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An increase in recycled paper would influence price changes in the paper industry. This could be contributed to the price decrease in the early 1990's. Stone was facing changes in how paper was being produced but also large swings in the industries profitability. Between 1986 and 1992 the paper and forest products industry grew from $61...
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Between 1986 and 1992 the paper and forest products industry grew from $61.6 billion in sales to $85.2 billion. Even though this was a 40% increase, the net profit dropped from $6 billion in 1988 to $.97 billion in 1992. Such a large decrease in a short amount of time didn't prove favorable for Stone...
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