Here’s what you need to know about increasing paper costs:
Paper costs have been stable for quite some time but now our supplier partners have alerted us to price increases from paper mills beginning in March. These cost increases impact both coated and uncoated stocks commonly used in our clients’ direct mail packages.
Several factors are causing the price increases:
- Increasing demand due to supply reductions, and mill closures and conversions to other types of paper products.
- Industry-wide inventories at low levels.
- Increasing consumption as the vaccination program expands and boosts economic activity.
- Cost inflation as the economy recovers, including increased freight, pulp, energy and packaging costs.
We are currently working with our printing partners to determine how these paper cost increases will impact costs of individual direct mail components, overall packages and annual program budgets. PMG production managers are working with our printers to lessen the impact on current projects. Cost increases depend on sheet type and order volume.
We are also advising our clients to plan their upcoming campaigns sooner so we can explore ways to mitigate these cost increases.
PMG is here to help you plan ahead for your paper needs and advise you on industry trends. If you have concerns about how paper cost increases will impact your budget for the remainder of the year, please contact us.