The Resource Report: Q2 2022

Take a dive into the Q2 Resource Report, where we bring our insight into the latest trends and updates affecting the market.

Postal Rates Update: New Rates go into effect July 10, 2022

Starting on Sunday, July 10, new postage rates will go into effect.  The highlights include:

• • • • • • Single Piece Forever Stamps are going from $0.58 per piece to $0.60 per piece.
          • First Class Presorted Letter Rates are going up on average 6.9% or $0.030 per piece
          • First Class Presorted Flat Rates are going up on average 9.2% or $0.128 per piece

Nonprofit Marketing Mail Letters are increasing between 4% and 6.5%.

Overall Marketing Mail Flats are going up 8.5%, which includes both Commercial and Nonprofit mail across all categories.

• • • Nonprofit Flats 4 oz or less are increasing an average of 12.2% or $0.44 per piece.
    • Nonprofit Flats greater than 4 oz are charged based on a piece AND a pound rate and the changes look like:
      • Average increase of 30.9% or $0.041 per piece at the piece level AND average increase of 1.77% and $0.014 at the per pound rate

For more information, check out our 2022 PS Postal Rate Chart.

2022 USPS Postal Promotions Update:

• • • • • • Currently Active Promotions
            • Earned Value (ER) – until 6/30/22
            • Tactile, Sensory, and Interactive (TSI) – until 7/31/22
            • Emerging & Advanced Tech (EAT) – until 8/31/22
          • Promotion Enrollments Open:
            • Tactile, Sensory, and Interactive (TSI) – until 7/31/22
            • Emerging & Advanced Tech (EAT) – until 8/31/22
            • Personalized Color (PCT) – until 12/31/22
          • UPCOMING ENROLLMENTS:
            • Informed Delivery (ID) – begins 6/15/22. Promo/enrollment until 12/31/22
            • Mobile Shopping (MS) – begins 7/15/22. Promo/enrollment until 12/31/22

The 2022 USPS Informed Delivery promotion is set to be bigger and better than ever! A majority of PS clients will be taking part in the UP TO 4% postage discount to be claimed by merely running an Informed Delivery campaign with their mailings. Reach out to the Production Solutions Resource Department to get started!

Label Material Update:

There has been movement in the Label Industry since the UPM strike ended in April! The current projection for material delivery to US Label Suppliers is predicted to arrive in early September (on average).  Information is changing from day to day, but PS is keeping a close watch and working with our supplier network to make sure everyone is kept abreast of the latest and greatest intel.

Some label companies are importing material from other parts of the world, including Asia and South America. Testing of that material will be happening this summer.  PS is grateful to our Supplier Partners who have done a great job of managing and planning in a disruptive marketplace.

Paper Update:

Tight paper market conditions are expected to continue through the rest of 2022.  Paper remains in a state of shortage as demand outpaces a shrinking supply of graphic arts paper for both coated and uncoated types.  The supply is being hampered by mills converting to packaging grades, the long-lasting UPM strike, and the Russia-Ukraine war causing global supply chain disruptions.  Signals from the industry indicate paper pricing will continue to rise, long lead times will remain, and paper mills will carry on with a strict allocation system for the foreseeable future.

Despite impeccable planning by our clients and industry partners, there are still many instances of allocations being shorted and paper order delivery dates being missed by the mills.  Fortunately, our supplier community has helped to mitigate these shortfalls every day by coming to the table with creative solutions –some examples are purchasing paper through secondary sources (usually with a higher price tag), making substitutions in grades and weights, altering production plans to utilize a different paper size, or mixing paper within orders.  Flexibility and the ability to quickly pivot late-in-the-game is key to navigating these unprecedented challenges.  In addition, advance planning (recommend 9-12 months out) remains critical so that we can provide our supplier partners with necessary information and forecasts so they can manage inventories and allocations in the best manner possible.

If you have any questions, don’t hesitate to reach out to your PS contact!