Paper & forest products industry

The paper and forest products industry may not be a good investment currently since the industry faces lower prices and higher costs for its products. Production capacity for the paper and paperboard section is declining from a 1991-1993 growth rate of 2.2% to a 1994 rate of 1.9%. Environmental laws restricting sales of federal and state timber sales have cut supplies. However, long-term investors may find paper and forest product companies' stocks a good three- to five-year investment.