Money may grow on trees, but it is beginning to seem as if paper does not. As society begins to creep back to pre-pandemic “normal”, demand for paper is back on the rise. Unfortunately, supply remains at an all-time low, therefore drastically increasing the costs.

From retailers to publishers, from feminine products and diapers to polling papers, it seems like everywhere you turn, some sector is being affected by the paper shortage. Multiple supply chain associations have commented that they have never seen a shortage quite like this. It’s a little par for the course these days, as many of us feel like we just began to forget that we used to ration our toilet paper. Unfortunately, we may not be out of the woods just yet. It seems only natural to ask – how did we get here? And even more urgent to inquire – what do we do about it?

Impact of the COVID Pandemic on the Paper Supply

Before the COVID pandemic, the paper industry was already struggling. The raw pulp suppliers specifically were facing an uncertain future. “The market for coated paper had been in decline for more than a decade as digital media supplanted print. Covid-19, the disease caused by the coronavirus, only accelerated it, though dramatically,” The Washington Post reported in July of 2020.

Fast forward to 2022, the industry has quickly risen close to pre-pandemic demand. While this increase in orders is a welcome call to suppliers’ ears, many plants are having a very difficult time catching back up. The required COVID-19 precautions in many plants, along with other external factors, caused worldwide shortages in raw materials and chemicals that are required to make all paper products. Additionally, on New Year’s day, the paper industry was hit with another blow – the world’s largest papermaker, UPM, was issued a strike by The Finnish Paperworkers’ Union. This strike affected the productivity of five major paper plants in the world. And not until April 22, 2022, did UPM and the union come to an agreement, bringing an official end to the strike. A welcome sigh of relief to those in the industry all around the world.

Impact of Russia Invading Ukraine on the Paper Supply

Unfortunately, we aren’t out of the woods of the worldwide paper shortage yet. When Russia invaded Ukraine in February 2022, the already large issue of supply shipment backlogs became even greater. The war has caused many shipping companies to have to cancel any routes in the vicinity of Ukraine and Russia. In addition, record-breaking lack of rainfall and increased fires continue to affect lumber supply to raw pulp factories.

What Can Be Done?

• First, to limit supply chain impacts on your projects, talk with your vendors early about your specific needs. Here at DataForce, we are actively reaching out to our suppliers and constantly staying in contact with them so that we are aware of any price/ quantity adjustments and can make any decisions as necessary.
• Secondly, place paper and envelope orders as early as possible to get the best pricing. Be aware that pricing can change between the time it was quoted and when you actually place your order. Unfortunately, due to the shortage, pricing continues to increase from the suppliers, which is outside of vendor control.
• Lastly, be willing to adapt. The DataForce team prides itself on being out-of-the-box thinkers, and thankfully that skill set really comes in handy these days. By equipping ourselves with the knowledge of what products we can source, we are able to look at our clients’ project plans and find ways where we can execute the same desired outcome but with a different product.

Curious how DataForce could help your organization reach its research goals? Contact us today!