#United States #printing #Quad #Sussex #Chemical Research/Technology

Quad Introduces Temporary Surcharge on Printing Products

In a recent announcement, Quad/Graphics, Inc. (NYSE: QUAD) revealed that it is implementing an immediate, temporary surcharge on selected printing products, specifically its inks, UV coatings, and varnishes. This decision follows a significant rise in costs affecting its ink manufacturing subsidiary, Chemical Research/Technology (CR/T). The ongoing geopolitical instability, particularly the conflict in the Middle East, has led to marked volatility in global supply chains. This instability has not only increased production costs for inks but has also impacted related products like coatings and adhesives.

The Reasons Behind the Surcharge

Several key factors contribute to this unforeseen surcharge. There has been a noticeable spike in oil and gas prices, which are essential elements in the ink production process. Additionally, transportation expenses have elevated due to rising fuel costs and disruptions in shipping, further exacerbating the situation. Energy expenses associated with the overall ink manufacturing process have also surged in recent times.

Dave Honan, President and Chief Operating Officer of Quad, stated, "We understand the impact cost increases have on our clients, and we've taken steps to absorb or mitigate these increases. 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."

The company is poised to communicate directly with its clients regarding the specifics of how the surcharge will be implemented while keeping a close watch on market dynamics.

About Quad and Its Operations

Quad is recognized as a marketing experience, or MX, company, dedicated to enabling brands to forge direct connections with consumers, whether in households, stores, or online. By leveraging its MX Solutions Suite, Quad integrates diverse marketing and print services that seamlessly blend creative, production, and media solutions across both online and offline channels. With a strong emphasis on state-of-the-art technology and data-driven insights, the company simplifies the complexities associated with marketing.

Employing around 10,000 personnel across 10 countries, Quad serves an extensive clientele of approximately 2,100 companies, including numerous blue-chip firms across various sectors. Their focus extends particularly to commerce, covering areas such as retail, consumer packaged goods, and financial services.

Furthermore, Quad ranks among the largest commercial printing companies in North America—an accolade supported by its full-service media agency, Rise, and creative agency, Betty.

The Role of Chemical Research/Technology

As one of the leading ink manufacturers in the United States, Quad’s subsidiary, Chemical Research/Technology (CR/T), is responsible for the advancement and support of inks and coatings used in Quad’s printing operations. The CR/T team emphasizes material performance, formulation, and process compatibility to ensure consistent production outcomes, tailored towards meeting both the initiative of quality and client specifications.

The situation surrounding ink prices is indeed pressing, but through proactive measures and strategic adjustments, Quad aspires to maintain its service quality while navigating through the turbulent economic landscape. For additional information regarding Quad and its operations, including its steadfast commitment to responsible business practices and innovative solutions, please visit their website at quad.com.

Conclusion

The recent announcement by Quad underscores the significant impact that global events can have on businesses and supply chains. By addressing these challenges head-on, Quad continues to position itself as a reliable partner for its clients, amidst fluctuating market conditions.