COMMERCIAL PRINTING
The current situation with paper is driving print customers to digital
Intergraf – Lack of paper endangers rebound of graphic industry in Europe
Intergraf , the Brussels-based organization representing European printers has warned in a press release dated 25 January 2022 , that the current paper crisis will have severe repercussions in the supply of print products for all economic markets and endangers the rebound of our industry . Integraph makes the point that the graphic industry supports all economic activities with their products , be it for information , news , entertainment , education , advertising or packaging .
Print plays a huge role in everyday life – so much so that it is frequently overlooked . Our sector supplies the packaging for goods at the supermarket , the books , newspapers and magazines we read as well as the boxes our digitally ordered food , clothing , gadgets and much more are packaged in . These products are produced by 120,000 printing companies all over Europe that employ 600,000 people and generate a turnover of Euro 80 billion ( approximately Rs 650,000 crore ).
“ We have real bottlenecks in our paper supplies . We can see that this shortage will increase in the upcoming months ,” says one of the larger sheetfed printers in Europe . While during the past two years , graphic products have clearly witnessed a decline , demand is now almost back to pre-pandemic levels . In 2020 , customers were forced to reduce print advertising and many switched to electronic means for their communication . In mid-2021 , this market has come back to print , but customers are now facing surging prices and uncertainty about the supply of raw materials .
Strike in publication paper mill
The ongoing strike in some Nordic paper mills aggravates the situation particularly for paper grades such as LWC ( lightweight coated ) and MWC ( medium weight coated ) paper . It is estimated that in some countries close to 50 % of this paper for heatset printing comes from one supplier . The stocks of printing companies will not last until the strike has been settled and printers will be forced to announce to their customers their incapacity to fulfil the orders . This means that publishers will be forced to abandon print editions due to a lack of paper . The shortage affects all types of print products but is particularly detrimental to time sensitive printed matter such as the publication of newspapers , magazines , books and advertising . “ We have financial pressure both from customers and now also from our suppliers . I am afraid that the present situation drives our customers even more towards the digital market and in the long run both we and our suppliers will suffer more . This is not a healthy development ,” says another printer .
Intergraf has terrifying feedback from members that 40 % of the paper needed from mid-February onwards cannot be obtained . The inability to print will cause large financial losses not only to the printing company , but also to the final customer . This will entail foreseeable shortages of many printed consumer goods and some products including food and medical supplies that cannot be put on the market due to a lack of packaging . A large format offset printers says , “ We
The planned closure of UPM Kaipola ' s three paper machines would impact approximately 450 positions and lead to a permanent reduction of 720,000 tons of graphic paper capacity — 450,000 tons of newsprint and 270,000 tons of coated mechanical paper . Photo UPM
are losing loyal print buyers , catalog users , due to production costs and shortage of paper . There is a big risk that those print buyers are not coming back . This jeopardizes our industry and we will suffer irretrievable damage .”
Call on national authorities to take serious note
Beatrice Klose , secretary general of Intergraf states , “ Print is an essential and important part of our daily life . Many citizens rely on printed information . Apart from being a large sector of our own , our industry and our products support citizens , culture and all other economic branches in one way or the other . This support is endangered by the current tensions in the supply chain .”
Intergraf calls on the paper industry to ensure a collaborative approach and transparent discussion of the current and future development of graphic paper supply in Europe . Intergraf calls on European as well as national authorities to take the current situation seriously and ensure sufficient supply of raw material ( fresh and recycled fibres ) to allow a continuous production of essential goods such as packaging , newspapers , magazines , books , and other print products that serve European citizens in their daily life . n
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Indian Printer & Publisher | 1 March 2022