In the United States today, Americans began to receive stimulus checks from the COVID-19 relief bill passed by Congress March 30. The governors of various states continue to mull strategies for how to ease their states back into an economy battered and bruised by the coronavirus without reintroducing the threat of contagion to the population, with the director of the CDC indicating that 19 or 20 states could reopen by May 1. Meanwhile, the U.S. death toll from the virus, which lags behind currently-falling diagnosis rates, broke 30,000.
Regardless of how quickly states can begin to reopen their economies, the hurt already caused will last for some time. Data released by the Federal Reserve Bank showed that manufacturing output fell more than it has since 1946 in March, and yesterday the International Monetary Fund predicted that the lows of the COVID-19 economy could even rival those of the Great Depression. Manufacturing, which was already vulnerable before, is in a tight spot.
National Federal Data Shows Manufacturing Output Fell at 74-year Record Rate
The Federal Reserve’s Industrial Production and Capacity Utilization report showed that total industrial production in the United States fell 5.4% last month. Manufacturing output fell 6.3% at an annual rate of 7.1%, its worst loss since 1946. Motor vehicle output plummeted 28% as consumer demand for auto products fell 27.2% and automakers closed their factories to prevent the spread of the contagion. Read the full story here.
More Than 100,000 Green Energy Workers Lost Their Jobs in March
An analysis of Department of Labor data on unemployment found that 106,472 workers in clean energy occupations applied for unemployment benefits in March. That single month of losses effectively undoes all of the jobs gained in renewable energy, alternative fuel vehicles, energy storage, fuel cells and energy efficiency, including electricians, HVAC and mechanical trade technicians, and construction workers who install alternative energy sources.
The coronavirus is impacting the green energy market right as the industry was poised to take advantage of greater-than-ever interest in alternative energy sources. The sector has grown 10.4% since 2015 and hoped to extend that growth through 2020. Read the full story here.
New York Manufacturing Index Plummets
Manufacturing in New York, the state most impacted by the virus by number of cases, had its own bad news to report. The Empire State Federal Reserve’s manufacturing survey showed that a whopping 85% of manufacturers reported worsening business conditions. The general business conditions index there fell to -78.2, more than forty points worse than the previous low during the Great Recession.
New orders, shipments, employment levels, and workweek length indexes all fell, with new orders and shipments setting new record lows. On the flip side, the respondents were slightly more optimistic about a strong recovery: The index for future business conditions over the next six months rose by 6 points to 7%, up from 1% in March. Read the full story here.
Manufacturers Doing Their Part
The Swagelok Foundation announced today they would donate $100,000 to nonprofit organizations supporting coronavirus relief efforts. The foundation is run by the Swagelok Company, a developer of fluid system products, assemblies, and services for the chemical, oil and gas industries.
GM announced April 14 that its first ventilators, produced in cooperation with Bothel, Washington-based Ventec Life Systems, were available for delivery. GM and Ventec received an almost-$500 million contract to produce the ventilators last week.
