Good Afternoon,
More COVID-19 news relevant to the plastics industry:
Supply
- Optimism about oil production cuts and the reopening of many national economies led to a fifth straight day of price gains, with the WTI up more than 10% to $22.57/bbl in early trading and Brent crude up nearly 8% to $29.29/bbl.
Supply Chain
- With an estimated 40% of global raw materials now sourced through recycling, the pause in recycling caused by COVID-19 is creating supply chain challenges in many industries.
- Our Gold Standard logistics and transportation partners continue to operate without disruption.
- U.S. ports continue to operate smoothly:
Markets
- Widespread fears of COVID-19 could present a hurdle to an economic recovery, as more than two-thirds of respondents in a recent survey expressed reluctance to resume clothes shopping or frequent sit-down restaurants.
- Debate concerning a fourth round of federal economic recovery legislation centers on whether it should include protection for businesses against lawsuits and aid for state and local governments.
- The U.S. Treasury said that it will borrow $4.5 trillion this year to fund the pre-COVID-19 deficits and its pandemic response.
- California became the first state to borrow from the federal government to fund unemployment benefits.
- The U.S. death rate from COVID-19 could double to 134,000 by August as more states lift sequestration restrictions.
- The forbearance rate for home loans rose to 7.5% and is expected to climb further with more than 30 million people now out of work.
- Zillow predicts U.S. housing prices will dip a modest 2%-3% this year, compared with a 27% plunge following the Great Recession, with sales falling 60% in the coming months before rebounding.
- Big Tech is one of the few industry sectors that is growing in the COVID-19 era:
- GMC has delayed the unveiling of its electric Hummer, originally scheduled for May 20.
- Discarded personal protective equipment from the COVID-19 crisis could aggravate the global plastic waste challenge.
- The world could be facing one- to two-years of a “low-touch economy” with a variety of social, political and economic aftershocks from COVID-19.
- More than half of U.S. states are in some stage of reopening their economies.
International
- In April, Western economies suffered their worst monthly decline in factory activity in history.
- Purchasing Manager Index (PMI) readings across ASEAN nations fell to historic lows in April, even with China’s resumption of manufacturing.
- New COVID-19 cases in Brazil are pacing at 5,000 per day; the country, which has shunned social-distancing restrictions, passed China in the number of infections and fatalities from the pandemic.
Our Operations
- As states move to reopen their economies, we are in the process of developing firm protocols for our commercial and technical teams to resume client site visits on a restricted basis.
- Our Healthcare team is offering video conferences for clients seeking advice on medical material selection, manufacturing and regulations. To schedule a meeting, contact Global Healthcare Market Manager Josh Blackmore.
- To access 3D printing training, order parts and seek technical assistance, visit our new online resource.
- M. Holland is fully operational and prepared to meet client needs for materials, material selection, logistics services and technical support.
- 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.