May 23, 2022 - The worldwide label industry has continually been hit with cost inflation for raw materials, freight, and energy. The increases are primarily the result of a continued supply imbalance of raw materials critical for label stocks and a bit of current geopolitical tensions.
- Thankfully, the strike in Finland has ended. Unfortunately, we continue to see a tightening of domestic and global supplies of facesheet and liner materials which have increased costs further.
- With the continuing tight supply and high demand, there remains long delays in material availability and allocations.
- Steep increases in energy and oil prices, partly due to geopolitical tensions, have caused suppliers of paper, films, and chemical components to continue to increase prices.
- Truck (LTL) and ocean freight have further increased these rates as the industry faces continued tight capacity and rising fuel costs.