The Real Reason for Industry-Wide Price Increases in Paper
The current market conditions have caused a flurry of price increases across the printing industry. Here are just a handful of statements from our vendors in recent months:
“The price increase is due to several market conditions outside of our control. These conditions include escalating commodity pricing of raw materials, increasing freight costs, as well as the continued effects of nationwide inflation and labor shortages.”
“These adjustments are necessary to offset continuing increases in the cost of paper.”
“Inflation has accelerated in the wake of recent mill closure announcements.”
“To ensure the continuity of supply, we will adjust prices for any shipments.”
“Paper mills capacity reductions (mill closures) and diversion of mill capacity to non-PSL markets have created an extremely tight domestic supply situation for paper face and liner materials critical to our industry.”
“Extremely high raw material and indirect costs are causing continued inflation, especially on paper products.”
These are just a few lines from six letters we received from various suppliers across the paper industry. The message is coming through loud and clear: global inflationary pressure, demand for paper, and shortages due to mill closures are causing industry-wide price increases.
Even though we’re following suit with price increases, Rose City Label is in a fortunate position for the following reasons:
- We have a high inventory of various label materials, giving us tons of flexibility with producing labels for our clients.
- We have strong relationships with our vendors that go back decades. Even with the volatility in the paper industry, we feel great about having the ability to acquire paper materials needed to serve our clients.
- We have the capability for high-capacity label printing thanks to our new press, meaning that we can produce the jobs for you faster and in higher quantities than ever before!
As always, we appreciate your understanding during these challenging times. We remain committed to serving you whether you need wine, beer, or specialized product labels!
Ready for us to tackle your next label job? Get a quote here