Industries in the Paper Manufacturing subsector make pulp, paper, or converted paper products. The manufacturing of these products is grouped together because they constitute a series of vertically connected processes. More than one is often carried out in a single establishment. There are essentially three activities. The manufacturing of pulp involves separating the cellulose fibers from other impurities in wood or used paper. The manufacturing of paper involves matting these fibers into a sheet. Converted paper products are made from paper and other materials by various cutting and shaping techniques and includes coating and laminating activities.
The Paper Manufacturing subsector is subdivided into two industry groups, the first for the manufacturing of pulp and paper and the second for the manufacturing of converted paper products. Paper making is treated as the core activity of the subsector. Therefore, any establishment that makes paper (including paperboard), either alone or in combination with pulp manufacturing or paper converting, is classified as a paper or paperboard mill. Establishments that make pulp without making paper are classified as pulp mills. Pulp mills, paper mills and paperboard mills comprise the first industry group.
Establishments that make products from purchased paper and other materials make up the second industry group, Converted Paper Product Manufacturing. This general activity is then subdivided based, for the most part, on process distinctions. Paperboard container manufacturing uses corrugating, cutting, and shaping machinery to form paperboard into containers. Paper bag and coated and treated paper manufacturing establishments cut and coat paper and foil. Stationery product manufacturing establishments make a variety of paper products used for writing, filing, and similar applications. Other converted paper product manufacturing includes, in particular, the conversion of sanitary paper stock into such things as tissue paper and disposable diapers.
An important process used in the Paper Bag and Coated and Treated Paper Manufacturing industry is lamination, often combined with coating. Lamination and coating makes a composite material with improved properties of strength, impermeability, and so on. The laminated materials may be paper, metal foil, or plastics film. While paper is often one of the components, it is not always. Lamination of plastics film to plastics film is classified in the NAICS Subsector 326, Plastics and Rubber Products Manufacturing, because establishments that do this often first make the film. The same situation holds with respect to bags. The manufacturing of bags from plastics only, whether or not laminated, is classified in Subsector 326, Plastics and Rubber Products Manufacturing, but all other bag manufacturing is classified in this subsector.
Excluded from this subsector are photosensitive papers. These papers are chemically treated and are classified in Industry 32599, All Other Chemical Product and Preparation Manufacturing.
The paper manufacturing industry (NAICS 322) is presently undergoing significant transformation driven by a mix of technological advancements, shifting consumer preferences, and sustainability concerns. A prominent qualitative trend is the growing demand for eco-friendly products. Consumers and businesses alike are prioritizing sustainability, leading to increased investments in recycled paper production and sustainable sourcing practices. Companies are innovating with biodegradable and compostable paper products to reduce environmental impact.
Another trend is digital integration within the production processes. Automation and AI technologies are being adopted to increase efficiency, reduce waste, and enhance product quality. Digital platforms are also being used to streamline supply chain management and improve customer interactions.
Additionally, there is a rising demand for specialty papers, including packaging materials, owing to the booming e-commerce sector. Enhanced functionalities such as water resistance and strength are becoming key differentiators in this sub-sector.
Looking ahead, the industry is expected to further embrace circular economy principles, with companies innovating in paper recycling technologies and expanding their product lines to meet eco-conscious consumer demands. The integration of smart technologies in manufacturing operations will likely continue, improving productivity and reducing operational costs.
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