Paper Outlook

Perhaps the clearest sign that market conditions have changed is the talk from some paper suppliers of instating allocation programs.

Before considering the evidence that supports the forecast of rising prices, there's a potentially more troubling wrinkle to the story that should be pointed out.

"It is highly unlikely that printers will be able to pass any increases in their costs on to clients," contends Andrew Paparozzi, vice president and chief economist at the National Association of Printing Leadership, in Paramus, N.J. "That's because costs—including paper prices, labor and the like—are beginning to rise before we are seeing any rebound in pricing power."