The negative ripple effect of the pandemic continues to span the globe and most recently affected our national paper supply. A paper shortage is not what you want to hear when you depend on a business that relies on paper products and packaging materials.
The slow down of paper supplies negatively impacts sales and distribution across the board. So, what is causing this paper shortage? That’s a good question and precisely what we’ll discuss in this article.
Three Key Reasons for the Paper Shortage
The paper shortage we are currently experiencing is due to multiple factors. It is a complex issue that can be the result of the following:
- High Labor Shortage
- Rising Costs of Paper
- Disrupted Supply Chain
Let’s break down each of these areas to understand its impact on the paper industry better.
High Labor Shortages–
Labor Shortages have risen since the pandemic as many employees have left their jobs to care for their families, either elderly parents or children lacking childcare.
There has also been an increase in people leaving jobs to pursue other interests. The pandemic has served as a wake-up call when considering the true brevity of their lives and how they wish to spend their time.
As a country, we’ve also seen a massive shift in relocation as many former employees of one state have moved across the country in preference to states in other parts of the country.
Rising Costs of Paper–
Inflation. Inflation. Inflation. There is no subtlety to the rise in prices. You see this reality playing out each day. The rising costs are everywhere, from the gas you put in your car to the monthly rent you pay.
Undoubtedly, the paper industry has also had to adjust its budget to keep up with the rising costs affecting prices. These budget adjustments strain end users and what they can and cannot afford in paper goods and product packaging.
Disrupted Supply Chain–
The supply chain crisis has continued to have a ripple effect on the market. Freight shortages for trucking and ocean shipping are not at full capacity and speed as with their prior operation and availability. In addition, the costs of energy and fuel impact the supply chain even further, along with paper mill closures due to the unsustainability of it all.
Managing the Paper Shortages
While there are many reasons behind the paper shortage we are experiencing, it is not a hopeless situation. The delays, shortages, and price spikes will eventually ease up over time. In the meantime, other more cost-effective solutions and materials are worth considering. It is essential to remain flexible with what you need and plan your scheduling timeline to allow for ample flexibility.
With advanced planning, you can help your budget and your schedule adjust in the best way possible to the paper shortages. Those who feel the effects of the paper shortage are the worst are usually the ones who fail to prepare in advance.
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For over 35 years, Pioneer Packaging has been the go-to source for designing product packaging that sells. Our creative designers work closely with you to ensure your brand is recognized for quality in packaging design and materials.
So whether you’re looking to get your paper product packaging at affordable prices or attract new consumers, we can create a design fit for you. We strive to keep costs down as much as possible to help our customers keep their brands moving along production lines. Contact Pioneer Packaging today and learn why we’re a leader in packaging innovation.