{"id":3499,"date":"2018-08-16T16:50:49","date_gmt":"2018-08-16T16:50:49","guid":{"rendered":"https:\/\/www.smithcorona.com\/blog\/?p=3499"},"modified":"2023-02-02T16:05:59","modified_gmt":"2023-02-02T16:05:59","slug":"price-increases-in-the-labeling-industry","status":"publish","type":"post","link":"https:\/\/www.smithcorona.com\/blog\/price-increases-in-the-labeling-industry\/","title":{"rendered":"Price Increases in the Labeling Industry"},"content":{"rendered":"<p><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-1\"><p><span style=\"font-weight: 400;\">For the first time in over twenty years, the labeling industry is seeing multiple price increases. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Almost everything that is used to create a label is seeing price increases, from paper to silicone to the <a href=\"https:\/\/www.smithcorona.com\/blog\/5-logistics-experts-weigh-in-on-the-freight-crisis\/\">freight<\/a>. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Everyone is facing the same problem, and no one is used to these price increases, but here at Smith Corona, we are still doing everything we can to get you high-quality labels.<\/span><\/p>\n<\/div>\n            <div class=\"smith-corona-featured-image\">\n\n                <img src=\"https:\/\/www.smithcorona.com\/blog\/wp-content\/uploads\/2022\/09\/price-increases-in-the-labeling-industry-hero-splash.png\" alt=\"\" width=\"760\" height=\"460\" \/>\n\n            <\/div>\n        <div class=\"fusion-text fusion-text-2\"><p>With new\u00a0announcements from Avery, Raflatac, Green Bay, Mactac, and others, thermal labels prices will increase once again by 3-6% in October 2018.<\/p>\n<p><span style=\"font-weight: 400;\">But why are price increases happening, and why are they increasing every quarter? Unfortunately, there are several reasons. <\/span><\/p>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-2 nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-1 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\"><\/style><div class=\"fusion-title title fusion-title-1 fusion-sep-none fusion-title-text fusion-title-size-three\" style=\"margin-top:5px;margin-right:0px;margin-bottom:10px;margin-left:0px;\"><h3 class=\"title-heading-left\" style=\"margin:0;\"><b>Silicone and Adhesive Shortage<\/b><\/h3><\/div><div class=\"fusion-text fusion-text-3\"><p><span style=\"font-weight: 400;\">Silicone metal, the material used to produce silicone, is mainly found in China. However, due to demand and <\/span><a href=\"https:\/\/www.smithcorona.com\/blog\/how-china-is-killing-another-american-industry\/\"><span style=\"font-weight: 400;\">new tariffs<\/span><\/a><span style=\"font-weight: 400;\">, it will be even more costly for U.S. silicone producers to acquire the raw materials.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Because 60% of the global supply of silicone comes from China, new tariffs have caused the <\/span><a href=\"https:\/\/www.rubbernews.com\/article\/20180430\/NEWS\/180439993\/market-forces-tighten-silicone-sector-supply-spike-prices\"><span style=\"font-weight: 400;\">price to almost double<\/span><\/a><span style=\"font-weight: 400;\">, greatly hurting the market. <\/span><\/p>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-3 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1144px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-2 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\">@media only screen and (max-width:1064px) {.fusion-title.fusion-title-2{margin-top:5px!important; margin-right:0px!important;margin-bottom:10px!important;margin-left:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-2{margin-top:0px!important; margin-right:0px!important;margin-bottom:20px!important; margin-left:0px!important;}}<\/style><div class=\"fusion-title title fusion-title-2 fusion-sep-none fusion-title-text fusion-title-size-four\" style=\"margin-top:5px;margin-right:0px;margin-bottom:10px;margin-left:0px;\"><h4 class=\"title-heading-left\" style=\"margin:0;\"><strong>How the Shortage Affects Companies<\/strong><\/h4><\/div><div class=\"fusion-text fusion-text-4\"><p><span style=\"font-weight: 400;\">Sun Chemicals, the largest producer of printing inks and pigments in the world, saw prices raised by 30% on all of their silicone based products as of May 2018.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe ongoing silicone shortage has caused our suppliers to continue increasing prices beyond anything we have seen in recent years,\u201d said Vice President of Sun Chemical, Dennis Sweet. He continues, \u201c[w]hile Sun Chemical has utilized all its resources to offset these shortages and increases, we need to pass some of these increases on.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Sun Chemicals isn\u2019t the only one in the industry dealing with price increases.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to the Alexander Watson Associates\u2019 Annual Survey of Industry Professionals, the concern for the availability of raw materials is high among members of the industry. In addition, all respondents of the survey said they experienced cost increases throughout 2017, and most of them expect the costs to continue to rise throughout all of 2018.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In early 2017, Momentive workers began a strike that shut down the silicone manufacturing company for over 2 months, as well as shutting down silicone production in their German facility.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cSilicone facilities worldwide have fallen behind necessary demand,\u201d said Alex Sechi, a senior account manager for BRB International B.V., a producer of silicone. \u201cThe demand has increased all over the world.\u201d<\/span><\/p>\n<\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-2{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-2 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1064px) {.fusion-body .fusion-builder-column-2{width:100% !important;order : 0;}.fusion-builder-column-2 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-2{width:100% !important;order : 0;}.fusion-builder-column-2 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}<\/style><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-3{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-4 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1144px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-3 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\">@media only screen and (max-width:1064px) {.fusion-title.fusion-title-3{margin-top:5px!important; margin-right:0px!important;margin-bottom:10px!important;margin-left:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-3{margin-top:0px!important; margin-right:0px!important;margin-bottom:20px!important; margin-left:0px!important;}}<\/style><div class=\"fusion-title title fusion-title-3 fusion-sep-none fusion-title-text fusion-title-size-four\" style=\"margin-top:5px;margin-right:0px;margin-bottom:10px;margin-left:0px;\"><h4 class=\"title-heading-left\" style=\"margin:0;\"><strong>What the Future Holds<\/strong><\/h4><\/div><div class=\"fusion-text fusion-text-5\"><p><span style=\"font-weight: 400;\">Unfortunately, there is little hope for a decrease in pricing for silicone.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWe know this is not a short-term problem,\u201d said Zack Beier, director of purchasing at Q Holding Co, a manufacturer of silicone products. \u201cThere\u2019s not one single constraint that can be remedied to solve the industry\u2019s problems.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The silicone market is expected to be extremely tight for the next two years and the price increases show this.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.smithcorona.com\/blog\/our-smith-corona-label-adhesives\/\" target=\"_blank\" rel=\"noopener noreferrer\">As for adhesives<\/a>, raw materials are on the rise as well. Propylene prices are up by 50% since 2016 and methyl methacrylate is up by 10-20% since 2016.<\/span><\/p>\n<\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-3{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-3 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1064px) {.fusion-body .fusion-builder-column-3{width:100% !important;order : 0;}.fusion-builder-column-3 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-3{width:100% !important;order : 0;}.fusion-builder-column-3 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}<\/style><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-4{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-5 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1144px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-4 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"smith-corona-pros-and-cons\">\n            \n            <div class=\"sides-wrapper\">\n\n                <div class=\"left-side\">\n\n    <span class=\"heading\" style=\"background-color:#ce14a3;\">Adhesive Price Increases<\/span><ul><li>SCIGRIP: 8%<br \/><\/li><li>H.B Fuller: 5-12%<br \/><\/li><li>Ashland Inc: 3-4%<\/li>\n\n                    <\/ul>\n\n                <\/div>\n\n                <div class=\"right-side\">\n\n    <span class=\"heading\" style=\"background-color:#ce14a3;\">Silicone Price Increases<\/span><ul><li>WACKER: 10\u201320%<br \/><\/li><li>Evonik Industries AG: 1\u201310%<br \/><\/li><li>Ashland Inc: 3\u20134%<\/li>\n\n                    <\/ul>\n\n                <\/div>\n\n            <\/div>\n\n        <\/div>\n    <\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-4{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-4 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1064px) {.fusion-body .fusion-builder-column-4{width:100% !important;order : 0;}.fusion-builder-column-4 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-4{width:100% !important;order : 0;}.fusion-builder-column-4 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}<\/style><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-5{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-6 nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-5 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\"><\/style><div class=\"fusion-title title fusion-title-4 fusion-sep-none fusion-title-text fusion-title-size-three\" style=\"margin-top:5px;margin-right:0px;margin-bottom:10px;margin-left:0px;\"><h3 class=\"title-heading-left\" style=\"margin:0;\"><b>Paper Price Increases<\/b><\/h3><\/div><div class=\"fusion-text fusion-text-6\"><p><span style=\"font-weight: 400;\">There has been a worldwide increase in the demand for pulp used in papermaking.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is believed that part of these price increases is the result of two things: the rise in demand for recycled corrugated boxes and <\/span><a href=\"https:\/\/www.nytimes.com\/2018\/01\/11\/world\/china-recyclables-ban.html\"><span style=\"font-weight: 400;\">China refusing<\/span><\/a><span style=\"font-weight: 400;\"> to take highly contaminated recycled fiber. Chinese paper manufacturers are buying pulp in bulk for those boxes, reducing the pulp supply for the label industry.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the last year, pulp prices have increased by 20-50%, showing no signs of slowing as sellers continue to raise prices. According to the <\/span><a href=\"https:\/\/fred.stlouisfed.org\/series\/WPU0911\"><span style=\"font-weight: 400;\">Federal Reserve Economic Data<\/span><\/a><span style=\"font-weight: 400;\">,\u00a0 the producer price index for pulp, paper, and allied products went from 167.4 in February 2017 to 219 in July 2018.<\/span><\/p>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-7 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1144px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-6 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\">@media only screen and (max-width:1064px) {.fusion-title.fusion-title-5{margin-top:5px!important; margin-right:0px!important;margin-bottom:10px!important;margin-left:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-5{margin-top:0px!important; margin-right:0px!important;margin-bottom:20px!important; margin-left:0px!important;}}<\/style><div class=\"fusion-title title fusion-title-5 fusion-sep-none fusion-title-text fusion-title-size-four\" style=\"margin-top:5px;margin-right:0px;margin-bottom:10px;margin-left:0px;\"><h4 class=\"title-heading-left\" style=\"margin:0;\"><strong>An Increase in Raw Materials\u00a0<\/strong><\/h4><\/div><div class=\"fusion-text fusion-text-7\"><p><span style=\"font-weight: 400;\">Raw material manufacturers have been <\/span><a href=\"https:\/\/www.adazonusa.com\/blog\/wp-content\/uploads\/2017\/12\/Price_Increase_Letters.pdf\"><span style=\"font-weight: 400;\">increasing their<\/span><\/a> <a href=\"https:\/\/www.adhesivesmag.com\/PriceAdjustments\"><span style=\"font-weight: 400;\">prices<\/span><\/a><span style=\"font-weight: 400;\">, and this isn\u2019t the first time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These increases have been running multiple paper mills out of business, including West Linn Paper Company, a company forced to close down after 128 years due to the lack of available pulp.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another factor to the increase is numerous paper mills losing money and shutting down. Some of these are due to economic factors while others are environmental. For example, Hurricane\u2019s Irma and Harvey have resulted in 18 U.S. pulp and paper mill shutdowns.<\/span><\/p>\n<\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-6{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-6 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1064px) {.fusion-body .fusion-builder-column-6{width:100% !important;order : 0;}.fusion-builder-column-6 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-6{width:100% !important;order : 0;}.fusion-builder-column-6 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}<\/style><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-7{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-8 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1144px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-7 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\">@media only screen and (max-width:1064px) {.fusion-title.fusion-title-6{margin-top:5px!important; margin-right:0px!important;margin-bottom:10px!important;margin-left:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-6{margin-top:0px!important; margin-right:0px!important;margin-bottom:20px!important; margin-left:0px!important;}}<\/style><div class=\"fusion-title title fusion-title-6 fusion-sep-none fusion-title-text fusion-title-size-four\" style=\"margin-top:5px;margin-right:0px;margin-bottom:10px;margin-left:0px;\"><h4 class=\"title-heading-left\" style=\"margin:0;\"><strong>Companies in Crisis<\/strong><\/h4><\/div><div class=\"fusion-text fusion-text-8\"><p><a href=\"https:\/\/www.printwell.com\/what-is-behind-the-increasing-paper-costs\/\"><span style=\"font-weight: 400;\">Since 2010<\/span><\/a><span style=\"font-weight: 400;\">, there have been eight major coated freesheet paper mill closures, and with fewer mills in operation, the number has been reduced to 27%.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The price increase for paper is unavoidable. With recent closures and the market as tight as it is, the price increase for paper is unavoidable.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Appvion, the 3rd largest paper coater in the world, filed for bankruptcy in October of 2017. They produce up to about 50% of all the coated direct thermal paper in the United States. Prices have increased by almost 30% due to input prices as well as Appvion trying to get to profitability, but they are still under pressure financially.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This results in the price rise of direct thermal paper, which will be up by 40% by the end of 2018.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As prices rise, companies usually get a one to two-month notice beforehand and typically prices rise by 8 \u2013 10%. As we approach the fourth price increase, direct thermal paper costs are expected to have risen a total of 45% by the end of the year.<\/span><\/p>\n<\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-7{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-7 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1064px) {.fusion-body .fusion-builder-column-7{width:100% !important;order : 0;}.fusion-builder-column-7 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-7{width:100% !important;order : 0;}.fusion-builder-column-7 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}<\/style><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-8{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-9 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1144px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-8 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\">@media only screen and (max-width:1064px) {.fusion-title.fusion-title-7{margin-top:5px!important; margin-right:0px!important;margin-bottom:10px!important;margin-left:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-7{margin-top:0px!important; margin-right:0px!important;margin-bottom:20px!important; margin-left:0px!important;}}<\/style><div class=\"fusion-title title fusion-title-7 fusion-sep-none fusion-title-text fusion-title-size-four\" style=\"margin-top:5px;margin-right:0px;margin-bottom:10px;margin-left:0px;\"><h4 class=\"title-heading-left\" style=\"margin:0;\"><strong>Paper Mill Closures:<\/strong><\/h4><\/div>\n<div class=\"table-1\">\n<table width=\"100%\">\n<thead>\n<tr>\n<th align=\"left\">Mill Closures<\/th>\n<th style=\"text-align: center;\" align=\"left\">Capacity (in tons)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td align=\"left\"><strong>Newton Falls (2010)<\/strong><\/td>\n<td style=\"text-align: center;\" align=\"left\">80,000<\/td>\n<\/tr>\n<tr>\n<td align=\"left\"><strong>Hamilton (2012)<\/strong><\/td>\n<td style=\"text-align: center;\" align=\"left\">50,000<\/td>\n<\/tr>\n<tr>\n<td align=\"left\"><strong>Courtland (2014)<\/strong><\/td>\n<td style=\"text-align: center;\" align=\"left\">115,000<\/td>\n<\/tr>\n<tr>\n<td align=\"left\"><strong>Rumford (2015)<\/strong><\/td>\n<td style=\"text-align: center;\" align=\"left\">60,000<\/td>\n<\/tr>\n<tr>\n<td align=\"left\"><strong>Wickliffe (2015)<\/strong><\/td>\n<td style=\"text-align: center;\" align=\"left\">280,000<\/td>\n<\/tr>\n<tr>\n<td align=\"left\"><strong>Jay (2017)<\/strong><\/td>\n<td style=\"text-align: center;\" align=\"left\">90,000<\/td>\n<\/tr>\n<tr>\n<td align=\"left\"><strong>Combined Locks (2017)<\/strong><\/td>\n<td style=\"text-align: center;\" align=\"left\">300,000<\/td>\n<\/tr>\n<tr>\n<td align=\"left\"><strong>West Linn (2017)<\/strong><\/td>\n<td style=\"text-align: center;\" align=\"left\">265,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-8{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-8 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1064px) {.fusion-body .fusion-builder-column-8{width:100% !important;}.fusion-builder-column-8 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-8{width:100% !important;}.fusion-builder-column-8 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}<\/style><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-9{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-10 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:1144px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-9 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\">@media only screen and (max-width:1064px) {.fusion-title.fusion-title-8{margin-top:5px!important; margin-right:0px!important;margin-bottom:10px!important;margin-left:0px!important;}}@media only screen and (max-width:640px) {.fusion-title.fusion-title-8{margin-top:0px!important; margin-right:0px!important;margin-bottom:20px!important; margin-left:0px!important;}}<\/style><div class=\"fusion-title title fusion-title-8 fusion-sep-none fusion-title-text fusion-title-size-four\" style=\"margin-top:5px;margin-right:0px;margin-bottom:10px;margin-left:0px;\"><h4 class=\"title-heading-left\" style=\"margin:0;\"><strong>Raw Material Manufacturer Price Increases:<\/strong><\/h4><\/div>\n<div class=\"table-1\">\n<table width=\"100%\">\n<thead>\n<tr>\n<th align=\"left\">Raw Material Manufacturer<\/th>\n<th style=\"text-align: center;\" align=\"left\">Price Increase<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td align=\"left\"><strong>Green Bay Packaging Inc<\/strong><\/td>\n<td style=\"text-align: center;\" align=\"left\">7%<\/td>\n<\/tr>\n<tr>\n<td align=\"left\"><strong>UPM Raflatac<\/strong><\/td>\n<td style=\"text-align: center;\" align=\"left\">6-8%<\/td>\n<\/tr>\n<tr>\n<td align=\"left\"><strong>Acucote Inc<\/strong><\/td>\n<td style=\"text-align: center;\" align=\"left\">5-7%<\/td>\n<\/tr>\n<tr>\n<td align=\"left\"><strong>Spinnaker Coating LLC<\/strong><\/td>\n<td style=\"text-align: center;\" align=\"left\">5.5-6.5%<\/td>\n<\/tr>\n<tr>\n<td align=\"left\"><strong>Stratatac<\/strong><\/td>\n<td style=\"text-align: center;\" align=\"left\">5.5%<\/td>\n<\/tr>\n<tr>\n<td align=\"left\"><strong>Avery Dennison<\/strong><\/td>\n<td style=\"text-align: center;\" align=\"left\">5%<\/td>\n<\/tr>\n<tr>\n<td align=\"left\"><strong>Technicote <\/strong><\/td>\n<td style=\"text-align: center;\" align=\"left\">5-7%<\/td>\n<\/tr>\n<tr>\n<td align=\"left\"><strong>Solenis<\/strong><\/td>\n<td style=\"text-align: center;\" align=\"left\">5-10%<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: left;\" align=\"left\"><strong>Henkel<\/strong><\/td>\n<td style=\"text-align: center;\" align=\"left\">8-10%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-9{width:100% !important;margin-top : 0px;margin-bottom : 20px;}.fusion-builder-column-9 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 1.92%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 1.92%;}@media only screen and (max-width:1064px) {.fusion-body .fusion-builder-column-9{width:100% !important;order : 0;}.fusion-builder-column-9 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-9{width:100% !important;order : 0;}.fusion-builder-column-9 > .fusion-column-wrapper {margin-right : 1.92%;margin-left : 1.92%;}}<\/style><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-10{ padding-top : 0px;margin-top : 0px;padding-right : 0px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 0px;}<\/style><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-11 nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-10 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\"><\/style><div class=\"fusion-title title fusion-title-9 fusion-sep-none fusion-title-text fusion-title-size-three\" style=\"margin-top:5px;margin-right:0px;margin-bottom:10px;margin-left:0px;\"><h3 class=\"title-heading-left\" style=\"margin:0;\"><strong>Leuco Dye Crisis<\/strong><\/h3><\/div><div class=\"imageframe-align-center\"><span class=\" fusion-imageframe imageframe-none imageframe-1 hover-type-none\"><img width=\"800\" height=\"533\" alt=\"Factories creating leuco dye are closing, leading to price increases in the labeling industry\" title=\"Leuco Dye Image\" src=\"https:\/\/www.smithcorona.com\/blog\/wp-content\/uploads\/2018\/08\/pexels-photo-247763-1-800x533.jpeg\" class=\"img-responsive wp-image-4060\" srcset=\"https:\/\/www.smithcorona.com\/blog\/wp-content\/uploads\/2018\/08\/pexels-photo-247763-1-200x133.jpeg 200w, https:\/\/www.smithcorona.com\/blog\/wp-content\/uploads\/2018\/08\/pexels-photo-247763-1-400x267.jpeg 400w, https:\/\/www.smithcorona.com\/blog\/wp-content\/uploads\/2018\/08\/pexels-photo-247763-1-600x400.jpeg 600w, https:\/\/www.smithcorona.com\/blog\/wp-content\/uploads\/2018\/08\/pexels-photo-247763-1-800x533.jpeg 800w, https:\/\/www.smithcorona.com\/blog\/wp-content\/uploads\/2018\/08\/pexels-photo-247763-1-1200x800.jpeg 1200w, https:\/\/www.smithcorona.com\/blog\/wp-content\/uploads\/2018\/08\/pexels-photo-247763-1.jpeg 1280w\" sizes=\"(max-width: 800px) 100vw, 1200px\" \/><\/span><\/div><div class=\"fusion-text fusion-text-9\"><p><span style=\"font-weight: 400;\">Back in <a href=\"https:\/\/www.smithcorona.com\/blog\/china-plant-closure-changes-how-we-use-receipts-labels-more\/\" target=\"_blank\" rel=\"noopener noreferrer\">September 2017<\/a>, the Chinese government decided to crack down on the enforcement of environmental regulations. Although this is a great thing, it did cause over 80,000 factories to be fined, legally charged, or shut down.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One of the companies, Connect Chemical, was shut down during the process. Connect Chemical was the world\u2019s largest producer of leuco dye and used to be responsible for about 50% of the production. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">As if that wasn\u2019t bad enough, additional factories that created leuco dye were also closed &#8211; resulting in a disruption of <\/span><a href=\"http:\/\/www.telemarkcorp.com\/statement-appvion-10302017\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><span style=\"font-weight: 400;\">over 80% <\/span><\/a><span style=\"font-weight: 400;\">of the world\u2019s supply of leuco dye. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Leuco dye is a key component in direct thermal paper, and as a result, the price of leuco increased to over five times its average price. What used to be $5 &#8211; $10 a kilogram is now $80 a kilogram.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This resulted in a price increase throughout the entire supply chain. While leuco dye was the first, there have been other chemicals used in the production of direct thermal paper that have also been affected.<\/span><\/p>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-12 nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;margin-bottom: 0px;margin-top: 0px;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-11 fusion_builder_column_1_1 1_1 fusion-one-full fusion-column-first fusion-column-last\" style=\"margin-top:0px;margin-bottom:20px;\"><div class=\"fusion-column-wrapper fusion-flex-column-wrapper-legacy\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><style type=\"text\/css\"><\/style><div class=\"fusion-title title fusion-title-10 fusion-sep-none fusion-title-text fusion-title-size-three\" style=\"margin-top:5px;margin-right:0px;margin-bottom:10px;margin-left:0px;\"><h3 class=\"title-heading-left\" style=\"margin:0;\"><strong>What is Being Done?<\/strong><\/h3><\/div><div class=\"fusion-text fusion-text-10\"><p><span style=\"font-weight: 400;\">Smith Corona is working tirelessly to try and keep our <a href=\"https:\/\/www.smithcorona.com\/\">low thermal label<\/a> prices from increasing. We are looking carefully at how much raw material we use, and we are trying to minimize manufacturing costs while maximizing efficiency.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Smith Corona has spent considerable time and effort to reduce scrap and waste in our manufacturing plant, and to eliminate off quality goods, all aimed at making us the most efficient lowest cost provider of labels in the USA.\u00a0 We really have the <a href=\"https:\/\/www.smithcorona.com\/4x6-labels.html\">lowest priced 4&#215;6 labels<\/a> in the world.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We rigorously test our products for quality control and run tests every 60,000 feet of production.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As for raw materials, we leverage our size and specifically designed manufacturing assets to ensure very competitive pricing for liner and face, going to the ends of the world to find the right grades to produce our products. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Smith Corona has multiple suppliers, which is why we can keep our prices lower than our competitors. We aren\u2019t going to run out of paper, but the market is still tight. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Smith Corona is doing everything to keep prices down, but it isn\u2019t expected to see price decreases in the industry as a whole for another few years, and ongoing upward pressure is likely to be the norm for the next 2-3 years. <\/span><\/p>\n<\/div><div class=\"fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><\/p>\n","protected":false},"excerpt":{"rendered":"<p>For the first time in over twenty years, the labeling industry is seeing multiple price increases. This includes everything used to create a label, from paper to silicone to even the freight prices when it comes to shipping. Find out what is causing these changes in the market and what is being done to keep prices low.<\/p>\n","protected":false},"author":1,"featured_media":12726,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[59],"tags":[],"acf":{"theme_color":"","estimated_reading_time":6,"include_in_most_popular_sidebar":false,"hero_splash_image":12724,"grid_listing_thumbnail":12725,"sidebar_most_popular_thumbnail":12727},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.7.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Price Increases in the Labeling Industry - Barcode Blog<\/title>\n<meta name=\"description\" content=\"For the first time in over twenty years, the labeling industry is seeing multiple price increases. 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