Despite the economic downturn, the document destruction industry predicts strong revenue growth this year according to an annual industry survey.
Despite the economic downturn, the document destruction industry predicts strong revenue growth — in some cases of more than 20 percent — this year, according to an annual industry survey.
“Revenue growth expectations for 2010 are in the 12.8 percent range and are in line with 2008 growth when you factor in filling the hole left behind by the fall in paper prices,” the report said. “Shredding service revenue (recurring and purge services) in 2010 is expected to grow at double the pace set in 2009.”
“This is trending toward becoming a banner year for the industry,” noted Jim McGuire, president of Shotgun Capital Advisors, the ' rm which conducted the survey.
At the same time, however, more than half of the respondents expressed concern about increasing competition from companies offering what was described as “insane discounts” on shredding services in the hope that they would profit when the price per ton of shredded paper increases.