Posted: Nov 25, 2022 in Uncategorized
Over the last 24 months there have been significant changes in the paper, materials, and transportation industries due to the global economic conditions affecting our economy. In the past thirty years, we have not seen a market for raw materials (think paper) as volatile as the one we face today. The effects of the pandemic on raw materials, a 20% decline in the paper market production, manufacturing backlogs, and the law of supply and demand have impacted our pricing norms industrywide.
The paper industry continues to predict price increases due to still rising input costs – pulp, labor, energy, chemicals and freight. And with the 9% increase in inflation, pulp prices are up 20% – highest in ten years – as you can see from the graph below.
At DMM we are making every effort to minimize the effect of this issue on our customers. We are leveraging strong relationships with our paper and envelope suppliers to ensure the most competitive pricing. Secondly, we are encouraging our customers to use standardized envelopes and papers, as these materials are more cost-effective and readily available to us. And finally, as a large paper buyer, we have purchased paper in a manner that allows us to optimize costs and pass on those savings where we can.
We will continue to assess the market conditions and keep you informed quarterly on this topic.
DMM remains committed to offering creative solutions, quality products, and on-time delivery.
We thank you for your continued support and partnership and please reach out if you have any questions to your account team at email@example.com or call 800-883-6930.