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Towels & Tissues Tackle the Economy.

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Towels & Tissues Tackle the Economy

BY BILL SWICHTENBERG

Even towel and tissue manufacturers are taking steps to make sure that their sales are not disrupted by the recent economic downturn.

Are towels and tissues recession-proof? The old adage is that people need toilet tissue and paper towels even in a down economy is currently being tested in the away-from-home (AFH) product market.

While it might be true that people still need towels and tissues, other business issues still affect sales. "We are seeing a slowdown in the away-from-home market," says Ed Gagliardi, vice president of sales and marketing as well as interim president of Atlas Paper Mills. "While industry sales data has shown AFH sales to be relatively flat through January, we are seeing a market contraction and strong focus by our distribution customers as they adjust inventories to reflect softness across most channels. I believe the industry data lags behind and we will see a decline in spending in the data moving forward."

According to Mark Ray, director of marketing, away-from-home division of Kruger Products, business has been affected by the economy for the last two years. Last year, total shipments in North America were down. He sees 2009 sales relatively flat with a possible upside in the fourth quarter.

Business factors such as plant closings and layoffs, otherwise known as market contraction, results in fewer sales. Throw in a...

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