A major label material producer in the industry has announced that there will be another price increase.
Why is there a price increase?
After six years of a stable material environment, the global market is increasing prices in label stock components. The major pulp index (NBSK) has increased 12% over the year and suppliers of both liner and face stocks have reduced capacity, or in some cases, exited the label markets. Additionally, the chemicals used in silicone and adhesives are either in short supply or have price increased up to 25%.
What does this mean for me?
- Thermal Transfer labels will increase 4%
- Direct Thermal labels will increase 7%
Cumulatively, these increases are now in the double digits and experts are predicting even more this year, especially with Direct Thermal.
What will happen in the future?
We will work hard to reduce the impact of these price increases by working closely with our local and global vendors to ensure that there will be minimal impact to you or your customers. Although price increases are unwelcomed, there is a need to return health to the supply chain industry as the world economy strengthens.
You could ultimately save up to 30% on costs by buying sooner rather than later.