitiveness.
The demand for stationery is changing
along with technology, and companies
need to provide customers with a greater
array of products, particularly those
complementing technological. Consumers
are often looking for diverse and versatile
products, such as multipurpose
envelopes, and manufacturers with the
fastest response to demand may capture a
larger share of the market.
Level & Trend

ompetition
C
in this
industry is High and
the trend is Steady
Internal competition
Price is an important competitive factor,
given the high level of competition in the
industry. Because downstream industries
and retailers are always looking to
decrease input costs, a firm can enhance
its competitive edge in the market by
reducing its prices. Producers that have
economies of scale and sufficient
purchasing power can negotiate to
purchase paper, paperboard and other
inputs at lower costs, thereby, allowing
them to produce lower-cost products and
giving them a competitive advantage.
Timeliness, speed of delivery and
after-sales service are integral for the
generation of repeat sales. Retailers and
downstream manufacturers rely on a
consistent supply of stationery materials
and may suffer if services are
interrupted. Therefore, companies must
External competition
External competition has had the
strongest influence on the industry since
the mid-1990s. The introduction of the
internet is the single largest factor
contributing to the overall fall in demand
for stationery. Since then, customers
have increasingly switched to electronic
communication from traditional paperbased. The industry has responded by
developing products that complement
technology, such as diverse grades of
printing paper. The overall effect,
WWW.IBISWORLD.COM
25
Basis of Competition
continued
however, has been a fall in demand for

stationery products.
Contributing to a fall in demand for
domestically produced stationery is
robust price competition from imports.
The growth in cheap imports from
China, Portugal and Brazil has been
significant, creating a highly competitive
environment for industry operators.
Rising import penetration over the past
decade is contributing to intensified
Barriers to Entry
The industry has a medium level of

barriers to entry. Since this industry has
entered the decline stage of its industry
life cycle, the number of entrants has
been decreasing and revenue growth
from existing firms has been dropping.
However, industry competition
continues to remain high because there
are still a significant number of firms in
the industry. The level of industry
assistance is also low because there is no
governmental assistance provided for
industry operators.
Capital requirements are estimated to
be at a medium level. Start-up costs vary
depending on the scale of operations, as
well as the individual manufacturing
operation. Stationery manufacturers
will require one or more paper and
paperboard converting machines,
which, depending on the scale of
operations, can cost in the hundreds of
thousands of dollars. In addition to
equipment requirements, the enterprise
will need to secure skilled staff that can
operate the machinery and design the
various stationery products. According
to the National Association of
Manufacturers, professionals skilled in
this area of manufacturing are
increasingly difficult to find. Other
employees that will be needed include:
floor staff, sales officers, staff for
Level & Trend

arriers to Entry
B
in this industry are

Medium and Steady
competition within the industry, with

local operators struggling to retain
customers given the cost advantages of
cheaper-priced imports.
Another threat facing industry
operators is the possibility of paper and
paperboard mills choosing to offer
stationery products alongside their
regular paper and paperboard products.
This move would increase the level of
competition for industry operators.
BarrierstoEntrychecklist
Competition
Concentration
Life Cycle Stage
Capital Intensity
Technology Change
Regulation & Policy
Industry Assistance
Level
High
Low
Decline
Medium
Medium
Medium
Low
marketing, management and

administrative employees.
Once a new firm enters the industry,
profitability can be seriously affected by
the existence of well-established brands,
the highly competitive environment and
the high costs of marketing and
advertising. The most successful
entrants will be those that can enter a
niche market directly with a new
product idea. Another key success factor
for a new business is the ability to take
advantage of location benefits. If there
are fewer operators in particular
regions, potential operators can take
advantage of the decreased level of
competition. Furthermore, companies
can vertically integrate with paper mills
to take advantage of economies of scale
and offer products at a reduced rate,
which will give them a competitive edge.
WWW.IBISWORLD.COM
26
in
this industry is
Medium and the
trend is Increasing
International trade is a
major determinant of
an industrys level of
globalization.
Exports offer growth
opportunities for firms.
However there are legal,
economic and political risks
associated with dealing in
foreign countries.
Import competition can
bring a greater risk for
companies as foreign
producers satisfy domestic
demand that local firms
would otherwise supply.
TradeGlobalization
200
GoingGlobal:OfficeStationeryManufacturing
1998-2011
Global
Export
150
100
50
OfficeStationery
Manufacturing
0 Local
0
given the input cost advantages that

foreign manufacturers hold, US
producers are consistently threatened by
cheaper import products. Exports have
grown as a percentage of revenue because
of weakened demand conditions in the
United States.
Another facet of globalization is an
increase in international alliances. For
example, National Envelope Corporation
entered a strategic alliance in February
2008 to create a global single-source
supply agency to supply companies with
international mailing and delivery
requirements. Increasing globalization is
expected to provide a competitive
advantage by creating new consumer
markets and providing access to cheaper
labor costs. The industry is expected to
increase its focus on global markets over
the next five years, which is likely to
result in increased acquisition and
merger activity in foreign markets,
especially in Asia and South America.
Import
40
80
120
Imports/DomesticDemand
200 Export
Exports/Revenue
Level & Trend

lobalization
G

industry has a medium level of
globalization, which is in line with other
converting industries and paper mills. Due
to the start-up costs and different rules
and regulations in foreign countries, the
majority of the small and medium-size
operators is domestically based. However,
major companies, such as International
Paper, MeadWestvaco and Cenveo,
operate in numerous countries abroad in
order to take advantage of emerging
markets with large consumer bases.
Emerging markets that show strong
growth potential include Asian and Latin
American countries.
Globalization is increasing noticeably
within the industry and trade penetration
has more than doubled over the past 10
years. Import penetration is estimated at
8.5% in 2011, and exports as a percentage
of industry revenue are estimated at
15.1%. Although the depreciated dollar
currently favors domestic producers,
Exports/Revenue
Industry
Globalization
160
Global
150
100
50
2011
0 Local1998
0
40
Import
80
120
160
Imports/DomesticDemand
WWW.IBISWORLD.COM
Major Companies
Cenveo Inc. | MeadWestvaco Corporation
National Envelope Corporation | Other Companies
Major players
MeadWestvaco Corporation
10.2%
(Market share)
67.6%
Other
National Envelope Corporation 8.1%

Cenveo Inc. 14.1%
Player Performance
Cenveo Inc.
Market share: 14.1%
Industry Brand Names
American Business
Products
Poser Business Forms
Lawson Mardon
Packaging
Colorado-based Cenveo Inc. is one of the

largest diversified printing companies in
North America. The company is the
successor of Mail-Well Inc., which dated
back to 1921 and was reincorporated in
1997 as Cenveo. The company has
operations spanning the United States,
Canada, Latin America and Asia. As of
2010, Cenveo employs an estimated
8,700 people worldwide. The company is
headquartered in Stamford, CT.
Cenveo operates two business
segments: the envelopes, forms and
labels segment as well as the commercial
printing segment. The envelopes, forms
and labels segment includes
manufacturing and printing customized
envelopes for billing and direct-mail
advertising as well as business forms and
labels. The segment operates 34
manufacturing facilities in North
America, and segment sales are forecast
to account for 53.0% of company sales.
The commercial printing segment has 37
manufacturing facilities as well. Through
this segment, the company prints annual
reports, car brochures, brand marketing
collateral, specialty packaging and
general commercial printing. The
companys operations in the Office
Stationery Manufacturing industry is
carried out through its envelopes, forms
and labels sector, excluding revenues
from labels.
The company has made a number of
prominent acquisitions over the five
years to 2011. In July 2006, it acquired
label manufacturer Rx Technology
Corporation, which was integrated into
its envelopes, forms and labels business

segment. The acquisition of Rx
Technology gave the company a leading
position in the pharmaceutical label
manufacturing business. In 2007, the
company made four strategic acquisitions
to enhance its existing operations,
including Printegra in February, Cadmus
in March, Color Graphics in July and
Commercial Envelope in August. Cadmus
and Color Graphics were integrated into
the commercial printing segment of the
company, while Printegra and
Commercial Envelope were adopted into
the envelope and business form
manufacturing operations.
In May 2009, Cenveo announced that
it was buying major competitor Nashua
Corporation for $49.7 million, with the
sale completed in September 2009.
Nashua was a prominent manufacturer,
converter and marketer of labels and
specialty papers with annual revenue of
about $265 million. The acquisition
caused the companys market share to
increase substantially in the Office
Stationery Manufacturing industry.
Furthermore, Nashuas acquisition
strengthened Cenveos position in the
pharmaceutical labels market and
substantially increased the companys
customer base and raw material
purchasing power. Cenveo also acquired
Clix in February 2010, with annual sales
of $16.7 million, allowing the company to
expand its Canadian operations. In
addition, Cenveo acquired
MeadWestvacos envelope product group
in February 2011. The acquisition
WWW.IBISWORLD.COM
Major Companies
Player Performance
continued
Player Performance
MeadWestvaco
Corporation
Market share: 10.2%
Five Star
Columbian
Trapper Keeper
Cambridge
At-A-Glance
AmCal
Day Runner
Mead
resulted in Cenveo becoming the largest

company in the industry.
The acquisition of Rx Technology in
2006 and Printegra in 2007 contributed
to developments in label and business
form products as envelope sales volumes
fell. The company expanded the envelope
product line with the purchase of
Commercial Envelope in 2007; however,
sales of business forms and labels
increased at a faster rate than envelopes.
Financial performance
During the five years to 2011, envelopes,
forms and labels segment revenue
increased at an annualized rate of 6.5%.
This growth is far stronger than the
industry as a whole, which declined 3.4%
during the same period. Various
acquisitions, primarily those of Nashua
and MeadWestvacos envelope product
group, increased the companys market
share substantially. During the recession,
excluding gains from acquisitions, the
envelopes, forms and labels segment
reported lower sales. This was primarily
the result of lower demand and sales

volumes stemming from an increase in
postage rates by the US Postal Service, as
well as a movement toward paperless
communication. Overall, however,
Cenveo is projected to increase its market
share from 9.3% in 2006 to 14.1% in 2011
due to its expansive acquisition activity.
Operating income growth has been
considerable over the five-year period.
Between 2006 and 2011, operating income
grew at an average annual rate of 7.2%.
Economic activity was strong in 2006,
with increased volumes of sales and
additional profits from Rx Technology
contributing to this growth. Furthermore,
the company significantly reduced
operating expenses: in 2006, the company
reduced its number of employees by about
900, consolidated seven manufacturing
facilities and closed three printing
operations. During 2009, divisional
operating earnings improved relative to
2008 due to cost-cutting procedures and
decreased input costs, allowing operating
income to grow by 288.3%.
MeadWestvaco is a global producer of

packaging, consumer and office products
and specialty chemicals. The company
has operations in more than 30 countries
throughout North America, South
America, Europe and Asia.
MeadWestvaco was created in January
2002, following the merger of paper and
packing companies, Mead and Westvaco.
The companys main focus is on
packaging solutions, which represent
70.0% of all production.
The company participates in this
industry through its consumer and office
products segment, which manufactures
stationery and accounts for 12.3% of
revenue. The company employs about
8,750 people in the United States, and its
US operations generate about 68.0% of
the companys revenue.
MeadWestvaco has gone through

reconsolidation and a series of
acquisitions since its inception, looking
for the perfect product mix and selling
off lower-performing divisions. In 2005,
the company sold its coated and specialty
papers division to NewPage Corporation
for $2.3 billion. In 2008, the company
acquired Eastman Chemical Company
through its specialty chemicals division.
In the same year, it sold two paper mills
in North Charleston, SC, and Potsdam,
NY, and closed one packaging plant in
Warrington, PA, in order to reduce costs.
In early 2009, the company announced
closures of multiple facilities in the
United States, including plants in Ohio
and Virginia, to limit costs during the
recession. In September 2010, the
MeadWestvaco sold its media and
WWW.IBISWORLD.COM
Major Companies
Player Performance
continued
entertainment packaging business. In

February 2011, the company sold its
envelopes business for $55 million,
substantially reducing the companys
operations in the Office Stationer
Manufacturing industry.
Over the past five years, the company
has increasingly focused its attention
abroad in order to take advantage of
growing consumer bases in the midst of
declining domestic demand. In 2007, the
company opened a packaging
manufacturing plant in China that is
expected to reduce costs of production,
increase economies of scale and open up
new export markets. In 2009, the
company acquired Grafica Ltd, a
manufacturer of stationery and office
supplies in Brazil. MeadWestvaco is also
developing new product offerings to meet
fast-growing demand in India as branded
products grow in popularity there
MeadWestvacos operations in the
are carried out exclusively through its
consumer and office products division.
The division produces and distributes a
broad portfolio of school and office
supplies, with brands such as Five Star,
Mead, Trapper Keeper and others. Office
products include the At-A-Glance and
Cambridge brands. The division operates
seven printing centers, seven converting

plants and eight distribution centers.
Manufacturing is performed in the
United States and Brazil.
On January 15, 2009, the company
announced that it was implementing a
series of broad cost-reduction actions to
reduce its corporate and business unit
overhead cost structure. These actions
resulted in 3,000 job cuts during 2009,
which represents 13.0% of the companys
global workforce. Additionally, the
company closed or restructured 16
manufacturing facilities during the year.
These cost management actions achieved
$154 million in pretax savings for 2009,
which exceeded the companys target of
$125 million. During 2010, the company
continued to reduce operation expenses
in order to generate target savings of
about $250 million from facility closures
and overhead reductions.
Financial performance
MeadWestvaco is expected to hold a
10.2% market share in 2011. Division
revenue decreased at an annualized rate
of 7.5% over the five years to 2011. This is
weaker performance compared to the
industry as a whole, which is estimated to
have declined 3.4% per year. This is
mainly due to the companys sale of its
MeadWestvacoCorporation(consumerandofficeproductssegment)
financialperformance
Year
Revenue
($ million)
(% change)
OperatingIncome
($ million)
(% change)
2006
1,143
1.6
127
-8.6
2007
1,147
0.3
139
9.4
2008
1,063
-7.3
96
-30.9
2009
1,006
-5.4
133
38.5
2010
748
-25.6
141
6.0
2011*
776
3.7
152
7.8
*IBISWorldestimate
SOURCE: ANNUAL REPORT
WWW.IBISWORLD.COM
Major Companies
Player Performance
continued
envelopes business, which reduced the

MeadWests market share. With the
exception of the sale of its envelope
business, revenue only contracted by 0.1%
Increased competition from imports has
been adversely affecting this segment. The
United States as a whole has experienced
declining sales volume. In 2006, 72.0% of
revenue was generated through US
operations, but by 2010, that figure had
declined to 68.0%.
Over the five years to 2011, operating

income increased at an average
annualized rate of 3.7%. Strong import
competition and increasing paper and
paperboard prices resulted in profit
declines during 2008. MeadWestvaco,
responded by increasing product prices,
enabling positive profit growth. Easing
input prices and cost-cutting actions
resulted in positive profit margin in 2009
through 2011.
Player Performance
National Envelope Corporation is a New

York-based envelope manufacturer, with
operations in the United States and
Canada. The company is the largest
envelope manufacturer in the world,
producing 37 billion envelopes in its 9
manufacturing facilities throughout the
United States and Canada. National
Envelope is based in Frisco, TX, and was
founded in 1952. The company employs
about 3,000 people through its
operations in the United States and
Canada. Its products range from regular
office envelopes to customized envelopes
for direct-mail use. Other products
include presentation folders, durable
mailers, fine papers and booklets.
The company has about 20 divisions,
which include New York Envelope,
Williamhouse and Old Colony Envelope.
In 2006, National Envelope expanded by
acquiring Atlantic Envelope Company, a
subsidiary of National Service Industries
Inc. Atlantic Envelope was a full-service
envelope converter with six
manufacturing facilities and 900
employees located throughout the United
States. In October 2007, the company
opened a new envelope production
facility in Ennis, TX. The companys
existing Texas plants, in Corsicana and
Grand Prairie, were consolidated into the
new facility in 2009.
National Envelope has increasingly
focused on environmental sustainability
in order to stay competitive and appeal to

a wider base of customers. It was the first
envelope converter in the United States
to be certified by SmartWood to produce
envelopes and greeting cards that meet
the standards of the Stewardship Council.
Some of the Forest Stewardship Council
(FSC)-certified grades offered by
National Envelope include: Cougar
Opaque, Evergreen 100 and ASPEN 50
Natural. The company also offers a range
of recycled paper products. In March
2009, the company introduced a new
carbon-neutral products program that
produces envelopes, announcements and
holiday cards without additional carbon
dioxide emissions. The program has been
under development for two years and
involved a complete carbon footprint
analysis of the company by the Carbon
Neutral Company of London, England.
In February 2008 the company
entered into a strategic alliance to create
a global single-source supply agency to
service companies with international
mailing and delivery requirements. The
Global Services Group (GSG) comprises
National Envelope, German firm MayerKuvert-network GmbH, Spanish firm
Group Tompla and Japans Imura
Envelope. These companies collectively
operate a network of 65 manufacturing
facilities, and the alliance is expected to
provide National Envelope with a
competitive advantage for attracting and
National Envelope
Corporation
Market share: 8.1%
New York Envelope
Alcor
Williamhouse
Old Colony Envelope
WWW.IBISWORLD.COM
Major Companies
Player Performance
continued
servicing global clients. Furthermore, the

agreement enables members to work
jointly on new product development and
research projects.
In September 2010, the Gores Group
LLC announced its acquisition of
National Envelope, which had filed for
bankruptcy in June 2010. National
Envelope had been consolidating
operations for the past two years and
ceased production in its Chino, CA,
Union, NJ, Long Island City, NY, and
Houston, TX, facilities. National

Envelope is a private company; therefore,
no official financial statistics are
available. The companys most significant
expansion was in 2006, following the
acquisition of Atlantic Envelope
Corporation. Since then, sales have
experienced negative growth due to weak
demand conditions. The company is
estimated to have $610 million in
revenue, giving the company a market
share of 8.1% in 2011.
NationalEnvelopeCorporationfinancialperformance*
Year
Revenue
(% change)
Employees
(% change)
2006
650
N/C
3,600
N/C
2007
867
33.4
4,500
25
2008
799
-7.8
5,000
11.1
2009
676
-15.4
4,500
-10.0
2010
600
-11.2
3,500
-22.2
2011
610
1.7
3,000
-14.3
*Estimates
Other Companies
The industry is comprised of a large

number of small and medium-size
companies, many of which are private,
family-owned businesses. The industry is
competitive with about 406
manufacturers. The majority of
companies in the industry hold less than
1.0% market share.
International Paper Company
Estimated market share: 4.0%
International Paper Company was
formed in 1898, and today is the largest
forest products company in the United
States. The company operates in North
SOURCE: IBISWORLD
America, Europe, Latin America, Russia,

Asia and North Africa, selling its products
in more than 120 countries. The
companys manufactured products
include wood pulp, paper, packaging and
plywood, which are produced by five
divisions: industrial packaging, printing
papers, consumer packaging, distribution
and forest products. The printing papers
segment manufactures home and office
papers, commercial printing and
publishing papers, converting and
specialty papers, industrial papers and
pulp. Uncoated papers are sold under
private label and International Paper
WWW.IBISWORLD.COM
Major Companies
Other Companies
continued
brand names, which include Hammermill,

Springhill, Williamsburg, Postmark,
Accent, Great White, Chamex, Ballet, Rey,
Pol and Svetocopy. The company
contributes to the Office Stationery
Manufacturing industry through its
production of cut-size paper for printers,
faxes, photocopiers and writing.
Smead Manufacturing Company
Smead Manufacturing Company was
founded in Hastings, MN, in 1906.
Acquired by the Hoffman family in 1916,
the company is now in its third generation
of family ownership and has been a
woman-owned enterprise since 1955. The
company operates as a manufacturer and
distributor of paper filing supplies and
records management software. Products
are sold only through office products
dealers and authorized resellers.
In 2003, the company expanded its
Smead-Europe division, previously
operating in nine European countries, by
acquiring certain subsidiaries of The
Lindegaard Group, a Norwegian maker of
filing and organization products, desk
accessories and stationery products. The
subsidiaries are located in Denmark,

Estonia, Finland, France, Norway,
Sweden and the United Kingdom. The
company has also been at the forefront of
sustainable business practices, diverting
used paper from landfills and reusing it
in its products. Smead started recycling
in 1989 and many of its most popular
items are available as 100.0% recycled
products. IBISWorld estimates that the
companys sales of paper filing supplies
in the United States will account for 1.3%
of industry sales in 2011.
Tension Envelope Corporation
Tension Envelope Corporation is one of
the countrys leading private
manufacturers of envelope products,
selling directly to companies and
organizations across the country. Tension
makes a range of products, from standard
envelope styles and sizes to specialty
envelopes created for one-of-a-kind
mailing and packaging purposes. Tension
produces more than 11 billion envelopes a
year, with 30 facilities from coast to coast.
IBISWorld estimates that the company
holds about 1.2% of market share.
WWW.IBISWORLD.COM
Operating Conditions
Capital Intensity | Technology & Systems | Revenue Volatility

Regulation & Policy | Industry Assistance
Capital Intensity
Level
The level
of capital
intensity required
is Medium

industry has a medium level of capital
intensity, which is similar to other paper
product manufacturing industries. In
2011, for every dollar spent on wages, the
industry will require an estimated $0.12
worth of capital investment. This is a
slight decrease in capital intensity
compared to 2006, when $0.13 of capital
investment was required for every dollar
spent on wages. The change is mainly due
to a sharper decline in capital
expenditure compared to labor costs
during the five-year period.
Industry-wide capital expenditure has
fallen during the past five years as a
result of unstable credit markets and
diminishing returns on investment.
Firms have also downsized their
Capital intensity
Capital units per labor unit

0.5
0.4
0.3
0.2
0.1
0.0
Economy
Manufacturing
Office
Stationery
Manufacturing
Dotted line shows a high level of capital intensity

operations, which has resulted in less

money spent on upgrades or expansions.
Considering weakening demand
ToolsoftheTrade:GrowthStrategiesforSuccess
InvestmentEconomy
Recreation,PersonalServices,
HealthandEducation. Firms
benefit from personal wealth so
stable macroeconomic conditions
are imperative. Brand awareness
and niche labor skills are key to
product differentiation.
Information,Communications,
Mining,FinanceandReal
Estate.To increase revenue
firms need superior debt
management, a stable
macroeconomic environment
and a sound investment plan.
TraditionalServiceEconomy
Printing
WholesaleandRetail. Reliant
Paper
on laborrather than capital to
sell goods. Functions cannot Wholesaling
be outsourced therefore firms
must use new technology
or improve staff training to
increase revenue growth.
ElectricPowerTransmission
PaperMills
OfficeStationery
Manufacturing
PaperboardMills
ChangeinShareoftheEconomy
CapitalIntensive
LaborIntensive
NewAgeEconomy
OldEconomy
AgricultureandManufacturing.
Traded goods can be produced
using cheap labor abroad.
To expand firms must merge
or acquire others to exploit
economies of scale, or specialize
in niche, high-value products.
WWW.IBISWORLD.COM
Capital Intensity
continued
conditions for industry products, capital

expenditure is experiencing diminishing
returns, leading to fewer operators
willing to invest in the industry.
Labor costs are estimated to fall by
4.9% per year over the past five years.
Investment in new technology systems
and increased computerization has
resulted in improved labor productivity
because operators have reduced their

dependency on labor. At the same time,
companies pursued employee cuts in
order to reduce operating expenses
during the recession. As firms battled
declining demand in 2008 and 2009,
layoffs were considerable, resulting in
respective 2.8% and 13.1% reduction in
industry employment.
Technology
& Systems
Medium levels of technological

development have taken place in the
industry during the past 10 years. The
result has been improved product quality
as well as considerable improvements in
production efficiency and just-in-time
methods. Operators have been able to
introduce new product lines and improve
older ones at a relatively low cost, while a
decline in downtime losses has improved
profitability.
Throughout the paper-converting
sector, computerized production systems
have been widely adopted in recent
years. Such systems make use of
advanced sensing and photo-detection
devices to adjust machinery settings and
greatly improve the accuracy and quality
of the production and life span of the
machinery. This has led to substantial
cost savings throughout the industry.
Other equipment enhancements,
including the use of fully automated and
computerized guillotines, collators,
folders and binders, have resulted in
similar savings.
The industry has been heavily focused
on meeting environmental regulations,
such as reductions in noise levels and
solvent emissions. In March 2009,
National Envelope introduced a new
carbon neutral products program, which
is available for all envelopes,
announcements and holiday cards
manufactured by the company. There
have also been adjustments to converting
machines to allow recycled paper and
paperboard inputs. The American Forest

& Paper Association leads an industrywide Agenda 2020 partnership with the
US Department of Energy. The
partnership aims to improve energy
efficiency in the industrys manufacturing
processes and is organized as a
membership alliance to accelerate
research, demonstration and deployment
of breakthrough technologies. Agenda
2020 Technology Alliance was initiated
in 1994 and is expected to continue to
contribute toward technological
alternatives in all aspects of the paper
and forestry industries.
Other improvements in general
productivity include smaller print runs
and shorter setup times for business
forms, high-capacity web presses, laser
technology developments, prepress
electronics and high-fidelity printing.
Level
The level
of
Technology Change
is Medium
Innovation and competition

So far, the Office Stationery
Manufacturing industry has been
successful in keeping pace with
technology developments in other
sectors, such as printers, fax machines
and photocopier manufacturing. Laser
printing technologies and multisurface
printing has increased the demand for
paper that supports these functions. In
recent years, industry operators have
also invested substantial amounts in
developing new and advanced product
features, which can be marketed to
customers to gain a competitive
WWW.IBISWORLD.COM
Technology
& Systems
continued
advantage. Envelopes, for example, have

experienced a host of new product
innovations and patents, including
Shimmer Print technologies for
exterior improvements and Smart
Guard Card sleeves for higher security.
Regarding the level of technological
development during the past five to 10
years, the industry has been seriously
outperformed by its main competitor:
electronic communication. Technological
improvements in electronic
communication have been fast and
plentiful compared to the medium levels

for stationery manufacturing.
Competition with e-mail and other
communication tools has intensified over
time due to improving speed of
connection and free service offerings.
Globalization has also improved access
to technology for developing countries
like China. Through integration of
technology and cheaper labor, these
countries are now producing products of
similar quality at a lower cost to
consumers.
Revenue Volatility
IBISWorld estimates that industry

revenue experienced a medium level of
volatility in the five years to 2011, with an
overall declining trend. Year-on-year
revenue changes averaged 6.0% during
the five-year period. Volatility is
dependent on price changes as well as the
level of output that the industry produces
and sells. The average price of the
industrys products experienced low
volatility over the same period, with the
effect of higher input prices offset by
weaker demand conditions. The producer

price index for office stationery products
increased at an average annual rate of
2.5% between 2006 and 2011. The level of
production, however, has been more
volatile due to decreases in demand
during the recession. Technological
developments in electronic
communication and intensified import
competition have contributed to declining
production of stationery and decreased
levels of domestic consumption.
of
Volatility is Medium
A higher level of revenue

volatility implies greater
industry risk. Volatility can
negatively affect long-term
strategic decisions, such as
the time frame for capital
investment.
When a firm makes poor
investment decisions it
may face underutilized
capacity if demand
suddenly falls, or capacity
constraints if it rises
quickly.
VolatilityvsGrowth
1000
Revenuevolatility*(%)
Level
The level
Hazardous
Rollercoaster
100
10
OfficeStationery
Manufacturing
1
0.1
Stagnant
30
10
BlueChip
10
30
50
70
Fiveyearannualizedrevenuegrowth(%)
* Axis is in logarithmic scale
WWW.IBISWORLD.COM
Regulation & Policy

Level & Trend
he level of
T
Regulation is
Medium and the
trend is Steady
Industry Assistance
Level & Trend
he level of
T
Industry Assistance
is Low and the
trend is Steady
The level of regulation imposed on this

industry is generally low compared to
paper mills and pulp manufacturers. The
majority of environmental restrictions
and energy constraints are only
applicable to the paper mills that
industry operators buy paper and
paperboard from. However, these
regulations can impact the Office
Stationery Manufacturing industry
through its supply of materials. If paper
mills increase the percentage of recycled
paper in their products, then stationery
manufactures are likely to increase
production of recycled paper stationery.
Furthermore, high compliance
requirements in mills can also increase
the cost of paper used to produce
stationery, which could decrease the
competitiveness of domestic operators in
the global sphere because other countries
face more lenient regulation.
The regulations applicable to the Office
Stationery Manufacturing industry relate
to general industrial and manufacturing
activities, such as the Clean Water Act
(CWA), the Solid Waste Disposal Act
(SWDA), the Clean Air Act (CAA), the
Cluster Rule and noise pollution control.
Under the CWA and SWDA, the industry
is responsible for ensuring that water and
solid waste have been discharged
appropriately. The industry is also
subject to specific provisions relating to

airborne pollution emissions. The CAA is
designed to protect the nations air
resources for public health and welfare. It
establishes limits to air pollutants, such
as carbon monoxide, nitrous oxides and
sulfur oxides. The cluster rule regulates
the release of water pollutant emissions
of hazardous air pollutants from the pulp,
paper and paperboard industries.
Noise pollution is governed by the
United States Code. The law lists the
types of industrial machinery considered
and requires the Environmental
Protection Agency to monitor progress
through a developed noise emission
standard. Noise regulations consider the
nature of the product, the best available
technology and the cost of compliance
with these standards.
While there are no rules on the amount
of recycled materials that must be used
for office stationery manufacturing,
companies sometimes voluntarily
participate in recycling, reducing energy
consumption and using renewable
energy. Through the American Forest &
Paper Association, the paper industry has
set a goal to recover 60.0% of the paper
consumed in the United States by 2012.
By 2009, about 63.4% of consumed
paper was recovered, surpassing the
industry goal by three years.
Even though there are tariffs imposed on

imported paper stationery, these only
apply to a small number of countries that
do not have normal trading relations with
the United States. The vast majority of
countries can export to the United States
duty free, including developing Asian and
South American countries. This kind of
tariff system gives little assistance to
domestic manufacturers because it
seldom prevents intense price
competition.
In 2007, the US Department of

Commerce cracked down on Chinese,
Indonesian and Korean manufacturers
for dumping coated-free sheet paper. On
March 2, 2010, under pressure from US
manufacturers, the US Department of
Commerce again issued temporary
countervailing tariffs on coated paper
imports from China and Indonesia, citing
indirect government assistance. During
October 2010, the US International Trade
Commission approved punitive duties on
WWW.IBISWORLD.COM
Industry Assistance
continued
KeyTariffs
Goods
Tariff on envelopes from non-NTR (Normal Trading Partner) countries
Tariff on an assortment of other paper stationery from non-NTR countries
LowRate
HighRate
35
33
35
33
SOURCE: USITC
Chinese and Indonesian exports of

specialty paper to the United States. The
ruling set in place margins of up to
135.83% against China coated paper
products and 20.13% for Indonesian
exports to the United States. These duties
are to remain in place for the next five
years. This ruling does not directly impact
the Office Stationery Manufacturing
industry, but it is likely to reduce dumping
practices of other paper products.

Professional bodies, such as the Envelope
Manufacturers Association or the Paper
Industry Association Council, provide
some assistance to industry participants.
They organize trade events and serve as a
link between the industry and various
government bodies, including the US
Postal Service, to determine standard
envelope sizes.
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Key Statistics
Industry Data
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Sector Rank
Economy Rank
Revenue
($m)
9,619.1
9,133.7
8,906.6
8,904.7
9,072.2
8,691.3
8,122.8
7,100.5
7,320.6
7,576.8
7,804.1
7,968.0
7,816.6
7,629.0
7,415.4
144/196
523/700
Annual Change
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Sector Rank
Economy Rank
Revenue
(%)
-5.0
-2.5
0.0
1.9
-4.2
-6.5
-12.6
3.1
3.5
3.0
2.1
-1.9
-2.4
-2.8
83/196
264/700
Industry
Value Added
($m)
4,094.5
3,901.6
3,752.8
3,625.2
3,759.7
3,965.5
3,456.8
2,646.3
2,855.0
3,060.0
3,265.1
3,284.9
3,294.3
3,191.9
3,184.7
123/196
481/700
Establishments
636
600
589
565
554
549
524
496
489
492
497
503
495
481
474
122/196
600/699
Industry
Value Added
(%)
-4.7
-3.8
-3.4
3.7
5.5
-12.8
-23.4
7.9
7.2
6.7
0.6
0.3
-3.1
-0.2
40/196
123/700
Establishments
(%)
-5.7
-1.8
-4.1
-1.9
-0.9
-4.6
-5.3
-1.4
0.6
1.0
1.2
-1.6
-2.8
-1.5
64/196
319/699
Enterprises Employment
538
39,077
495
38,040
484
37,135
469
34,050
459
32,473
459
31,628
437
30,746
413
26,724
407
27,259
406
27,995
411
28,863
404
29,584
397
29,288
386
28,791
375
28,215
123/196
123/196
586/699
525/700
Exports
($m)
839.9
893.7
900.6
910.4
939.5
1,088.1
1,125.3
947.5.0
1,045.5
1,152.2
1,204.0
1,166.7
1,216.9
1,243.7
1,268.5
114/183
137/229
Imports
($m)
564.7
734.8
476.1
507.1
724.3
769.7
672.1
554.6
576.7
604.8
631.4
650.4
630.2
616.3
604.6
154/183
177/226
Wages
($m)
1,598.6
1,535.6
1,516.5
1,385.9
1,338.5
1,262.7
1,182.4
996.1
1,017.1
1,042.5
1,074.8
1,094.5
1,082.4
1,066.2
1,042.7
138/196
545/700
Domestic
Demand
9,343.9
8,974.8
8,482.1
8,501.4
8,857.0
8,372.9
7,669.6
6,707.6
6,851.8
7,029.4
7,231.5
7,451.7
7,229.9
7,001.6
6,751.5
149/183
177/226
Prodn of printing
& writing paper
(000 metric tons)
20,917.8
20,282.7
21,410.4
21,051.1
21,089.2
21,302.4
20,042.0
19,412.0
19,780.8
20,196.2
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Enterprises Employment
(%)
(%)
-8.0
-2.7
-2.2
-2.4
-3.1
-8.3
-2.1
-4.6
0.0
-2.6
-4.8
-2.8
-5.5
-13.1
-1.5
2.0
-0.2
2.7
1.2
3.1
-1.7
2.5
-1.7
-1.0
-2.8
-1.7
-2.8
-2.0
94/196
37/196
412/699
130/700
Exports
(%)
6.4
0.8
1.1
3.2
15.8
3.4
-15.8
10.3
10.2
4.5
-3.1
4.3
2.2
2.0
27/183
33/229
Imports
(%)
30.1
-35.2
6.5
42.8
6.3
-12.7
-17.5
4.0
4.9
4.4
3.0
-3.1
-2.2
-1.9
67/183
82/226
Wages
(%)
-3.9
-1.2
-8.6
-3.4
-5.7
-6.4
-15.8
2.1
2.5
3.1
1.8
-1.1
-1.5
-2.2
80/196
285/700
Domestic
Demand
(%)
-4.0
-5.5
0.2
4.2
-5.5
-8.4
-12.5
2.1
2.6
2.9
3.0
-3.0
-3.2
-3.6
101/183
126/226
Prodn of printing
and writing paper
(%)
-3.0
5.6
-1.7
0.2
1.0
-5.9
-3.1
1.9
2.1
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Key Ratios
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Sector Rank
Economy Rank
IVA/Revenue
(%)
42.57
42.72
42.14
40.71
41.44
45.63
42.56
37.27
39.00
40.39
41.84
41.23
42.14
41.84
42.95
69/196
303/700
Imports/Demand Exports/Revenue
(%)
(%)
6.04
8.73
8.19
9.78
5.61
10.11
5.96
10.22
8.18
10.36
9.19
12.52
8.76
13.85
8.27
13.34
8.42
14.28
8.60
15.21
8.73
15.43
8.73
14.64
8.72
15.57
8.80
16.30
8.96
17.11
131/183
92/183
147/226
112/229
Figures are inflation-adjusted 2011 dollars. Rank refers to 2011 data.
Revenue per
Employee
($000)
246.16
240.11
239.84
261.52
279.38
274.80
264.19
265.70
268.56
270.65
270.38
269.33
266.89
264.98
262.82
130/196
312/700
Wages/Revenue
(%)
16.62
16.81
17.03
15.56
14.75
14.53
14.56
14.03
13.89
13.76
13.77
13.74
13.85
13.98
14.06
95/196
431/700
Employees
per Est.
61.44
63.40
63.05
60.27
58.62
57.61
58.68
53.88
55.74
56.90
58.07
58.82
59.17
59.86
59.53
85/196
118/699
Average Wage
($)
40,908.97
40,368.03
40,837.48
40,701.91
41,218.86
39,923.49
38,457.04
37,273.61
37,312.45
37,238.79
37,237.99
36,996.35
36,957.12
37,032.41
36,955.52
169/196
444/700
Share of the
Economy
(%)
0.04
0.03
0.03
0.03
0.03
0.03
0.03
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
123/196
481/700
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Jargon & Glossary
Industry Jargon
DIE-CUT STATIONERY A type of paper and paperboard

that has been converted from roll stock and cut into
specific shapes.
DIRECT MAIL Mailed advertising in the form of
catalogs, fliers, letters and postcards.
IBISWorld Glossary
BARRIERS TO ENTRY Barriers to entry can be High,

Medium or Low. High means new companies struggle to
enter an industry, while Low means it is easy for a firm
to enter an industry.
CAPITAL/LABOR INTENSITY An indicator of how much
capital is used in production as opposed to labor. Level is
stated as High, Medium or Low. High is a ratio of less
than $3 of wage costs for every $1 of depreciation;
Medium is $3 $8 of wage costs to $1 of depreciation;
Low is greater than $8 of wage costs for every $1 of
depreciation.
DOMESTIC DEMAND The use of goods and services
within the US; the sum of imports and domestic
production minus exports.
EARNINGS BEFORE INTEREST AND TAX (EBIT)
IBISWorld uses EBIT as an indicator of a companys
profitability. It is calculated as revenue minus expenses,
excluding tax and interest.
EMPLOYMENT The number of working proprietors,
partners, permanent, part-time, temporary and casual
employees, and managerial and executive employees.
ENTERPRISE A division that is separately managed and
keeps management accounts. The most relevant
measure of the number of firms in an industry.
ESTABLISHMENT The smallest type of accounting unit
within an Enterprise; usually consists of one or more
locations in a state or territory of the country in which it
operates.
EXPORTS The total sales and transfers of goods
produced by an industry that are exported.
IMPORTS The value of goods and services imported
with the amount payable to non-residents.
INDUSTRY CONCENTRATION IBISWorld bases
concentration on the top four firms. Concentration is
identified as High, Medium or Low. High means the top
four players account for over 70% of revenue; Medium
is 4070% of revenue; Low is less than 40%.
FOREST STEWARDSHIP COUNCIL (FSC) An

organization that certifies whether a company
manufactured its paper products in an environmentally
responsible and socially beneficial manner.
INDUSTRY REVENUE The total sales revenue of the

industry, including sales (exclusive of excise and sales
tax) of goods and services; plus transfers to other firms
of the same business; plus subsidies on production; plus
all other operating income from outside the firm (such
as commission income, repair and service income, and
rent, leasing and hiring income); plus capital work done
by rental or lease. Receipts from interest royalties,
dividends and the sale of fixed tangible assets are
excluded.
INDUSTRY VALUE ADDED The market value of goods
and services produced by an industry minus the cost of
goods and services used in the production process,
which leaves the gross product of the industry (also
called its Value Added).
INTERNATIONAL TRADE The level is determined by:
Exports/Revenue: Low is 05%; Medium is 520%;
High is over 20%. Imports/Domestic Demand: Low is
05%; Medium is 535%; and High is over 35%.
LIFE CYCLE All industries go through periods of Growth,
Maturity and Decline. An average life cycle lasts 70
years. Maturity is the longest stage at 40 years with
Growth and Decline at 15 years each.
NON-EMPLOYING ESTABLISHMENT Businesses with
no paid employment and payroll are known as
non-employing establishments. These are mostly set-up
by self employed individuals.
VOLATILITY The level of volatility is determined by the
percentage change in revenue over the past five years.
Volatility levels: Very High is greater than 20%; High
Volatility is between 10% and 20%; Moderate
Volatility is between 3% and 10%; and Low Volatility
is less than 3%.
WAGES The gross total wages and salaries of all
employees of the establishment.
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Office Stationery Manufacturing in The US Industry Report

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Office Stationery Manufacturing in the US May 2011 1

Paper cuts: Competition from the internet and

IBISWorld Industry Report 32223

2 About this Industry

36 Regulation & Policy

22 Market Share Concentration

22 Key Success Factors

22 Cost Structure Benchmarks

Key External Drivers

10 Industry Life Cycle

39 Jargon & Glossary

12 Products & Markets

12 Products & Services

34 Technology & Systems

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Office Stationery Manufacturing in the US May 2011 2

About this Industry

Operators in this industry process

The primary activities of this industry are

similar applications. Industry products

Converting paper and paperboard into office supplies

The major products and services in this industry are

32212 Paper Mills in the US

For additional information on this industry

Office Stationery Manufacturing in the US May 2011

Annual Growth 06-11

Annual Growth 11-16

Downstream demand from office

Revenue vs. employment growth

Cenveo Inc. 14.1%

Products and services segmentation (2010)

Key External Drivers

Stationery, tablets and

Demand from office

Die-cut office stationery

Life Cycle Stage

Office Stationery Manufacturing in the US May 2011 4

Executive Summary | Key External Drivers | Current Performance

Reading this report from a computer

business activity will spur increased

Key External Drivers

Demand from office supply stores

and household incomes spur increased

Price of writing and printing paper

Office Stationery Manufacturing in the US May 2011 5

demand for letters and envelopes as well

Downstream demand from office supply

Key External Drivers

Office Stationery Manufacturing in the US May 2011 6

The Office Stationery Manufacturing

consumers, revenue decreased at a

Industry profitability is expected to be

According to a survey by the National

Office Stationery Manufacturing in the US May 2011 7

Firms pack up and go

Entering the global

Plagued by declining industry revenue

The industry is increasingly moving into

lower production costs that overseas

have been common

Office Stationery Manufacturing in the US May 2011 8

Entering the global

create a global single-source supply

Printing in the US

Paper Wholesaling in the US

Office Stationery Wholesaling in the US

Office Supply Stores in the US

Electric Power Transmission in the US

Paper Mills in the US

Paperboard Mills in the US

The Bigger Picture