Plastics processors all over the country are facing unprecedented lead times and production concerns around the resin industries. We continue to update you on this evolving issue and what should be done to help customers weather the storm.
As we continue through the resin crisis, we recommend working with your current supplier to confirm allocations as well as future supply. The resin crisis will continue to get worse before it gets better — we are anticipating this crisis lasting through June, if not longer.
How to navigate the shortage
Our engineering services team can work with you and your suppliers to help identify alternative resins that you can use while we navigate these strange times. Learn about the pros and cons of each different resin and see if an approach to pivot your resin selection in the short term is something that your business should consider. Then, be ready to give long-term commitments for supply today, knowing that this crisis is set to continue for months to come.
How are we going to avoid this in the future?
As we work to get past this crisis, an important thing to remember moving forward is to have a committed branded distributor. Talking with your distributor about your forecast for the year and volume requirements will not only help them plan and prepare for your demand, but it will also keep your company top of mind if a crisis does occur.
Right now, in the resin crisis, companies are submitting orders to manufacturers and are getting terms such as "30-week lead times" thrown at them. When you have a committed relationship and requirement already in place with a manufacturer, your forecasted supply is already being factored in, resulting in quicker product response times. Having a committed relationship will also allow you to have some "buffer stock" on hand when these types of delays occur again.
Conclusion
As resin plants continue to regain power and recover from the latest setback, companies continue experiencing productivity issues. The best way to address the current resin crisis is to be proactive by taking these steps now:
- Specify alternate resins and get them qualified.
- Provide an extended forecast for production.
- Consider making long-term commitments on orders and resins.
- Provide ample lead time on orders.
- Prepare for cost increases.