Packaging Supply Chain Network Status

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Tagged "covid-19"

March 30, 2020

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.

US manufacturing

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 manufacturing

China has continued its gradual recovery. Guidance remains at roughly 1-2 week lead time delays.

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.

March 23, 2020

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.

US manufacturing

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. 

China manufacturing

  • Factories continue to make their gradual recovery with 1-2 week delays still common.
  • Air freight shortage has persisted, so we recommend ocean freight whenever possible.
March 20, 2020

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.

March 20, 2020

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.

March 16, 2020

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.

US manufacturing

  • 179 US factories have reported today. All are reporting 100% availability.
  • 164 reported not having enough information to predict upcoming closures in the next 2 weeks.

China manufacturing

  • Reports from China indicate lower guidance for lead time. Reduced from 1-3 weeks down to 1-2 weeks.
  • Pricing on paper and corrugated products is still up to 10% higher than usual.
March 12, 2020

Recommendations on how to mitigate the ripple effects of COVID-19 on your packaging supply chain are on our blog.

March 11, 2020

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. Further detail can be found in our webinar recorded earlier today. 

China manufacturing

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.

  • 100% of factories have reopened factories since Feb 17
  • 22% reported 5-10% cost increases for raw materials, especially paper
  • 75% reported lead times extended by 1-3 weeks as they catch up with backed up orders from factory shut downs and manage material shortages.

China logistics

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.

US manufacturing

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.

  • 100% of factories reported that they're open and operating.
  • 100% of factories reported using US raw material sources, and therefore they're not dealing with any material delays.
  • No factories reported quarantined personnel at this time.
  • No factories reported increased lead times or cost.
March 9, 2020

Wednesday March 11th at 10AM PST, we will be hosting a webinar to discuss the impacts of the coronavirus (COVID-19) on the Lumi factory network and packaging supply chain more broadly. Sign up here.

January 29, 2020

You’ve no doubt heard about the coronavirus (COVID-19) outbreak in China, specifically the Hubei province. While there are no factories in the Lumi network within the Hubei province, the outbreak could soon prompt factory shutdowns in neighboring provinces that may cause delays.

​As of this writing, no lead times have been affected by the outbreak, but should shutdowns continue, you may see delays in order lead times, preproduction sample lead times, and quoting from factories in the these areas. 

Before the outbreak, we forecasted shutdowns for Lunar New Year throughout early February. We are keeping in close contact with manufacturers in China and will update you should shutdowns be extended past those dates.