Rising prices

February Commentary Viewpoint: TaylorConsultant, ShippersEdge.

Rising prices

The paper and forest-products businesses have seen a lot of change over the last ten years. They have dealt with a reduction in demand, the elimination of many papers and mill consolidations. Along with consolidation comes closure of many production facilities.

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Numerous publications have warned that mills are losing money and need to see increased business to survive. With fewer mills in existence, they are facing a new issue of rising paper pulp costs, all adding up to rising paper prices.

Rising prices

The price of wood pulp is forecasted to increase at an annualized rate of 5. Surprisingly, the supply of usable, clean paper pulp has fallen while the demand for such has risen. There are several reasons for the reduction in inventory.

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First, a September Publishing Executive blog stated there is increased foreign demand competing with US buyers for paper pulp. In the past, China purchased recycled paper from the US to produce paper pulp.

However, single-stream recycling has resulted in contaminating paper that is no longer usable as pulp. Additionally, another Strategic Sourceror blog reports Hurricanes Irma and Harvey resulted in the shutdown of 18 pulp and paper mills in the US. At BFC, we have already seen paper price increases inwith the expectation for more to come.

We have received notice from each of our distributors that prices will climb and more brands are being eliminated. So, what can you do to ease your pain?

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More than ever, it is an advantage to the print buyer to be engaged in a long-term working relationship with a print partner. While BFC is working continuously with our supply chain to find the best sources for our clients, the strong relationships with our customers that allow flexibility, the insight that provides for longer-term production planning, as well as flexibility to suggest more economical paper alternatives will pay dividends in these challenging times.

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Food prices rose a percent according to the Consumer Price Index for food. It was the largest single-year increase since It was the largest single-year increase since Commodity speculators caused higher food prices in and Oct 22,  · Ryanair CEO Michael O'Leary says he expects more European airlines to fail this winter because of rising costs.

Rising prices

Several have already gone bust. Rising Paper Prices: Why, What to Expect, and How to Ease Your Pain. Do you ever think about the paper industry? The paper and forest-products businesses have seen a . Watch video · The shortage is driving prices up faster than inflation and wage growth.

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