SIC 2653 Corrugated and Solid Fiber Boxes

Encyclopedia of American Industries | 2005 | Copyright

SIC 2653
CORRUGATED AND SOLID FIBER BOXES

This category covers establishments primarily engaged in manufacturing corrugated and solid fiber boxes and related products from paperboard or fiber stock. Important products of this industry include corrugated and solid fiberboard boxes, pads, partitions, display items, pallets, single face products, and corrugated sheets.

NAICS Code(s)

322211 (Corrugated and Solid Fiber Box Manufacturing)

Industry Snapshot

The United States is the world's largest producer of corrugated and solid fiber boxes, and as of the late 1990s, it accounted for more than a third of total world volume. Corrugated paperboard products are used to ship almost all of the non-durable goods manufactured in the United States—and a majority of the durable ones as well. They face relatively little competition from alternative shipping methods. The total value of corrugated paperboard and solid fiber box shipments in 2000 reached $33.1 billion.

The corrugated and solid fiber box industry employed 134,521 people in 2000, with an annual payroll of $4.91 billion. Of that total, 99,616 were production workers putting in 207 million hours for wages of $2.95 billion, which represents an average hourly wage of $14.10.

Corrugated paperboard products have long accounted for the majority of American paperboard container shipments, holding more than 60 percent of the total paperboard container market in the late 1990s. During that period, corrugated product shipments also held about 25 percent share of the overall domestic U.S. packaging market—which includes packaging made from wood, paper/paperboard, plastic, metal, glass, composites, and other materials.

The United States is a major consumer as well as a major producer of corrugated products. In the late 1990s, annual per capita U.S. consumption of corrugated products was the highest in the world—topping 80 kilograms (kg). Japan was the second leading consumer, at just under 70 kg. European nations make up the remaining per capita consumption leaders, with Germany at just under 50 kg, Italy at 45 kg, Spain at 40 kg and the United Kingdom at 30 kg.

Variations in End-Use Markets. The vast majority of corrugated products are used to package non-durable goods, such as food products. In the late 1990s, for example, 77.7 percent of corrugated products were used to package non-durable goods. The percentage of corrugated products directed toward non-durable goods tends to rise during recessions since the number of high-ticket durable goods shipped—such as stoves and refrigerators—decreases.

Shippers...

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