Quad Graphics, a Wisconsin-based marketing services company, said it will implement a temporary surcharge on its printing inks, UV coating and varnishes to help offset increasing costs impacting its ink manufacturing subsidiary, Chemical Research/Technology (CR/T).
The company blamed global supply chain disruptions caused by the ongoing conflict in the Middle East for the price hike. It pointed out specific cost drivers including higher oil and gas prices, which it said are critical inputs for ink production. Many types of industrial ink still rely on petroleum-based resources.
Quad also cited elevated transportation costs and rising energy expenses across the ink manufacturing process, and said the impacts have extended to other products including coatings, adhesives and specialty fluids.
"We understand the impact cost increases have on our clients, and we've taken steps to absorb or mitigate these increases," said Quad COO Dave Honan in a statement. "However, the pace of supply chain disruption and ongoing uncertainty driven by geopolitical developments require us to take measured action to maintain the quality and service our clients rely on."
Quad’s CR/T subsidiary operates out of Valdosta, Georgia, where it was established in 2013 after the company acquired an Arizona Chemical plant.
The supply chain disruptions arrive as Quad is still dealing with nearly $1 million in damages caused by a fire at its facility in Hartford, WI.
