Paper is still a mixed bag for the print industry

Avoid a paper panic with advance planning and good communication

​Paper is having a moment. The world has finally figured out what the printing industry has known for decades—paper is the most sustainable and recyclable packaging material on earth.
 
This means a mixed bag for commercial printers and their clients.
 
Supply and demand for graphic printing and specialty paper decreased over the past two years as traditional workflows moved online, and paper and pulp manufacturers increased paperboard production for shipping goods worldwide.

Now, companies are turning to paper and pulp to manufacture food and beverage packaging, cosmetics containers, detergent and cleaning solution bottles, tissue paper, and more. These so-called fast-moving consumer goods are drawing from the supply once used for print and specialty paper.
 
Over the past year, demand for typical offset and digital print services such as direct mail, signage, fliers, catalogs, office supplies, and event collateral has increased as people head back to work, shop, and play in person again.
 
Add to that higher energy prices (primarily due to the war in Ukraine), elevated raw material costs and supply chain challenges, we are looking at a continued paper supply shortage in the print industry. With all of these factors in play, “managing continuous raw material and resource supply is a key challenge for the growth of the market,” according to Fortune Business Insights.

​Yet industry experts caution against paper panic, citing several market factors. Paper production and capacity are adjusting based on allocations and stabilization of the supply chain – particularly in North America. According to Veritiv, a Fortune 500 paper and packaging provider headquartered in Atlanta, overall freesheet numbers remain low, but a small increase in domestic capacity and better inventory management will alleviate some of the unpredictability associated with importing.

“The North American supply chain has been more stable and predictable over the past couple of years [relative to offshore imports]. Without the cost and complexity of overseas shipping, sourcing paper from North American suppliers has fewer variables and can allow you to have better visibility, shorter timelines, and higher reliability for sourcing your paper needs.”
 
Other positive signals for paper supply going into the new year include falling container costs and increased carrier reliability and availability.
 
On paper, if you will, the outlook for the industry is improving. Yet while capacity is low and demand continues to increase (or appears to increase), it will be some time before supply consistently meets the needs of the print industry.
 
Thankfully, CPG has relationships with reliable suppliers and the flexibility to continue serving our customers the high-quality specialty print products they are accustomed to. With open communication and a good dose of advance planning, we hit the mark every time.
 
Check out our specialty print effects that help create customers loyal to your brand. Contact us today or request a package sampler to learn how you can increase your product's value through the power of print