Sector Snapshot: Forest, Paper & Packaging
FPP sector CEOs have been less confident about short term growth for several years; this year that’s especially true when it comes to prospects for the industry, said the PwC Global CEO Survey, released Thursday. Only about half, 54 per cent, expect to see growth, compared to 68 per cent of CEOs overall. And this year they’re less optimistic about their own prospects looking farther forward too.
That’s probably due to sector worries about a wide range of risks; 85 per cent are concerned about continued slow or negative growth in developed economies compared to 70 per cent of CEOs overall. Far more also worry about exchange rate volatility, high or volatile energy costs, and high or volatile raw material prices. And with overcapacity already an issue in some markets, it’s not surprising that 60 per cent of forest, paper & packaging CEOs are concerned about new market entrants.
