Gov. Wolf order to close all “non-life-sustaining” businesses is flawed, manufacturing associations argue

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On March 19 at 8 p.m., Gov. Tom Wolf ordered all non-life-sustaining businesses in Pennsylvania to close physical locations to mitigate a further spread of COVID-19, drawing heavy criticism and concern from the Pennsylvania Manufacturers’ Association (PMA) as well as the National Association of Manufacturers (NAM).

Along with his announcement, Wolf released a list of affected industries that must comply by 12:01 a.m. March 21 or face enforcement actions.

“[The] governor’s haphazard list of which manufacturers can or cannot operate leaves paper product makers without timber, steelmakers without coal to use for coke, specialty metals manufacturers without paints, coatings, and solvents, etc.,” PMA President and CEO David A. Taylor said. “Manufacturers rely on extensive supply chains for industrial inputs and equally elaborate distribution networks to deliver their products to consumers. Any break in those chains will prevent ‘life-sustaining’ goods from reaching end-users.”

Taylor said that Wolf’s order is a direct contradiction of guidance issued on Thursday by the Cybersecurity and Infrastructure Security Agency (CISA), which highlighted a list of Essential Critical Infrastructure Workforce needed, now more than ever, to maintain a critical infrastructure industry.

“As the nation comes together to slow the spread of COVID-19, everyone has a role to play in protecting public health and safety. Many of the men and women who work across our nation’s critical infrastructure industries are hard at work keeping the lights on, water flowing from the tap, groceries on the shelves, among other countless essential services,” CISA Director Christopher Krebs said. “As the nation’s risk advisor, this list is meant to provide additional guidance to state and local partners, as well as industry, building on the President’s statement that critical infrastructure industries have a special responsibility to keep normal operations.”

PA Chamber of Business and Industry President and CEO Gene Barr acknowledged an understanding of Wolf’s order, but expressed concern over execution.

“While we understand the need for strong measures to mitigate the spread of the COVID-19 virus, many of the industries listed as ‘non-life-sustaining businesses’ in the governor’s order are in fact part of the supply chain for other businesses listed as being a ‘life-sustaining’ business,” Barr said. “We are working with the administration to seek further clarification and modification of the order and will be providing updates to the state’s broad-based business community as we receive them.”

In a March 19 letter sent to government leaders, NAM President and CEO Jay Timmons wrote that all manufacturing facilities, supply chains and their employees should be deemed “essential infrastructure” and “essential business” to provide clear and consistent guidance to businesses during the COVID-19 pandemic.

“The country is depending on the many things our members make—from equipment and vehicles needed for our nation’s first responders, to items seemingly not critical but very much a part of the supply chain necessary for both comfort and survival during these uncertain times,” Timmons wrote. “There have been many well-intentioned actions to shutter all businesses in certain localities, and the result has unfortunately adversely impacted operations for the supply chain.”

Timmons also stated that a lack of clear guidance could lead to devastating consequences that could disrupt the supply of lifesaving goods and services, affecting public health, safety, and manufacturers’ livelihoods.

Already concerned with the well-being of the thousands of manufacturers across the United States, NAM urged the federal government this week to strongly consider aggressive action to help small- and medium-sized manufacturers respond to COVID-19 and future public health emergencies. Specifically, NAM is requesting the creation of a “Manufacturing Resiliency Fund,” which would include $1.4 trillion in liquidity loans for manufacturers and small businesses, protecting the roughly 13 million employees working within the manufacturing industry.

In a survey released by NAM between Feb. 28 and March 9, 78.3 percent of the 558 responding member companies said they are anticipating a financial impact, 53.1 percent anticipating a change in operations, and 35.5 percent already facing supply chain disruptions because of COVID-19 and related government actions.

“As manufacturers mobilize to protect the health and well-being of our communities and country, the NAM is releasing an expanded set of ‘Policy Action Plan Recommendations’ for Congress and federal agencies,” Timmons said. “Our leaders have already acted on many of our original proposals, and if they continue to move swiftly and boldly, manufacturers will be able to rise to this challenge and keep our country healthy, all while ensuring the resilience of our workers, our industry and our economy. This is a crisis unlike anything we’ve seen, and it demands a response of historic proportion.”