We’re only two months in and it would appear 2018 is going to be a year filled with new possibilities… and some challenges.
Last quarter, we discussed the USPS postage rate changes, now we have the paper mills and logistics companies jumping on the bandwagon. Paper mills continue to close, leaving many paper suppliers with more demand than they can fill, some reporting as much as a 20% shortfall. This has led to a $2.00/CWT increase for both coated and uncoated stocks. These increases either have been or are being rolled out through early March of this year.
On the logistics front, the North American transportation market continues to be challenged by weather events, significant driver shortages and new regulatory burdens, leading to capacity shortages, longer lead times and, unfortunately, pricing increases.
What does this mean for you? It translates into a roughly 5% increase on paper costs and possible lead times of up to 12-14 weeks for large paper orders.
Whew! That is enough bad news. Luckily, we are here to help navigate you through these challenges. If you’re not a PS client, now is a great time to reach out to us to see how we can help you get the most out of your budget. Our dedicated Resource Team continues to track these changes and, more importantly, can help find ways to lessen the impact on your budget.