Tuesday, June 17, 2008

Increase in paper costs!

The global economy is playing its part in the increase in costs in our businesses. Not just as a supplier but as a consumer as well. Paper is a product that every business uses, and we are seeing an increase in this as I read today in the i-graphics.com newsletter.

"Paper supplier Spicers will increase the selling price of all commodity grades by 5.25% with effect from August 1 2008.

Andy Preece, general manager at Spicers, details several factors that have impacted on paper pricing. He says, “With a combination of dramatically rising input costs (notably pulp and oil); considerable decreases in capacity (European coated woodfree sheet now flat lining at around 96% utilization, with Asia breaking through 90%); and a rapid surge in emerging market demand (specifically middle east, India and intra ASEAN trade flows) the historical soft supply demand equation has been reversed.”

He comments that in response to this, the mills, after several years of results ranging from poor to critical, are repeatedly driving paper increases. He says, “It has not been unusual to see multiple increases of US$50-80 for several months in succession for a single brand. The ensuing pressure on local imported costs has again become such that it is simply impossible to absorb.”

The present situation is likely to continue. Preece says, “Indeed it can be further commented that we are experiencing a paper environment globally that has not been seen since the mid nineties.”"

This leads me to a point that has always been on my mind, when will we move to a paperless or at least a more paper conscious system in our countries offices? At R U Marketing we already recycle our scrap paper, and only print when we have to... We also have moved to a paperless fax system provided by www.digitalisland.co.nz.