COVID-19 Bulletin: April 28

Good Afternoon,

More COVID-19 news relevant to the plastics industry:

Supply

• WTI continued its slide in early trading today, down 7% to $11.81/bbl. Brent crude was up 2% at $20.41/bbl.
• The Baker Hughes count of active domestic rigs fell to 465, the lowest level since 2016 and down from nearly 1,000 a year ago.
• Nigeria, which depends on oil for 60% of government revenue, faces an “existential” threat as it slashes production faster than other nations due to a lack of storage capacity.

Supply Chain

• Shipbuilding investment fell to an 11-year low in the first quarter.
• The pandemic is upending forecasting models used by major companies to manage their supply chains.
• Our Gold Standard logistics and transportation partners continue to operate without disruption.
• U.S. ports continue to operate smoothly:

Markets

• Technical glitches resurfaced with the SBA’s administration of the second round of Paycheck Protection Program (PPP), frustrating the deluge of small businesses seeking emergency loans.
• Despite government rescue efforts, U.S. bankruptcies are projected to soar in coming months to levels rivaling the Great Recession.
• The U.S. Federal Reserve’s balance sheet could grow to over $10 trillion, more than twice its size during the Great Recession, as the central bank breaks historic boundaries in financing the federal debt, state and local government, and private businesses from Main Street to Wall Street.
• Ohio and Texas joined a growing group of states announcing reopening plans for the coming days, while Louisiana extended its shutdown until May 15.
• Fiat Chrysler Automobile, Ford, GM and the United Autoworkers union agreed to reopen automobile plants on May 18. 
• Under U.S. pressure, Mexico has agreed to reopen its automotive industry, which it previously designated as non-essential and which accounts for nearly 18% of the country’s manufacturing sector.
• Boeing’s CEO warns the airline industry might not recover for several years.
• The COVID-19 crisis will have long-term impacts on office work life.

International

• The USMCA trade deal, which replaces the North American Free Trade Agreement among Canada, Mexico and the U.S., will take effect on July 1, a month later than originally planned.
• New Zealand reopened its economy, announcing that COVID-19 has been eradicated in the nation.
• Argentina extended its ban on domestic and international flights until September.

Our Operations

• 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.