Chapter 6: Conclusion and Recommendations
2.2 Electronic Technology
2.4.3 Interview- ex President of the Institute of Paper Science and Technology
In an interview conducted with Jim Ferris (ex president of the Institute of Paper Science and Technology), in 2003 by Solutions Magazine (Internet 19), one of the questions posed to him was "The paper industry and its educational/research institutions have been facing unprecedented challenges in recent years. How can each survive and thrive in the coming years?" His response follows:
"This is a question a lot of people are concerned about, and for good reason. All of our historical systems are becoming uneconomic in the face of globalization. I believe this is just part of the adjustment the entire U.S. economy must make to globalization, which is inevitable. Our industry is just one segment of the manufacturing economy that is going through the wringer and our first task is to realise and accept it. History is full of major periods of change and we are certainly in one right now, big time. To thrive and survive looks like a tough order to many organisations today, but some organisations will survive and some will thrive - albeit in an industry environment that is far different from our past. What needs to happen?"
"First, all parts of the paper industry and its supporting infrastructure, including the paper schools, must recognize and accept that disruptive change is upon us and to survive we must make changes we don't like. The leadership of paper industry companies and associations all realise this, but a lot of people associated with them haven't quite accepted it yet. No one is immune. We all need to get in the right frame of mind to seek out and welcome new ways of operating in this global economy."
"Second, we must find a way to discuss what this industry and its support groups should look like in the future. It is reasonably clear that paper manufacture in the U.S.
will be centered on a few large companies headquartered in the U.S. or elsewhere. But what should remain of the dedicated supplier base, the industry associations, and the paper schools? Industries can survive without them. But will the future U.S. -based industry be more competitive if at least parts of TAPPI, PIMA, NCASI, AF&PA, IPST and the paper schools survive? Once this wave of mergers and consolidations has passed, the real battle begins for the U.S. - based industry as it takes on worldwide competition full time. I believe the availability of shared resources to train people, focus issues, and improve base technology would be a tremendous help in that battle. Some of today's leaders say we will rebuild these resources when the time comes. I see it more darkly: once these resources are gone they will not be replaced."
"Industry leaders must overcome their current mindset, which is focused on vigorously competing with each other rather than working together. No one - especially an investor - is attracted to any company in an industry with sustained poor performance. Only by working together we can get through this period and have what it takes to thrive when the real battle begins. We have such a history of working together in this industry. It is very unfortunate that when we need to rely most heavily on working together as an industry, it seems to be going out of style."
"Finally, we must increase our efforts to form partnerships with state and federal governments. As this industry is increasingly pressured economically by global competition, it threatens the large U.S. workforce that supports it."
"There is tremendous rationale for state and federal governments to support new technology development to make this very large U.S. industry more competitive. A major focus for this must be created and I support the initial efforts to do this within AF&PA."
"What will happen to the paper schools specifically depends on many factors and it is tough to project the outcome. However, I am certain that there will be fewer schools as enrolments drop and university provosts decide it is not worth the effort to continue a program. Also, larger companies and international companies have already shown they are less likely to support paper school foundations financially. Those of us in the academic sector see the major changes coming and most are waiting it out to see what happens. At IPST, we have chosen to merge with Georgia Tech to better position us for the broad-based, innovative research the industry needs to get out of this box, and to reduce the industry support costs for IPST's operation. Every other paper school is considering its own options independently and the resulting industry resource in the future will be determined by these separate decisions."
"However, none of this should reduce the long-term attractiveness of this industry to young people. It will remain a scientifically complex and challenging industry within which to make a good career producing products increasingly needed by society on a global basis. It continues to be based on a renewable resource and to produce recyclable products. Pulp and paper mills around the world will still require quality people trained in the unique processes of papermaking.
Here in the U.S., we have sustainable competitive advantages in our domestic market size and massive softwood forest resource. Where and how the students of the future will get their paper-based education is up in the air, but there will still be a few large schools offering this education when this is all over."