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Rising Paper Prices Factor Into Promo Companies’ Supply Chain Management

Paper prices have been trending upwards in recent months as various factors pressure this sector of manufacturing. Mill closures or shifting to production to packing material coupled with reduced production capacity, labor shortages and rising raw material and transportation costs have all contributed to a 10-11-percent increase in paper prices—across all grades—from the year-ago level. Typically, annual increases range from less than one percent to three percent. The impact of the situation has been felt across most paper-based promotional products, including calendars, notebooks and journals but companies in the promotional products industry are working to manage this challenge.

“Our paper prices are up across the board, with unfortunately no exceptions,” says Alexander Paschal, president of Warwick Publishing Company. “Depending on the paper, increases are anywhere between five and 16 percent, but the increases are happening more frequently than in previous years. Instead of seeing three or four price increases per year of two or three percent each time, we’re now seeing five or six price increases per year at rates well above five percent each time.”

As with numerous other sectors of the economy, the paper industry is dealing with its own supply chain woes. Last year, the paper market contracted by 20 percent and several paper mills that had been producing printing and writing paper grades converted to producing corrugate and brown paper, and as demand for fine grades started to pick up at the close of 2020, manufacturing backlogs grew. Fine paper mills reportedly have a backlog of orders into fourth quarter 2021.

“We are experiencing very tight paper supplies,” says David Bywater, president and general manager of Tru Art Advertising Calendars. “Fortunately, we work ahead and forecast our needs such that we are able to serve our loyal customers right now. We have inventory in most of the paper grades we use. Prices have gone up, but we are standing by our printed catalog. Custom quotes for new and existing projects will see an increase. And, like most other items in our industry, it is best to order earlier than usual. We may be able to order the paper, but we are seeing delays in getting it, which pushes production back.”

Tim O’Boyle, president of Journalbooks, says, “At Journalbooks, we use a wide variety of different types of paper for our U.S.-made journals, notebooks, calendars, and packaging and gift boxes. As with most raw materials, we have seen supply chain challenges as well as price increases. We work very closely with all of our paper vendors and mills to make sure we take advantage of ordering in bulk and leveraging all of our available options. As with most suppliers, we will implement some price increases, but our purchasing power has allowed us to hold many prices the past several years.”

Less imported paper is coming into the U.S. as well, as countries all over the globe manage their own supply chain challenges. The cost of shipping from overseas has also gone up—rising from an average of $1,700 per container of paper to more than $6,000.

“We use domestic paper for our product line,” says Bywater. “However, supplies of imported sheets are very low or non-existent. This is putting pressure on the domestic mills. They have lots of new customers who were formerly using imported sheets. Because we are a loyal purchaser of domestic sheets, we are still able to get most of the paper grades we use.”

Material costs are also rising. Lumber costs grew by 400 percent, driven by rising material costs, Canadian lumber tariffs, and a sizable uptick in home remodeling and building during the pandemic. A strong increase in online shopping and deliveries have driven corrugated and cardboard boxes up 22 percent. And a surging economy has Americans driving and flying again, pushing the price of a barrel of oil up 40 percent or more since the beginning of 2021.

Paschal says, “As far as handling this, it ultimately depends on the product. We are using a healthy mix of price increases and reduced margin to cover the increased material costs. Some products we have more room to give than others, so there isn’t a one-size-fits-all strategy that we’re applying.”

Paper prices are expected to continue to tick up into 2022, but at a slower, steadier rate. Forecasters anticipate supply to remain tight as well, with longer lead times.

Original Article Posted by a PPAI staff member and can be found here. All content open for use but credited to PPAI for its contribution. Our industry is experiencing shortages on more than just paper products. Items such as plastics, apparel, some metals, screen printing inks, and other raw materials are also in short supply. When seeking an estimate for pricing be sure to leave yourself extra lead time to complete orders.

For great product selection on printed items, merchandise, and promotional products and to check stock on items please visit us at Warp Speed Printing. For all your graphic, website, and design needs we're happy to help from here!

Digital Piracy

Digital Piracy and How to Slow the Storm

Piracy and copycats have always been a problem since the dawn of inventions and commerce. It seems like pirates always find a way. The digital age of the internet and publishing images have made this an at-home reality for quite a few artists. You run a Kickstarter and later find your work being sold on Amazon or from an overseas supplier. It’s frustrating but what can you do to protect yourself?

The short answer is nothing. The longer version of that answer is you can make it extremely tough on the pirates to clone your work and thereby deter them into finding an easier target. So how do you begin to protect yourself? There is always filing a DMCA notice and that could work for you. But let us stack those odds in your favor better.
Steps to Protect Your Artwork:

Know your manufacturer:
Finding a vetted and trusted manufacturer overseas may require the use of a middleman or broker and paying a bit more for the item. But a vetted supply chain can stop an unscrupulous manufacturer from stealing your work.

Protect your artwork:
Before sending off your artwork to someone or publishing it online, there are a few very simple steps you can take to protect your property. If you’re uploading to an e-commerce page such as Etsy, Amazon, or eBay use low-resolution images. They may not look the best, but they won’t look good to a thief either. Use watermarks on your image files. Place a watermark with your website, social media info, or contact info directly over the image before you finalize the file. Incorporate it into the final layer so anyone trying to remove that layer will end up with a noticeably altered image. By placing your mark over an image, if the file is stolen you will easily be able to identify your work. This will make it easier to report copyright or DMCA violations to get that person shut down.

Sharing your artwork files:
If you’re sending an artwork you did for someone and have yet to be paid for it, put it on a proof sheet that has all your contact info on it, use a low-resolution image, and watermark the image. Only send them ready-to-use files with a watermark removed once you’ve been paid in full. If they use your watermarked image or attempt to make others print it they will quickly have pointed out to them they don’t own the works.

Funding platforms:
If you’re using Kickstarter you can always put the Kickstarter link as your watermark across the image. The same goes for Etsy, Amazon, or any other online commerce profile. Much of the artwork that gets stolen for use by pirates comes from these sources. They look for easy targets. Don’t be an easy target.

Know your recourse actions:
Know the piracy policies in the terms of service for every platform you’re using your work on. It’s a good idea to print a copy and highlight the parts that apply to you for quick reference later. Keep your uploads within their policies and guidelines and any reports you file to those platforms should be easier on them to decide in your favor.

Your rights:
Depending on where you live you should look up the laws that protect your works in that area. Research the DMCA and see where it applies to you. Find other case law in your place of residence that can back you up should you need to send legal notices out to the pirates. Track all the websites you find your work on. Often times even if they appear to be different pirates, they are all controlled by one.

These steps are just some simple suggestions and overall good business practices. There are many other steps you can take to protect yourself but those will require time and research on your part. As a creator of works you should not only invest in your product, but also in the knowledge of how things work around the business you’re in and what protections you have. The time investment on your part to keep learning and adapting is worth far more than the projects you’re doing right now and will help to ensure that all future projects stay under your control.

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