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Why is the Cost of Printing Going Up?

Why is the Cost of Printing Going Up?

Why is the cost of printing going up? The lasting impacts of COVID lockdowns continue, piling up on the paper industry. The price of paper is skyrocketing, along with the cost of solvents, ink, and other materials, and with them, the cost of commercial printing services goes up. In addition to the rising cost of raw materials, inflation, supply chain disturbances, and increased shipping expenses are adding fuel to the fire. 

Commercial Printers Manage Unprecedented Paper Price Increases

High demand and reduced availability of the pulp and raw materials needed to produce paper are driving up prices. Paper sellers are routing their supplies to the markets commanding the highest prices. This problem is global, as mammoth paper suppliers continue to push prices higher each month to manage the rising cost of raw materials and recoup losses suffered during the pandemic.

Analysts point to increases in China’s consumption of pulp and paper fueling rapid and significant price increases. Global pulp and paper suppliers like Asia Pulp & Paper, one of the largest pulp and paper producers in the world, have increased prices of all grades of paper by $100 per ton in January, an additional $100 per ton in February, and then another $150 per ton in March. As a result, domestic paper manufacturers are feeling the pressure to boost paper production.

Logistics Challenges Further Inflate Paper and Materials Costs for Commercial Printers

A global shift in purchasing patterns has drastically altered previous shipping patterns as patrons have moved to online retailers for commercial printing and promotional materials during the pandemic. This disruption of established routes has led to logistics challenges, including a shortage of containers as manufacturers struggle to meet changing demands. Delays in offloading at ports, a shortage of freight transport professionals, continually rising fuel costs, and evolving COVID-related protocols are further compounding shipping setbacks and adding to the costs of transporting paper and supplies needed by print shops. The long list of trickle-down costs and delays continues to escalate for the end-user. Many industry experts expect delays to continue and prices to continue to increase each quarter this year.

Commercial Printing Companies Stuck Between the Paper Mill and Patrons

Commercial printers are struggling to absorb the increased cost of supplies and rising materials costs. Profits are dwindling; day-to-day expenses are becoming harder to manage as inflation rears its ugly head. With customers unable or unwilling to take on higher costs – as they are likewise unable to pass on price increases to end-users – profit margins have gotten paper-thin for many printers.

Moving Forward with Proactive Paper Purchasing

To reduce the impact of price increases for our customers, Pacific Color is taking a proactive approach to purchasing paper, placing bulk orders, and taking advantage of distributor incentives to reduce per-unit cost. We continue to carefully monitor inventory levels, ordering supplies in advance to prevent shortages. When creating marketing collateral, we offer alternative substrate options, allowing you to consider more cost-effective solutions. We also strive to manage costs, reducing labor costs, materials waste, and electricity use – practices ingrained in our day-to-day operations as a certified Alameda County green business.

Don’t let paper price increases affect your marketing plans. Even with the cost of printing going up, you can still find affordable printing solutions at Pacific Color Graphics. Learn more about our affordable, high-quality commercial printing services available across the US from Los Angeles to Chicago, New York, and Orlando. Contact us at 888-551-1482 to request a quote on printing services today.

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