ILMA Compoundings - August 2020 - 24

business improving," he said. "Many of our nationalaccount customers are in heavy-duty services, and logistics
has continued to move goods through this environment.
Our products are utilized to keep equipment on the road."
Like many ILMA members, Old World Industries continued
to operate during the pandemic. "Our partners and our own
plants have really been courageous," Greer said. "We don't make
medical masks, but we keep things that keep America moving
with diesel exhaust fluid, coolants and motor oil. To me, it has
been an impressive response of the supply chain. It has given
me a lot of confidence in American ingenuity."

Trade Outside of China

"With OEMs coming back on, we've seen
business improving. Many of our nationalaccount customers are in heavy-duty
services, and logistics has continued to
move goods through this environment."
Charles Culverhouse, CEO, Old World Industries
this COVID kicked off in China, other markets were still
functional," he said.
Due to the lead time in the supply chain, Greer said,
product kept coming in even after demand plummeted as
COVID-19 took hold. "You have a lot of inventory in the
pipeline with nowhere to sell it," he said. "That was one of
our most substantial challenges. You can't react fast enough
to turn the spigot off on those long lead-time items. It was
much harder for us to manage the demand side than to
manage the supply side."
Greer said Old World Industries had isolated supply
disruptions, but its diversity and backup sourcing for
business continuity came in handy. "When something like
this happens, that saves you," he said. "In those cases where
we had supply disruptions, we were able to lean on our
alternative suppliers."
Culverhouse said having a surplus of products could be a
phenomenal thing if the market comes back with a V-shaped
curve. He added that he has already seen some positive signs
of a recovery. "With OEMs coming back on, we've seen

AUGUST 2020

| COMPOUNDINGS | ILMA.ORG

While China has been the focus of most trade and supply-chain issues, Eggenschwiler said Russian and Iranian
sanctions are still having a net negative impact on Europe.
"For a while, they were looking for ways to sidestep our
import restrictions," he said. "Now they aren't doing that
because the European Union has taken a similar stance as we
have with Iran."
Eggenschwiler added that there was also a risk of trade
issues with India. "The controversy around it has died
down," he said. "I think it has been overshadowed by
enough things that we're not reading much about it."
Castor oil has been a particular focus on issues with
India, Leiter said. He explained that 95% of castor oil comes
from India.
Meanwhile, the U.S., Canada and Mexico are continuing to work toward their trade agreement, the United
States-Mexico-Canada Agreement (USMCA), which took
effect July 1. "Each of the three had to say they had procedures in place," Leiter said. "The sense is that it will be a
fairer deal than the North American Free Trade Agreement
was for the U.S. manufacturers."
The USMCA marks the beginning of a historic new chapter for North American trade by supporting more balanced,
reciprocal trade, leading to freer markets, fairer trade and
robust economic growth in North America, the Office of the
U.S. Trade Representative (USTR) said in a written release.
"The crisis and recovery from the COVID-19 pandemic
demonstrates that now, more than ever, the U.S. should strive
to increase manufacturing capacity and investment in North
America," said U.S. Trade Representative Robert Lighthizer.
"The USMCA's entry into force is a landmark achievement in
that effort. Under President Trump's leadership, USTR will
continue working to ensure a smooth implementation of the
USMCA so that American workers and businesses can enjoy
the benefits of the new agreement."
Long is a freelance writer and journalist. She can be reached at
925-750-7163 or mindy@mindylong.com.

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