Temple-Inland Competition
Now Viewing Temple-Inland's competition in: Paper Products Manufacture
Call Preparation Questions
Customers, Marketing, Pricing, Competition
How large is the company's market area? - Typically, box manufacturers sell within 150 miles from their plant.
Who are typical customers? - Almost any commercial company needs boxes and paper goods.
How many customers does the company have? - A small company often has hundreds of customers.
Who are the major competitors in the market? - Several national companies compete in many local markets. Local markets may have dozens of competitors.
Who is the pricing leader in the local market? -
How important is pricing in making a sale? - Reliability and good service are often more important to customers.
How does the company get new customers? - An in-house sales force is usual.
How large is the company's sales force? -
Competitive Landscape
Demand is driven by general commercial activity and population growth. The profitability of individual companies depends on efficient operations, as products are sold mainly based on price. Big companies have advantages in distribution and can supply large customers. There are few economies of scale in manufacturing; large and small producers operate the same kinds of plants -- large producers just have more of them. Small companies can compete successfully by making specialty products or serving a small geographical market. The industry is capital-intensive: average annual revenue per worker is close to $300,000, although the figure varies by product segment.
Business Challenges
CRITICAL ISSUES
Slow Demand Growth - Demand for paper products has been flat for a decade. Production of paper products was flat in the last 10 years, while total US industrial production increased 40 percent. Although demand for tissue products increased, demand for packaging products decreased as customers used less packaging per unit. Demand for business and printing paper has lagged as digital communications have become more popular.
Volatile Raw Material Prices - Prices for wood pulp can fluctuate sharply from year to year, depending partly on energy costs; changes of 25 percent within a year aren't unusual. Paper manufacturers pass these costs to converters, which may be unable to pass all increases to customers.
Industries Where Temple-Inland Competes
- Industrial Manufacturing
- Packaging & Container Manufacturing(primary)
- Paper & Paper Product Manufacturing
- Construction
- Construction Materials
- Lumber, Wood Production & Timber Operations
- Construction Materials
