Example of Journalistic Writing

Price of Paper Beats Supply Budgets to a Pulp

Shifts in the industry are passing on costs to businesses

Paper is the #1 supply purchase by businesses nationwide. It’s estimated that the average office worker uses 10,000 sheets of copy paper a year. Coupled with the average price of low-grade copy paper, an employee’s individual yearly use can be estimated at about $80. For a small business in the US, that’s a staggering $40k a year, and the market shows that it’s only going to get worse.

At the end of 2017, paper manufacturers announced a 7% hike in the US paper market citing a rise in production costs due to the new expense of raw materials. This would mark the third increase in a year for paper goods. The paper market itself has seen a shift in the last year. China, the largest exporter of paper products in the world, shook up the industry by recently passing legislation that limits the import of foreign paper waste (the primary material source for recycled paper). This caused a chain reaction, including cutting back on the availability of raw materials, forcing some manufacturers to close, and driving up the price for consumers.

This increase may hit US businesses the hardest. Statistics estimate paper consumption for US businesses tops $120 billion in just printed forms, most of which become outdated in as little as three months’ time, creating a costly loop of paper consumption. Additionally, the cost of toner and ink cartridges are also on the rise – At the end of 2017, HP raised the price of its ink products between five and 10%. The rate increase for these two office essentials alone could send businesses 2018 hard supply budgets through the roof.

As the industry forecast shows little to no hope of improvement in the coming years, some business owners are searching for practical ways to decrease their paper consumption. Increasing the use of email correspondences and moving operational documents into digital formats are among the top strategies. Implementing an electronic Document Management System can cut down on unnecessary copying and help businesses cut corners in other areas of their budget like file storage.

Beyond minimizing the use of paper, Document Management Systems are becoming an increasingly popular choice. These systems have been shown to boost productivity through their quick indexing and retrieval abilities, aid in compliance efforts due to inbuilt security features, and act as an insurance policy in the event of a disaster. With the accessibility of this new technology, many businesses are beginning to see that maintaining paper records is an unnecessary risk.

Whatever strategy a business chooses, they better choose fast. Market news indicates that paper manufacturers outside of China are responding to shift by raising their prices as well. Though the idea of a “paperless” office is not a new one, the rising cost of hard supplies and influx of superior management technology may make it the new norm.