November’s economic activity in the manufacturing sector was in contraction for the eighth month in a row, and companies continued to reduce staffing levels, according to insights in a manufacturing PMI report from the Institute for Supply Management released Monday. Plastics products and paper products were among the categories in decline.
However, ISM’s index reading was up month-to-month from 46.5% in October to 48.4% in November.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said there’s optimism following U.S. elections — but production realities don’t yet reflect it.
“In contrast, current production levels fell for a fourth straight month in November, dropping at a rate not exceeded for nearly one and a half years. The gap between expected future output and actual current output is now the widest seen for a decade if the pandemic is excluded, underscoring the marked divergence between tough current conditions and the mounting expectation of better times to come,” Williamson explained in an S&P Global US Manufacturing PMI report released Monday.
“Demand conditions need to improve alongside the improvement in confidence to encourage producers to raise production,” Williamson said.
These companies in the packaging space disclosed manufacturing closures, layoffs and related updates in November:
- Anchor Glass will close a facility in Jacksonville, Florida, in the second half of February, impacting 144 employees. The site has supplied millions of bottles to a nearby Anheuser-Busch plant, the Florida Times-Union reported. It’s one of six manufacturing sites for the Tampa-headquartered glass container business. In a letter filed with the state, the company cites changing business needs as a reason for the closure. It said it gave notice to workers on Nov. 18 about layoffs that will take place between Jan. 17 and April 30 as operations wind down. There are no applicable bumping rights, the company said.
- Ardagh Glass is permanently closing a Seattle glass production facility that serviced wine customers. Permanent layoffs began for 245 workers on Nov. 7 at the previously curtailed facility, according to a notice filed in Washington state. The company told Packaging Dive that a recent “disappointing” ruling by the U.S. International Trade Commission regarding glass wine bottle imports from China further hurt its prospects.
- BVPV Styrenics gave notice to the state of Pennsylvania in November that it would close a site in Monaca, with layoffs affecting 140 employees beginning Jan. 3. The Pittsburgh-area facility, operated by EPS manufacturer Styropek since its purchase in 2020, makes beads used in foam products such as cups and takeout containers, CBS News reported. The Pittsburgh Post-Gazette reported on Nov. 18 that Styropek was selling the plant.
- International Paper released additional details about previously announced layoffs at its corporate headquarters in Memphis, Tennessee, in a Nov. 13 WARN notice. Layoffs are expected to occur Jan. 1-3, impacting 297 employees.
- Orora Packaging Solutions, doing business as Manufactured Packaged Products, is permanently closing a facility in Brea, California, according to a Nov. 21 notice to the state that lists 60 employees. Through a phased process the site will shut down in approximately January 2026, according to Chris Bradley, chief marketing, design and sustainability officer. Orora has already begun relocating equipment, and some employees, from the Brea facility to other locations. The company anticipates having transfer options for “nearly all” of its Brea employees, Bradley said; Jan. 13 would be the first day of separation for some employees if they don't accept the transfer.
Other updates
- Reyes Coca-Cola Bottling, a West Coast and Midwest bottler and distributor of Coca-Cola brands, is permanently closing a site in Modesto, California, effective Jan. 10. Per a Nov. 8 notice to the state, 101 workers will be impacted.
- Tupperware, which sells reusable plastic containers for food, will terminate operations at its Orlando, Florida, headquarters, according to a Nov. 1 WARN notice with the state filed by Dart Industries (Tupperware is a registered trademark of Dart Industries, a subsidiary of Tupperware Brands Corp.). Come Dec. 31, Most of the 145 employees will face layoffs effective Dec. 31. Tupperware Brands Corp. filed for Chapter 11 bankruptcy in September, and in October it agreed in principle to sell itself to a group of its lenders. In the WARN notice, the company said it anticipated assets of its company would be purchased. “It is expected that such purchasing entity will be extending offers of employment to certain of the Company’s employees, but details relating to such offers are not known at this time,” the WARN notice said.
Editor's note: This story has been updated with additional details from Orora Packaging Solutions about the facility shutdown in Brea, California.
