How is goes about COVID?
Well, if we are looking to make the news the biggest story which could we write is about COVID. I think everybody knows the story of Italy who jumped to dramatic first place with numbers of infections, closed cities, completely total quarantine (not like you will wear a mask and go to meet your friends but total one with impossibility to leave the house or the place where you live without serious reason like food purchase, doctor or something incredible urgent and important). And first couple of weeks there were just restrictions and partial closings (like restaurants) so after everything was closed including the stop of any activity which is not connected with food chain supply, defense and medical industry. So it was not like you can work at home but you can't work totally even at home because nobody works and any delivery or production is postponed.
Like in every quarantined country it effects the economy very hard and it hits every company because you should bear the costs as usual (for example nobody will stop your rent) but you can't make any activity without difference are your people ill or COVID-positive or just can't work. So every production company have 2 types of losses - direct and indirect.
Direct losses - it is happen with everybody and with us as well. When we noted about the company closing we lost several foreign orders for press brake tools because companies do not wanted to wait for us for unknown time. Moreover we have to thank other customers who already placed the order with us (and we didn't know what will happen after) and waited for our re-opening.
Indirect losses - the complete story about slowing of the production, suppliers, closing of our potential customers i.e. no necessity for the new tooling and complete new way of working when you need to wear mask all the time, wash your hands, use gels etc. You know, to work good you need to have comfort at your working place and this makes you 100% active and just imagine how could be comfort with seating with the mask?
So finally Italy lost 2 months of business and you can imagine how it effects to the complete economy picture. Thanks for the government it was provided the financial support for employees and self-employed so the companies didn’t take all the expenses for the salary for non-working personnel. Anyway nobody cancelled the costs and losses for stopped equipment, bills, taxes or rental rates for building and a lot of other different costs.
But the main indirect loss – is the a big drop off of production which happened. Ok, we do not know the reduction of production for example of electric cabinets worldwide but we can imagine that it is the big pause in a lot of industries and even if there at the first view no direct connection. But even a lot of brackets for aircraft made with press brake, construction elements, whatever and when these industries stopped we stopped as well. And even now, when the big quarantine is over (and next days we are waiting also the opening of regions) it doesn’t mean that the main production returned immediately to 100% and it seems that this problem will last at least for the year. Unfortunately we cannot do nothing and just hope and to wish all the business to return to pre-COVID situation.
In Italy there are still new cases every day but the total number is decreasing and we are happy about it. Let everybody to stay safe and to throw the COVID away. Regards,