Sitting down to write a Quarterly Update can be challenging, exciting and a little ho-hum. Right now, it is kind of boring. I feel like a broken record, almost “Groundhog Day” like. Alas, the 3rd Quarter of 2022 will be somewhat more of the same with a few added twists. Then again, isn’t that all we’ve had since March 2020 – added twists?
2022 Midterm Elections and the Impact on Mail
Flexibility is Required by All and Supported by the US Postal Service
Flexibility is needed for everyone – even the US Postal Service. Due to the current paper and supply chain challenges the USPS is giving mailers the opportunity to submit mailings on paper that they may not have previously considered. This will allow mailers to still execute those important touchpoints but may result in slower handling due to machine compatibility.
The Impact of Transportation is Growing
With an increase in fuel costs, a long-term shortage in drivers, and the reduction in physical containers the logistics nightmares aren’t going away. Unfortunately, it is expected to continue well into 2023 and beyond. The impact of the Russian attack on Ukraine along with the supply chain impact on the fuel industry will continue for all sorts of reasons that don’t belong in this communique.
Labor
Every business owner I’ve spoken to has mentioned the challenge of finding workers. Add skilled workers to that mix and you start to see the problems ahead for manufacturing across the board. NextPage is fortunate to have a deep and highly skilled workforce, one that we continue to invest in and do our best to offer a great place to work. If you know someone that needs a career path or really loves the printing industry, send them our direction.
Paper – YES, it Really is Still a Challenge
Our proactive approach has paid off. We have tripled our inventory levels on key paper stocks. And, while certain grades of stock are impossible to find, we can usually find a workable solution. Early planning and flexibility will ensure success.
Packaging – Board Stocks are Hard to Find
The growth in the packaging market continues and that creates challenges for the supply chain related to what are called “board stocks”. Think really heavy stock that is typically coated on one side. These stocks are in demand and if a brand owner didn’t have their supply chain secured, they are seriously challenged. This is a tough situation across the industry. I recently heard that one pharmaceutical brand was unable to fulfill one of its medications because it had been designed to distribute in a box. They can’t get the board stock to make the boxes and are now forced to redesign their packaging.
Some Things Bears Repeating (I know I’m a broken record).
And, I will say it again, COMMUNICATION is key. Please let us know well in advance of your goals and plans. The NextPage team will move heaven and earth to try and accommodate every request.
Thank you for your business and here’s to a successful third quarter!
Gina M. Danner :: CEO
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