Paper Prices Continue to Rise
The pandemic has caused dramatic shifts in operating patterns within the paper industry. This has produced fluctuations in pulp and paper supply/demand, and recurring price increases.
While manufacturers and distributors have absorbed some of this increase, prices for paper products that use pulp have risen 7 to 15 percent across the board and 10 to 20 percent for packaging materials. Supply and demand issues are compounded by a rapid and significant increase in wood pulp prices, as well as mill costs, national load-to-truck ratios, and freight costs.
How can you ensure your business’s print needs are met?
Here are some recommendations to help you plan accordingly:
1. Flexibility — Businesses have better success in their Direct Mail campaigns if they are flexible on their stock choice. There are many paper stocks that are currently not available due to supply shortages.
2. Prior Planning – It is important that you connect with and advise your vendor for the third and fourth quarter mailing schedule as soon as possible. They will work to secure the raw materials in advance and help you understand the budget impact on your efforts.
3. Budgets – There has been relatively little change in paper pricing for over 30 years. So far, in 2021, there have been multiple rounds of price increases across all paper grades. Each increase has been from 4-9%, resulting in an estimated 3-5% increase on print orders overall.
4. Communication – Communication is at the core of a successful partnership. Be sure to over-communicate and ask the same in return.
5. Commitments Count – Vendors make commitments to their suppliers in order to deliver for their clients. Commitments are valued – and will help ensure future needs are met.
See the fluctuation of paper demand throughout the years below
Kessler Creative is committed to working with our clients throughout this unprecedented time. Our reputation and relationships with paper suppliers have always been strong as we work to secure the raw materials needed for your business. As changes develop in the industry, we will work closely with you to ensure the success of your campaign. As always, we value the trust and commitment you have placed with us.
If you have any questions regarding these changes, contact us today to speak with our direct mail experts!