When the world learned there was real potential for a novel coronavirus to reach their hometowns, people and companies became increasingly concerned. Not only was a new reality unfolding, companies were in many cases forced to close their doors to focus on quarantine measures. In the United States, the disruption caused by COVID-19 is impacting companies across a broad set of industries, including manufacturers, with potentially lasting effects.
The National Association of Manufacturers (NAM) recently conducted a survey of its member companies on the anticipated impacts of the COVID-19 pandemic. A whopping 78.3% of manufacturers anticipate a financial impact, while 53.1% anticipate a change in operations. So, what can manufacturers do to manage the disruption and “fall on their feet” in these uncertain times?
Enter the CARES Act
The United States Federal Government through the Coronavirus Aid, Relief and Economic Security (CARES) Act is working to make funds available to help companies who are impacted by COVID-19. The CARES Act was passed by Congress on March 27, 2020 and serves as a $2 trillion economic relief package designed to provide economic assistance for American workers, families and small businesses, and preserve jobs for American industries. Manufacturers can qualify but must act quickly.
While the CARES Act is a sigh of relief for many, it begs the question: what will be done to avoid the next global disruption? The key to surviving the next, of course, is to learn from the last. By investing these funds to strengthen the foundation of the business, manufacturers have the potential to emerge from this crisis stronger than ever and better prepared to meet the next day’s challenges.
Potential Actions for Manufacturers
Just like a recession will put the weakest companies out of business, a major disruption can expose the weakest parts of even the strongest companies and they can, in turn, lead to a company’s failure. Now is the time to put plans in place so when funds do become available, organizations can be made stronger and more able to withstand the next disruption.
QAD recently examined the funding and incentives made available to companies during the COVID-19 crisis, and we’ve prepared a summary of those that might be applicable to manufacturers. This is not meant to serve as legal or financial advice, but rather areas where we think manufacturing businesses can receive the most support. Our analysis includes:
- Vertical: Applicable manufacturing verticals
- Section Number: The section number of the bill in which this portion can be found
- Section Name: The section name of the bill in which this portion can be found
- Summary: Summary of the funds or incentives available
- Categories: How the funding can be categorized
See below for our key findings. The full bill can be found here.