COVID-19 Bulletin: May 1

Good Afternoon,

More COVID-19 news relevant to the plastics industry:

Supply

• In the first day of big production cuts agreed to by OPEC+ nations, oil prices were higher in early trading, with the WTI up 25% to $18.84/bbl and Brent crude up 12% to $25.27/bbl.
• Big oil companies doing business in OPEC+ nations are negotiating their portion of production cuts from the recent output reduction pact.
• Small U.S. shale drillers are shutting wells faster than expected.

Supply Chain

• Our Gold Standard logistics and transportation partners continue to operate without disruption.
• U.S. ports continue to operate smoothly:

Markets

• The White House, blaming China for the COVID-19 crisis, is threatening retaliatory measures against the country, which could include tariffs.
• The Federal Reserve will loosen restrictions on its $600 billion Main Street Lending Program, announced last month, to include larger companies and to reduce the minimum loan size for small businesses.
• Amazon reported a 26% jump in revenues for the first quarter, normally its weakest, as bricks-and-mortar options shrank for shoppers. However, earnings fell due to costs associated with operating a COVID-19-safe operation, ramping up to handle higher demand, and lower margins on essential products.
• Macy’s will reopen 68 stores on Monday and the remainder over the next six weeks, while J.C. Penney is struggling to secure bankruptcy funding.
• Traditional consumer goods brands are enjoying a resurgence in the COVID-19 era, but also encountering supply chain strains.
• Appliance maker Whirlpool, in forecasting a revenue drop and cost reductions, said freezer sales are a bright spot in an otherwise challenging appliance market as consumers stock up on food.
• The Institute for Supply Management’s manufacturing index fell to 41.5% in April, the lowest level since April 2009.
• Indian River Consulting Group’s Pandemic Revenue Index showed a 14.8% drop in revenues for industrial distributors for the week ending April 24.
• Major airlines are expected to follow JetBlue in requiring face masks on flights.
• Half of U.S. states are in some stage of reopening or have plans to reopen in the coming days.

International

• Europe’s economy shrank by 3.5% in the first quarter, the EU central bank reported, the biggest contraction on record.  
• Several countries that have eased restrictions have experienced a second wave of COVID-19 infections. 
• Puerto Rico, where our export services division is located, announced plans for a gradual reopening.

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.