Why Is Paper In Short Supply Right Now?

As the UK government eases the pandemic restrictions and brings the country closer to something approaching life before Covid, it's fair to say businesses, big and small, are feeling the virus' effects, not least the impact it has had on manufacturing.

Supply chains have been hampered since lockdowns were imposed last year, and what with the combination of rising raw material and freight costs plus a labour shortage in some regions, paper prices have moved upward, something we covered in more detail in a previous blog.

The current situation has been exacerbated by the fact that the total volume of paper in the marketplace has been dramatically reduced over the last few years, due to mills adapting or ceasing paper production, so not only is the price of paper rising, but it is in short supply too. In fact, one of the largest mill groups recently announced to their customers that deliveries were likely be impacted over the coming weeks and months, an announcement we haven't seen the likes of before.

So what does this mean for anyone looking to source paper, either for a regular or one-off production?

A grade which may have been on a six to eight-week lead time before may be months away from delivery now so now, more than ever, you will need to be planning ahead as much as possible to keep continuity of supply, something a trusted paper supplier will be able to advise you on.

We have heard of buyers being given a limited and not wholly appropriate choice of replacement grades to select from, purely due to what's available rather than what suits the nature of the printed product. We've also started to see the return of strict allocations for customers now, in numbers not seen since the 90s. To explain how the allocation system works in more detail, once paper utilisation reaches around 94%, production is effectively maxed out and this brings in limitations, with paper allocated to prior agreed volumes.

We understand the value and importance of having a broad supply base in what has become a challenging market. That's why we are not tied to one particular mill or one type of paper, enabling us to meet all your paper requirements and provide the freedom of choice you've always enjoyed. As always, we have tried to be pro-active in our approach, advising our customers on the changes in the industry that are taking place, what that means to them as end users and how we can support them best.

Our Paper Health Check backed by official quotes, dummies and samples, will identify whether you're buying the best paper for your product in terms of supply, pricing and environmental considerations, while our Paper Management service is tailored to your requirements and adapted into our TOPS integrated management system. You can also enhance your company's sustainability and ESG credentials with our range of Carbon Balanced and FSC and PEFC-certified papers and boards, and we can also help your business become certified. Whatever your requirements, we will do our utmost to meet - and exceed - them. Find out more about what we do here or email us at info@denmaur.com