US companies discover the underlying costs of riding the business COVID-19 crisis
The coronavirus pandemic has resulted in unprecedented discover unemployment compounded by the loss of jobs that the country has not witnessed since the Great Depression of the 1930s. In April, the jobless figure was at 14.7%. Despite the severe impact on business, it is not that every company is experiencing a slump. Some companies in selected sectors like packaging and specialty chemicals have experienced a massive surge in demand that has exploded the output of factories. As people perceive plastic bags a safer alternative when buying packaged products, the demand has soared immensely. Similarly, a company that produces gelling agents used to manufacture sanitizer has experienced a three-fold rise in demand as the demand for sanitizers is skyrocketing.
Added COVID-19 related costs
Besides the spurt in demand, these companies are incurring substantial extra costs that run in millions of dollars associated with responding to coronavirus pandemic. Supply chain and logistics costs have gone up significantly as the companies arrange to deliver the goods to those who need it. Not only companies that are responding to the COVID-19 crisis are facing excess costs, but even some electronics companies or any other company that is operating during the time of pandemic are facing it too.
Additional costs arise from the cost of maintaining hygiene and the safety of workers. At the workplace as well as maintaining cleanliness and hygiene of the workplace by using various sanitization measures with soap. Sanitizers, masks, gloves, face shields, and PPE if required. Employee screening before shifts entails using automated scanners. And other equipment to ensure contactless screening, which requires a signature. Discover investment and multiplies costs that run into thousands of dollars.
Cleaning costs are huge
Most of the added costs arise from cleaning that entails deploying additional labor in every shift. To sanitize and scrub surfaces and providing backpacks to the cleaning staff that they use for cleaning floors with cleanser. According to information available from a packaging company, Emerald Packaging Inc. in Union City, Calif. A discover family-owned business with annual sales of $85 million, the total added cost by the year-end will amount to $3, 50,000. This does not include the lost production time of one hour per day and the time it takes to clean machines. Emerald’s Chief Executive Officer Kevin Kelly says that the company is yet to figure out what this will do to his profits, but he fears a big hit to the margins. To meet the additional demand, the company is heaping overtime costs that will also eat into the profits.
The cost of buying rags has grown exponentially discover as the company. That used to consume 200 rags per week is now consuming in 7000. The price has gone up more than three-fold from $300 per month to $1000.
Too much wiping of surfaces and machines with isopropyl alcohol creates new problems, such as the erosion of buttons and signs discover as the lettering is rubbed away. It calls for repainting and lettering once again or replacing buttons. That entails some cost but require a shutdown that turns more costly.