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% decline in total boxboard production compared to the same period
in 2024. The report highlights a decrease in the boxboard operating rate to 88.7%, down by 1.7 percentage points from the previous year. Despite the overall decline, certain segments showed growth: Solid Bleached Folding domestic production increased by 1%, Plate, Dish & Tray production rose by 14%, and Uncoated Recycled Boxboard for Tube, Can, and Drum saw a 3% increase. The AF&PA represents the U.S. paper and wood products manufacturers, advocating for the industry through public policy and marketplace initiatives.
Why It's Important?
The decline in boxboard production reflects broader trends in the U.S. manufacturing sector, which is a significant component of the national economy. The forest products industry, which contributes approximately 5% to the U.S. manufacturing GDP, is a major employer, providing jobs to about 925,000 people and generating an annual payroll of $65 billion. The decrease in production could signal shifts in demand or operational challenges within the industry. However, the growth in specific segments like Plate, Dish & Tray suggests areas of resilience and potential opportunities for targeted growth. These dynamics are crucial for stakeholders, including manufacturers, policymakers, and employees, as they navigate economic conditions and market demands.
What's Next?
The industry may need to adapt to changing market conditions by exploring innovations in production and sustainability practices. Stakeholders might focus on enhancing efficiency and exploring new markets to offset declines in traditional segments. The AF&PA will likely continue its advocacy efforts to support the industry through policy initiatives that promote growth and sustainability. Monitoring future quarterly reports will be essential for understanding ongoing trends and making informed decisions.
