Paper Supply Shortage – How We Keep Paper Inventory Stocked

There are many factors that have led to this and why it still exists, but we’re here and the reality is that it’s affecting every industry across North America, including the print industry. So yes, there is also a print paper shortage as well. In addition the paper shortage has led to an increase in the price, which in turn forces print companies to increase their prices as well.

This has led to many print companies having to close their doors or customers scrambling to find other print partners who can fulfill their orders. But it’s not all bad news for companies looking to get their print orders fulfilled and do it at the prices they are used to. Some print companies prepare for times like these by locking in deals and stocking large quantities of raw materials to mitigate disruptions in production. One of those companies is us, Qualprint. We have invested in large quantities of paper inventory well before the shortage hit, which has allowed us to better manage price inflation for print orders and to avoid production issues for our clients and customers. We are continuously monitoring  industry paper sources globally to ensure we are able to buy into additional inventory as it becomes available allowing us to stay ahead of these supply chain issues.

What’s Causing the Paper Crisis?

In 2021, the demand for paper skyrocketed which simultaneously depleted the paper supply. Experts in the industry are predicting that by the end of 2022 we’ll see a paper supply return to pre-pandemic levels, but with new supply chain problems popping up this is adding to the uncertainty of the situation.

• During the Summer of 2021, paper manufacturers announced a 10% increase in the price of coated and uncoated paper
• Pulp typically used to make paper has become scarce and expensive, while the demand for this paper pulp continues to rise
• In 2020, paper mills reduced their workforce and some closed due to the paper shortage and pandemic related mandates
• Many of these paper mills transitioned to producing boxes instead of paper for direct mail. This was a great move on their part due to an increase in online ecommerce sales during the pandemic, which meant manufacturers turned to cardboard instead of paper to meet the demands of shipping. But this led directly to fewer mills producing the paper needed for print.
• Additionally certain paper types and grades were discontinued.
• Like everything else freight costs jumped significantly as well for all shipping whether it be air, land or sea. Workforce shortages and their own unique infrastructure issues added to the paper price increase and shortage.

How Print Companies Are Handling It

The reality of the situation is that many print companies are not handling it well at all. Some print companies decided to simply close their doors, others only take orders they can fulfill and simply deal with what their suppliers will allocate. But a small number of forward thinking print service providers are working hard to eliminate these paper shortages and pricing issues for their customers, Qualprint being one of them.

According to another group of experts in the print industry, the paper shortage could continue through 2023. This means that companies also need to be forward thinking to stay ahead of these paper supply shortages and capture the best pricing for their projects.

Listed here are some of the ways we are handling the paper crisis:

• Qualprint has acquired a robust and diverse inventory of grades and weights of paper.
• We have approximately 100,000 sq ft of warehouse space in a separate, climate-controlled building to protect our paper supply.
• We have proactively acquired sufficient inventory to fulfill incoming jobs with triple redundancy of required stock, giving mills ample time to restock our inventory when consumed.
• We research global industry paper sources multiple times per day to procure wisely.
• We’ve changed our procurement model from sourcing for projects, to sourcing for inventory replacement.
• If a particular stock is completely unavailable, we work closely with our clients to provide them with alternative choices that ensure projects can be completed on time and on budget.
• We have navigated through the industry paper shortage crisis without alternative stock requirements with a 98% success rate.

With over 50 years of expertise, we are well-versed in overcoming obstacles and offering exceptional client service, even in the most trying and demanding of circumstances. So while yes, the industry is experiencing a paper supply shortage, we at Qualprint and our customers are not and we plan to keep it that way so you can continue to “Win the Moment Through Print”.