The automotive industry is no stranger to volatility—but the latest round of tariffs on imported raw materials is creating a fresh set of challenges for OEMs and suppliers alike.
With increases hitting plywood, dimensional lumber, fasteners, corrugated materials, and other packaging components, we’re seeing a ripple effect across procurement, operations, and logistics. Costs are rising, lead times are growing, and many suppliers are being forced into reactive decisions.
For those already utilizing bank builds, now is the time to go beyond “safety net” thinking and start using your packaging bank as a strategic lever in navigating tariffs and supply chain pressure.
Why bank builds matter right now—and how they protect your bottom line:
1. Combat Unpredictable Price Increases
Tariffs directly impact the cost of key raw materials—especially those used in wood crating, corrugated packaging, and dunnage. And those increases often hit fast and without warning.
By producing your packaging ahead of time, you effectively lock in current pricing before material surcharges and tariff premiums trickle down the supply chain.
Think of it as buying ahead in a rising market—while your competitors are paying 15–20% more, your packaging cost remains steady and predictable.
2. Stabilize Production Timelines
Uncertainty in global sourcing is causing delays and bottlenecks. Even if your components are on time, packaging is now a critical path item that can stall shipments.
Bank builds ensure your packaging is pre-produced, in-spec, and ready when you are—no last-minute scrambling, no relying on volatile vendor lead times.
This is especially crucial for:
- Just-in-time production environments
- Multi-site manufacturing operations
- Launches of new models or parts programs
- Suppliers supporting multiple OEM timelines
3. Protect Against Costly Freight Workarounds
When lead times stretch and packaging isn’t available on schedule, you may be forced to:
- Expedite freight for late packaging components
- Switch to more expensive materials out of desperation
- Delay shipments and pay penalties or damage trust with OEMs
A well-planned bank build eliminates emergency orders and premium freight, giving your logistics team more control and confidence.
4. Maintain Packaging Integrity and Compliance
Rushed sourcing often means compromising on specs or skipping necessary certifications like ISPM-15 for export crating.
Banked inventory from Lamar Packaging Systems is produced with your exact requirements in mind—and stored in optimal conditions until it’s needed. That means no surprises when your products are ready to move, whether they’re headed down the street or overseas.
This isn’t just about riding out a spike—it’s about long-term resilience.
We’re actively helping Tier 1 and Tier 2 suppliers strengthen their packaging strategies in response to current and forecasted tariff increases. Some are expanding their banks to cover larger volumes. Others are adjusting material mixes now before costs climb further.
If you haven’t revisited your bank build strategy since the latest tariff announcements, we strongly recommend doing so.
Let’s review your forecasts and see how we can help optimize your packaging program before pricing and availability become bigger hurdles.