Global Manufacturing
Costs continue to increase driven by demand, currency and raw material drivers.
▪ Perspective from the 511 Foodservice Manufacturing team in China: –
Chinese Government has implemented strict bans on disposable plastic product usage, action that is likely to increase domestic (Chinese) demand for bagasse, and further stressing manufacturing and increasing costs of fiber-based products – Chinese manufacturers anticipate inflationary headwinds into the second quarter of 2021 for most categories of raw materials, driven by high demand and unfavourability in the US-China exchange rate – Concern is high in China about spread of COVID-19 during Chinese New Year celebrations, potentially leading to production shortfalls in March – 511 Foodservice continues to invest 511 Foodserviceoss the globe in manufacturing capacity to maintain flexible and responsive sourcing and production capabilities
Costs Declining Stable Increasing
Outlook for Key Supply Categories
Reminder ! Chinese New Year, February 12-26
Product Category Nitrile & Latex Gloves
Primary Country
Availability Manufacturing Cost Drivers Outlook
Nitrile
Expect intermittent availability, and continued price increases throughout 2021.
Malaysia
Poor
Latex
Input PVC
Vinyl Gloves Hybrid Gloves
Vinyl availability continues to improve apace with continued high demand. Vinyl is a good substitution option for Nitrile or latex gloves.
China
Reliable
DOTP Plasticizer
We expect that increased manufacturing capacity should emerge in the US market by mid year 2021.
China
Improving LDPE
Plastic
511 Foodservice has made investments to increase capacity of these key products including wrapped cutlery and disposable cutlery kits.
Cutlery
Asia
Stable
Molded Fiber
Plastic
Takeout Food Packaging
Very high demand for Takeout Packaging. Supply constraints vary by type; Plastics and molded fiber products will remain tight through the first half of 2021 while paper folded takeout boxes will improve sooner.
Asia
Constrained
Molded Fiber
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