In a previous article that I published called, Packaging Lead Times: Time is Not Always on Your Side, I discussed in-depth on how much lead time you should allow when purchasing custom packaging in order to meet deadlines. A lot of that information is still relevant, but ever since the “global response” to the pandemic, the industry has changed and become more challenging at every stage.
As most have noticed, lead times are now extraordinarily long to produce/manufacture custom packaging. Even stocked packaging has become a challenge as warehouses struggle to keep up with consumer demand.
What has caused this supply chain issue? For the past two decades paper mills have been closing down all over the US due to a dramatic decline of printed materials and the rise of digital non print distribution. This, coupled with the pronounced and sudden demand of paper products due to a massive increase in online ordering since 2020, has created an astonishingly high demand that US paper mills are grappling with. And let’s not forget the shortage of workers in the last couple of years that is still having an enormous effect.
As a result, these paper mills are allocating their pre-produced orders (yet to be produced paper products) to those they deem as their top “A-List” customers or simply to the highest bidder. This has forced smaller manufacturers to scramble to find materials. All of my contacts in the industry are saying that finding paper for small orders has been relatively “easy”, but the larger runs of 5000 and above have been very challenging.
Many of my clients have come to me for help asserting that manufacturers won’t even return their phone calls. It’s as though they don’t want business. The truth is that many manufacturers can’t handle any more business as the lead times for their present customers are already 6 months to a year for jobs that would normally take 6-8 weeks. Yikes!
Global markets have similar experiences. Corrugated materials, most notably, are in very high demand worldwide. These material shortages are causing Asian markets to have longer lead times as well. And with Chinese provinces shutting down randomly due to outbreaks, the manufacturing and shipping of packaging has been at a standstill . Once the province opens, shipping containers sit idle for an unknown amount of time as they wrestle with this backlog. Shipping by air is a safer bet but the cost of air shipping has increased 3 – 6 times, and any savings that manufacturing packaging overseas has afforded in the past is now obliterated by high shipping expenses.
My suggestion then is to allow at least 6-8 months lead time. I would take the packaging manufacturer’s estimated lead time with a grain of salt in most cases because it’s difficult for them to really know. I’ve spoken with many frustrated manufacturer’s and brokers who are so backed-up with orders that many will take over a year to fulfill.
If you are already too late to meet upcoming deadlines, try using stock packaging with labels or sleeves to customize with your packaging graphics. Also, colored paperboard stock is usually much easier for a manufacturer to acquire quickly, and when used with a foil stamp, can yield tremendous results providing elegant and striking aesthetics.
Buying local has never made more sense than it does right now. Investigate your area, you may find more manufacturers around you than you realize. Many packaging manufacturers do not advertise and are hidden in plain sight all around us.
If you are having trouble getting custom packaging in these difficult times, why not contact me. I may be able to help.
Or try paid-by-the-minute consultation with me on Clarity.fm
