The paper industry in Oregon has two major divisions: the pulp and paper manufacturing side with 11 facilities, and the converted paper products (such as box making) side that has 44 facilities. There are a multitude of types of paper manufactured: containerboard, tissue, newsprint, paperboard, copying paper, coated and uncoated, and a nearly-endless list of specialty papers.
Paper is not declining globally. The Food and Agriculture Organization of the United Nations (FAO) forecasts world production of paper and paperboard to increase about 3.0 percent per year through 2020. However, much of the growth will be in Asia and Eastern Europe. Imports and trade are important issues for the industry and its unions. The U.S. had net exports of $2.3 billion of paper products from January through July this year.
Table 1 lists those occupations that make up at least 2 percent of the occupational employment in the industry. Many of them, such as mechanics and fork lift drivers, are common to other manufacturing operations aside from paper making.
Many jobs in paper manufacturing pay well. The average wage in the industry in 2011 was about $32.00 per hour, or $66,564 per year, for full time work. The average wage for all jobs in Oregon in 2011 was $43,092, or about $20.70 per hour.
The wages listed in Table 1 are for the occupation in general - not for just the paper industry. (Those are often confidential.) Six of the 15 jobs listed have a median wage that is higher than the average wage for Oregon. Manufacturing industries tend to pay higher wages than many other industries, and traded-sector (export) industries also tend to pay higher wages. Paper manufacturing is in both these categories.
Wages are also influenced by the education and training that an occupation requires. Occupations such as manager, mechanic, and electrician require more education and training, and pay more. The notable exception to this rule is that the paper machine operators occupation has a fairly high wage, but requires only work experience.
|Select Paper Industry Occupations in Oregon|
|Title||2010 Employment||Percent of Industry Employment||2012 Occupational Median Wage|
|Paper Goods Machine Setters, Operators, and Tenders||900||18%||$22.82|
|Production Workers, All Other||448||9%||$12.25|
|Industrial Machinery Mechanics||300||6%||$23.54|
|Fork Lift, Industrial Truck and Tractor Operators||218||4%||$15.50|
|Laborers and Freight, Stock, and Material Movers, Hand||197||4%||$12.22|
|Supervisors & Managers of Production and Operating Workers||164||3%||$25.49|
|Packaging and Filling Machine Operators and Tenders||123||2%||$11.94|
|Production Worker's Helpers||111||2%||$12.71|
|Customer Service Representatives||109||2%||$14.72|
|Assemblers, Multi-task or Team||109||2%||$14.19|
|Wholesale & Mfg. Sales Reps, Exc.Tech. & Scientific Products||108||2%||$25.57|
|Machine Feeders and Offbearers||108||2%||$12.87|
|Industrial Production Managers||102||2%||$42.01|
|Printing Press Machine Operators||82||2%||$17.67|
There are differences between these two groups of firms aside from the union status of their workers. As noted, they tend to be in two different divisions of the industry: manufacturing and converting. They also differ in size; the unionized firms had an average of 324 employees in 2011 and the nonunion/unknown firms averaged 45 employees.
Even though total employment in the industry is dropping, that is not the entire story. There are still openings to be filled due to retirement. In all of manufacturing, about 60 percent of total openings are for replacements, primarily due to retirement and death, and only 40 percent are due to growth of the specific industry. The paper industry is not growing, but it is still replacing retiring workers and that provides job openings. As shown in Table 2, paper machine operators is a good example of this: the occupation is expected to shrink by 147 by 2020, but will have enough people retire to provide a net of 98 openings for new people to enter the occupation. A similar situation exists for printing press operators. The occupation is expected to shrink by 50 workers by 2020, but 330 openings will be created due to replacement needs. Not all these openings will be in the paper industry, but the openings will be there for people desiring to enter the occupation.
Other paper industry occupations are expected to show some openings due to growth as well as for replacement reasons. Laborers and material movers, and customer service representatives are expected to provide large numbers of openings. Of course, most of these will not be in the paper industry, but some will be.
The future of Oregon's paper industry will be influenced by global conditions. The FAO notes that "Paper and paperboard is one of the most globalized commodity groups, with a high share of production exported and a high share of consumption imported." The U.S. is currently negotiating the Trans-Pacific Partnership, a free-trade agreement such as NAFTA, with Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam. Paper workers' unions expect the agreement to cost jobs in the domestic industry.
Another important factor in the industry's future is the use of recycled paper as an input. The FAO stated that Europe is the largest exporter of paper products and that it has benefited from its high growth in wastepaper recovery. Oregon had been increasing its paper recycling, although the total amount dropped substantially when the recession hit in 2007. The Oregon Department of Environmental Quality estimates that Oregon recovered about 200,000 tons of cardboard in 1992 and increased recovery to more than 400,000 tons by 2007. The percent being disposed in landfills fell from 6.5 percent in the years 1993 to 1995 to 3.3 percent for 2009 to 2010.
Oregon's forests make it a natural place for paper manufacturing. The industry also benefits from abundant water, a well-trained workforce and support for paper recycling. Foreign trade and improvements in technology may limit employment growth, but the industry will have a place in Oregon for years to come.
|All-Industries Outlook for Selected Occupations in Oregon|
|Title||Total Openings by 2020||Competitive Education|
|Laborers and Freight, Stock, and Material Movers, Hand||12,133||Work Experience|
|Customer Service Representatives||11,524||Work Experience|
|Wholesale & Mfg. Sales Reps, Exc.Tech. & Scientific Products||7,070||Associate|
|Fork Lift, Industrial Truck and Tractor Operators||4,245||Work Experience|
|Electricians||3,808||Post-sec. + Work Exp.|
|Production Workers, All Other||3,197||Work Experience|
|Assemblers, Multi-task or Team||2,769||Work Experience|
|Supervisors & Managers of Production and Operating Workers||2,095||Bachelor's|
|Packaging and Filling Machine Operators and Tenders||1,619||Work Experience|
|Machine Feeders and Offbearers||1,446||Work Experience|
|Production Worker's Helpers||1,221||Work Experience|
|Industrial Machinery Mechanics||1,203||Post-secondary|
|Industrial Production Managers||858||Bachelor's + Work Exp.|
|Printing Press Machine Operators||330||Work Experience|
|Paper Goods Machine Setters, Operators, and Tenders||98||Work Experience|