COVID-19 Bulletin: May 4

Good Afternoon,

More COVID-19 news relevant to the plastics industry:

Supply

• Oil prices recovered from early losses today, overcoming rising concern about U.S.-China tensions concerning the COVID-19 crisis. In mid-day trading, the WTI was up 2.5% to $20.27/bbl and Brent crude was 1.7% higher at $26.89/bbl.
• Exxon reported its first quarterly loss in three decades on Friday while Chevron reported a quarterly profit, as both companies announced further spending and investment cuts.
• Stalled investment and supply chain challenges are impacting the alternative energy industry.
• Resin suppliers are seeking longer forecasts as they begin to adjust production to lower demand levels.

Supply Chain

• Logistics challenges posed by COVID-19 are prompting a spike in technology investments as companies seek improved ways to automate and protect their supply chains.
• Our Gold Standard logistics and transportation partners continue to operate without disruption.
• U.S. ports continue to operate smoothly:

Markets

• The White House and Congress are beginning discussions about a possible fourth round of economic stimulus, which could include aid to state and local governments.
• The federal government and some states are paying farmers to destroy fresh food as the country faces a supply glut rivaling that of the Great Depression. 
• South Carolina, early in reopening its economy, is finding that citizens are cautious about returning to pre-pandemic routines.
• Despite plunging to an 8.6-million-unit sales rate in April, the lowest since the 1970s, U.S. automobile sales gradually improved through the month.
• BMW, Hyundai and Kia resume automobile production today in the Southeast U.S. Ford expects to call back all salaried employees by mid-summer.
• Consumer spending in the COVID-19 era continues to shift: the initial hoarding surge has abated, online alcohol sales have soared, backyard seed spending is up, while overall consumer spending remains subdued.
• Global brand leaders are experiencing reluctant consumers in a reopening China, a sign of what could be ahead for the U.S. and Europe.
• Construction work has resumed at projects across the country, but COVID-19 is pinching the pipeline of new projects.
• With U.S. air travel down 95%, Warren Buffett’s Berkshire Hathaway sold its stakes in four major airlines because of long-term concerns about a recovery for the industry.
• As they focus on existential challenges posed by COVID-19, many businesses are reprioritizing social initiatives, including sustainability. However, the global shutdown is demonstrating mankind’s impact on the environment, which should bolster long-term commitments to sustainability. 
• More than half of U.S. states are in some stage of reopening their economies.

International

• Mexico, a critical link in the automotive supply chain, remains a source of uncertainty for domestic producers planning mid-May startups. 
• Hong Kong’s economy shrank 8.9% in the first quarter, its worst contraction in history. 
• On top of COVID-19 and economic woes, Brazil also is confronting a political challenge, with the president of Latin America’s largest economy facing investigations and political defections.

Our Operations

• Our 3D printing team shipped face masks to Gracedale Nursing Home in Pennsylvania, where more than 10% of residents and many staff members are COVID-19 infected, and the National Guard has been mobilized to assist.
• 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.