By Greg Fox, Vice President of Sales
It’s Day 98 – ninety-eight days since China reported to the World Health Organization of a number of cases of pneumonia originating from unknown causes in the Province of Wuhan. Quickly identified as a novel coronavirus, the outbreak caused a shutdown of Chinese manufacturing and subsequent disruption to SIGMA’s, the industry’s and much of North America’s supply chain. In the days around those Chinese closures, I along with much of SIGMA, fielded calls and inquiries as to the state of our inventories and health of our supply chain. We were all concerned about disruptions adversely impacting the product needed to support our robust economy.
Now, weeks later, China has returned to work and production is much regularized. However, our attention is now focused on the world at large as COVID-19 is affecting every continent with the exception of Antarctica. India, in the midst of a 21-day nationwide lockdown, has shuttered its manufacturing base. No doubt these closures will impact our supply chain particularly with municipal construction castings that are supplied exclusively from the industrial base surrounding Calcutta. However, to be honest, we expect the decline in demand stemming from the coronavirus outbreak in the US and Canada to offset the delays within the supply chain.
Turning to the US and Canada, SIGMA continues to evaluate and assess the short and potentially long term affect of the COVID-19 outbreak. Our crystal ball is as clouded as it has ever been. We enjoyed a strong first quarter and we recognize that the second quarter will be weaker. As to the second half of 2020, we simply don’t know. We’re hopeful that the overall health of our economy and our industry collectively lead to a quick, robust recovery. However, we can’t be certain. Things are evolving weekly if not daily. Knowing such, we are committed to sharing our thoughts and insights with you. We hope that you’ll do the same with us as we navigate these unchartered waters.
At this date, SIGMA’s warehouses continue to operate while practicing the now familiar steps of social distancing, hand-washing, thorough cleaning and other guidelines outlined by the CDC. We recognize the needs for clean drinking water and effective sanitation are as great now as ever. We are fortunate to be positioned to continue to support the nation’s infrastructure.
Finally, we at SIGMA, like all of you, are primarily concerned with the mitigation and ultimate eradication of this virus. We’re appreciative of scientists working to make that eradication possible and health care professions comforting and healing those who suffer until eradication is accomplished. Until vaccines and therapeutics are in place, please stay six feet apart, wash your hands and don’t touch your face. In all its simplicity, it does make a difference.