The long-term effects of the Brexit vote are yet to be seen, but the pound’s performance on markets has been weak, falling by as much as 6% in just 10 minutes. A weak pound has an impact on both personal and business pockets, and may have an impact on your print prices too.
Printweek announced that printers and print buyers should be ‘braced for double-digit paper price rises’ if the pound does not recover against the euro. In the week of October 10th, the sterling was down 14% against the euro since the referendum vote several months ago. Since most paper used in the UK is imported – mostly from paper mills in mainland Europe – this will have an effect on the cost of paper and therefore the cost of maintaining your current print processes.
Papermakers expect significant price rises if the pound does not recover soon, with paper grades across the board being affected.
Domestic paper mills primarily focus on recovered paper, but could also experience an increase in production costs as the price of waste paper goes up.
However, more optimistic projections say that paper prices could actually go down in the long-term once the UK exits the EU, since it opens up options to buy from outside Europe without having to pay hefty tariffs. While there may be short-term hikes, suppliers from Asia are often able to compete with European pricing and offer larger orders with more significant savings for both paper mills and paper buyers.
In the meantime, Mode Print Solutions strongly recommend that our clients look at their overall print usage and implement strong print management processes to reduce waste and cut down on unnecessary spend in printing. If you would like help in analyzing your print processes or even installing new print management software, please do not hesitate to get in touch. Our team would be more than happy to help.