Paper Chase

Refocusing During the Recession
Surprisingly, the growth of the digital space and push for corporations to create paperless office environments haven’t had a material impact on World Pac’s business model. Says Baptiste, “Absolutely, the Internet and the push for more digital inclusion have had an impact on the paper industry. Have we seen that impact on a significant level? No, we have not. Because copy paper, while it is one of the products in our portfolio, it is not a significant piece of our portfolio at this point in time in terms of us transacting that commodity.”

However, the Great Recession that hit just a few years after the company’s establishment was another matter entirely. “Our sales dropped because the clients that we were servicing, their sales dropped. So they were advertising less,” says Baptiste. “They were buying less paper as a result of them tightening their belts and looking at strategies on how to deliver their messages in a more cost-effective way.”

In response to an approximately 20% drop in the company’s printing and fine paper business (which is used for catalogs, tabloids, books, magazines, etc.), the company refocused its efforts to its growing packaging grade paper sales. That refocusing helped revenues recover and flourish. Through effective selling strategies (see sidebar), sales increased approximately 40% from 2009—2010. “I think that strategy of having a variety of solutions that we offer and also the ability to create other value-added solutions for our customers truly helped us,” says Toni M. Robinson-Smith, vice president of World Pac.
Looking ahead, Smith forecasts a roughly 8% increase in revenues–to $42 million–for 2012. Meanwhile, the 25-year sales veteran says he plans to eye growth opportunities and new revenue streams to keep ahead of the competition. Shrink/stretch film, paper towel and tissue paper, point-of-purchase displays, food service packaging, dunnage, plastic returnables, partitions, and pulp are among the products integral to World Pac’s expansion plans. “When you work with some of the industry-leading companies you’ve got to constantly exhibit that technical right to succeed and the ability to handle their issues, concerns,  and requirements  says Smith. “So you’ve got to bring it, each and every time.”