What’s Impacting the Paper Market?

The CMS-1500 remains the most frequently used form in the Unites States, with billions filed each year.  That being said, paper products are experiencing major shifts. Distribution channels are changing, manufacturing costs are tumultuous and customers are moving away from tried-and-true processes. 

What's Causing the Shift?

#1: The Rise of Cloud-Based Processing 

We live in an increasingly digital world, from our homes to our workplaces and everything in between.  As we replace more and more manual processes with online solutions, it’s no surprise that some reporting is experiencing the same shift. E-billing is gaining traction because it’s convenient and accurate, but costly to start it in your small business.

 #2: Skyrocketing Manufacturing Costs

With people today handling more and more tasks electronically, it might surprise you to learn that paper prices are rising. Prices for the pulp necessary to manufacture paper have increased up to 40%. Manufacturers are absorbing a large percentage of the cost but they must raise prices in order to survive.

Why is This Happening?  E-commerce is partly to blame. As Americans shop more online, the need for packing materials increases. Many mills have stopped traditional bond paper manufacturing and instead are producing cardboard boxes and other packing materials. This drastic decline in bond paper production has led to the price increase.

#3: The Cost of Shipping Goods

• Freight pricing is increasing: Diesel fuel prices have gone up over the past few years so it costs more to transport products to consumers.
• Tariffs have been implemented on paper imports from Canada: This has strained the paper supply.
• Labor costs are rising: This year alone, 20 states and many cities/counties have increased the rate they pay minimum wage workers.

Bottom-Line:  The price for paper continues to go up. 

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