Certainly, doing business in the age of COVID 19 has presented many challenges for companies. Between shutdowns, working from home, and new considerations for the health and safety of employees, this has been a tumultuous year with many changes. But now as we venture into the second half of 2020, where does this leave the economy overall? That very much depends on who you ask.
While some companies seem to be thriving during this time, especially those who manufacture goods such as PPE, medical equipment, disinfectants, bottles and packaging that are desperately needed for the pandemic, others have taken significant hits to their bottom lines.
In plastics, the commodity resin market saw decreases in resin prices this spring across the board. Many plants were idled temporarily around the globe. The job cuts were blamed for the dampened consumer spending, and demand was slow for the automotive and construction sectors. PVC, which is sold heavily into construction applications such as rigid pipe, roofing, windows, and doors, took a hit as new home sales slowed and construction projects were delayed.
The automotive industry seemed especially hard hit. What began with supply chain interruptions from China early in the year, gradually trickled down to reduced productions and plant closures throughout Europe and the U.S. months later. Large tire manufacturers such as Continental, Goodyear, and Michelin all reduced work hours and idled plants throughout the spring months. Lubricant sales also took a hard hit this year as automotive volume was down as well as drilling, fracking ad gas compression business, along with depressed crude oil prices.
One saving grace for many companies was their ability to convert their manufacturing efforts to help combat the pandemic. A wide variety of companies across various selectors began production of critical supplies such as hand sanitizer, face masks, gloves, gowns and other forms of PPE. The ink industry saw strong demand in packaging materials as consumers turned to online shopping and restaurants required additional packaging for take-out. Producers of bottles and molded parts for hand sanitizer dispensers had troubles keeping up with increased demands.
So, where do things go from here? Unfortunately for many, that remains to be seen. While many companies are just beginning to ramp up their regular productions again, the number of cases of the virus in the U.S. continue to surge, causing unpredictable shutdowns as companies head into this “new normal”. Some are holding out hopes of more effective treatments and a vaccine. If there is one thing we all hope for as we look forward to 2021, it’s that next year will be a little less turbulent than this one has been.