The tight supply of paper, coupled with the increase in demand, makes printers compete to meet customer orders through various channels. “In the past, I spent most of my time looking for new customers,” said Ed Hendrickson, vice president of Pro print, a printing company based in Duluth. “Now, most of my work and time are looking for and purchasing paper. Now the paper shortage is very serious.”
Hendrickson said that several factors have led to this tense 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 more profitable products, and the rebound in demand have led to a tightening of paper supply. “In 2000, there were 99 coated paper machines in the United States. By 2019, there were only 12. On the one hand, the production capacity decreased, on the other hand, the demand increased.”
During the epidemic period, the demand for paper fell sharply as schools and enterprises across the country reduced printing projects. In addition, orders for promotional materials for business meetings, community celebrations, concerts and other social activities also tend to be flat. At the same time, consumers turn to online ordering, resulting in the demand for more paper transportation products. In order to meet this market demand, more and more paper manufacturers are transforming to produce more packaging materials and cardboard. According to regional printers, the slowdown of factories during the epidemic and the labor shortage of paper producers and truck transportation industry also affected the paper supply.
Jeff lees, President of w.a.fisher in Virginia, said that strategic planning is the key to ordering paper. “The supply of envelope 10 is the worst I have ever seen. From the day I placed the order, it used to take at most 4-5 days to arrive, but now it takes 3-4 months. Now, I have to order the amount for 3 months every three months.”
Paper for business brochures is another product that is difficult to buy, and some paper suppliers have imposed sales volume restrictions. Demand for paper is on the rise as job fairs, weddings and community celebrations resume. “I keep a high inventory just to ensure paper inventory,” LISS said.
Danerickson, vice president of arrowhead printing in Duluth, said, “we are adapting to the new needs of current customers. What we have been doing is to use other grams of paper and post press processes. For example, we can add a water-based coating on silk or satin so that customers can get what they want. ” The scope of the paper shortage was unprecedented for Eriksson and his employees. The shortage of envelopes began last fall. “In the past, when we ordered the same day, we might arrive the next day. Now we have to wait for weeks. Buying paper is the main problem for every printer.”
Arrowhead printing can obtain certain types of paper from other printers, who in turn obtain certain types of paper from arrowhead printing. “The most important thing we have found is that we have established relations with printers outside the region. We have been carrying out various cooperation in paper procurement,” he said. “Unless printers have business contacts with paper distributors, it is difficult to buy paper. The current situation is that if you have no relationship with suppliers, they will not accept any new customers.”
The problem is not just the daily paper needed by customers. Eriksson said that before the 2022 general election, people are mainly worried about obtaining paper for political leaflets and even polling stations. The printing union, based in Fairfax, Va., has referred the issue to Congress. In March, a roundtable discussion between printing and paper industry leaders and government stakeholders was held in Washington, D.C., to raise awareness of the issue and work to alleviate paper shortages and supply chain challenges.
“The alliance is improving the image of the printing industry, as well as the special challenges and restrictions faced by the far-reaching supply chain problems,” said Ford Bowles, CEO of the printing alliance. “Printing is an indispensable industry, and nothing can highlight its essence more than no printing: without printing, it will cause more risks to our democratic process and confidence in elections.”
Electoral vendors, state and local electoral officials and the Electoral Assistance Commission also participated in the round table. “As States prepare for the upcoming election, the last thing election officials should worry about is that the shortage of paper supply will affect votes and envelopes,” said Rodney Davis, a ranking member of the house management committee and a U.S. representative from Illinois, “Unfortunately, this is a complex problem and there is no immediate solution. That is why it is important to bring together key stakeholders and industry leaders as we strive to find a solution to ensure that every eligible American can exercise his or her right to vote.”
In order to solve and track the update of paper supply chain problems, the American printing union launched a special resource supply chain resource channel. Eriksson said that due to various factors, the cost of paper rose by about 45% last year. With the rise of domestic paper cost, the cost of imported paper also soared, because the container cost was 10 times higher than that before the outbreak.
Eriksson said that pro print is trying to find paper that meets the needs of customers. “We are trying to get customers to change the type or weight of paper so that they can still get the paper products they need. The paper industry is in turmoil. We had hoped that the situation would be better last autumn, but the situation has not improved. In any case, the problem of paper procurement must be solved.”
Therefore, Eriksson said that despite the strong business development of printers, ensuring paper safety may still be a challenge by 2023. “There are always ups and downs in the paper industry,” Eriksson said. “Now the paper industry is in a brilliant moment, but as a customer, it is difficult to get paper.”
Post time: Jun-14-2022