We are all experiencing increased costs of late with the current climate making it incredibly unpredictable. Here, Dean Cook explains how it is affecting the print industry and what you can do to keep pricing down.

Supplies

Increasing energy costs and shortages with print-based products have led to higher prices, making it particularly challenging for magazine publishers when profit margins are already notoriously tight.

The pandemic caused a rapid drop in demand resulting in paper mills closing down or others reconfiguring to focus on packaging where demand was increasing. Paper mills that have remained to supply paper are now overwhelmed with current market demand, increasing prices. However, when 2,200 workers strike at a paper mill in Finland for several weeks, it has put a real strain on the supply chain and now affecting end-users. Even if action ceases soon, it could still be several weeks before we see stock and supply levels start to return.

Ink availability is also limited as two key ingredients — ethanol and n-propanol — have been diverted to be used in hand-sanitiser, a vital product during the pandemic. 

China has started to cut the use of power to reduce emissions, impacting the manufacturing of aluminium used for imaging plates.

Logistics

With the cost of fuel, customs delays, shipping container rates currently 900% higher than at pre-pandemic levels, transit times doubling to 70 days, trying to get supplies in the right places and at the right time is extremely challenging.

There is a shortage of HGV drivers. Many European drivers working in the UK before Brexit have been unable to return due to immigration rules.

Warehousing

Combined with logistics comes warehousing, and demand is on the rise. Consumers are increasingly ordering online, and because of logistical issues, more products are being stored and shipped to satisfy demand. As a result, there is real competition for storage space for paper, increasing prices to buy, rent and run. Many inland warehouses and distribution centres are already full, and it's causing a backlog with ports that are already under immense strain.

Staffing

Across all industries recruiting skilled workers is proving challenging. From paper mills, transport, ports, warehousing, printers, staff shortages have drastically changed the way companies re-evaluate and recruit employees. As the pandemic hit, so demand for print fell; many printers were forced to let staff go. As print sales return, there aren't enough people to produce the work; therefore, companies need to increase wages to retain and recruit additional staff.

As a result, expect print costs to remain high for the foreseeable future as limited supplies try to meet demand.

Can you still source cheaper printing? 

By planning well ahead and shopping around, you may find a more efficient print system setup, but, at the time of writing, it may not be a good time to move as the supply of materials and price is driving the industry. 

Many printers rely on continued business to estimate usage to then source and order paper several weeks in advance so it can be delivered on time to ensure your magazine is printed seamlessly. If you were to gain a better price with another printer, it doesn't necessarily mean the company would be able to source additional paper to service your job. Returning to your original printer could see your previously allocated stock has been used elsewhere.

While it may be an idea to do nothing, we offer our UK-based clients a complimentary service putting them in touch with suitable printers ensuring they are paying the right price for the service and delivery. The difference now is that we ask printers only to quote if they can meet client requests. Just because one printer may not have the paper you're after, another one may; therefore, it's always worth dropping us a line to see what we can do. We often find the pricing we are able to source is more competitive than online providers and it comes with personal service too.

We wish to remain open and transparent with what is happening in the industry and assure you that, with our team and strong relationships with our suppliers, we will do all we can to help you through this challenging period.