Here Jorge Cámara, export manager at Chavesbao, provides his thoughts and insight on the current situation and impact of Covid-19.
Dear Readers,
I hope I find you all fine and safe.
My parents, born when the Spanish Civil War ended in 1939, suffered the lack of almost everything and a grey period of time and all the consequences of World War II. However, they remember a bright childhood, playing outside with their friends, on the road, enjoying the very small things on offer in a little agricultural village. Even they, today facing isolation at home and the threat of the coronavirus with an enviably positive attitude, say “at least in the past we had the street, we could play altogether and touch each other”. I owe them more than seven lives of gratitude and am sure they are one of thousands of unknown examples of courage when periods of great difficult arrive.
When writing these words on 23rd April, the “war report” of Spain’s status since the outbreak of Covid-19 is that unfortunately more than 22,000 people have died and 214,000 have been confirmed infected. Lockdown was decreed by the Spanish government on 14th March, with state of emergency measures limiting the movement of citizens and vehicles, closing certain public-facing commercial activities across the entire territory, closing borders, etc.
During these weeks, quarantine has been extended three times, with more than 85% of our population respecting confinement. Essential sectors and businesses have continued operating or re-opened gradually. The strict lockdown has been eased for priority manufacturing, construction sites and some services, allowing return to work, adhering to strict safely guidelines, in order to not stop the economy. The current lockdown goes to 9th May, this time progressively relaxing measures i.e. allowing children up to 14 out on the street with their parents.
No Spanish politician wanted to take the hard decision to push the “nuclear button” to bring our economy to a standstill. We should have begun tougher measures at least at the beginning of March (when many private companies began to implement first cautious steps), not waiting until the health care system had nearly collapsed. Now, position papers and agreements on decisions between central and regional Spanish governments have shown different trends in the management of the crisis, reflecting a very similar face in the European Union mirror.
27 EU Members are debating the most proper financial design for the economic rebuilding-up of the Eurozone, and after several meetings the spectre of North and South fragmentation haunts proceedings, while debt and market risk premium bloom country by country following a crazy spring time. The IMF in its ‘World Economic Outlook’ report of April 2020 forecasts 8% GDP economic contraction in Spain due to coronavirus crisis and reckons the unemployment rate could soar to 20.8%. It predicts 7.5% contraction amongst Eurozone economies and the global economy can expect a 3% contraction this year, likely to suffer the worst financial crisis since the 1929 Great Depression. The IMF expects a partial recovery in 2021, provided that the pandemic eases throughout this year.
In Spain, as in many countries, we abruptly entered the tunnel. It is clear that the speed of recovery of the portfolio of industrial sectors will take a different timeline, and that we only foreseeing the tip of the iceberg in terms of direct and collateral damages. The supply chain has suddenly stopped or fallen down with activities closed. Hotels and tourism contribute 12.3% of Spanish GDP. Automotive manufacturing sector, flights, and aerospace, shops, restaurants or Industrial business dramatically reduced by up to 70%. Huge uncertainty and question marks fly over the sustainability for many companies and their employees, most of them adapting to the government’s job furlough schemes, which temporarily help to pay wages.
Regarding fasteners, we felt a high risk at origin for the supply of many fastener products when China and the Far East showed coronavirus problems. We feel that the European and worldwide fastener demand has dramatically changed in a very short period of time. Every country, whether for origin or destination of these commodity goods, is in the same boat with only varying degrees of affectation. Many public or private projects and consumptions are stopped, blocked or reduced, pending on how the situation evolves and how the manufacturing network will somehow deal with the shorter term implications.
Technologies are helping a lot in this scenario, in our sector also. Many office staff work from home, connected and able to maintain productivity and activities. Our business is changing, evolving and sure when this nightmare finishes some of the improvements will remain.
How will we meet again in the next future? As an example of the severity of the impact of coronavirus on relationships and the economy, I can point to the evidence of the number of fairs and exhibitions worldwide postponed or cancelled worldwide. According to expodatabase.de as of 22nd April 2020, 2,427 of them are postponed - 1,445 or around 60% of them in Europe.
We are living an historical time, with reality surpassing fiction. An invisible ‘small’ virus is turning our world upside down, showing how vulnerable we are. Human and economic health concerns walk hand in hand, one not being understood without the other. Our quality life, our freedom, our natural human way of social communication – touching, hugging, kissing, meeting – is seriously constrained until vaccines are ready and effective globally.
We have a big opportunity to show that fastener wholesalers and suppliers are beneficial for society. I would even say we are mature enough to coordinate issues as a body, looking for our meeting points instead of focusing on our differences, avoiding what we too often see amongst our politicians, behaviour without sense of estate.
On the other hand, remembering the ‘Hacksaw Ridge’ film, where a conscientious objector refused to carry a weapon at the Battle of Okinawa, yet saved 75 of his colleagues at the battle front, I find it necessary we ‘save’ every single colleague of our troop, with ethics and values. Real leadership is a key.
We have to consider, in our solutions, every stakeholder in the supply chain and not put aside anyone, because we depend on each other.
As Richard Ashcroft sings “I am a man in motion”. I miss our people (our employee and team colleagues); I miss all the partners, customers worldwide with whom I have shared unforgettable memories, that enriched me whether at meetings, at fairs or in private time. I even miss my competitors, who help me to improve myself as a professional.
I do feel lucky and grateful for your confidence and learning from all of you.
Taking one of the thoughts of great Greek Master Sócrates: “The unexamined life is not worth living”. We have a little time to reduced our stressed speed, to balance ourselves, to really spend quality time and enjoy our families, to rethink our personal and professional targets, to give a chance to our essence, to release that passion of the child we still have inside, to value prior issues in our lives, spreading with generosity (without masks!) our smile and light to others.
Wishing you all the best in this challenging period – health, hope, faith, courage and resilience. Take care.
Thank you very much and a warm big hug!!
Jorge Cámara - export manager, Chavesbao
Having held senior management roles in leading automotive and fastener businesses, Phil joined Fastener + Fixing Magazine as editor in 2002. Convinced there is no substitute for ‘being there’, over 17 years of visits and interviews around the world means he has accumulated an extraordinary knowledge and perspective of the global fastener industry, reflected in his incisive and thought provoking reporting.
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