U.S. Industries Scramble for Exemptions as State Shutdown Orders Grow
As several more U.S. states moved to impose stay-at-home orders to limit the spread of the coronavirus, industries from steelmakers to auto dealerships were scrambling for exemptions that would allow them to remain…
As several more U.S. states moved to impose stay-at-home orders to limit the spread of the coronavirus, industries from steelmakers to auto dealerships were scrambling for exemptions that would allow them to remain open.
A patchwork of state and local authorities are imposing business closures. While many manufacturing firms were declared “essential” and were being allowed to stay open, some suppliers were not.
The stay-at-home orders are designed to stop the spread of the highly contagious virus, which has infected over 40,000 Americans in recent weeks and killed over 500.
The manufacturing-heavy states of Ohio, Indiana, Pennsylvania and Michigan imposed stay-at-home orders on Monday, joining states such as New York, California, Illinois, Delaware and Maryland.
“What we do now will slow this invader,” Ohio Governor Mike DeWine said Sunday. “It will slow this invader so our healthcare system … will have time to treat casualties.”
The National Association of Manufacturers has urged states to declare all manufacturing facilities and supply chains as part of the “essential infrastructure” and “essential businesses,” allowing them to stay open under guidance https://www.cisa.gov/sites/default/files/publicationsCISA_Guidance_on_the_Essential_Critical_Infrastructure_Workforce_508C_0.pdf provided by the federal Cybersecurity and Infrastructure Security Agency (CISA), part of the Department of Homeland Security.
As the virus halts physical commerce, keeping operations open provides companies a better chance of staying in business than waiting for a government handout, said Gary Hufbauer, a non-resident senior fellow at the Peterson Institute for International Economics.
“Cash flow and survival are the key words here,” said Hufbauer. “As the shutdown continues, more and more firms will seek to be designated ‘essential.'”
Several letters to state and local officials from industry groups did not address how worker safety would be maintained for firms granted exemptions.
According to the CISA guidance, working remotely is encouraged, but when that is not possible, the agency recommends following guidance from the U.S. Centers for Disease Control and Prevention for social distancing, and off-setting shift hours to separate staff.