From inflation to labor shortages, the print industry has seen its fair share of problems over the past twelve months. Work stoppages, COVID-19 lockdowns, and the Russian/Ukrainian conflict have ensured that inflation is here to stay. Indeed, June 2022 saw a notable rise in the price of goods and services that hadn’t been seen for 40 years. The overall selling prices received by domestic producers similarly saw a 9.8% increase a month later.¹ Efforts to curb the impact of inflation have resulted in customers bearing the brunt of material and labor costs, a dilemma compounded further by higher financing costs for manufacturers hoping to make capital expenditures. Data indicates, however, that peak inflation may also be behind us, offering hope for more normalized rates for the new year.
Like print, the paper industry wasn’t immune to any troubles either. The capacity for printing and writing papers has seen a steady decline over the past fourteen years according to data compiled by Fisher International. 2008’s twenty-five million tons of capacity has dipped to under twelve million tons in 2021. Coupled with the shifting of manufacturing lines and consolidation of paper producers, it becomes increasingly apparent why the paper market poses so many setbacks to printers everywhere.
The unemployment rate was halved at the start of 2021, dropping from 14% to 7%, with a labor market favoring employees, the number of whom eclipses the number of openings. As a result, labor rates have spiked with demands for higher pay, and the pool of qualified applicants has narrowed. According to the US Bureau of Labor Statistics, printing, and related employment dipped sharply in 2020 but has since maintained a steady rise toward pre-pandemic numbers.
Persistent challenges require persistent challengers. With an industry plagued by inflation, paper market difficulties, and a tight labor market, printers have found themselves in the proverbial hot seat. Now more than ever is the time to be a business partner that proactively invests in the future, values its workforce, and develops cost-saving measures.
¹ Book Manufacturers' Institute, Trends in Book Manufacturing, 2022
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