3 MIN. READ
The impact of the initial COVID-19 outbreak and the subsequent lockdown on the vast Chinese manufacturing network has sent ripples through every industry, including packaging.
The nucleus of many supply chains is unfortunately synonymous with the origin of the virus: China. Ships, trucks and aircraft sit idle as quarantines and restrictions limit capacity by as much as 80%.
Now, as manufacturers and shippers scramble to find new solutions and supply chains, the wisdom of sourcing locally becomes extremely clear.
The State of Packaging
Many U.S. manufacturers have accessed packaging services in China, but the pandemic has caused many to rethink their supply chains as the outbreak took hold.
Even prior to the crisis, U.S. companies were eyeing domestic sources of packaging services as the Trump administration enacted tariffs on Chinese imports, which prompted a reshoring movement by American businesses.
But undoing decades of outsourcing and re-creating a national industrial base takes time - time that COVID-19 cut short.
In the short term, despite the severe impacts on many industries, local and domestic deliveries are skyrocketing.
Widespread stay-at-home and shelter-in-place orders issued around the country have resulted in a spike in online purchases.
These products can range from home goods to seeds to clothes to groceries. Demand for fast food, takeout and delivery have also increased due to restaurant closures.
The upside is that all of these goods require packaging for shipping and to preserve freshness or integrity.
The Future of Packaging Manufacturing
Long-term projections are strong as well. A significant shift toward reusable and sustainable packaging puts materials like molded pulp and reusable plastics at the forefront of this growth.
A lingering effect of COVID-19 will be the adoption of produce packaging as consumers demand better tracking and protection of their fruits and vegetables.
This relatively small portion of the packaging market has the potential to increase in size by 2022.
Finding a New Supplier
As a shipper, following these best practices can help you find a domestic packaging or container supplier to meet your demand during these unusual times:
Align with the right provider. If you are shipping temperature-sensitive goods, a general freight packaging company will not be as helpful as a cold chain packager. Look for companies that focus on the types of products you offer and you will find that they have ready-made solutions to all your challenges.
After all, they've done it before.
Go local. Look through a resource like IndustryNet to find suppliers close to your center of operations. IndustryNet lists thousands of U.S. packaging suppliers, including those offering specialty packaging such as flexible packaging, thermoformed packaging and even medical packaging. See all of IndustryNet's packaging suppliers here or see the list at the end of this article.
Why local? Logically, the proximity reduces the time required for orders to be delivered, enabling just-in-time packaging. That proximity also allows you to visit the supplier personally and meet the people you'll be working with.
An additional bonus is that the local economy will benefit from two domestic companies working together, something desperately needed in the midst of COVID-19's financial toll on America.
Consider the sources. Does the supplier source materials domestically or internationally? Knowing this can give you a crystal ball view of some of the challenges it may be facing in getting its packages kitted out for customers.
If you are concerned that future virus outbreaks may cause havoc with a supplier getting their materials, look for one that sources domestically. There are many types of materials and many of the more ecologically friendly ones are made from re-purposed or recycled items collected in the United States.
Article Sources:
https://www.cdc.gov/coronavirus/2019-ncov/index.html
https://www.marketwatch.com/press-release/covid-19-to-have-significant-effect-on-worldwide-adoption-of-produce-packaging-market-in-2020-2020-04-09
https://industrynet.com/
https://finance.yahoo.com/news/despite-short-term-strain-covid-162700078.html
https://medium.com/@openpackagingnetwork/how-is-coronavirus-affecting-the-packaging-supply-chain-df57186e8e12
https://www.s-packaging.com/pulp/what-is-molded-pulp/
https://industrynet.com/blog/us-to-slap-tariffs-on-half-of-all-chinese-imports
