Business

Consolidation of the Western European forest, paper and packaging (FPP) industry is likely to happen in the next three years, according to an online poll for PricewaterhouseCoopers (PwC).

PwC found that 40% of respondents said consolidation would happen within three years, while 30% said it would be within three to five years.

The survey also showed Latin America to be the strongest FPP market. When asked which market had the best chance of sustained profitability, 60% said South America and 20% China. Canada has the least chance of sustaining profitability, the survey found.

Clive Suckling, PwC's global forest, paper and packaging leader said: "An overwhelming majority of industry insiders believe that competitive factors will continue to favour companies in Latin America, at least over the medium term.

"This contrasts with the relatively gloomy prognosis for traditional regions, suggesting few expect any near term change in the fortunes of companies in North America and Europe."

Energy costs and exchange rates were cited as having the most significant impact on bottom lines. More than half of respondents said the global credit crunch was having a moderate effect on business; nearly a quarter said it was a major impact.

The online poll surveyed the opinions of eighty FPP executives.