Paper is harder to come by these days. Everyone is feeling the strain. Whether you’re a small business, a large corporation, or a marketing firm, you wonder what is happening. Even if your favorite paper grade is available, prices and lead times are up. Why has this staple suddenly become so difficult to find?
- Paper mills have been closing for some time.
As more and more communications go online, paper mills have adjusted their capacity. Over the years, many have shut down. Others have taken one or more papermaking machines offline. This has taken much capacity out of the system.
- Enter the COVID-19 pandemic.
During the height of the pandemic, with many businesses shut down, demand for paper dropped even further. Even more, mills closed or reduced capacity. When the economy re-opened, and demand bounced back, there wasn’t enough capacity to meet it.
- It is very challenging to “turn capacity back on.”
Why can’t paper mills turn their machines back on? Many of these machines are old and in need of maintenance and repair. This is a costly and time-consuming process. Many people who used to run and repair those machines have left the industry.
- Paper mills are having trouble getting fiber.
Mills are having trouble accessing enough fiber to fill the demand. When things got tight, they used to be able to supplement with fiber from overseas. Now supply chain disruptions and increased demand for supply worldwide have made this more challenging. What fiber is available is more expensive, driving up prices.
- Energy costs are spiking.
Papermaking is a very energy-intensive industry. When Russia invaded Ukraine in February 2022, global energy costs spiked. Many mills were forced to close based on energy costs alone.
- Paper mills have shifted their capacity.
To stay open, paper mills have shifted their capacity to the most profitable grades, such as recycled paper and corrugated. As a result, specific grades are easier to find than others.
What Can You Do?
How do you respond to these challenges?
- Plan your projects well in advance.
- Be flexible and consider our in-house stock when possible.
- Be understanding about price increases. We don’t like them any more than you do!
Eventually, the paper market will stabilize, but there are no guarantees when. In the meantime, be patient, flexible, and, to the greatest extent you can, plan!
