About a month after the United States began to reopen its economy, the death toll of COVID-19 has passed a grim marker. At press time, the Johns Hopkins University of Medicine indicated that 100,0047 people had died of the virus in the United States.
For comparison, there are currently 1,695,776 active cases of the virus in the United States, and to date, almost four times the number of dead—384,902—have recovered from the virus. The precise numbers may become a source of political disagreement, with the President publicly alleging that the death toll is being inflated by New York City and some medical experts claiming data may actually be undercounting the amount of casualties.
Boeing Begins Involuntary Layoffs
A month after announcing his company would reduce its workforce by 10%, Boeing CEO Dave Calhoun announced they are moving into the “involuntary layoff” phase of the operation. In a letter to employees released May 27, Calhoun wrote that 6,770 U.S. workers would be laid off this week, with more to come.
In April, Calhoun described the effect of the coronavirus pandemic on the airline industry as a “body blow” to demand for airplanes. In his May 27 letter, Calhoun wrote, “We have done our very best to project the needs of our commercial airline customers over the next several years as they begin their path to recover. I wish there were some other way.”
Restarting Checklist for Manufacturers
As much as we’d like to believe it, restarting the economy is not going to be as simple as flicking a light switch. That’s according to Lou Longo, a partner at Plante Moran and leader of its International Consulting Practice. The reality of the situation, writes Longo, is that companies need to consider a range of factors before they get back to business. Will suppliers be ready to meet an abrupt resurgence of demand? The questions only get more complex looking at individual suppliers and industries.
The complexity of the situation is also an opportunity, says Longo. The USMCA, which formally comes into effect July 1, includes new supply chain regulations that put standards on countries of origins and labor rate standards. Read the full story here.
Nissan, Ford, Ready More North American Restarts
Nissan announced today it was currently planning on resuming production in its Canton, Mississippi vehicle assembly plant and Decherd, Tennessee powertrain plant on June 1. Nissan’s Smyrna, Tennessee vehicle assembly plant will resume production a week later.
Ford Motors said May 27 in an email to Reuters that its factories in Mexico are ready to resume operations. The Dearborn, Michigan-based truckmaker made a separate announcement on the same day that one of their workers in a Chicago stamping plant tested positive for COVID-19. Ford said it paused production at the assembly line “to complete enhanced cleaning,” moved employees, and asked any employees in close contact with the infected worker to self-quarantine for two weeks.
