Within the past few weeks, the supply chain shortage for label stock was beginning to show some light at the end of the tunnel.  Some of our material allocations were easing, lead times were getting better and our suppliers were indicating that the dark clouds were starting to part.  Unfortunately, all of the sudden the clouds re-thickened and the industry was hit again.

Pixelle, a major paper maker of liner stock and some face stocks announced last week the closing of a mill in Jay, Maine. Immediately afterwards, all our material suppliers started sending emails stating their concern about material supplies. The mill produces around 30% of the liner stock used in North America. Compounding that, there is an ongoing corn starch strike (used for strengthening paper and improving printability) in the Midwest. 
Exactly what does this all mean? Nobody really knows.  What we do know is that label stock availability will remain unsettled as will pricing.  There are rumors from a couple of our paper suppliers of another price increase.  Honestly, we thought we wouldn’t see another this year, but now…..

Our estimating team will do their best to provide you alternative material options and/or quantity pricing to minimize the impact.
We’ve added a link so you can read the Pixelle press release and notes we received from some suppliers.  We will continue to update you on this situation as necessary.  Please continue to visit our website for updates.

Thank you for your loyalty and continued business.