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Why are Label Prices Increasing?

Why are Label Prices Increasing?

If you've noticed that your label prices have gone up over the past few months, you're not the only one. The price of labels has been steadily increasing in 2021 due to a combination of disruptive factors within the United States and abroad.

In this article, we'll try to give some answers for the rising cost of labels and one simple suggestion on how to mitigate any effects on your business.

Many supply chain issues were birthed during the pandemic and still linger today as the paper and film industry seeks a return to normalcy. One cause for this disruption is directly tied to production plants that closed during lockdowns, coupled with increased demand to support the logistics space. The resulting effect being a production backlog for many manufacturers leading to price inflation as a result of the product shortage.

Compounding the product shortage is the fact that many label production supplies (and the resources used to make these supplies) are sourced from overseas. When factoring in the time-in-transit from an overseas producer, shortages and production delays can have an even greater negative effect on the cost of labels.

Additionally, as the demand for shipping supplies (boxes, pallets, plastic wrap etc.) has increased, so have their prices. This has also affected the label industry as these very same packaging materials are used to ship label and paper material around the globe.

As the label industry grapples with these current trends, price increases ripple through the supply chain in a trickle-down effect. The best solution to mitigate these shortages is a simple one: PLAN AHEAD.

As a factory-direct manufacturer of labels, Print.Save.Repeat. helps organizations avoid overspending on labels while ensuring that product is always on-hand when needed. If we can help your business navigate these turbulent waters, speak with one of our label experts here.

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