So how are things today? Really.
Well, it probably depends on whether you’re a “half-full glass” or “half-empty glass” type of person. Here at CMG Plastics, we definitely consider ourselves to be a “more-than-half-full-glass” organization. So, we remain positive and optimistic about the future of our industry and the clients we serve.
Like many of our valued customers, we anticipate challenges the best we can, and look to get out ahead of problems before they become problems. We know that materials and manufacturing are co-dependent, and through the rollercoaster of economic swings due to the pandemic, we’ve continued to “look under every rock” to acquire resins and qualify alternatives, so that we’re as well prepared as possible to satisfy the order volumes of customers to meet consumer demands.
It’s not like we haven’t experienced these problems before. Just not all at the same time.
But, through lockdowns, the worst series of weather events in years, and an overwhelmed supply chain, the demand for packaging and the resin required to manufacture it remains high.
That’s positive. What’s realistic is that the availability of resin, whether virgin or recycled, will be of somewhat limited availability through 2021 but will ease as the year progresses. According to the Manufacturers Association for Plastics Processors (MAPP), “Domestic demand from key end-markets surged in the second-half of 2020 and remains strong.” That demand, which continues in 2021, includes every economic sector from packaging and healthcare to automotive and construction.
We’re applying the “half-full glass” strategy to minimize any problems. As workforces return and productivity ramps up, we’re finding that flexibility and forecasting go a long way. We’re making an outreach to our customers to help them satisfy the demand. For example, if they employ a “Just in Time” inventory model, we encourage forecasting for increased inventory and look to provide a buffer in both material and production to anticipate wild swings in demand. We’re working with our many supply chain partners to keep the flow of resin as robust as possible.
No one, it seems, is immune from these challenges, but working with our hard-working supply chain partners we’re able to offer sensible solutions and forward-thinking ideas provide the best opportunities for clients to meet their goals and succeed in these economic times.
Let’s turn your challenges into opportunities!
We’re ready with options for creating high-quality, sustainable food packaging to your specifications. We look forward to helping you make it happen. Let’s talk.