Good Afternoon,
More COVID-19 news relevant to the plastics industry:
Supply
- Oil prices, on pace for their eighth weekly drop in the past nine, were steady in early trading today, with the WTI price at $16.50/bbl and Brent crude at $21.51/bbl.
Supply Chain
- U.S. rail traffic fell 23% last week.
- The United Nations has formed a task force to coordinate distribution of medical supplies in an increasingly disrupted global supply chain.
- Global dependence on China as a manufacturing center has been highlighted by chaos in the country’s devolving medical supply chain.
- South Korea committed $33 billion to protect vital industries, including the shipping sector, at the same time it launched the world’s largest container ship. Some 400 sailings have been canceled since February by the world’s major shippers.
- Our Gold Standard logistics and transportation partners continue to operate without disruption.
- U.S. ports continue to operate smoothly:
Markets
- The House of Representatives approved the latest rescue package, which includes $321 million in additional funding for the Paycheck Protection Program (PPP) for small businesses.
- The U.S. Purchasing Managers Index (PMI) for the service sector plummeted to a record low of 27 in April, while the PMI for manufacturing fell to 36.9, an 11-year low. A score below 50 signifies deteriorating conditions.
- A number of states are extending stay-at-home orders with modifications to allow some businesses to reopen:
- Michigan and New Mexico extended restrictions until May 15.
- Illinois extended restrictions through May.
- North Carolina extended until May 8.
- Consumer buying patterns could be at an inflection point, according to major brand owners and retailers:
- Unilever, which has seen strong growth in demand for soaps and cleaning products and weakness in cosmetics and grooming supplies, expects such trends to be long-lasting.
- Target, which has experienced a decline in store traffic and surge in online sales, expects the shift to digital commerce will be permanent.
- Green cleaning products have gotten a boost because of shortages of traditional brand leaders.
- The UAW opposes reopening U.S. automotive plants in early May due to workforce safety concerns.
- Global automobile sales are projected to fall by more than 20% in 2020.
International
- Africa experienced a 43% jump in COVID-19 cases last week, supporting World Health Organization concerns that the continent’s antiquated healthcare systems are unprepared to deal with the virus.
- Our steamship partners are reporting surging sailings to Asia as China reopens and industry resumes production.
Our Operations
- Our 3D Printing initiative to make and donate face masks to needy hospitals was highlighted in a Plastics News article.
- To access 3D printing training, order parts and seek technical assistance, visit our new online resource.
- M. Holland is open for business, deemed essential and will continue to operate at full capacity. We have issued the following status statement:
In accordance with the guidance provided by the U.S. Department of Homeland Security Cybersecurity & Infrastructure Security Agency (CISA), M. Holland Company is considered a member of a critical infrastructure industry and will therefore remain operative. As such, with any necessary accommodations made to ensure the health and safety of our staff and business partners, we will continue to fully perform our normal business operations.
Thank you,
M. Holland Company
We will provide further COVID-19 bulletins as circumstances dictate. For all COVID-19 updates and notices, please refer to the M. Holland website.