Anthony Locicero, Associate Editor02.28.20
[This story has been updated]
The novel coronavirus (COVID-19) is disrupting the supply chain and some of the top ink companies are pledging to monitor the situation carefully.
For Sun Chemical, this includes its raw material and intermediate suppliers and logistics providers.
"Proactively managing our customer orders, inventory levels, in-transit shipments and open order levels is a critical path for us,” said Jeffrey Shaw, chief supply chain officer, Sun Chemical. “We have established control teams to manage each of these areas and take the required precautions in order to prevent any supply disruptions. Specifically focusing on individual materials and suppliers will enable us to take any necessary precautions."
After the company released a Q&A for customers, Shaw offered an additional statement.
“While some regions in the world continue to improve, other regions are facing unprecedented challenges," he said. "At Sun Chemical, we continue to monitor our global supply chain, proactively manage each of our sites and warehouses, and frequently communicate with our supply base.
“At this time our manufacturing and warehouse sites continue to operate, raw materials continue to flow, and logistics providers continue to ship materials in a timely manner," Shaw continued. "With new governmental regulations enforced and varying restrictions in place around the world, we continue to work with all our stakeholders to make sure the fulfillment process works in an undisrupted manner.
“We have a vast global network in place to manage these changes and an integrated supply chain approach," he added. "Inventory levels remain in place while we continue to fulfill customer orders. In the event of further changes, we will work with customers to make sure we provide the best level of service.”
Flint Group said it has implemented:
"Our global procurement team is reviewing material status daily for every region of the world and we have a weekly coronavirus global task force meeting," Dryden continued. "We will continue to work with urgent focus to gain more clarity as this situation develops."
Flint Group's CPS Inks Division's procurement and supply chain teams "continue to prepare contingency plans where possible," according to Michael Podd, the company's chief procurement officer and senior VP of sales for that segment.
"Despite the best contingency plans," Podd said, "we expect to see material delays as a result of manufacturing and freight disruptions within China, and potentially the effect of additional precautions being taken at local borders to ensure product is safe to bring into the country."
INX International developed a response with some frequently asked questions to keep its customers informed of the situation.
INX International's president and CEO said the company is "very aware" of its impact on the overall supply chain.
“Thanks to our vendors, INX manufacturing facilities are adequately stocked with raw materials and based on communications with them, we expect the supply from China to resume well before we have inventory concerns," Hrdlick said.
"As a global organization, with multiple facilities and suppliers across the world, we have increased inventory levels for our ink and parts to help minimize impacts on product availability," added Frank Mallozzi, EFI's chief revenue officer. "We are also able to deliver our products to areas not currently impacted by local regulations limiting transport or travel.
Nazdar said it is, amongst other things, restricting non-essential business travel and "making adjustments to our manufacturing shifts and warehouse support teams to increase social distancing of critical operations."
"Canon Solutions America continues to diligently work with our parent company, Canon U.S.A., Inc., and our vendor and supply networks as it relates to best practices, mitigating risk, and addressing any potential supply chain issues resulting from this event," said Shinichi “Sam” Yoshida, vice chairman, Canon Solutions America, Inc.
MagnaColours Chairman Tom Abbey said the company is fully operative.
"All departments are running and shipments are taking place as usual," he added.
"Products manufactured at our Amherst, NY facility, directly and indirectly, supply the world with materials that are essential to the medical, hospital, food, transportation and packaging industries," said Tom Bamrick, VP of sales and marketing at IIMAK.
Polymeric's US-based manufacturing operations are "continuing to produce high-quality products for you on a daily basis," Group CEO Tim Leclercq said.
"Having experienced previous disruptions in the global supply chain, we have made provision to hold ample raw materials in inventory for the production of the majority of our inks and coatings," he added. "However, given the uncertainty and the rapidly changing dynamics of this situation, we do strongly recommend that you check your inventory levels to make sure you have the products you need for your orders. You may want to consider putting more product on your plant floor in case there are uncontrollable shipping delays in the future."
Bobst Group SA CEO Jean-Pascal Bobst said "We will strive to deliver your machines on time."
Maroon Group operations remain open for business and the company is fulfilling customer orders as required, according to Michael F. McKenna, president & chief operating officer.
"We have implemented contingency plans with regards to stock locations for key inventory items to ensure continuity of supply," McKenna said.
Roland DGA has seen "minor effects" to the supply chain, the impact to current inventory levels has been "insignificant so far," according to Andrew Oransky, president and CEO.
Roland DGA customers should continue to receive orders as scheduled, Oransky said.
"Roland DGA has taken steps in order to protect the safety and well-being of our employees, their families, our partners and customers, while also ensuring that our business is fully operational," he added. "Roland DGA and its employees are following CDC guidelines and government regulations for limiting the spread of contagions. Additionally, Roland DGA maintains a technology infrastructure which is capable of supporting remote employees if/when that becomes necessary, either on a personal or company-wide level."
HP President and CEO Enrique Lores said his company has taken "proactive actions" including increased cleaning of its facilities and stepping up screening practices at all HP sites to limiting travel, implementing work from home policies for employees, and canceling HP events and meetings in favor of virtual options.
HP is "leveraging our global supply chain and working closely with suppliers to continue delivering products and services for our customers," he said.
Additionally, the president and CEO relayed that the HP Foundation donated $1 million to support recovery efforts and donated PCs and printers to help hospitals in affected areas get up and running.
"[We are] working with the HP Foundation to ensure we devote significant resources to support community response efforts over the coming weeks and months," Lores said. "The Foundation will be working with both global and local partners to prioritize actions where we can have the greatest impact. In addition, we recommend employees use our HP Giving and Volunteering tool for those who would like to donate to organizations that are providing COVID-19 relief both globally and locally. More detail will be shared as we finalize these programs."
HP is ensuring all hourly employees receive their planned wages, per Lores, who added, "We will also continue to support contractors and contingent workers who support our sites, such as food service and building services."
The company also plans to donate "millions of dollars in technology and support through a concerted effort across Personal Systems and Print to help students, families and communities," the company president and CEO said. "As part of these efforts, all consumer product warranties expiring between March 1 and April 30 will be automatically extended for 30 days."
Furthermore, HP is mobilizing its 3D Printing team and Digital Manufacturing Partner Network to design, validate and produce essential parts for medical responders and hospitals, according to Lores.
"This includes parts such as ventilator valves, breathing filters and face mask clasps, as well as entirely new parts such as plastic door handle adaptors which enable easy elbow opening to prevent further spread of the virus," he said, adding that HP BioPrinters will be deployed free of charge to NGOs, government agencies and pharmaceutical companies "to accelerate drug and vaccine research to combat COVID-19."
In a statement, Xerox's Vice Chairman and CEO John Visentin said the company “needs to prioritize the health and safety of its employees, customers, partners and affiliates over and above all other considerations, including its proposal to acquire HP.”
"...[W]e believe it is prudent to postpone releases of additional presentations, interviews with media and meetings with HP shareholders so we can focus our time and resources on protecting Xerox’s various stakeholders from the pandemic," he added.
"The health and safety of our employees is our highest priority. We have corporate, regional and local crisis management teams in place actively monitoring, preparing and managing our COVID-19 response around the clock," DuPont said in a statement. "We are implementing our safety plans and protocols based on World Health Organization (WHO) and Centers for Disease Control (CDC) guidelines and recommendations to help prevent the spread of the virus.
"As cases expand globally, we've updated travel restrictions, and are providing new guidance to ensure we continue to serve our customers’ needs while practicing safe and healthy measures to contain and mitigate the spread of infection at our sites and offices. In that regard, we have taken several strong actions, including:
“In the first two months of this year, we are already experiencing a high level of uncertainty in the global economy," he said. "The coronavirus has added a new factor that is considerably hampering growth at the beginning of the year, especially in China. Lower demand and production outages in many industries are already visible consequences of the measures taken to prevent the further spread of the virus."
"BASF," he continued, "anticipates that the negative effects of the coronavirus will have a significant impact worldwide, particularly in the first and second quarters of 2020."
BASF also postponed its Annual Shareholders’ Meeting, which was scheduled for April 30. The state of Baden-Württemberg has banned events with more than 100 participants for the time being until June 15, 2020, the company noted.
"At the moment, Coronavirus (COVID 19) is something that is essential for monitoring and action, for most industries, including ink," said Mark Goodearl, senior ink product manager, EFI Display Graphics. "EFI has increased inventory levels and we do not see an immediate impact on our operations or product availability. Due to our global footprint, we are able to deliver our products and service to areas not currently impacted by local regulations limiting transport or travel."
It's not just ink manufacturers providing statements; Inland Packaging, a privately-owned label printer in Lacrosse, WI, said it is "closely monitoring the COVID-19 situation and relying on guidance from the World Health Organization, CDC, and other public health organizations."
"We continue to monitor possible supply-chain disruptions, analyze possible outcomes in the context of known supply-chain risks based on historical precedents, and take precautionary measures to minimize exposure to future disruptions," the company said in a statement. "Our raw materials are largely sourced from regions of the world that have seen a minimal impact from the COVID-19 situation. At this time, we do not believe Inland Packaging is in a situation where our ability to manufacture is at risk."
According to the World Health Organization, COVID-19 is the infectious disease, which can be spread from person to person, caused by the most recently discovered coronavirus.
The coronavirus outbreak has caused the cancellation or postponement of trade shows and conferences worldwide, including the American Coatings Show & Conference, drupa and LOPEC.
Global business events accounted for $2.5 trillion in sales during 2017, according to the Events Industry Council and Oxford Economics' November 2018 "Global Economic Significance of Business Events" report.
The American Coatings Show & Conference was postponed, organizers confirmed.
"While we are unaware of any reported cases of COVID-19 in Indiana or Indianapolis, postponement of ACS/ACC 2020 was unavoidable as the show could not proceed as scheduled due to forces beyond our control," organizers said, adding that they are working on securing a later date at the same venue.
“In close cooperation with our LOPEC partner OE-A and our exhibitors, it is unfortunately not possible for us to successfully hold the event this year for participants of the Exhibition and Conference," said Falk Senger, managing director of Messe München and the executive who oversees LOPEC. "Canceling LOPEC 2020 was a painful decision. By making it, we have assumed our responsibility for the health of our exhibitors, conference speakers and visitors.”
NAPIM’s Spring Convention scheduled for April 17-20 in Phoenix, AZ, was also postponed.
"This was not an easy decision for us to make," Executive Director John Copeland and president Jim Leitch said in a joint statement on behalf of NAPIM's Board of Directors and staff. "However, it is our obligation to do what is in the best interests of all our attendees and event sponsors. As we have all been following the news surrounding coronavirus, it is changing hourly with local and state governments issuing safety declarations, airlines canceling flights, and large events such as conferences and sporting events being canceled. Some attendees have already informed us that their companies have stopped all employee travel and that they would not be sending anyone to the NAPIM Spring Convention."
Avery Dennison plans to hold 2020 Annual Meeting of Stockholders (April 23, 2020 at 1:30 p.m. PT) virtually.
RadTech 2020 and the 2020 IUVA Americas Conference went on as planned, after RadTech's Mickey Fortune and Gary Cohen said that there were "no plans to postpone or cancel" the events.
The conference was declared "handshake-free" with organizers suggesting "fist bumps" and "elbow taps" as the preferred method of greeting other attendees, RadTech wrote on its website. The Orlando Sentinel additionally reported on the policy.
On Jan. 30, 2020, the director-general of WHO declared the outbreak of COVID-19 to be a Public Health Emergency of International Concern, per the organization's website.
“Listening to our members, it’s clear there are already signs of shortages and raw material price increases based on tightened supply due to the coronavirus,’’ Tom Bowtell, chief executive of British Coatings Federation (BCF), whose members include inks producers, said in mid-February. “While there are alternative sources of some raw materials, many of the precursors of the raw materials they use start life in China. We are still waiting for more information regarding how long it will be before Chinese factories are back to normal output levels.’’
“Our hearts,” Hrdlick said, “go out to everyone around the globe who have been negatively impacted by this outbreak in so many ways, including the loss of family and friends. We are keeping them in our thoughts and are hopeful COVID-19 runs its course as soon as possible.”
The novel coronavirus (COVID-19) is disrupting the supply chain and some of the top ink companies are pledging to monitor the situation carefully.
For Sun Chemical, this includes its raw material and intermediate suppliers and logistics providers.
"Proactively managing our customer orders, inventory levels, in-transit shipments and open order levels is a critical path for us,” said Jeffrey Shaw, chief supply chain officer, Sun Chemical. “We have established control teams to manage each of these areas and take the required precautions in order to prevent any supply disruptions. Specifically focusing on individual materials and suppliers will enable us to take any necessary precautions."
After the company released a Q&A for customers, Shaw offered an additional statement.
“While some regions in the world continue to improve, other regions are facing unprecedented challenges," he said. "At Sun Chemical, we continue to monitor our global supply chain, proactively manage each of our sites and warehouses, and frequently communicate with our supply base.
“At this time our manufacturing and warehouse sites continue to operate, raw materials continue to flow, and logistics providers continue to ship materials in a timely manner," Shaw continued. "With new governmental regulations enforced and varying restrictions in place around the world, we continue to work with all our stakeholders to make sure the fulfillment process works in an undisrupted manner.
“We have a vast global network in place to manage these changes and an integrated supply chain approach," he added. "Inventory levels remain in place while we continue to fulfill customer orders. In the event of further changes, we will work with customers to make sure we provide the best level of service.”
Flint Group said it has implemented:
- Pre-entry temperature screening at its major manufacturing sites;
- On-site hygienic work norms such as regular hand washing, use of alcohol-based hand sanitizer, health checks, increased cleaning and disinfecting measures and social distance rules;
- Remote work whenever possible;
- Replacing most meetings with conference calls or video conferences;
- Canceling all but essential travel
"Our global procurement team is reviewing material status daily for every region of the world and we have a weekly coronavirus global task force meeting," Dryden continued. "We will continue to work with urgent focus to gain more clarity as this situation develops."
Flint Group's CPS Inks Division's procurement and supply chain teams "continue to prepare contingency plans where possible," according to Michael Podd, the company's chief procurement officer and senior VP of sales for that segment.
"Despite the best contingency plans," Podd said, "we expect to see material delays as a result of manufacturing and freight disruptions within China, and potentially the effect of additional precautions being taken at local borders to ensure product is safe to bring into the country."
INX International developed a response with some frequently asked questions to keep its customers informed of the situation.
INX International's president and CEO said the company is "very aware" of its impact on the overall supply chain.
“Thanks to our vendors, INX manufacturing facilities are adequately stocked with raw materials and based on communications with them, we expect the supply from China to resume well before we have inventory concerns," Hrdlick said.
"As a global organization, with multiple facilities and suppliers across the world, we have increased inventory levels for our ink and parts to help minimize impacts on product availability," added Frank Mallozzi, EFI's chief revenue officer. "We are also able to deliver our products to areas not currently impacted by local regulations limiting transport or travel.
Nazdar said it is, amongst other things, restricting non-essential business travel and "making adjustments to our manufacturing shifts and warehouse support teams to increase social distancing of critical operations."
"Canon Solutions America continues to diligently work with our parent company, Canon U.S.A., Inc., and our vendor and supply networks as it relates to best practices, mitigating risk, and addressing any potential supply chain issues resulting from this event," said Shinichi “Sam” Yoshida, vice chairman, Canon Solutions America, Inc.
MagnaColours Chairman Tom Abbey said the company is fully operative.
"All departments are running and shipments are taking place as usual," he added.
"Products manufactured at our Amherst, NY facility, directly and indirectly, supply the world with materials that are essential to the medical, hospital, food, transportation and packaging industries," said Tom Bamrick, VP of sales and marketing at IIMAK.
Polymeric's US-based manufacturing operations are "continuing to produce high-quality products for you on a daily basis," Group CEO Tim Leclercq said.
"Having experienced previous disruptions in the global supply chain, we have made provision to hold ample raw materials in inventory for the production of the majority of our inks and coatings," he added. "However, given the uncertainty and the rapidly changing dynamics of this situation, we do strongly recommend that you check your inventory levels to make sure you have the products you need for your orders. You may want to consider putting more product on your plant floor in case there are uncontrollable shipping delays in the future."
Bobst Group SA CEO Jean-Pascal Bobst said "We will strive to deliver your machines on time."
Maroon Group operations remain open for business and the company is fulfilling customer orders as required, according to Michael F. McKenna, president & chief operating officer.
"We have implemented contingency plans with regards to stock locations for key inventory items to ensure continuity of supply," McKenna said.
Roland DGA has seen "minor effects" to the supply chain, the impact to current inventory levels has been "insignificant so far," according to Andrew Oransky, president and CEO.
Roland DGA customers should continue to receive orders as scheduled, Oransky said.
"Roland DGA has taken steps in order to protect the safety and well-being of our employees, their families, our partners and customers, while also ensuring that our business is fully operational," he added. "Roland DGA and its employees are following CDC guidelines and government regulations for limiting the spread of contagions. Additionally, Roland DGA maintains a technology infrastructure which is capable of supporting remote employees if/when that becomes necessary, either on a personal or company-wide level."
HP President and CEO Enrique Lores said his company has taken "proactive actions" including increased cleaning of its facilities and stepping up screening practices at all HP sites to limiting travel, implementing work from home policies for employees, and canceling HP events and meetings in favor of virtual options.
HP is "leveraging our global supply chain and working closely with suppliers to continue delivering products and services for our customers," he said.
Additionally, the president and CEO relayed that the HP Foundation donated $1 million to support recovery efforts and donated PCs and printers to help hospitals in affected areas get up and running.
"[We are] working with the HP Foundation to ensure we devote significant resources to support community response efforts over the coming weeks and months," Lores said. "The Foundation will be working with both global and local partners to prioritize actions where we can have the greatest impact. In addition, we recommend employees use our HP Giving and Volunteering tool for those who would like to donate to organizations that are providing COVID-19 relief both globally and locally. More detail will be shared as we finalize these programs."
HP is ensuring all hourly employees receive their planned wages, per Lores, who added, "We will also continue to support contractors and contingent workers who support our sites, such as food service and building services."
The company also plans to donate "millions of dollars in technology and support through a concerted effort across Personal Systems and Print to help students, families and communities," the company president and CEO said. "As part of these efforts, all consumer product warranties expiring between March 1 and April 30 will be automatically extended for 30 days."
Furthermore, HP is mobilizing its 3D Printing team and Digital Manufacturing Partner Network to design, validate and produce essential parts for medical responders and hospitals, according to Lores.
"This includes parts such as ventilator valves, breathing filters and face mask clasps, as well as entirely new parts such as plastic door handle adaptors which enable easy elbow opening to prevent further spread of the virus," he said, adding that HP BioPrinters will be deployed free of charge to NGOs, government agencies and pharmaceutical companies "to accelerate drug and vaccine research to combat COVID-19."
In a statement, Xerox's Vice Chairman and CEO John Visentin said the company “needs to prioritize the health and safety of its employees, customers, partners and affiliates over and above all other considerations, including its proposal to acquire HP.”
"...[W]e believe it is prudent to postpone releases of additional presentations, interviews with media and meetings with HP shareholders so we can focus our time and resources on protecting Xerox’s various stakeholders from the pandemic," he added.
"The health and safety of our employees is our highest priority. We have corporate, regional and local crisis management teams in place actively monitoring, preparing and managing our COVID-19 response around the clock," DuPont said in a statement. "We are implementing our safety plans and protocols based on World Health Organization (WHO) and Centers for Disease Control (CDC) guidelines and recommendations to help prevent the spread of the virus.
"As cases expand globally, we've updated travel restrictions, and are providing new guidance to ensure we continue to serve our customers’ needs while practicing safe and healthy measures to contain and mitigate the spread of infection at our sites and offices. In that regard, we have taken several strong actions, including:
- Suspending international travel and restricting all other travel to business-critical only;
- Mandatory self-quarantine measures for employees at risk of exposure;
- Limiting access to our sites;
- Conducting enhanced and more frequent cleaning services at all facilities;
- Encouraging employees to practice social distancing, proper handwashing and hygiene practices;
- Canceling participation at all large meetings, both internally and externally;
- Requiring employees to work from home where possible."
“In the first two months of this year, we are already experiencing a high level of uncertainty in the global economy," he said. "The coronavirus has added a new factor that is considerably hampering growth at the beginning of the year, especially in China. Lower demand and production outages in many industries are already visible consequences of the measures taken to prevent the further spread of the virus."
"BASF," he continued, "anticipates that the negative effects of the coronavirus will have a significant impact worldwide, particularly in the first and second quarters of 2020."
BASF also postponed its Annual Shareholders’ Meeting, which was scheduled for April 30. The state of Baden-Württemberg has banned events with more than 100 participants for the time being until June 15, 2020, the company noted.
"At the moment, Coronavirus (COVID 19) is something that is essential for monitoring and action, for most industries, including ink," said Mark Goodearl, senior ink product manager, EFI Display Graphics. "EFI has increased inventory levels and we do not see an immediate impact on our operations or product availability. Due to our global footprint, we are able to deliver our products and service to areas not currently impacted by local regulations limiting transport or travel."
It's not just ink manufacturers providing statements; Inland Packaging, a privately-owned label printer in Lacrosse, WI, said it is "closely monitoring the COVID-19 situation and relying on guidance from the World Health Organization, CDC, and other public health organizations."
"We continue to monitor possible supply-chain disruptions, analyze possible outcomes in the context of known supply-chain risks based on historical precedents, and take precautionary measures to minimize exposure to future disruptions," the company said in a statement. "Our raw materials are largely sourced from regions of the world that have seen a minimal impact from the COVID-19 situation. At this time, we do not believe Inland Packaging is in a situation where our ability to manufacture is at risk."
According to the World Health Organization, COVID-19 is the infectious disease, which can be spread from person to person, caused by the most recently discovered coronavirus.
The coronavirus outbreak has caused the cancellation or postponement of trade shows and conferences worldwide, including the American Coatings Show & Conference, drupa and LOPEC.
Global business events accounted for $2.5 trillion in sales during 2017, according to the Events Industry Council and Oxford Economics' November 2018 "Global Economic Significance of Business Events" report.
The American Coatings Show & Conference was postponed, organizers confirmed.
"While we are unaware of any reported cases of COVID-19 in Indiana or Indianapolis, postponement of ACS/ACC 2020 was unavoidable as the show could not proceed as scheduled due to forces beyond our control," organizers said, adding that they are working on securing a later date at the same venue.
“In close cooperation with our LOPEC partner OE-A and our exhibitors, it is unfortunately not possible for us to successfully hold the event this year for participants of the Exhibition and Conference," said Falk Senger, managing director of Messe München and the executive who oversees LOPEC. "Canceling LOPEC 2020 was a painful decision. By making it, we have assumed our responsibility for the health of our exhibitors, conference speakers and visitors.”
NAPIM’s Spring Convention scheduled for April 17-20 in Phoenix, AZ, was also postponed.
"This was not an easy decision for us to make," Executive Director John Copeland and president Jim Leitch said in a joint statement on behalf of NAPIM's Board of Directors and staff. "However, it is our obligation to do what is in the best interests of all our attendees and event sponsors. As we have all been following the news surrounding coronavirus, it is changing hourly with local and state governments issuing safety declarations, airlines canceling flights, and large events such as conferences and sporting events being canceled. Some attendees have already informed us that their companies have stopped all employee travel and that they would not be sending anyone to the NAPIM Spring Convention."
Avery Dennison plans to hold 2020 Annual Meeting of Stockholders (April 23, 2020 at 1:30 p.m. PT) virtually.
RadTech 2020 and the 2020 IUVA Americas Conference went on as planned, after RadTech's Mickey Fortune and Gary Cohen said that there were "no plans to postpone or cancel" the events.
The conference was declared "handshake-free" with organizers suggesting "fist bumps" and "elbow taps" as the preferred method of greeting other attendees, RadTech wrote on its website. The Orlando Sentinel additionally reported on the policy.
On Jan. 30, 2020, the director-general of WHO declared the outbreak of COVID-19 to be a Public Health Emergency of International Concern, per the organization's website.
“Listening to our members, it’s clear there are already signs of shortages and raw material price increases based on tightened supply due to the coronavirus,’’ Tom Bowtell, chief executive of British Coatings Federation (BCF), whose members include inks producers, said in mid-February. “While there are alternative sources of some raw materials, many of the precursors of the raw materials they use start life in China. We are still waiting for more information regarding how long it will be before Chinese factories are back to normal output levels.’’
“Our hearts,” Hrdlick said, “go out to everyone around the globe who have been negatively impacted by this outbreak in so many ways, including the loss of family and friends. We are keeping them in our thoughts and are hopeful COVID-19 runs its course as soon as possible.”
