According to the Bureau of Labor, over 4 million people voluntary quit their jobs in the month of January. An additional 3.6 million people called in sick from work that same month due to COVID-19 and other factors. On top of that, many people who spent their careers working in print are retiring from the printing trade, and so far, fewer workers in younger generations are stepping in to fill these roles. Like many sectors, print production is contending with a reduction in the workforce.
In addition to labor shortages, COVID-19 impacted paper supply and demand. In 2020, paper production was reduced by 40%, and many paper mills converted their lines to produce other materials. In 2021, demand for paper increased but mills couldn’t keep up. They weren’t and still aren’t able to import as much paper because of mill closures and logistical challenges, including trucking shortages, container shortages, increased dock time, and railway bottlenecks.
Some mills are completely sold out of certain types of paper, and mills are allocating paper to printers based on historical purchasing to prevent stockpiling. These factors have resulted in increased costs and lead time.
Because of the increased demand for paper that is expected through 2022 and into 2023, prices will continue to increase. Mills will consolidate offerings, and some brands will be discontinued. A worker strike in Finland at UPM, one of the world’s leading producers of label stock, began at the start of the year and is lasting through March, further impacting the paper industry.
Meanwhile, postage rates continue to rise, with the next rate increase set to take place on July 10, 2022. At that time, rates are projected to increase by as much as 9% – 9.5%. Starting in January 2023, the US Postal Service has planned for two postage rate increases per year.
“However long the day, the evening will come – bad times don’t last forever.” – Irish proverb