March 25, 2020

Lumi members have asked us if the Defense Production Act could impact their packaging supply chain. Last night we surveyed manufacturers representing over 400 of the top American paper-based packaging factories that could be involved in such an effort.

As of this writing, paper products are considered essential and exempt from workforce reductions including in New York State whose Department of Agriculture states:

Forest products businesses, including those involved in forestry operations, logging, manufacture of lumber and paper products, and the distribution of those products are essential and exempt from the State's guidance for workforce reduction.

If the Defense Production Act is invoked, manufacturers in the Lumi Network anticipate that there is enough capacity available to maintain normal operations.

Some factories that prioritize packaging for essential products are currently experiencing high load. For that reason we continue to recommend placing orders early to mitigate any lead time delays.