Doug Pontsler

US Election Day! 🦅 What are the implications for American Packaging? 📦 Manufacturing: ◾ Trump's proposed tariffs of up to 20% on imports could increase costs for foreign packaging materials, disrupting supply chains. ◾ However, this may boost domestic manufacturing demand, increasing revenue opportunities for US packaging companies. ♻️ Sustainability: ◾ Harris' emphasis on environmental policies could drive significant investment in sustainable packaging solutions. ◾ But, proposed ESG regulations may lead to higher compliance and reporting costs, particularly for companies using plastic packaging. #USElectionDay #Packaging #FlexiblePackaging #Sustainability

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#MaterialsManagementMonday: The Halloween Candy Supply Chain Scare With Halloween just behind us, let’s dive into the supply chain behind the treats. Ever wonder why the candy aisles start filling up so early? Managing a seasonal, high-demand product like Halloween candy is no small feat, especially when demand peaks on a single night. Here are a few key moves that ensure shelves are stocked for October 31: Forecasting Tricks and Treats: Candy makers forecast demand months ahead, balancing last year's sales data with current trends. A single miscalculation here can mean empty shelves or wasteful surplus. Early Manufacturing and Storage: To handle the seasonal surge, candy production ramps up as early as July. This requires precise materials management—sourcing ingredients and packaging well in advance and optimizing storage for a short-term spike in volume. Distribution Challenges: Halloween candy has a short shelf life on store displays but not in the warehouse. Distributors manage inventory rotation closely to avoid melt risks or spoilage. By early October, products are moving fast from distribution centers to retailers. Avoiding Tricks in Last-Mile Delivery: The final push to stores is crucial. Last-mile delivery services increase capacity to meet demand, while retailers aim to avoid overstocking to prevent post-Halloween markdowns. This seasonal supply chain dance provides a powerful example of managing high-stakes, time-sensitive inventory. Each piece—forecasting, production, storage, distribution, and delivery—must align for the smooth flow of goods in and out of stores. What other seasonal products do you think could benefit from similar precision in materials management? Let me know your thoughts. 🎃🍬 #MaterialsManagementMonday #SupplyChain #HalloweenSupplyChain #InventoryManagement #SeasonalDemand #LastMileLogistics #CandySupplyChain #SupplyChainChallenges #OperationsManagement

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Single-Use Plastics Regulation - Latest News Update! The latest article highlights that the USA Government rejects banning single-use plastics in government purchasing and strict bans on these items. This shift emphasizes the need for comprehensive solutions balancing environmental protection with practicality, promoting innovation in plastics recycling. Let's engage in constructive conversations and collaborative efforts to champion responsible plastics usage for a cleaner, greener world! #Sustainability #PlasticInnovation #EnvironmentalConservation #CollaborativeEfforts

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July Manufacturing Metrics The Institute of Supply Management (ISM) has issued its July recap. The Manufacturing PMI® dropped to 46.8%, marking the fourth consecutive month of contraction and the 20th in the last 21 months. Key metrics showed declines: New Orders Index fell to 47.4%, Production Index to 45.9%, and Employment Index to 43.4%. Conversely, the Prices Index rose slightly to 52.9%, and the Supplier Deliveries Index indicated slower deliveries at 52.6%. Imports came in at 48.6, still in contraction mode, but up a tick from June's 48.5. For what it's worth, by import friends are telling me that they feel the uptick. Overall demand and production declined, reflecting weak output and reduced headcounts. Despite this, inputs like supplier deliveries, inventories, prices, and imports were generally accommodating. The manufacturing GDP contraction expanded to 86%, with 53% of sector GDP showing significant weakness. All major manufacturing industries contracted, with only five industries, including Printing and Petroleum & Coal Products, reporting growth. Economic conditions, federal monetary policy, and other factors kept companies hesitant to invest in capital and inventory, further pressuring profitability.

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We are almost halfway through the 4th Quarter. How is your business trending against your plan for 2024? How are you feeling about your budget for 2025? Supply chain planning has many challenges indeed! ⚠ Supply chain and Freight ⚠ Corrugated ⚠ Lumber and Pallets ⚠ Chemicals and Gases ⚠ Plastics ⚠ Metals Now is a great time to get out ahead of those challenges! Why now? Because curious, successful executives feel there is additional cash flow available in their supply base DM me to learn how a SpendVue™ assessment can give you an edge. 

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Strategic Tips for Manufacturers Navigating Economic Challenges Yesterday, we talked about the ISM Report for Manufacturing, based upon May's data. Essentially a split report: Overall, the aggregate index is 48.7. There has only been one recent month March) where this metric was at 50 or higher. The majority of the metrics are over 50, but the overall metric is still below 50. Here is what you can do as manufacturers to navigate these waters: Focus on Efficiency: With the Manufacturing PMI indicating contraction, it's crucial to streamline operations and reduce costs. Implement lean practices to maintain profitability. Monitor Demand Closely: As new orders continue to decline, stay agile and responsive to market demand fluctuations. Adjust production schedules accordingly. Optimize Inventory Management: With inventories and backlogs declining, ensure inventory levels are balanced to avoid excess or shortages. Use data to forecast demand accurately. Enhance Supplier Relationships: Supplier deliveries are stable, but monitor closely for any potential disruptions. Strengthen relationships and consider diversifying suppliers to mitigate risks. (Remember the focus on resiliency coming out of Covid?) Invest Wisely: Be cautious with capital expenditures and focus on investments that enhance efficiency and innovation. Prioritize projects with clear ROI and align with long-term goals. Leverage Export Opportunities: With new export orders showing marginal growth, explore international markets and expand export strategies to offset domestic demand challenges. Manage Labor Effectively: The employment index shows growth, indicating potential opportunities for skilled labor. Invest in workforce development and training to enhance productivity. Adapt Pricing Strategies: Despite easing, the Prices Index remains high. Evaluate pricing strategies to manage rising costs without compromising competitiveness. Stay Informed: Keep abreast of economic policies and market conditions. Regularly review industry reports and adjust strategies based on the latest insights. By focusing on these areas, you can navigate the current economic challenges more effectively and position themselves for future growth. Good luck!!

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Do you ever think that a trusted name-brand product you buy from a legitimate retailer could be counterfeit and harmful? In the article, "Ensuring Product Integrity and Trust in Your Supply Chain," author Geoffrey R. Kaiser highlights the risks consumers face, even when shopping at trusted retailers and outlets. He shares how otherwise authentic products can take on harmful characteristics if they are diverted from authorized distribution channels into the “gray market.” Products that escape into the “gray market” are often not properly controlled and are thus susceptible to corrupting environmental influences that can render the products adulterated or mislabeled and harmful to consumers. He points out that counterfeit products aren't just a concern for bargain hunters—they can infiltrate even reputable retailers. Here’s what you should know: Stick to authorized retail channels for the best chance of receiving authentic goods. Understand that even within these channels, supply chain vulnerabilities exist. Brands and retailers must invest in due diligence and internal controls to minimize counterfeits and maintain consumer trust. Supply chain security isn’t just about protecting profits—it’s about safeguarding consumers' health, safety, and trust. https://lnkd.in/ezHtHPH7 #ConsumerSafety #BrandProtection #SupplyChain #CounterfeitPrevention #Trust

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Supply chain planning may be more challenging than ever for the next several months. Learn more about how to combat these challenges in the latest ERA Group - North America manufacturing newsletter from Travis Cantrell and Patrick Garr by clicking the link below. https://lnkd.in/eW439MFQ

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Here’s how to implement savings quickly on direct materials when resourcing is difficult. Like many automotive suppliers, the majority of this company’s materials were customer directed. Only a fraction of the resins spend was addressable (just over 30 making up $8M annual spend). Because of this, they did not manage their resins spend strategically. The buyer just sourced whichever supplier their customer recommended. Within the 30+ addressable materials, eight were identified as likely overpriced by APD’s resins expert. These made up $4.5M of the $8M addressable spend. Swipe to learn the steps they took to achieve 5.6% savings on the $8M spend by focusing on these eight target resins. Are you a manufacturing leader looking to quickly start saving in 2025? DM me, and let's discuss your untapped opportunities. You could implement $200k - $500k in savings in as little as 14 weeks, with fees based on the savings achieved.

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U.S. manufacturing activity contracted again in November, but at a slower rate compared to last month. Demand continues to be weak but may be moderating, output declined again, and inputs stayed accommodative. Positive signs for demand include the (1) New Orders Index returning to expansion territory, (2) New Export Orders Index increasing moderately (up 3.2 percentage points but still in contraction territory), (3) Backlog of Orders Index dipping further into strong contraction territory, and (4) Customers' Inventories Index indicating levels were only marginally above 'too low.' (For more, see the Customers' Inventories Index summary section.) Output (measured by the Production and Employment indexes) continued in contraction: Employment shrunk, but at a much slower rate, and production took a small step in the right direction. Foundational industries like Chemical Products and Fabricated Metal Products (that provide products and components across the manufacturing sector) continued to show weakness, indicating that recovery may still be two to three months away. Inputs — defined as supplier deliveries, inventories, prices and imports — generally continued to accommodate future demand growth, with inventories improving and suppliers continuing to improve delivery performance. "Demand remains weak, as companies prepare plans for 2025 with the benefit of the election cycle ending. Production execution eased in November, consistent with demand sluggishness and weak backlogs. Suppliers continue to have capacity, with lead times improving but some product shortages reappearing. Sixty-six percent of manufacturing gross domestic product (GDP) contracted in November, up from 63 percent in October. The share of manufacturing sector GDP registering a composite PMI calculation at or below 45 percent (a good barometer of overall manufacturing weakness) was 48 percent in November, a 2-percentage point increase compared to the 46 percent reported in October. Two of the six largest manufacturing industries — Food, Beverage & Tobacco Products; and Computer & Electronic Products — expanded in November, the same number of industries as in October." The three manufacturing industries reporting growth in November are: Food, Beverage & Tobacco Products; Computer & Electronic Products; and Electrical Equipment, Appliances & Components. The 11 industries reporting contraction in November — in the following order — are: Printing & Related Support Activities; Plastics & Rubber Products; Chemical Products; Paper Products; Transportation Equipment; Fabricated Metal Products; Furniture & Related Products; Machinery; Nonmetallic Mineral Products; Miscellaneous Manufacturing; and Primary Metals. Manufacturing ISM Report On Business. The report was issued Monday by Timothy R. Fiore, CPSM, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee. Comments include inflation, lower construction, destocking, risk management, caution.

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Why Inventory Management Often Gets Overlooked One of the biggest blind spots in many companies is the lack of a stated value for inventory carrying costs. This oversight can lead to a fundamental disconnect in how inventory is managed, especially when it comes to inventory turns. In fact, I’ve had buyers and planners ask me, “What are inventory turns?” when I inquire about their metrics. It’s a telling sign that the focus is often skewed towards immediate, visible results—like filling customer orders—over strategic, long-term considerations like inventory optimization. Let’s face it: when push comes to shove, most buyers and planners will err on the side of overstocking rather than risking a stockout. Why? Because they know they’ll catch heat from sales or customers if an order can’t be fulfilled. On the flip side, having too much inventory rarely raises alarms. But here’s the kicker—this mindset exists because of where inventory appears on the financial statements. Inventory doesn’t show up on the income statement—it’s a balance sheet item. What does this mean? Well, while inventory does tie up cash and space, it doesn’t immediately affect reported profits, so it tends to get less scrutiny. The focus on income statements, where sales and cost of goods sold (COGS) are tracked, means that the urgency of inventory management is often underestimated. However, the implications are significant. When inventory is allowed to balloon unchecked, it creates hidden costs that can erode profitability over time. These include increased carrying costs, risk of obsolescence, and reduced cash flow—all of which can strain a company’s financial health. Yet, because these costs don’t hit the income statement directly, they often go unnoticed until they become a much bigger problem. This is why it’s crucial to educate and align your teams on the importance of inventory turns and carrying costs. By doing so, you can shift the focus from just filling orders to managing inventory more strategically—balancing the need to meet customer demand with the necessity of maintaining financial discipline. #MaterialsManagementMonday #SupplyChain #InventoryManagement #OperationsExcellence #FinancialDiscipline

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From lumber prices to election impacts on the supply chain, this quarter is critical for procurement teams. Stay ahead with insights on freight, pallet costs, and industrial chemicals with our Q4 newsletter: https://lnkd.in/gRmS8bB2 #costreduction #costsavings #cfo #finance #savings #ceo #eragroup #costmanagement #business

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🔍 Deep Dive into September’s ISM Manufacturing Report: Understanding the Three Pillars – Demand, Output, and Input September’s ISM® Manufacturing PMI® holds critical insights for those navigating the current manufacturing landscape. Let’s break it down into the three key areas: Demand, Output, and Input. (For reference- 50 is the baseline. Any score below 50 is in contraction (except supplier deliveries) and anything above 50 is growing.) Demand: The weak demand environment remains a significant challenge. The New Orders Index stayed in contraction territory at 46.1%, showing only a slight improvement over August’s 44.6%. Export orders continued their downward trend, reflecting global economic uncertainty. Manufacturers are sitting on the sidelines, likely due to ongoing concerns around U.S. monetary policy and upcoming elections. Output: While demand struggles, production is showing signs of stabilization. The Production Index rose to 49.8%, up 5 percentage points from August, just shy of the expansion threshold. However, employment remains a concern, as companies continue right-sizing their workforce in line with projected demand. This balancing act between production and labor is a clear indication that manufacturers are cautiously optimistic but unwilling to make bold moves just yet. Input: On the input side, suppliers are managing to keep pace, but there are still some areas of concern. The Supplier Deliveries Index is slowing, at 52.2%, indicating longer lead times. Inventories, however, dropped sharply, with the Inventories Index at 43.9%, down from 50.3% in August. The sharp contraction in inventories signals potential future supply shortages if demand spikes unexpectedly. Additionally, prices entered contraction territory for the first time this year, dropping to 48.3%. This may offer a temporary relief on cost pressures, but it’s another indicator of broader market weakness. Manufacturers are walking a fine line as they adjust to weak demand while maintaining a flexible supply chain. The question remains: how long can manufacturers hold on before seeing a real recovery? What’s your strategy to manage these uncertain times? #MaterialsManagementMonday #ISM #ManufacturingPMI #SupplyChainChallenges #DemandManagement #InventoryControl #OperationalExcellence #Manufacturing

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The crucial step most buyers skip when quoting new suppliers . . . Even in the best of times, purchasing teams are under enormous pressure to deliver costs savings. Manufacturing purchasing leaders are saying that cost reductions are even more urgent in 2024. Quoting new suppliers has become the norm for most manufacturers looking to reduce costs on their purchased material. But don’t pull the trigger on the RFQ’s too quickly – it’s vitally important to make sure you’re quoting the right suppliers first. Without a robust process for vetting suppliers, you’ll either end up with a bunch of “savings opportunities” that are really false hopes or even worse, wasting time and resources on supplier audits and customer validations that end up failing. Here’s three simple steps to vet suppliers before you include them in RFQs: 1.     Identify the important supplier attributes that make their way into supplier selection. These should be a combination of capabilities (right manufacturing processes, experience in your industry), desire to do business with your company (fit for product mix and volumes, willingness to achieve target costs), and available capacity. 2.      Get consensus on what you’re looking for in a new supplier. Work with stakeholders to develop an “Ideal Supplier Profile” with best case targets for each important attribute. Then circle back and define the least acceptable condition for each. 3.     Interview potential new suppliers and score them against the Ideal Supplier Profile. We use a red/yellow/green designation – for each attribute, if a supplier doesn’t meet the least acceptable condition, it’s a red. If they meet the best case targets, it’s a red. Anything in between is a yellow. You’ll find this simple step – vetting potential new suppliers before quoting – will save you considerable time after quotes have been evaluated and decisions need to be made. While it won’t ensure that every supplier you include in the RFQ will be a perfect supplier partner, it will prevent 80% of the mismatches that you’re already discovering later in the process. Under pressure to implement more savings in 2024 than your team can deliver? DM me to discuss if you might have untapped opportunities to implement $200k - $500k savings (with fees based on savings achieved). #CostReduction #FastTrackSavings #Procurement

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🔎 Clue: This survey showcases trends in the manufacturing sector, prompting executives to consider strategic initiatives for business growth. 🔔 Answer: What is... the Sikich Manufacturing Pulse Survey? 💡 Correct! This survey offers invaluable insights into the manufacturing landscape, guiding executives towards strategic decisions for a brighter future. Keep up with the Pulse for success! Take a look below - thanks for posting, Steven Randall! #PulseSurvey #ManufacturingInsights #StrategicDecisions #accounting #audit #tax #manufacturing #business #economy #SiteSelection #Incentives

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National Association of Manufacturers has told the Office of the United States Trade Representative that it must use existing trade and investment tools to promote supply chain resilience for manufacturers in the U.S. Some of the specifics asks are: - Adjusting or eliminating “current tariffs on manufacturers and ensur[ing] they are applied in such a way that creates a competitive environment for manufacturing in the U.S.”; - “Negotiating more high-quality, modernized trade agreements with foreign partners” to remove trade barriers and address discriminatory measures; and - Enforcing on-the-books trade agreements “to ensure that our trading partners are playing by the rules.” #manufacturing #supplychain #supplychainrisk #globalization #tradepolicy

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There is so much talk about plastic dust toxicity, aka #microplastic #toxicity. Here's a statement from OSHA, the government agency responsible for workplace safety. Important - read all the way to the very last line! Hazard Recognition Plastic dust has several hazards associated with exposure to it in the workplace. In general, exposure to excessive amounts is considered to have an irritant effect on eyes, nose and throat in addition to pulmonary function impairment and is considered a human carcinogen. Some types of plastic dust have also been shown to cause asthma. Significant accumulations of fine particles of plastic dust can also be a fire and explosion hazard in the workplace. The following web pages list different types of plastics and provide information about each one and how they may affect humans.   Toxicity   ·     Report on Carcinogens (RoC). U.S. Department of Health and Human Services (DHHS), National Toxicology Program (NTP). Identifies and discusses agents, substances, mixtures, or exposure circumstances that may pose a health hazard due to their carcinogenicity. The listing of substances in the RoC only indicates a potential hazard and does not establish the exposure conditions that would pose cancer risks to individuals.   ·     Plastic Dust. NTP classification: Known to be a human carcinogen   ·     International Agency for Research on Cancer (IARC) Monographs on the Evaluation of Carcinogenic Risks for Humans. World Health Organization (WHO).   ·     Plastic Dust. IARC Classification: Carcinogenic to humans (Group 1).   Biological Hazards and Chemical Additives   The health effects associated with plastic dust come not only from the plastic dust itself but also biological organisms such as mold and fungi which grow on the plastic, and chemicals such as formaldehyde, copper naphthanate, and pentachlorophenol used in the processing of some plastics.   Dust Explosions   In addition to the health effects of plastic dust, airborne dust can create the potential for a dust explosion.   Source OSHA https://lnkd.in/gjTB98Z8   That's right - this is actually an extract from the OSHA guidelines for wood dust, not plastic dust. The word "wood" was replaced by "plastic" to make a point. How do you feel now that you know that this is about wood and not plastic? Why are people so keen to demonize plastics, even when science shows them to be safer than some of the natural materials that we assume to be safe? https://lnkd.in/g_czy7qn

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Labor strikes and tense negotiations continue to highlight vulnerabilities in supply chains, emphasizing the urgent need for resilience. This article by Lisa Anderson in Supply Chain Xchange explores how businesses can mitigate such risks by investing in flexible strategies like diversified sourcing, robust inventory management and strong supplier relationships. This shift is crucial for companies aiming to maintain stability in uncertain conditions. Check out the full article: https://ow.ly/EmQu50U54nW #LaborStrikes #SupplyChain #SupplyChainXchange

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Very interesting column in the Washington Post this morning. To quote the subtitle: "It’s hard to exaggerate how bad Kamala Harris’s price-gouging proposal is." Excerpt: "It is, in all but name, a sweeping set of government-enforced price controls across every industry, not only food. Supply and demand would no longer determine prices or profit levels. Far-off Washington bureaucrats would. The FTC would be able to tell, say, a Kroger in Ohio the acceptable price it can charge for milk. "At best, this would lead to shortages, black markets and hoarding, among other distortions seen previous times countries tried to limit price growth by fiat. (There’s a reason narrower “price gouging” laws that exist in some U.S. states are rarely invoked.) At worst, it might accidentally raise prices. "That’s because, among other things, the legislation would ban companies from offering lower prices to a big customer such as Costco than to Joe’s Corner Store, which means quantity discounts are in trouble. Worse, it would require public companies to publish detailed internal data about costs, margins, contracts and their future pricing strategies. Posting cost and pricing plans publicly is a fantastic way for companies to collude to keep prices higher — all facilitated by the government." #economics #centralplanning #socialism #overreach #economics #commonsense #inflation #governmentspending #harris2024 #election2024 #weakleaders #societyandculture #supply #demand #economicfreedom

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