Paper - Let's Solve This Together

[MailGuru]

Over the last couple of months, our paper prices have increased, on average, about 12% across the board (some higher, some lower).

That may not sound like a lot, but, to shops that have their business (and prices) secured via annual contract with their customers, it is very ominous. You see, we have no choice but to absorb that increase, which affects our bottom line, until the contract comes up for renewal at the end of the year. At that point, we can raise our prices accordingly.

I'd love to be able to blame it on our current Government (here in America, it's "traditional" to blame all our woes and misfortunes on the current establishment), but, in all fairness, being a level-headed, objective, business person, I wanted to examine the facts before I jump to that conclusion.

I've researched the internet on my own to try and find the answers to the following questions, but, to no avail. Hopefully, the PP forum members might be able to shed some light.

1) Where does the majority of paper used in the American printing industry come from? Is most of it produced here in the states, or, is it imported from other countries, thus subject to tariffs?

2) Are trade agreements with other countries (or, lack thereof) increasing our paper prices?

3) Are other shops here in the States experiencing this increase, or, is it just my paper supplier.


PLEASE: I do not want this thread to become a sounding board for Pro-Trump/Anti-Trump, Democrat/Republican, political debates. I just sincerely want to know the answers to the above questions.

Thanks In Advance,

-MailGuru

 

[DYP]

I not sure that you can contribute price increases to any of your questions. Seems to me that with the slugish economy that price were keep low because of low demand. Now with the current booming economy demand is probably the biggest factor in price increases. Also could be that there is make up going on from holding prices low for so long.

 

[Joe]

Print Forecast: Paper Prices on the Rise

 

[MailGuru]

Print Forecast: Paper Prices on the Rise

Great article, Joe! My paper supplier did mention that 2 mills closed, and, the others are struggling to keep up with the demand, as well as freight charges on the rise.

 

[MailGuru]

I not sure that you can contribute price increases to any of your questions. Seems to me that with the slugish economy that price were keep low because of low demand. Now with the current booming economy demand is probably the biggest factor in price increases. Also could be that there is make up going on from holding prices low for so long.

Interesting take. I had not considered that.

 

[pippip]

I'm in Ireland and regularly order a brand called Navigator. Recently (last 2 months) we have been unable to get it from our supplier at all, in any weight.
The reason they gave is that the mill keeps shipping it ALL to USA where they keep paying the best money for it and can't keep up with the demand.
The supplier has told us that until the containers arrive in Ireland they can't be sure when we'll get it as the mill just keeps selling all they have to to highest payer....being USA at the moment.

 

[Manafaith]

We have had major increases across the board and were told that for our region, many factors are contributing to it. 1st was that a couple major mills shut down and the second was anybody west of the Rockies were going to see increases due to the lack of truck drivers and skyrocketing freight costs. I am sure there are many other factors too but even getting paper can sometimes be a struggle......especially if it is a Domtar sheet.

Us folk stuck up here in the Pacific Northwest kinda feel like the orphaned step-child when it comes to paper options that have vanished in the last couple of years

 

[PrintIT]

I'm in Ireland and regularly order a brand called Navigator. Recently (last 2 months) we have been unable to get it from our supplier at all, in any weight.
The reason they gave is that the mill keeps shipping it ALL to USA where they keep paying the best money for it and can't keep up with the demand.
The supplier has told us that until the containers arrive in Ireland they can't be sure when we'll get it as the mill just keeps selling all they have to to highest payer....being USA at the moment.

In the US, and our shop uses a ton of Navigator. Sorry about that!

 

[MailGuru]

So, it looks like the general consensus here is that the increase is not due to anything the Government did, or, didn't do, but rather normal fluctuations that occur in a typical free trade, capitalistic economy. Product is being sold to the highest bidder, the demand is out-stripping the supply, and freight costs are increasing due to fuel increases as well as a scarcity of trucks and drivers.

Well..........I feel better! How about you!

Dang-it, I sooooo wanted to blame this on the government......... lol

 

[PricelineNegotiator]

I'm in Ireland and regularly order a brand called Navigator. Recently (last 2 months) we have been unable to get it from our supplier at all, in any weight.
The reason they gave is that the mill keeps shipping it ALL to USA where they keep paying the best money for it and can't keep up with the demand.
The supplier has told us that until the containers arrive in Ireland they can't be sure when we'll get it as the mill just keeps selling all they have to to highest payer....being USA at the moment.

We run a lot of Navigator 20# here...hate all of the other commodity 20# sheets. We keep trying X-9 and any other brand our salesman will throw at us, and we continuously go back to Navigator due to it's brightness, quality, jam-percentage and professional packaging (as we resell some reams and cartons via retail).

 

[pippip]

Rub it in why don't ya!

 

[PricelineNegotiator]

Rub it in why don't ya!

Just put in another order for 100 pallets just to spite you. I'll be sure to take a selfie with the paper when it comes in.

 

[gordo]

Printweek has an article on this very issue: https://www.printweek.com/print-wee...paper-supply-squeeze-in-face-of-perfect-storm