The Vicious Cycle of COVID-19: An Invisible Enemy that has Brought Manufacturing in Mexico and the World to a Halt

International companies in Mexico and across the globe have come to a crossroads with the emergence of a new invisible enemy known as COVID-19 and the pandemic that has spread like wildfire to nearly every country in the world. This situation is forcing everyone, on all levels of government, society and industry, to make unprecedented decisions and find innovative solutions in our search for a new normal.

As the result of the social distancing and confinement measures implemented in Mexican homes and companies to manage the pandemic, federal health authorities tracking cases and deaths related to COVID-19 are predicting that after a peak in contagion from May 15 to May 30, we will begin to see a significant decrease in both new cases and resulting deaths, consequently allowing us to begin transitioning towards stages of economic recovery.

In practice, this means that starting on June 1, several economic sectors that had been designated as non-essential will begin receiving approval to resume activities. This includes the construction, transport, and mining industries, as well as automotive manufacturing Mexico. Consequently, and under pressure from important sectors that are also suffering economically from the shutdown, additional businesses will gradually be allowed to reopen as well.

Despite this encouraging news, it is important to keep in mind that our transition to a new normal will not be an easy one, and that relaxing these measures and allowing more people to interact in larger groups, both in the workplace and in public, may have serious and even counterproductive consequences.

While the international scientific community continues to work to develop a vaccine, that is not expected to be available any time in the near future, and which also implies a whole other set of issues, especially for people in developing economies, the international transformation industry and Mexico manufacturing must focus on strengthening global supply chains. The crisis has made it clear that there is a need not only in the automotive industry Mexico, but also many other industries and countries, to make supply chains more efficient and regionally robust.

In this context, at American Industries we are working hand in hand each day with our customers and partners to spearhead efforts for the safe reopening of industry in the regions where we have a presence by supporting local governments and institutions in designing and implementing measures to establish a new normal that will ensure we can escape the vicious cycle of contagion and keep our communities safe.

And it is precisely in our communities, and as a society as a whole, that we will be able to find long term solutions by coming together with compassion and sympathy to adapt and protect the most vulnerable. We must remember that in this catastrophe also lies opportunity. The opportunity to slow down the pace of life, take the time to reflect on what we must change, and put in the work to reinvent ourselves in how we treat one another, but also how we interact in business and with the environment in order to come out the other side stronger, wiser and ready to face the next challenge.

By Juan Iván Álvarez Chabre   |  Cd.Juarez Regional Director  | American Industries Group®

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