navitor.com 2 SUPPLY CHAIN IMPACTS ON THE PRINT MARKET A distributor’s strategic guide for navigating disruption - 10/2022 The supply chain crisis has the printing industry continuing to fight an uphill battle when it comes to the availability of materials, substrates and consumables, coupled with increasing costs that are making a significant impact on many bottom-lines. Wholesale prices have risen for the first time in three months and show inflation is still raging. CPI shows inflation remained near a 40-year high in September. Paper price increases continue in Q4 and are projected into 2023. Our Strategic Sourcing team closely monitors a number of different markets to gauge the impact on our business as well as on our valued distributors. In this overview, you will find insights into the print markets, impacts to manufacturing, and mitigation steps we’re taking to minimize the impact. Last, we will also share specific steps you can take to reduce the impact to your business. Executive Summary - 10/2022 • Rising Interest Rates and Money Supply: The Federal Reserve raised interest rates by 75 basis points for the third time this year, stepping up their fight to curb inflation that’s near the highest levels since the 1980’s. In addition, the M1 money supply time is at an all-time high. • Material Constraints: Supply constraints continue. Two examples include an Ingredion plant strike (starch) and a Pixelle mill closure that impacts many paper-based products. • Transportation Challenges/Improvements: While challenges still remain with many transportation modes, there are several experiencing improvements. Global ocean container rates hit a 17-month low, down more than 70% from its peak, and wait times at U.S. ports have decreased. • China’s COVID-zero Policies: China’s COVID-zero policies continue and have impacted the supply chain in the U.S. and worldwide. By some reports, the country is battling its broadest COVID outbreaks yet. • European Energy Crisis: The European energy crisis is severe and the effects are being felt all over the world. A longer and deeper recession is expected in Europe.
RkJQdWJsaXNoZXIy MTU3MDQzMg==