POS Supply Solutions Press Release


The Global Shortage of Thermal Paper… Are You Prepared?

November 30, 2017


Through August and September, as rumors of an impending global shortage of Thermal Paper started to mount, POS Supply Solutions’ President, Stephen Enfield, worked his long-standing industry relationships to gather facts and build an accurate picture of how this would be likely to impact the overall market. Corroborating resources began to paint a picture of a global thermal paper shortage the likes which the industry had never seen - and an impact to pricing that would be swift, iterative and unpredictable.

Reality took shape across the globe with September and October thermal paper orders. Thermal paper mills announced the first of several price increases while also putting all paper roll converters on allocation (limited orders). “What it came down to,” said Enfield, “was the sudden shutdown of the world’s primary leuco-dye supplier. When an entire global market of product relies on a dye that is available from essentially one single source, a sudden choke-point will have a drastic impact no matter how you slice it”, he added. Expectations are that the plant will remain closed for at least three months, if not longer, as they modify operations to meet new regulations. Because of these developments, the thermal paper shortage is predicted to last until mid 2018.

While not wanting to incite panic, Enfield thought it best to share the reality of the situation with other industry leaders, as well as through a series of blog posts and emails to customers, vendors and dealers. “It’s hard to tell your customers to ‘stock-up’ without it sounding like a sales pitch,” said Enfield, “but once we understood that we were on the precipice of several unpredictable price increases and the real threat of diminishing supply, we knew that ‘sounding the alarm’ was just the right thing to do for our customers; especially heading into retail’s busiest time of year.”

POS Supply Solutions, a leading provider of point-of-sale supplies, decided that it would take proactive measures to stock-up itself on some of the most common sizes of Thermal Receipt Paper (including 3-1/8” x 230’ Register Receipt Rolls, 2-1/4" x 50’ and 2-1/4" x 85’ Credit Card Terminal Rolls, and a few others). Buying volume before price increases took effect allowed POS Supply to provide a temporary yet meaningful buffer to customers. “You never want to have to raise prices, especially in back-to-back month, but when it’s necessary, you certainly don’t want it to be a surprise to customers!”, exclaimed Enfield.

Some distributors may be better positioned to help buffer the effect of the market chaos, while you may notice others who have to follow the ebb and flow of changes (or even run out of stock) on the most common thermal paper rolls. Keep in mind that all distributors of thermal paper are being impacted by availability and price increases at some level so no matter how well prepared one might be, prices are still susceptible to significant fluctuations without little or no warning. The latest information suggests that supply may start its rebound by late Q1 2018. So, if you were in a position to stock up in September with a six month supply, you will weather the storm better than others. Otherwise, you can expect to be impacted by price increases of 30% or more over that time period.

For up to date information about the Thermal Paper shortage and related market insights, follow the POS Supply Blog.


About Us: POS Supply Solutions is an industry-leading point-of-sale expert and distributor of POS supplies. They serve industries including hospitality, retail, financial, convenience stores/gas stations, healthcare, mobile and specialty printing media. The company’s supply solutions can be found in applications from cash registers and fuel pumps to ATMs and kiosks. Whether you need a credit card receipt printer roll, a custom printed ATM receipt, a credit card imprinter, a card reader cleaning card or a long-life POS printer ribbon, POS Supply Solutions is a complete source for high quality transaction supplies. The company is headquartered in Danvers, Massachusetts with distribution warehouses throughout the United States that provide fast, free, same-day shipping. For more information about POS Supply Solutions, visit online at: www.possupply.com.


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