22/05/2006:
There was some tough talking at the 2006 National Association of
Paper Merchants’ (NAPM) dinner, held at the Royal Garden Hotel
in Kensington in London recently. Nick Steidl, chairman of the
Thameside Group, took no prisoners as he addressed the
assembled guests predominantly made up of the management
and directors of the paper merchanting fraternity of Great Britain.

Mr Steidl started his speech by listing how the paper supplier is
‘under siege on five different fronts’ – global capacity, reducing
demand growth, environmental pressures, access to market and
margins. Among depressing statistics in growth of graphical
grades, which he blamed on the emergence of Internet related
communications. Mr Steidl also highlighted the terrible margins
and declining prices that paper suppliers are now suffering. He
said, ‘In the last 25 years or so, paper prices have fallen in real
terms by over 60%, to a third of what they were in 1979. In the
same period, the pound has lost 25% of its value against the Euro,
at the same time as wages increasing by 80% and oil prices going
up by 210%. Paper cannot possibly get any cheaper!’

Mr Steidl called UK paper suppliers to arms, saying: ‘We need to
find smarter and more creative solutions to the problems of our
industry, these pressures will not be going away. We need to stop
adding value for which we do not get paid. A recent trend to
employ mere foot soldiers rather than thinking entrepreneurs
should be reversed and we have got to think more laterally about
where we can save costs and avoid duplication. We also need to
add some mystery through intelligent marketing to improve our
margins and promote paper better to the consumer and corporate
Britain. We cannot hide from new technology – people once said
the Biro would fail because people preferred the aesthetics of the
fountain pen. We must accept that the digital age is here to stay.’