ILMA Compoundings - June 2020 - 5

LETTER FROM THE CEO

How to Aid Manufacturers Under the 'New
Normal' Regime

s I write this from my home office, the country is slowly reopening. Over the course of the shutdown, activity ground
to a halt. Vehicles remained parked, manufacturing output languished, and layoffs and furloughs exploded.
We keep hearing that business will not look the same. There's talk of a "new normal," but no one really knows what
that will look like. Whatever the new normal ends up being, there are three things manufacturers need to be successful under
the new normal regime of business operations.
* 1. Health and safety. Existing safety programs provided by ILMA members
will need to be enhanced to include infectious diseases. Some employers may
consider temperature checks of employees, requiring face masks and gloves,
and a written program for providing for frequent, scheduled disinfection of
work surfaces and areas that are high touchpoints. Training of employees
may be prudent, so that they are attuned to recognize symptoms of not only
COVID-19, but also common infectious diseases such as influenza.
* 2. Financial support. ILMA surveyed members to determine how many
needed paycheck protection loans from the Small Business Administration.
Of the respondents, 51% applied for loans and, of those, 87% had loans
funded at the time of the survey in early May. Despite media narrative that the program was a failure, we found it was
a success, at least for ILMA members. However, going forward, as employees return to work and plants slowly ramp
up, more assistance may be needed. Some examples would be providing tax credits for employers who continue to be
quarantined. Congress should consider enhancing tax deductions for employers who invest in safety equipment such as
handwashing stations and cleaning products, as well as respiratory equipment. The big question is: How quickly will the
economy rebound? Depending on recovery, manufacturers may need additional assistance in the form of small business
loans or other assistance to provide needed liquidity to maintain operations and keep employees on payroll.
* 3. Liability protection. Once again, the trial lawyers are circling, looking for any infraction, big or small, real or imagined. According to legal experts, businesses could face a wide range of lawsuits from individuals who contract the novel
coronavirus. Whether the individuals contracted the disease at work or somewhere else, businesses are an easy target for
trial lawyers. Congress needs to act quickly on liability protection, or businesses will be reluctant to fully resume operations as long as the virus lingers and no vaccine is available. Senate Majority Leader Mitch McConnell has signaled that
any further coronavirus aid considered by Congress must include liability provisions. The National Association of Manufacturers (NAM), the U.S. Chamber of Commerce and numerous business groups have called for liability protection so
that essential workers can continue to work.
NAM said in a statement to Congress, "Providing businesses with targeted and limited safe harbors during these difficult
times is not the same as shielding companies from all liability. We are not seeking to protect bad actors that operate in reckless
or intentional disregard of available guidance on reducing the spread of COVID-19. Therefore, liability protections should be
appropriately tailored and limited to the present emergency and a reasonable period of recovery."
It's clear that the virus has affected life around the world at every level. Just as 9/11 changed air travel, coronavirus will
change business and society as a whole. Whatever the new normal turns out to be, it's my expectation that, as usual, ILMA
members will find their way to success.
HOLLY ALFANO
Chief Executive Officer

ILMA Compoundings - June 2020

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