The last couple years have been the calm before the storm as far as paper prices and increases go, but now it seems the storm has hit. Costs for all paper products–including stationery items, labels, and boxes–are being affected.
- Paper mills are experiencing record closures.
- A major supplier of a direct thermal top coating component was shuttered by the Chinese government for pollution issues. This has led to a shortage of DT paper and film.
- The freight industry is experiencing limited shipping capacities. Therefore, carriers have increased their prices.
- The cost of raw materials like window film, glue, inks, boxes, cores, and other manufacturing components continue to increase in price for all printers.
Linked here are letters from the major raw material manufacturers, all indicating that material costs for both paper and film label stock are going up across the board.
While no one likes the disruption caused by cost increases, the one we are seeing now is necessary to bring industry-wide margins and costs back in line after years of focus on efficiency and waste control. QRG is actively negotiating with our suppliers to keep cost increases to an absolute minimum. We will continue to offer our clients the highest quality product and best service at a competitive price.
