|Lead time delays||2-3 weeks||2-3 weeks|
|Unit cost changes||10-15%||10-15%|
Over 700 factories in the United States have reported status updates to Lumi this week. Packaging factories have continued to be deemed essential services and are remaining operational. No new closures have been reported. Up to 2 week delays can still be expected for most factories in the US.
The Network Status tracker now features a map that helps you track downtime across states and cities in the United States.
Over 260 factories have reported their status in the last 24 hours. Here are the latest updates.
Packaging factories reporting across every state have been designated as essential business and are still in operation.
As of this writing, only one factory (in the state of New York) reported as closed until further notice. This is an independent family-owned factory that has been quarantined.
Less than 10% of US factories are reporting lead time increases. These are primarily due to increases in demand rather than decrease in capacity.
China has continued its gradual recovery. Guidance remains at roughly 1-2 week lead time delays.
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.
Over 2,000 factories received our latest survey, with hundreds of factories reporting so far. Results will be updated throughout the day as more factories report.
2 factories so far have reported closures or severely limited availability. Both are independent manufacturers in the New York area. This could extended lead times by 3-4 weeks or more. We recommend that companies relying on New York packaging manufacturing contact us to set up load balancing in Lumi to prepare for any further shut downs.
Over 99% of factories across the US are still operating at full capacity, however there is still uncertainty about further shutdowns.
Companies have asked us about the risk of COVID-19 transmission on packaging, and what they should tell their customers. Here's what we know so far.
Yesterday evening, California issued the “Safer at Home" order, enforcing further restrictions on movements and gatherings of more than 10 people. In the order, Governor Gavin Newsom stated, "The supply chain must continue."
As part of the supply chain, packaging factories are considered essential and are remaining open in California until further notice. We have not been notified of any closures as of this writing.
This order is likely to ripple out to other states. Consider contingencies with factory redundancy across Lumi regions. The Lumi Network covers factories across every US region. We're here to help you set up load balancing or alternate factories.
If your distribution centers have closed and you are unable to receive product, please let us know and we can work with you to find alternative storage.
Contact your Lumi team or create a Project.
A new COVID-19 survey has been sent this morning to manufacturers. Factories in the Lumi Network across US and China are still reporting operational. We will continue to update this page as data comes in. Our recommendations from March 12th still apply.
Recommendations on how to mitigate the ripple effects of COVID-19 on your packaging supply chain are on our blog.
The unpredictable spread of COVID-19 has caused delays across supply chains globally. The impact on packaging for Lumi members so far has been localized in China.
As of this writing, all of the factories in the Lumi network are operational, however some factories in China are experiencing 1-3 week delays as they catch up to the backlog from Lunar New Year and the coronavirus closures.
We surveyed 24 manufacturers in the Lumi network including 12 in the US and 12 in China, between March 5th and 9th 2020, to gather information about how exactly your packaging supply chain is being impacted. Find more details in our webinar recorded earlier today.
Manufacturers in China are taking greater precautions than in the United States. These include all employees wearing face masks, adding more wash stations, cleaning surfaces more frequently, and monitoring body temperature.
Some manufacturers are reporting 5-10% personnel shortages due to quarantine measures, but have stated that this has not affected production capacity.
Air freight costs from China are still high — up to $1/KG increase from end of February to first week of March.
Some of the biggest delays may come from lack of air space, due to flight cancellations. There's also an increase of expedited orders being air freighted out of China to account for delays. This all results in a major cut in cargo space. Order early to avoid air freight and mitigate costs.
All US manufacturers in the Lumi network are operating at full capacity. Prevention among US manufacturers is less strict right now. Only hand washing and safety training were consistently reported.
With the rapidly increasing number of cases, the biggest risk reported by US manufacturers is a personnel shortage.