Paper Chase: Rising Pulp Prices Cause Headaches for Printers, Consumers
In what can only be termed as a “Paper Chase,” the prices for pulp have seen a dramatic increase in recent months, leaving printers and consumers alike struggling to keep up. Prices for pulp, the main ingredient in paper, have been on the rise since early 2017, and show no signs of stopping anytime soon. This has caused headaches for printers, who are seeing their costs go up, and for businesses who need to print professional marketing materials, who are also feeling the pinch. While there is no easy solution to this problem, it is important to understand what is causing these price increases and how they will impact the future of the paper industry.
Why is the price of paper increasing?
With the recent decrease in paper manufacturing capacity, several major mills have reduced their production. As production slows, there’s a scarcity in supply which means that prices will likely go up even more than they already have been. “As a result of that, more than 10% of North American manufacturing capacity for printing paper was taken out of the system in just a six-month period,” says Travis Mlakar, president of paper distributor Millcraft.
Pandemic compression has also led to an uptick in home remodeling and construction. This demand for lumber has directly affected the supply chain leading to increased pricing across the board.
Another major factor driving up paper costs is skyrocketing transportation expenses- especially diesel fuel which went up 32% over last year! These increased prices are also affected by the increased raw material requirements needed for long delivery distances across different regions within America.
What does this mean for your printing needs?
While there is no easy solution to this problem, businesses should find ways to be as flexible as possible. That means being prepared for price hikes, longer lead times, and even shortages in certain products. So if you’re a business that relies on printed materials, now is the time to start planning ahead.
We believe this problem is manageable, but here are some ideas to assist you to plan for the rest of 2022:
Flexibility — Buyers will be successful if they are flexible on their stock choice. There are some paper stocks that simply are not available. Be prepared for a shortage of some paper grades – if you have a specific need, reach out to us as soon as possible.
Prior Planning – Planning ahead for printing needs for the third and fourth quarter as soon as possible will make a big difference. We can work to secure the raw materials in advance and help you understand the budget impact on your efforts. Planning ahead can also allow for the consolidation of projects, saving money with better price breaks and combined shipping costs.
Printing Partners – Printers have long-term relationships with their paper suppliers. Empire Creative has spent years developing relationships with our printers. These types of business relationships are important and will help ensure your future needs are met.
Communication – Communication is key in any successful relationship. Be sure to communicate with us about your plans, when we are part of the conversation, we can help find solutions you may not have known about.
Pricing Pressures – We all understand the concept of supply and demand. The demand for print is high and the supply of paper is low. This will likely result in continued price increases throughout the rest of 2022. Be prepared for increased prices – both on the front end with materials, as well as on the back end with shipping costs.
Budgets – There has been relatively little change in paper pricing in over 30 years. But in 2021 there were multiple rounds of pricing increases on all paper grades. Each increase has been anywhere between four and nine percent, resulting in an estimated thirty to fifty percent increase on the total of most printing orders.
Ration Paper Usage – This may mean communicating with customers via digital platforms more often, and only using printed materials when absolutely necessary. No matter what route you choose, it’s important to be proactive and have a plan in place to manage your communication during a paper shortage.
Ditch the paper and go digital!
In the age of digital marketing, there are more options than ever before when it comes to getting your message out. With tools like email marketing, social media advertising, and digital presentations, you can reach your customers where they are, without having to worry about high pulp prices or paper shortages. So if you’re looking for a way to circumvent the paper chase, then digital marketing is definitely the way to go. Already have great marketing material? Your team here at Empire can take your printed materials and create e-brochures, slideshows, or motion graphics to allow you to share your information digitally. Tools like dynamic QR codes that can be reprogrammed to take the viewer to different destinations as needed are a great tool to reduce the number of times they are printed, if at all.
The good news is that we are always here to work with you to find the best possible printing solutions, even if that means looking for alternate paper sources. Please don’t hesitate to reach out to us if you have any questions or concerns about how these price increases might impact your business printing needs.
What are your thoughts on the rising cost of paper? Have you been affected by it in any way? Let us know in the comments below! Thank you for reading.
Paper Chase: Rising Pulp Prices Cause Headaches for Printers, Consumers
In what can only be termed as a “Paper Chase,” the prices for pulp have seen a dramatic increase in recent months, leaving printers and consumers alike struggling to keep up. Prices for pulp, the main ingredient in paper, have been on the rise since early 2017, and show no signs of stopping anytime soon. This has caused headaches for printers, who are seeing their costs go up, and for businesses who need to print professional marketing materials, who are also feeling the pinch. While there is no easy solution to this problem, it is important to understand what is causing these price increases and how they will impact the future of the paper industry.
Why is the price of paper increasing?
With the recent decrease in paper manufacturing capacity, several major mills have reduced their production. As production slows, there’s a scarcity in supply which means that prices will likely go up even more than they already have been. “As a result of that, more than 10% of North American manufacturing capacity for printing paper was taken out of the system in just a six-month period,” says Travis Mlakar, president of paper distributor Millcraft.
Pandemic compression has also led to an uptick in home remodeling and construction. This demand for lumber has directly affected the supply chain leading to increased pricing across the board.
Another major factor driving up paper costs is skyrocketing transportation expenses- especially diesel fuel which went up 32% over last year! These increased prices are also affected by the increased raw material requirements needed for long delivery distances across different regions within America.
What does this mean for your printing needs?
While there is no easy solution to this problem, businesses should find ways to be as flexible as possible. That means being prepared for price hikes, longer lead times, and even shortages in certain products. So if you’re a business that relies on printed materials, now is the time to start planning ahead.
We believe this problem is manageable, but here are some ideas to assist you to plan for the rest of 2022:
Flexibility — Buyers will be successful if they are flexible on their stock choice. There are some paper stocks that simply are not available. Be prepared for a shortage of some paper grades – if you have a specific need, reach out to us as soon as possible.
Prior Planning – Planning ahead for printing needs for the third and fourth quarter as soon as possible will make a big difference. We can work to secure the raw materials in advance and help you understand the budget impact on your efforts. Planning ahead can also allow for the consolidation of projects, saving money with better price breaks and combined shipping costs.
Printing Partners – Printers have long-term relationships with their paper suppliers. Empire Creative has spent years developing relationships with our printers. These types of business relationships are important and will help ensure your future needs are met.
Communication – Communication is key in any successful relationship. Be sure to communicate with us about your plans, when we are part of the conversation, we can help find solutions you may not have known about.
Pricing Pressures – We all understand the concept of supply and demand. The demand for print is high and the supply of paper is low. This will likely result in continued price increases throughout the rest of 2022. Be prepared for increased prices – both on the front end with materials, as well as on the back end with shipping costs.
Budgets – There has been relatively little change in paper pricing in over 30 years. But in 2021 there were multiple rounds of pricing increases on all paper grades. Each increase has been anywhere between four and nine percent, resulting in an estimated thirty to fifty percent increase on the total of most printing orders.
Ration Paper Usage – This may mean communicating with customers via digital platforms more often, and only using printed materials when absolutely necessary. No matter what route you choose, it’s important to be proactive and have a plan in place to manage your communication during a paper shortage.
Ditch the paper and go digital!
In the age of digital marketing, there are more options than ever before when it comes to getting your message out. With tools like email marketing, social media advertising, and digital presentations, you can reach your customers where they are, without having to worry about high pulp prices or paper shortages. So if you’re looking for a way to circumvent the paper chase, then digital marketing is definitely the way to go. Already have great marketing material? Your team here at Empire can take your printed materials and create e-brochures, slideshows, or motion graphics to allow you to share your information digitally. Tools like dynamic QR codes that can be reprogrammed to take the viewer to different destinations as needed are a great tool to reduce the number of times they are printed, if at all.
The good news is that we are always here to work with you to find the best possible printing solutions, even if that means looking for alternate paper sources. Please don’t hesitate to reach out to us if you have any questions or concerns about how these price increases might impact your business printing needs.
What are your thoughts on the rising cost of paper? Have you been affected by it in any way? Let us know in the comments below! Thank you for reading.
