SIC 5113 Industrial and Personal Service Paper

SIC 5113

This category includes establishments primarily engaged in the wholesale distribution of wrapping and other coarse paper and paperboard, as well as converted paper and related disposable plastics products, such as bags, boxes, dishes, eating utensils, napkins, and shipping supplies. It includes wholesale distribution of corrugated and solid fiber boxes, fiber cans and drums, pressed and molded pulp goods, pressure sensitive tape, sanitary food containers, and paper towels.

NAICS CODE(S)

422130

Industrial and Personal Service Paper Wholesalers

INDUSTRY SNAPSHOT

Judging from the paper production capacity in the United States, the late 1990s represented a time of "ultra slow" capacity growth, according to the 40th Annual Capacity Survey conducted in 1999 by the American Forest & Paper Association (AF&PA). The 1998 Capacity Survey was the first to identify a leveling of growth in aggregate paper production capacity in the United States, with an expansion rate of 0.6 percent. Capacity remained to 101.3 million tons. Projections for aggregate production capacity remained very slow, predicting increases of 1.1 percent in 2000, 0.7 percent in 2001, and 0.4 percent in 2002. According to the 42nd Annual Capacity Survey conducted in 2001, AF&PA reported a capacity growth to remain at 0.4 percent through 2004.

Wholesale distributors of industrial and personal service paper posted more than $25 million in sales in 2003. There were about 5,982 establishments, up from 5,089 in 2001, according to D&B Sales & Marketing Solutions figures. Most of these establishments averaged about 13 employees, and average sales per establishment were about $5.5 million. There were about 71,412 employees in 2001 with an annual payroll of about $3.3 million. The employee total had increased to 74,458 in 2003.

BACKGROUND AND DEVELOPMENT

Whereas the production capacity for most grades of industrial and personal service paper ran flat or grew slightly, one component of the industry represented sustainable growth. The annual rate of using recovered paper to make industrial papers was projected to rise 1.8 percent from 2000 to 2002, bringing recovered paper's share of total consumption from 36.1 percent in 1998 to 37.1 percent in 2002. The production capacity for tissue paper grew to 7.1 million tons in 1999. However...