Posted
8:16 AM
by Gene
The con-SER-va-tive dream of a ONE-COMPANY STATE helps the NEWSPAPER BIZ:Newsprint comes from mills located mainly in Canada and the South. It seems counterintuitive that newsprint prices would rise as average national newspaper circulation has fallen over the past 18 years, but consolidation in the newsprint industry has led large manufacturers, such as South Carolina's Bowater Inc., to reduce newsprint manufacturing capacity, switching some plants from producing less-profitable newsprint to higher-profit, higher-grade paper. Therefore, though papers are using less newsprint, there is also less newsprint being manufactured, said newspaper industry analyst John Morton.
"The era of cheap newsprint for the newspaper business is over," Morton said. "And we can count on fairly regular price increases. At $625 per ton, [manufacturers] are just edging on profitability."Where are the Larry Kudlows to gloat at how THE MARKETPLACE WORKS? These clowns forget business is ALWAYS a win-lose proposition.