COVID-19 Bulletin: June 9

Good Afternoon,

More COVID-19 news relevant to the plastics industry:

Supply

• Oil prices were essentially flat in mid-day trading today, with the WTI at $38.19/bbl and Brent at $40.56/bbl. 
• BP is slashing 10,000 jobs, or 15% of its workforce, as it attempts to transform into a “leaner, faster-moving” company in the face of the pandemic and low oil prices.
• Shale fields face different futures, with oil companies expected to revive drilling in richer areas such as the Permian Basin ahead of Texas’ Eagle Ford region, North Dakota’s Bakken area and other regions.

Supply Chain

• Courier services and warehouses serving e-commerce added more than 20,000 jobs in May. 
• Our Gold Standard logistics and transportation partners continue to operate without disruption.
• Ports are operating normally:

Markets

• Fourteen states and Puerto Rico are experiencing rising infection rates as the pandemic surges in less populated areas of the country. 
• The National Bureau of Economic Research officially declared the economy is in a recession that began in February, ending an unprecedented 128-month expansion. 
• The New York Federal Reserve Bank, in its Survey of Consumer Expectations for May, reported an uptick in consumer optimism.
• The budget deficit doubled in May from the prior-year period, bringing the year-to-date deficit to nearly $2 trillion in just eight months. 
• The U.S., which has the most retail selling space per capita and the lowest sales per square foot in the world, could see 25,000 retail stores permanently shuttered, mostly in malls.
• Minority and immigrant entrepreneurs suffered most during the pandemic, which temporarily or permanently closed 3.3 million small businesses; 41% of African American-owned businesses and 36% of immigrant-owned businesses were idled.
• The Central Bank modified its soon-to-be-implemented Main Street Lending Program:
  • The loan minimum was lowered from $500,000 to $250,000.
  • The loan maximum was increased to $300 million.
  • The loan term was extended from four years to five years.
  • Principal payments now can be extended for two years instead of one year.
  • Issuing banks need retain only 5% of the loan, down from 15%.
• The global 3D printing market will grow 155% over the next five years to nearly $41 billion as the technology expands into more mainstream applications.
• RV sales are robust, with “working from home” becoming “working from anywhere” for many RV buyers and renters.
• Reopening offices may include technology to make them more healthful and comfortable, including density detectors to assure social distancing, phone apps to control elevators and reserve meeting rooms, sensors to improve air quality, and improved lighting and sound.

International

• The World Bank forecasted a darker economic outlook, estimating that the global economy will contract by 5.2% this year and up to 100 million people could fall into extreme poverty. The breadth of the COVID-19 recession makes it the worst in 150 years, the bank said.

Our Operations

• Our Global Healthcare Manager Josh Blackmore was featured in an article in Medical Plastics News. 
• Our Healthcare team, in collaboration with Plastics News, will host a webinar on materials selection for medical applications on June 11. Click here to register. 
• Our Business Development Market Managers are available for videoconferences with clients seeking advice on material selection, manufacturing, regulations and other aspects of specialty markets:
  • To schedule a meeting regarding Automotive, contact Market Manager Matt Zessin.
  • For Color & Compounding, contact Market Manager Scott Arnold.
  • For Electrical & Electronics, contact Market Manager Carlos Aponte.
  • For Flexible Packaging, contact Senior Technical Development Engineer Todd Stevens.
  • For Healthcare, contact Global Healthcare Manager Josh Blackmore.
  • For Rotational Molding, contact Product Manager Pete Nutley.
  • For Wire & Cable, contact Director Todd Waddle.
  • For 3D Printing, contact Market Manager Haleyanne Freedman.
• Our Color & Compounding team has introduced an expanded linecard of pulverized products for compounders.
• 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.