PAPER: Local merchants say no need to panic

The two big ANZ printable materials distributors, Ball & Doggett and Spicers, say that local printers do not need to be overly alarmed over paper, saying they have supply under control, although flexibility over brands may be needed, and prices are certain to rise.

Printers are facing a barrage of negative stories over supply, with the global shipping crisis, soaraway energy costs, and now the war in Ukraine all causing concern for an industry heavily dependent on imported stock.

However, both the major local distributors are urging calm to the local market, saying the situation is being carefully monitored and managed.  

Tony Bertrand, marketing manager at Ball & Doggett, said, “Supply to the local market is under control. There are impacts, but these are around shipping and pricing. Lead times are longer, prices are rising, but Ball & Doggett sources product from Asia and North America as well as Europe, and we will maintain supply.

David Martin, CEO of Spicers said, “Managing supply is our job, it is what we do and what we will continue to do. There is no doubt supply to the local print market will be maintained. We source from multiple locations, Europe is just one of them, local printers will continue to be able to order and receive supply.”

European paper manufacturing in particular is in crisis, with mills closing or converting, the UPM strike, and all now exacerbated by the war in the Ukraine and the impact of sanctions on the continent’s biggest energy producer, causing the big trade associations such as Intergraf and Finat to issue dire warnings over the availability of print, and its knock-on effects.

Martin said, “Among other issues such as energy costs, sanctions on Russia mean paper cannot be transported from Europe over the trans-Siberian railway, it now has to go by ship, adding to the constrained capacity, and adding to lead times.”

Bertrand said, “If I was a printer I would be staying close to my suppliers, talking to them, and maybe looking at doing things differently where possible, for instance using the iConsignment model, which switches inventory from our warehouse to the printer. Printers may need to consider alternatives to the brand they have been used, but we will provide those alternatives.”

The need for printers to be flexible is also a message from Spicers, with Martin saying, “A grade of choice may be problematic, but if that proves to be the case, Spicers will supply other grades with the same performance and properties.”

Labelstock is under particular pressure, as on top of everything else going on, strike-bound UPM manufactures not only its own Raflatac brand, but also the base liner for other manufacturers, and with labels made from a troika of liner, face and adhesive, all have to be ready at the same time to produce labelstock.

Bertrand said, “We have a lot of supply partners around the world, we are in constant communication with them. We don’t have a crystal ball, but we do know how to manage supply.”