We would like to inform you that our industry is not immune to the supply chain challenges that are facing most industries. We have been experiencing price increases in paper and other raw materials for most of 2021.
We have prevented price increases for as long as possible. However, the recent increased cost of paper and raw materials in the price of the raw materials is now too great for us to absorb, and we regrettably have no choice other than to implement a slight increase. We value your business and are doing everything we can to minimize the impact of the global supply chain issues facing our industry.
It has been a perfect storm of unprecedented events including:
• Capacity closures driving operating rates to the highest sustained levels in industry history.
• Global supply chain congestion impacting domestic and international shipments.
• Accelerated rise in input costs.
• Winter storms disrupting the rail network and raw material supply.
• Shortages in truck drivers and equipment.
These factors have had a significant impact on our paper and envelope cost. According to the PPPC (Pulp and Paper Products Council), the coated free sheet (CFS) operating rate in North America was a near-record 115% in June, as compared to 55% last June, and has averaged 104% for the first half of 2021. The rebound in demand post COVID-19 and the removal of 25% of the entire North American CFS market capacity in 2020 continues to cause the paper supply market to remain extremely tight.
We appreciate your understanding, if you have any questions, please don’t hesitate to call us at 812-334-8189.
Baugh Fine Print & Mailing