In what is sure to be one of many similar announcements throughout the industry, Cadmus Communications says today that it plans to raise its rates this fall in response to an anticipated spike in paper prices.
In a statement released this afternoon, Cadmus senior vice president of manufacturing services, Karen Snyder, said that paper manufacturers have announced their intentions to raise prices on certain paper grades by $3 to $4 per 100 pounds, and Cadmus will need to raise its price accordingly “in order to maintain the high quality” of its products and services. A call to Cadmus was not immediately returned.
The rise in paper prices is expected to take effect on or about October 1, 2007 and is caused, according to the statement, by a decline in paper supply and rising chemical, energy and transportation costs. Although Cadmus has quarterly price protection guarantees with a number of paper mills, the effective dates are early to mid-October, the statement says. As of Oct. 1, invoices from Cadmus will reflect the specific paper price increases.
“Cadmus will continue to leverage our buying power and total paper supply chain management capabilities as best we can,” Snyder said.
Cadmus—the fifth largest periodicals printer in North America—this year was purchased by Stamford, Connecticut-based Cenveo Inc., a printer of envelopes, labels, packaging and business documents, for approximately $430 million.