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Countering the consequences of a lingering pandemic for stampers, metalformers
COVID-19 must be brought under control in the U.S. before manufacturing can fully resume
- By Kate Bachman
- July 23, 2020
The U.S.’s COVID-19 cases are still spiking while our trading partner countries’ cases have dipped and stabilized. The U.S. leads the world in COVID-19 cases and deaths—closing in on 5 million cases with more than 158,000 deaths.
As a result, when the European nations compiled the list of countries they will open their borders to for nonessential travel on July 1, they did not include the U.S. The borders with Canada and Mexico are closed to U.S. visitors as well.
U.S. travelers are banned from entering Europe, Canada, Mexico, and other countries because they deem that we do not have the COVID-19 pandemic under control. These “unwelcome signs” will remain until we do.
Cascading Economic Effects
The ramifications of the closed borders are multiple, hindering international trade exchanges, sourcing, and in-person meetings. It has stalled the intended effects of trade agreements, such as the USMCA, which was scheduled to go into effect in July.
Because tradeshows and conferences often draw exhibitors and attendees globally, the closed borders jeopardize those events. FABTECH has been cancelled just this week. EuroBLECH, originally scheduled for October 2020, has been postponed until March 2021. IMTS has been canceled altogether. Several other events have been postponed or canceled. These prevent the opportunities for in-person, face-to-face networking, equipment demonstrations, and business exchanges.
The cascading effect is staggering. The dampening of the travel, hospitality, and dining industries has a downstream effect on the demand for metal stampings and fabrications. The Washington Post reported that because of the loss of gas tax revenue during the pandemic, states are deferring billions of dollars for transportation projects, lowering demand for metal fabricated structural metal components as a result.
If we needed a reminder that we do business in an interrelated environment and the U.S. is not an island unto itself, this is one.
Demand Drives Profit
Although most U.S. manufacturers have been allowed to operate during the pandemic as essential businesses, that does not alter the demand side of the equation.
The unemployment rate, running on average 3.6% until March, skyrocketed to 14.7% in April, descended to 13.3% in May, and 11.1% in June. Though the downward trend is encouraging, the rate is still above recession levels, and it’s difficult to discern how much of that employment is artificially boosted by the Paycheck Protection Program.
Despite the push to resume business as usual, an operating-while-sick environment will not alter certain undeniable facts. Need I be blunt? Unemployed people cannot buy houses needing metal stamped appliances. Sick people do not fly on airplanes formed with metal. Dead people do not buy cars.
Stamping manufacturers that survived the challenges of 2001 and 2008 have done so by running leaner, faster, and more productively on the plant floor. Yet, no matter how well-engineered your ship, no matter how fortified against high tides, no matter how well-powered, one hole from a jutting iceberg can sink it.
The pandemic must be brought under control in the U.S. before manufacturing can fully resume.
What Can You Do?
Do everything in your power to halt exposure. Operate with all precautions in place. You know what they are—the new 5S: sanitize, social distance, scrub in, send home sick, slip on PPE.
Urge your associates and colleagues to do the same. Advocate to your elected officials to implement practices that will end the spread of this pandemic.
The sooner we can stamp out the virus, the sooner we can get back to normal—if for no other reason, than for the economy.
Got thoughts? I’d love to hear from you.
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The Fabricator is North America's leading magazine for the metal forming and fabricating industry. The magazine delivers the news, technical articles, and case histories that enable fabricators to do their jobs more efficiently. The Fabricator has served the industry since 1970.
start your free subscriptionAbout the Author
Kate Bachman
815-381-1302
Kate Bachman is a contributing editor for The FABRICATOR editor. Bachman has more than 20 years of experience as a writer and editor in the manufacturing and other industries.
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