Paper Prices Have Risen By 45% Year-on-year And Supply Is Tight, Bringing Trouble To The Country's General Election!

Paper prices have risen by 45% year-on-year and supply is tight, bringing trouble to the country's general election!

The tight supply of paper, coupled with increased demand, has made printers scrambling to fill customer orders through various means. “In the past, most of my time was looking for new clients,” said Ed Hendrickson, vice president of Pro Print, a Duluth-based printing company, “and now, most of my work and time is In finding and procuring paper, there is a huge shortage of paper right now."

Hendrickson said several factors contributed to this tight paper market environment. The decline in the number of coated paper machines in the United States, the reduction in paper demand during the epidemic, the shift of paper producers to produce more profitable products, and the rebound in demand have led to tighter paper supplies. "In 2000, there were 99 coated paper machines in the United States, and in 2019 there were only 12. On the one hand, production capacity has declined, and on the other hand, demand has increased."

During the pandemic, demand for paper has plummeted as schools and businesses across the country cut back on printing projects. In addition, orders for promotional materials for business meetings, community celebrations, concerts and other social events have also flattened. At the same time, consumers turned to online ordering, creating demand for more paper-delivered products. To meet this market demand, more and more paper producers are switching to producing more packaging materials and cardboard. Factory slowdowns during the pandemic, as well as labor shortages at paper producers and the trucking industry, have also impacted paper supplies, according to regional printers.

Strategic planning is key to ordering paper, said Jeff Liss, president of Virginia-based W.A. Fisher. "The supply situation for envelope 10 is the worst I've ever seen, it used to be 4-5 days at most from the day I placed my order, now it's 3-4 months. Now, I A 3-month supply must be ordered every three months."

Paper used for business brochures is another hard-to-find product, and some paper suppliers have implemented limits on how many they can sell. Paper demand is on the rise as events such as job fairs, weddings and community celebrations resume. "I've been keeping my inventory high just to make sure the paper is in stock," Liss said.

Dan Erickson, vice president of Duluth-based Arrowhead Printing, said, "We're adapting to the new needs of our current customers. What we've been doing is using other paper weights, and post-press processes, such as we can Add a water-based coating to silk or satin so customers can get what they want.” The scale of the paper shortage was something Erickson and his staff had never experienced. The shortage of envelopes started last fall. "In the past, we ordered the same day, maybe the next day, and now we have to wait a few weeks. Buying paper is a major problem for every printer."

Arrowhead Printing obtains certain types of paper from other printers, which in turn obtain certain papers from Arrowhead Printing. "Probably the most important thing we've found is that we have relationships with printers outside the region, and we've been doing all kinds of collaborations on paper sourcing," he said. Buy paper. Now, if you don’t have a relationship with a supplier, they’re not going to take any new customers.”

The problem isn't just the paper that everyday customers need. Ahead of the 2022 election, the main concern is getting paper for political flyers and even polling places, Erickson said. The Fairfax, Virginia-based Printing Union has taken the issue to Congress. A roundtable discussion between printing and paper industry leaders, and government stakeholders was held in Washington, D.C. in March to raise awareness of the issue and work to alleviate paper shortages and supply chain challenges.

"The Alliance is raising the profile of the printing industry, and the particular challenges and constraints it faces due to far-reaching supply chain issues," said Ford Powers, CEO of Printing Alliance. "Printing is an essential industry and nothing The fact that it highlights its essence better than no printing: without printing, this poses more risks to our democratic process and confidence in our elections."

Election vendors, state and local election officials, and the Election Assistance Commission also participated in the roundtable. "As states prepare for the upcoming election, the last thing election officials should worry about is paper supply shortages affecting ballots and envelopes," said U.S. Rep. Rodney Davis of Illinois, a ranking member of the House Management Committee. , "Unfortunately, this is a complex problem with no immediate solution. That's why, as we work to find solutions to ensure that every eligible American can exercise their right to vote, we will focus on It is critical that stakeholders and industry leaders come together.”

To address and track updates on paper supply chain issues, the Printing Alliance of America has launched a dedicated resource supply chain resource channel. Erickson said paper costs rose by about 45 percent in the last year due to a variety of factors. As the cost of domestic paper has risen, so has the cost of imported paper, as the cost of containers is 10 times what it was before the pandemic.

Pro Print is working hard to find paper that meets customer needs, Erickson said. "We're trying to get customers to change the type or weight of paper so they can still get the paper products they need. The paper industry is in turmoil. We had hoped things would be better last fall, but it didn't. In any case, the sourcing of paper must be resolved."

As a result, Erickson said that despite strong business growth for printers, securing paper may remain a challenge in 2023. "There are always ups and downs in the paper industry," Erickson said, "and right now the paper industry is in a moment of brilliance, but it's hard to get paper as a customer."