The global supply chain crisis is creating problems in the pulp and paper sector, one of the world’s largest industries. This could result in diminished supplies of toilet paper, product labeling, bank statements, and even election ballots.
The biggest problem has been the industrial transition to cardboard production instead of paper output. The immense shift led to approximately 2.5 million metric tons of paper capacity in North America going offline since early 2021.
As a result, this could lead to a decline in inventories of a wide range of consumer paper products, affecting a broad array of sectors and companies.
From food product labels to packing and distribution materials, this corner of the global marketplace could experience “fluctuations,” according to the Thomas Index Report.
Experts say importing paper products might not be the solution amid surging international shipping costs, worldwide supply snafus, and extensive delivery delays.
Not a Square to Spare?
Should the paper crisis intensify, industry observers anticipate another round of toilet paper panic-buying.In the early days of the COVID-19 pandemic, there was a run on toilet paper at retail chain stores and mom-and-pop shops across the country, creating shortages of the bathroom essential. Companies have responded to the escalating inflationary environment by slimming down on toilet paper rolls.
Procter & Gamble’s Charmin ultra-soft toilet paper 18-count mega package now consists of 244 two-ply sheets. This is down from the previous 264 double-ply sheets per roll.
Overall, the cost of wood pulp—an ingredient to manufacture toilet paper—has risen exceptionally, sending the price of toilet paper higher.
CEO Michael Hsu cited inflation pressures and stated that the business is facing a “volatile and difficult macro environment.” The company revealed during a conference call that its costs had advanced by $480 million amid higher pulp, energy, and distribution expenses.
“The global supply chain is under pressure, and we do expect cost to remain elevated for a period,” Hsu told analysts. “Not all costs. But the polymer-based products seem like they’re going to remain elevated for a little while. We mentioned U.S. labor costs and pressures on transportation globally. I think that’s going to remain elevated for a while because I don’t see a fundamental catalyst to change that in the near term. And so that’s why we’re making some of our moves.”
Elections, Electricity, and Exams
It isn’t only toilet paper that could fall victim to these circumstances. Elections in the coming months may also be severely affected amid paper shortages.Election officials are having difficulty acquiring raw materials to print and mail ballots, primarily paper and envelopes. As a result, experts say voters may not even receive an “I Voted” sticker.
Dean Logan, registrar of voters for Los Angeles County, alluded to an early April special election to replace a member of the California state legislature that will “eat into our envelope supply and our paper supply.”
Looming paper shortages aren’t only affecting the United States. Many nations worldwide are adapting to the changing landscape.
Paper shortages have also hampered the issuance of the Ceylon Electricity Board’s hydro bills.