Industry Analysis & Industry Trends
Industry revenue has increased at a relatively stable pace in the five years through 2012-13 due to steady demand from food and beverage manufacturers and other sectors. IBISWorld estimates industry revenue to increase at an annualised 2.6% over the five years through 2012-13 to $687.7 million, including an anticipated 3.9% increase in 2012-13. Domestic demand for solid paperboard has shifted towards paper products in the domestic market, as per capita consumption of paper continues to increase. With low international trade levels, total domestic demand is expected to have increased 2.6% per annum over the five years through 2012-13. The increase in value mainly stems from increasing final prices, while production volumes have increased... purchase to read more
Industry Report - Industry Investment Chapter
IBISWorld estimates that the industry will have a medium level of capital intensity over 2012-13, with $3.30 worth of labour required for every $1.00 of capital investment. This is a decrease from $3.80 worth of labour per $1.00 of capital in 2007-08, showing that the industry has become more capital intensive in the past five years. This is a return to pre-financial crisis levels as industry operators increased spending on machinery and equipment to improve operational efficiencies.
This capital to labour ratio is relatively high compared with other paper product industries. This means that the industry is highly dependent upon both labour and capital to produce output efficiently... purchase to read more