What's Happening?
The American Forest & Paper Association (AF&PA) has released its Boxboard Quarterly report for the third quarter of 2025, indicating a 2% decrease in total boxboard production compared to the same period
in 2024. The report highlights a decline in the boxboard operating rate to 88.7%, down 1.7 points from the previous year. Despite the overall decrease, certain segments showed growth: Solid Bleached Folding domestic production increased by 1%, Plate, Dish & Tray production rose by 14%, and Uncoated Recycled Boxboard for tubes, cans, and drums saw a 3% increase. The AF&PA represents the U.S. paper and wood products industry, which contributes approximately 5% to the total U.S. manufacturing GDP, producing $350 billion in products annually and employing around 925,000 people.
Why It's Important?
The decline in boxboard production reflects broader challenges within the U.S. manufacturing sector, potentially impacting economic indicators and employment within the industry. As the forest products industry is a significant contributor to the U.S. economy, fluctuations in production can affect related sectors such as packaging, logistics, and retail. The growth in specific segments like Plate, Dish & Tray production suggests shifts in consumer demand or manufacturing efficiencies. Stakeholders, including manufacturers and policymakers, may need to address these changes to sustain industry growth and employment levels.
What's Next?
Industry stakeholders may focus on strategies to counteract the decline in production, such as investing in technology or exploring new markets. Policymakers could consider measures to support the industry, ensuring its competitiveness and sustainability. The AF&PA might continue advocating for policies that benefit the industry, while manufacturers may seek to innovate and adapt to changing market demands.
Beyond the Headlines
The report's findings could prompt discussions on sustainability and resource management within the forest products industry. As environmental concerns grow, the industry may face pressure to adopt more sustainable practices, potentially influencing production methods and material sourcing.
