Jan. 07, 2021
Karen Fite, who, for the past 18 months has led the Georgia Institute of Technology’s economic development efforts as interim vice president and director of the Enterprise Innovation Institute (EI2), has retired after more than 27 years of service.
David Bridges, director of EI2’s Economic Development Lab (EDL), will assume the interim vice president role effective Jan. 1, 2021.
EI2 is the largest and most comprehensive university-based program of business and industry assistance, technology commercialization, and economic development in the United States.
Prior to leading EI2, Fite ran the unit’s Business & Industry Services group of programs, comprised of the Georgia Manufacturing Extension Partnership (GaMEP), EI2’s largest economic development offering. The group also includes the Safety, Health, and Environmental Services (SHES), Atlanta MBDA Centers, Contracting Education Academy, Georgia Tech Procurement Assistance Center (GTPAC), and the Southeastern Trade Adjustment Assistance Center (SETAAC) programs.
Before taking on that role, Fite was GaMEP director.
“Over the years at Georgia Tech, I have been privileged to serve in a wide variety of capacities — assisting companies with government procurement, their implementation of quality management systems and Lean Manufacturing protocols, the launch of a Lean Healthcare initiative, creating community economic development research and strategic plans, and directing the GaMEP,” Fite said.
“As interim vice president, I have had the opportunity to interact with virtually every EI2 employee. Working with such a talented group of employees of EI2 has been an honor because across the board they are passionate about their work, dedicated to Georgia Tech’s mission of progress and service by serving clients, and continually looking to innovate, improve, and expand our services to help create long lasting and meaningful impact not only in Georgia and across the country, but around the world.”
Chaouki T. Abdallah, Georgia Tech’s executive vice president for research said Fite was a valued member of his leadership team.
“She has been a very effective and engaging leader,” Abdallah said. “She’s brought me solutions, given me critical feedback and has been an invaluable partner. Georgia Tech is lucky to have had her contributions for so long.”
Fite has a master’s degree in business administration from the University of Miami and a bachelor’s in health systems from Georgia Tech. In 2018, she achieved the faculty rank of principal extension professional, Georgia Tech’s highest professional extension faculty rank.
“We are fortunate to have someone of David Bridges’ caliber who can not only build on Karen’s legacy but also brings a wealth of experience and economic development successes,” Abdallah said.
Bridges, who joined EI2 in 1994, authored, co-authored or contributed to more than 100 economic development grants totaling more than $40 million. He assisted in the formation of the two proof-of-concept units — the Global Center for Medical Innovation, a Tech affiliate in the medical device space, and I3L, a health information technology innovation hub.
Beyond Georgia, Bridges helped catalyze the development of the Soft Landings program to bring companies from overseas to the United States. He also helped to establish the I-Corps Puerto Rico program as the National Science Foundation’s first I-Corps program ever offered to teams from that community.
He also supported the expansion of technology extension programs in Chile and Colombia, built a new program in professional development around innovation and technology commercialization, and expanded Georgia Tech’s presence by helping to build startup ecosystems around the Institute’s international campuses and in Latin America.
Bridges and his EDL team have also implemented ecosystem building projects for numerous countries including Colombia, Chile, Ecuador, Peru, Panama, Costa Rica, Argentina, Guatemala, South Africa, China, Korea, and Japan.
- Péralte Paul
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Dec. 07, 2020
Researchers have developed a potential new treatment for the eye disease glaucoma that could replace daily eyedrops and surgery with a twice-a-year injection to control the buildup of pressure in the eye. The researchers envision the injection being done as an office procedure that could be part of regular patient visits.
The possible treatment, which could become the first non-drug, non-surgical, long-acting therapy for glaucoma, uses the injection of a natural and biodegradable material to create a viscous hydrogel — a water-absorbing crosslinked polymer structure — that opens an alternate pathway for excess fluid to leave the eye.
“The holy grail for glaucoma is an efficient way to lower the pressure that doesn’t rely on the patient putting drops in their eyes every day, doesn’t require a complicated surgery, has minimal side effects, and has a good safety profile,” said Ross Ethier, professor and Georgia Research Alliance Lawrence L. Gellerstedt Jr. Eminent Scholar in Bioengineering in the Wallace H. Coulter Department of Biomedical Engineering at Georgia Tech and Emory University. “I am excited about this technique, which could be a game-changer for the treatment of glaucoma.”
The research, which was supported by the National Eye Institute and the Georgia Research Alliance, was published Dec. 7 in the journal Advanced Science. The research was conducted in animals, and shows that the approach significantly lowered the intraocular pressure.
As many as 75 million people worldwide have glaucoma, which is the leading cause of irreversible blindness. Glaucoma damage is caused by excess pressure in the eye that injures the optic nerve. Current treatments attempt to reduce this intraocular pressure through the daily application of eyedrops, or through surgery or implantation of medical devices, but these treatments are often unsuccessful.
To provide an alternative, Ethier teamed up with Mark Prausnitz, professor and J. Erskine Love Jr. Chair in the School of Chemical and Biomolecular Engineering at Georgia Tech, to use a tiny hollow needle to inject a polymer preparation into a structure just below the surface of the eye called the suprachoroidal space (SCS). Inside the eye, the material chemically crosslinks to form the hydrogel, which holds open a channel in the SCS that allows aqueous humor from within the eye to drain out of the eye through the alternative pathway.
There are normally two pathways for the aqueous humor fluid to leave the eye. The dominant path is through a structure known as the trabecular meshwork, which is located at the front of the eye. The lesser pathway is through the SCS, which normally has only a very small gap. In glaucoma, the dominant pathway is blocked, so to lessen pressure, treatments are created to open the lesser pathway enough to let the aqueous humor flow out.
In this research, the hydrogel props open the SCS path. A hollow microneedle less than a millimeter long is used to inject a droplet (about 50 microliters) of the hydrogel-precursor material. That gel structure can keep the SCS pathway open for a period of months.
“We inject a viscous material and keep it at the site of the injection at the interface between the back of the eye and the front of the eye where the suprachoroidal space begins,” Prausnitz said. “By opening up that space, we tap a pathway that would not otherwise be utilized efficiently to remove liquid from the eye.”
The injection would take just a few minutes, and would involve a doctor making a small injection just below the surface of the eye in combination with numbing and cleaning the injection site. In the study, the researchers, including veterinary ophthalmologist and first author J. Jeremy Chae, did not observe significant inflammation resulting from the procedure.
The pressure reduction was sustained for four months. The researchers are now working to extend that time by modifying the polymer material — hyaluronic acid — with a goal of providing treatment benefits for at least six months. That would coincide with the office visit schedule of many patients.
“If we can get to a twice-a-year treatment, we would not disrupt the current clinical process,” Prausnitz said. “We believe the injection could be done as an office procedure during routine exams that the patients are already getting. Patients may not need to do anything to treat their glaucoma until their next office visit.”
Beyond extending the time between treatments, the researchers will need to demonstrate that the injection can be repeated without harming the eye. The procedure will also have to be tested in other animals before moving into human trials.
“The idea of having a ‘one-and-done’ treatment that lasts for six months would be particularly helpful for those whose access to healthcare is non-optimal,” Ethier said. “Having a long-acting therapy would have an additional advantage during times of pandemic or other disruption when access to healthcare is more difficult.”
This research was supported by a grant from the National Eye Institute (R01 EY025286) and by the Georgia Research Alliance. Any opinions, findings, and conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of the funding agencies.
Mark Prausnitz serves as a consultant to companies, is a founding shareholder of companies, and is an inventor on patents licensed to companies developing microneedle-based products (Clearside Biomedical). These potential conflicts of interest have been disclosed and are being managed by Georgia Tech. J. Jeremy Chae, Jae Hwan Jung, Ethier, and Prausnitz are listed as co-inventors on an IP filing related to this study.
CITATION: J. Jeremy Chae, et al., “Drug-free, Non-surgical Reduction of Intraocular Pressure for Four Months After Suprachoroidal Injection of Hyaluronic Acid Hydrogel.” (Advanced Science, 2020) https://doi.org/10.1002/advs.202001908
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Dec. 03, 2020
Decarbonizing U.S. electricity production will require both construction of renewable energy sources and retirement of power plants now operated by fossil fuels. A generator-level model described in the Dec. 4 issue of the journal Science suggests that most fossil fuel power plants could complete normal lifespans and still close by 2035 because so many facilities are nearing the end of their operational lives.
Meeting a 2035 deadline for decarbonizing U.S. electricity production, as proposed by the incoming U.S. presidential administration, would eliminate just 15% of the capacity-years left in plants powered by fossil fuels, says the article by Emily Grubert, a Georgia Institute of Technology researcher. Plant retirements are already underway, with 126 gigawatts of fossil generator capacity taken out of production between 2009 and 2018, including 33 gigawatts in 2017 and 2018 alone.
“Creating an electricity system that does not contribute to climate change is actually two processes — building carbon-free infrastructure like solar plants, and closing carbon-based infrastructure like coal plants,” said Grubert, an assistant professor in Georgia Tech’s School of Civil and Environmental Engineering. “My work shows that because a lot of U.S. fossil fuel plants are already pretty old, the target of decarbonization by 2035 would not require us to shut most of these plants down earlier than their typical lifespans.”
Of U.S. fossil fuel-fired generation capacity, 73% (630 out of 840 gigawatts) will reach the end of its typical lifespan by 2035; that percentage would reach 96% by 2050, she says in the Policy Forum article published in Science. About 13% of U.S. fossil fuel-fired generation capacity (110 gigawatts) operating in 2018 had already exceeded its typical lifespan.
Because typical lifespans are averages, some generators operate for longer than expected. Allowing facilities to run until they retire is thus likely insufficient for a 2035 decarbonization deadline, the article notes. Closure deadlines that strand assets relative to reasonable lifespan expectations, however, could create financial liability for debts and other costs. The research found that a 2035 deadline for completely retiring fossil fuel-based electricity generators would only strand about 15% (1,700 gigawatt-years) of capacity life, along with about 20% (380,000 job-years) of direct power plant and fuel extraction jobs that existed in 2018.
In 2018, fossil fuel facilities operated in 1,248 of 3,141 counties, directly employing about 157,000 people at generators and fuel extraction facilities. Plant closure deadlines can improve outcomes for workers and host communities — providing additional certainty, for example, by enabling specific advance planning for things like remediation, retraining for displaced workers, and revenue replacements.
“Closing large industrial facilities like power plants can be really disruptive for the people who work there and live in the surrounding communities,” Grubert said. “We don't want to repeat the damage we saw with the collapse of the steel industry in the 1970s and ’80s, where people lost jobs, pensions, and stability without warning. We already know where the plants are, and who might be affected. Using the 2035 decarbonization deadline to guide explicit, community grounded planning for what to do next can help, even without a lot of financial support.”
Planning ahead will also help avoid creating new capital investment that may not be needed long-term. “We shouldn't build new fossil fuel power plants that would still be young in 2035, and we need to have explicit plans for closures both to ensure the system keeps working and to limit disruption for host communities,” she said.
Underlying policies governing the retirement of fossil fuel-powered facilities is the concept of a “just transition” that ensures material well-being and distributional justice for individuals and communities affected by a transition from fossil to non-fossil electricity systems. Determining which assets are “stranded,” or required to close earlier than expected, is vital for managing compensation for remaining debt or lost revenue, Grubert said in the article.
CITATION: Emily Grubert, “Fossil electricity retirement deadlines for a just transition” (Science, 2020). https://science.sciencemag.org/content/370/6521/1171
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Nov. 30, 2020
When one or more coronavirus vaccines receives FDA emergency use authorization, it will launch a public health and logistics initiative unlike any in U.S. history.
Hundreds of millions of doses will have to distributed nationwide and kept cold until healthcare professionals can administer not one, but two doses to each person. And enough skeptical members of the population will have to be persuaded to receive the vaccine to slow virus transmission.
Beyond those challenges, the distribution effort will have to adapt to unexpected and uneven demand; accommodate recipients who may not return on time for a second dose; train hundreds of thousands of staff from clinics, pharmacies, doctor’s offices, and hospitals; prioritize serving high-risk groups first while encouraging others to wait — all while under tremendous pressure to get the much-anticipated vaccines into use as case counts and the death toll continue rising.
“Time is of the essence because the virus is already so widespread,” said Pinar Keskinocak, the William W. George Chair and professor in the H. Milton Stewart School of Industrial and Systems Engineering (ISyE) and director of the Center for Health and Humanitarian Systems at the Georgia Institute of Technology. “With the pressure on our timeline, knowledge of how quickly the disease is spreading, and the broad U.S. and global need, I can’t think of a comparable public health initiative that has ever been undertaken.”
Shipping and Keeping Hundreds of Millions of Doses Cold
Three vaccines, produced by Moderna, Pfizer and its German partner BioNTech, and Oxford-AstraZeneca, are expected to be available first. The Pfizer-BioNTech vaccine will need to be kept ultra-cold — minus 94 degrees Fahrenheit — on its journey to individual Americans. The Moderna drug won’t have such demanding conditions, but both it and the Pfizer vaccine will tax the existing “cold chain” that keeps vaccines and other temperature-sensitive products in a narrow range of conditions during transport and storage.
The Oxford-AstraZeneca vaccine will have much less stringent requirements and faster ramp-up in capacity, though early testing suggests its efficacy may be lower than the others. That will create tradeoffs between efficacy versus access and speed in distribution.
Plans already exist to get the vaccines from manufacturers to the states, each of which has developed its own distribution plan. Keskinocak worries mostly about “last mile” plans — getting the vaccines to where they will be injected — and getting individuals to those locations.
“Access is going to be a challenge,” she said. “You may be able to get it to locations where it can be distributed, but you have to make sure the people who really need the vaccine can easily access those locations.”
Cold chain transportation, tracking, tracing, and storage already exist in most areas, but refrigeration could be challenging for rural areas that may be at the end of the chain, especially for the vaccine requiring very cold temperatures beyond the capability of freezers found in most doctor’s offices and clinics. And cold can sometimes be too cold, Keskinocak said.
“We often think about keeping it cold, but sometimes it may be too cold, which is not good. It’s not just whether the temperature exceeded the required level, but also whether it went below that. It is important to keep the vaccine exactly at the required temperature level.”
Pfizer has developed a shipping container that includes a temperature tracking device — and 50 pounds of dry ice to maintain the right temperature during transit. Because it is contained in small vials and the liquid vaccine is diluted for use, the overall volume being shipped will be relatively small, limiting the number of packages that will be moved and stored, Keskinocak noted.
Ultimately, the cold chain may play a significant role in vaccine effectiveness. Currently, the vaccines being produced by Pfizer/BioNTech and Moderna are reported to have a higher efficacy than the Oxford-AstraZeneca vaccine — but only if they can be maintained at the proper temperatures. The timing, magnitude, and duration of temperature fluctuations during transport and before administration could affect that in ways that may be difficult to assess.
“Our current modeling shows that a vaccine that is less effective but that can be distributed more quickly and more widely might work better in some settings than a more effective vaccine, thereby reducing the total number of infections in the population,” Keskinocak said.
If You Build It, Will They Come?
Expectations are that the nation is hungry for a vaccine to escape the horrors of Covid-19. But a recent Gallup survey shows that only 58% of respondents said they planned to receive the vaccine when it becomes available. Boosting that percentage will require a massive communications effort to overcome vaccine reluctance and concerns fueled by the uneven nature of the U.S. pandemic response.
“If we can get the vaccine to locations where people can access it, and we have the necessary syringes, supplies, and PPE, as well as the healthcare staff to administer the injections, it’s not clear that people will come to receive it in large enough numbers,” Keskinocak said. “That’s one major component missing from a lot of the plans that I see at the state level.”
The communications program will have to run in parallel to the vaccine distribution, and they have to be coordinated so that supply meets demand.
“Public health communication and dissemination of information at the right time and in the right language is going to be at least as important and challenging as the logistics of distributing the vaccine,” Keskinocak said. “Communication is going to shape demand to a large extent. If one is more effective than the other, we will have a mismatch between demand and supply.”
Different demographic populations have different levels of trust for medicine in general and vaccines in particular, she said, so communications campaigns will have to focus on issues of concern to those groups. Unexpected variations in vaccine demand caused by these concerns could also create logistical uncertainties.
“We can try to forecast demand, and ship supplies to those locations,” she said. “But historically, we have seen that demand can exceed supply in one location while inventory builds up in another location. We need to avoid this situation of unmet demand and unused vaccine.”
Another issue will be the two doses necessary for the vaccine. The second dose must be received within a narrow range of time for the two-dose vaccine to be effective. Should a second dose be reserved for every person receiving a first dose, or should the goal be to get as many doses out as possible?
“Some people may never show up to be vaccinated, while others will receive the first dose, but may not come back for the second dose,” she said.
Getting the Program Started
The first available doses will likely go to healthcare workers and first responders who are on the front lines of battling Covid-19. That is expected to be the easier part of vaccination logistics, and the lessons learned there should help with the much more massive vaccination campaign for high-risk individuals and the general public.
As vaccine production and distribution capacity ramp up, other groups will be next in line. While distributing small batches as manufacturers produce it can create some supply challenges, that also allows the system to more easily adjust to unexpected demand.
Even though distributing and administering vaccines is something the U.S. healthcare system does routinely, the size and timeline of this project are unprecedented, Keskinocak noted.
Beyond the logistical and communications needs, the vaccination program will also have a strong information technology component. Administration will likely be by appointment, and each injection will have to be reported to a vaccine registry to provide a record of which vaccines people have received and when.
Vaccinating People Who May Already Be Immune
It’s estimated that the number of reported Covid-19 cases may be just 10% of the actual number of infections in the U.S. Assuming recovery from the virus confers immunity for some period of time means there may be quite a few people who don’t actually need the vaccine right away to be protected. But there are currently no plans to determine whether recipients are already immune before they receive the vaccine.
“There are a lot of people out there who have some level of immunity to the coronavirus,” Keskinocak said. “The plans I’ve seen don’t include the serological testing that would be needed to identify people with some level of immunity, which could be around 30% of the population by the time the vaccine gets out to the general public.”
Testing for immune antibodies could be done ahead of the vaccination program, but that would create an extra step in a process that is already quite complicated. Healthcare systems such as the U.S. Department of Veterans Affairs or certain private insurance plans could include that step, especially if vaccine supplies lag behind demand.
“The big complexity is timing,” she said. “Once vaccines become available, you’ll want to deliver them as quickly as possible to as many people as possible in a very short time frame.”
Annual vaccination campaigns for the seasonal flu set ambitious goals for the population levels they want to reach, but the time challenges will be much greater for the coronavirus vaccine.
“The seasonal flu vaccine becomes available months before the virus spreads broadly, so we have quite a bit of time to administer it before we get into the peak of the flu season,” she said. “We have been in the midst of the Covid-19 pandemic for several months now. We are really late in the game, so we don’t have the luxury of time.”
Keskinocak is cautiously optimistic that the challenges will ultimately be addressed.
“There are certainly still lots of unknowns,” she said. “But the state plans I have seen look reasonable from a supply chain standpoint. Some of the decisions will be made once the states receive the vaccine, and exactly how they do it will be somewhat up to the local jurisdictions. There are still many things that need to be decided to make this unprecedented initiative live up to its goals.”
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Sep. 03, 2020
Imagine a reusable face mask that protects wearers and those around them from SARS-CoV-2, is comfortable enough to wear all day, and stays in place without frequent adjustment. Based on decades of experience with filtration and textile materials, Georgia Institute of Technology researchers have designed a new mask intended to do just that — and are providing the plans so individuals and manufacturers can make it.
The modular Georgia Tech mask combines a barrier filtration material with a stretchable fabric to hold it in place. Prototypes made for testing use hook and eye fasteners on the back of the head to keep the masks on, and include a pocket for an optional filter to increase protection. After 20 washings, the prototypes have not shrunk or lost their shape.
“If we want to reopen the economy and ask people to go back to work, we need a mask that is both comfortable and effective,” said Sundaresan Jayaraman, the Kolon Professor in Georgia Tech’s School of Materials Science and Engineering. “We have taken a science-based approach to designing a better mask, and we are very passionate about getting this out so people can use it to help protect themselves and others from harm.”
The fundamental flaw in existing reusable cloth masks is that they — unlike N95 respirators, which are fitted for individual users — leak air around the edges, bypassing their filtration mechanism. That potentially allows virus particles, both large droplets and smaller aerosols, to enter the air breathed in by users, and allows particles from infected persons to exit the mask.
The leakage problem shows up in complaints about eyeglasses fogging up as exhaled breath leaks around the nose, making people less likely to wear them. The fit problem can also be seen in constant adjustments made by wearers, who could potentially contaminate themselves whenever they touch the masks after touching other surfaces.
To address the leakage challenge, Jayaraman and principal research scientist Sungmee Park created a two-part mask that fastens behind the head like many N95 respirators. The front part — the barrier component — contains the filtration material and is contoured to fit tightly while allowing space ahead of the nose and mouth to avoid breathing restrictions and permit unrestricted speech. Made from the kind of moisture-wicking material used in athletic clothing, it includes a pocket into which a filter can be inserted to increase the filtration efficiency and thereby increase protection. The washable fabric filter is made of a blend of Spandex and polyester.
The second part of the mask is fashioned from stretchable material. The stretchable part, which has holes for the ears to help position the mask, holds the front portion in place and fastens with conventional hook and eyelet hardware, a mechanism that has been used in clothing for centuries.
“We want people to be able to get the mask in the right place every time,” Jayaraman said. “If you don’t position it correctly and easily, you are going to have to keep fiddling with it. We see that all the time on television with people adjusting their masks and letting them drop below their noses.”
Beyond controlling air leakage, designing a better mask involves a tradeoff between filtration effectiveness and how well users can breathe. If a mask makes breathing too difficult, users will simply not use it, reducing compliance with masking requirements.
Many existing mask designs attempt to increase filtration effectiveness by boosting the number of layers, but that may not be as helpful as it might seem, Park said. “We tested 16 layers of handkerchief material, and as we increased the layers, we measured increased breathing resistance,” she said. “While the breathing resistance went up, the filtration did not improve as much as we would have expected.”
“Good filtration efficiency is not enough by itself,” said Jayaraman. “The combination of fit, filtration efficiency, and staying in the right place make for a good mask.”
The stretchable part of the mask is made from knitted fabric — a Spandex/Lyocell blend — to allow for stretching around the head and under the chin. The researchers used a woven elastic band sewn with pleats to cover the top of the nose.
The researchers made their mask prototypes from synthetic materials instead of cotton. Though cotton is a natural material, it absorbs moisture and holds it on the face, reducing breathability, and potentially creating a “petri dish” for the growth of microbes.
“Masks have become an essential accessory in our wardrobe and add a social dimension to how we feel about wearing them,” Park said. So, the materials chosen for the mask come in a variety of colors and designs. “Integrating form and function is key to having a mask that protects individuals while making them look good and feel less self-conscious,” Jayaraman said.
The work of Jayaraman and Park didn’t begin with the Covid-19 pandemic. They received funding 10 years ago from the Centers for Disease Control and Prevention to study face masks during the avian influenza outbreak. Since then Jayaraman has been part of several National Academy of Medicine initiatives to develop recommendations for improved respiratory protection.
Covid-19 dramatically increased the importance of using face masks because of the role played by asymptomatic and pre-symptomatic exposure from persons who don’t know they are infected, Jayaraman said. While the proportion of aerosol contributions to transmission is still under study, they likely increase the importance of formfitting masks that don’t leak.
Jayaraman and Park have published their recommendations in The Journal of The Textile Institute, and will make the specifications and patterns for their mask available to individuals and manufacturers. The necessary materials can be obtained from retail fabric stores, and the instructions describe how to measure for customizing the masks.
“There is so much misinformation about what face masks can do and cannot do,” Jayaraman said. “Being scientists and engineers, we want to put out information backed by science that can help our community reduce the harm from SARS-CoV-2.”
Link to plans, patterns and specifications for this mask
CITATION: Sungmee Park and Sundaresan Jayaraman, “From containment to harm reduction from SARS-CoV-2: a fabric mask for enhanced effectiveness, comfort, and compliance.” (The Journal of The Textile Institute, 2020) https://doi.org/10.1080/00405000.2020.1805971
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Jul. 28, 2020
Personal initiatives by a pediatrician and by researchers to make face shields for medical workers have transformed into an industry collaboration that by June had delivered 1.8 million shields to hospitals and other organizations around the country with plans to produce 2.5 million all total. A $2 million donation from Aflac Incorporated for personal protective equipment (PPE) financed the bulk of the shields.
To make it happen, a team of researchers and industry partners convened at the Global Center for Medical Innovation (GCMI), a Georgia Tech-affiliated nonprofit that guides new experimental medical solutions to market. The group combined the physician’s vision with the researchers’ original designs, adjusted them to pass FDA emergency guidelines, and then coordinated mass production and distribution.
A physician’s wisdom
The project grew wings in mid-March, after Dr. Joanna Newton became concerned that the nationwide shortage of PPE was leaving healthcare workers across the country vulnerable. Newton is a physician specializing in improving healthcare safety through technology at Children’s Healthcare of Atlanta, and she was already collaborating with Georgia Tech on other projects.
She grabbed the phone to leverage the connection.
“I called Sherry Farrugia to tell her about my idea to 3D-print PPE. We needed to quickly find a solution for the PPE shortage around the country, and I knew we had the right team here in Atlanta to help,” said Newton, a pediatric hematologist/oncologist at the Aflac Cancer and Blood Disorders Center of Children’s.
“The situation was urgent, and I knew who would have the right expertise to get this done,” said Farrugia, chief operating officer and strategy officer of Children’s Healthcare of Atlanta Pediatric Technology Center, which is part of Georgia Tech.
Farrugia had Newton present her idea at GCMI to researchers, advisors, and industry partners who immediately put together a team to address the need for face shields to protect healthcare workers from droplets containing the coronavirus. She also discussed the need with Devesh Ranjan, associate chair of the George W. Woodruff School of Mechanical Engineering, who suggested connecting the effort to a parallel initiative in that school.
Bringing in engineers
At the same time, along with Ranjan, Sam Graham, chair of the George W. Woodruff School of Mechanical Engineering, and Susan Margulies, chair of the Wallace H. Coulter Department of Biomedical Engineering, were coordinating efforts across campus to develop various medical devices in response to the pandemic. Graham, Margulies, and Ranjan quickly connected GCMI with Christopher Saldana and Saad Bhamla, faculty members in Georgia Tech’s College of Engineering, who were leading an simultaneous effort to address the face shield problem with their students using rapid fabrication techniques like 3-D printing, laser cutting, and waterjet cutting.
“The Georgia Tech mechanical engineering team used rapid fabrication equipment and quickly produced multiple face shield designs that could be manufactured in high volumes for the rapid response environment that Covid-19 required,” Saldana said.
Making a few thousand shields in a lab had likely already saved lives, but the Georgia Tech researchers and GCMI put their designs on the internet, where they have been downloaded thousands of times by organizations manufacturing them around the world. And the manufacturing partners they engaged have been turning out hundreds of thousands of shields to save many more lives.
“You may need 45 minutes for a headband with a 3D printer, but manufacturers turn out six of them every 19 seconds. Then making a million face shields becomes a real possibility,” said Mike Fisher, who leads product development at GCMI.
GCMI opened a GoFundMe page, which brought in $20,000, and then engaged their first manufacturing partner, Delta Air Lines.
A manufacturing explosion
“Delta converted one of their groups from manufacturing airplane interiors to doing the face shields. They started off by manufacturing 6,000 shields, and that got the momentum going,” Leiter said. “Two thousand shields went to Mount Sinai Hospital in New York; 2,000 went to Piedmont Healthcare in Atlanta; and 2,000 went to Children’s Healthcare of Atlanta.”
Things began to snowball.
Graham engaged Siemens Industries to fulfill a face shield order from the Georgia Emergency Management Agency (GEMA) for distribution in Georgia. Partners from ExxonMobil began looking for more potential manufacturers. And Aflac contacted Children’s looking for worthy Covid-19 related efforts to support.
“We asked for a donation of $500,000 for manufacturers to retool their operations. Aflac made a gift of $2 million to GCMI to promote the production of PPE,” Farrugia said. “We were able to buy tooling for an automotive plastics manufacturer called Quality Model in South Carolina, and they have made over 750,000 face shields so far.”
GCMI won a bid from the Federal Emergency Management Agency (FEMA) for 1,141,600 face shields, which are being made by Quality Model, where ExxonMobil helped rearrange production lines for shields.
Siemens made an additional 100,000 shields from Aflac’s gift, which is also being used to purchase existing PPE to donate to healthcare workers. Kia Motors quickly produced an initial 15,000 shields, which the company financed itself.
“Kia got the open source design from the Georgia Tech website and ran with it on their own,” Saldana said.
These partners are delivering the following number of shields: Quality Model, 1,251,600; Kia Motors, 300,000; Siemens Industries, 205,000; Delta Air Lines, 106,100; Georgia Tech, 20,000; and EIS, 15,000. And more are still to come.
The shields went across the country, from hospitals in New York City to Prisma Health in South Carolina, to nursing homes in the Pensacola area, and to rural Louisiana and Mississippi, Leiter said.
Thanks in large part to Aflac’s gift, GCMI and Farrugia are coordinating with partners, including Georgia Tech engineers, to produce N95 masks, hospital gowns, and hand sanitizer, all redesigned for the Covid-19 age.
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Jul. 27, 2020
The simplicity and elegance of origami, an ancient Japanese art form, has motivated researchers to explore its application in the world of materials.
New research from an interdisciplinary team, including Northwestern University’s Horacio Espinosa and Sridhar Krishnaswamy and the Georgia Institute of Technology’s Glaucio Paulino, aims to advance the creation and understanding of such folded structures for applications ranging from soft robotics to medical devices to energy harvesters.
Inspired by origami, mechanical metamaterials — artificial structures with mechanical properties defined by their structure rather than their composition — have gained considerable attention because of their potential to yield deployable and highly tunable structures and materials.
What wasn’t known was which structures integrate shape recoverability, pronounced directional mechanical properties, and reversible auxeticity — meaning their lateral dimensions can increase and then decrease when progressively squeezed. Though some 3D origami structures have been produced through additive manufacturing, achieving the folding properties displayed in ideal paper origami remained a challenge.
Using nanoscale effects for an origami design, the team of researchers from Northwestern’s McCormick School of Engineering and Georgia Tech's School of Civil and Environmental Engineering sought to answer that question. They produced small, 3D, origami-built metamaterials, successfully retaining the best properties without resorting to artifacts to enable folding.
“The created structures constitute the smallest fabricated origami architected metamaterials exhibiting an unprecedented combination of mechanical properties,” said Espinosa, the James and Nancy J. Farley Professor of Manufacturing and Entrepreneurship and professor of mechanical engineering and (by courtesy) biomedical engineering and civil and environmental engineering.
“Our work demonstrated that rational design of metamaterials, with a large degree of shape recoverability and direction-dependent stiffness and deformation, is possible using origami designs, and that origami foldability enables a state where the material initially expands and subsequently contracts laterally (reversible auxeticity),” added Espinosa, who serves as director of Northwestern’s theoretical and applied mechanics graduate program. “Such properties promise to influence a number of applications across a wide range of fields encompassing the nano-, micro-, and macro-scales, leveraging the intrinsic scalability of origami assemblies.”
“Guided by geometry, the scaling and miniaturization of the origami metamaterial are exciting in itself and by the unprecedented multifunctionality that it naturally enables,” said Paulino, the Raymond Allen Jones Chair in Georgia Tech’s School of Civil and Environmental Engineering.
“Only an interdisciplinary effort combining origami design, 3D laser printing with nanoscale resolution, and in situ electron microscopy mechanical testing could reveal the unprecedented combination of properties our work demonstrated and their potential impact on future applications,” added Paulino, who contributed to establishing the National Science Foundation Emerging Frontiers in Research and Innovation program named ODISSEI (Origami Design for Integration of Self-assembling Systems for Engineering Innovation).
“Just like nature has architected a wide range of structures using just a few material systems, origami allows us to engineer resilient structural components with distinct physical properties along different directions,” said Krishnaswamy, professor of mechanical engineering.
“We can envision origami-based soft microrobots that are stiff along some directions to carry payloads while maintaining other degrees of flexibility for motion. Origami-metamaterials that exploit reversible auxeticity and large deformation can lead to multifunctional applications ranging from deployable microsurgical instruments and medical devices to energy steering and harvesting,” added Krishnaswamy, the director of Northwestern’s Center for Smart Structures and Materials.
The study presents new avenues to be explored long term, Espinosa said.
“There are a number of possibilities,” he said. “One is the fabrication of origami structures with ceramic and metallic materials, while preserving nanoscale dimensions, to exploit size effects in the mechanical response of the structures leading to superior energy dissipation per unit volume and mass. Another is the use of piezoelectric polymers, which can result in energy harvesters that can drive sensing modalities or power microsurgical tools.”
The research, “Folding at the Microscale: Enabling Multifunctional 3D Origami-Architected Metamaterials” was published in the journal Small on July 27. Along with Espinosa, Krishnaswamy, and Paulino, coauthors include Northwestern’s Nicolas A. Alderete, Zhaowen Lin, and Heming Wei, and Larissa S. Novelino from Georgia Tech.
The research was supported by the Army Research Office (award W911NF1220022), a Multi-University Research Initiative through the Air Force Office of Scientific Research (AFOSR-FA9550-15-1-0009), the Office of Naval Research (grants N00014-15-1-2935 and N00014-16-1-3021), and the National Science Foundation (grant No. 1538830). Nicolas Alderete received a fellowship from the Argentinian Roberto Rocca Education Program and Larisa Novelino from the Brazilian National Council for Scientific and Technological Development (project 235104/2014-0).
Writer: Brian Sandalow, Northwestern University
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Jun. 30, 2020
As America’s leading research universities ramp up laboratory operations that were shut down by Covid-19 in March, they’re encountering a perfect storm of challenges in providing personal protective equipment (PPE) – surgical masks, cloth face coverings, gloves, hand sanitizer, and disinfectant materials.
Global PPE supply chains have been severely disrupted by the coronavirus pandemic, producing long lead times and unreliable deliveries. At the same time, Covid-19 precautions are mandating the use of PPE in laboratories where it wasn’t required before, such as computer and electronics labs. And as researchers, staff, and graduate students slowly come back to the lab, predicting how many people will be at work on any given day creates yet another unknown.
At the Georgia Institute of Technology, supply chain and logistics experts have put their knowledge to work on the problem, using the kind of modeling and machine learning technologies that major retailers rely on to keep products on store shelves. In just one month, the research team has built an automated centralized system to replace traditional purchasing systems in which individual labs had to hunt for their own supplies.
By asking researchers to report details of the PPE they use each day, the labs will provide data the system needs to predict demand, allowing Georgia Tech to place large orders and stock a centralized warehouse that will help bridge the gap between supply chain hiccups. Based on usage data, the system will know when each lab’s stock of PPE needs to be resupplied from distribution centers located in 22 major laboratory buildings. The goal will be for each lab to have a robust three-day supply of PPE at all times.
“We need to make sure that every researcher, staff member, and graduate student is going to be protected properly,” said Benoit Montreuil, a professor in Georgia Tech’s School of Industrial and Systems Engineering (ISYE) and director of the Georgia Tech Supply Chain and Logistics Institute. “We are dealing with a very volatile situation for supply capacity, lead times, alternate sources, and reliability. With this system, we can ensure that the distribution of PPE throughout campus will be done in an efficient, seamless, responsive, and fair way.”
With $1 billion in sponsored activity during 2019, Georgia Tech has hundreds of research laboratories studying everything from viral antibodies and stem cells to robotics and electronic defense. In peak times, those researchers are expected to use 400,000 gloves a month and 20,000 surgical masks. With new sanitizing guidelines, they’re expected to use more than 4,000 gallons of hand sanitizer a month – but nobody really knows for sure, because this wasn’t widely required before.
Prior to the Covid-19 pandemic, most labs were responsible for purchasing their own PPE. But with so many labs worldwide now hunting for materials in the same disrupted supply chains, that’s no longer possible.
“Georgia Tech can ensure better success in obtaining PPE by buying in very large quantities instead of asking individual lab managers to try to find stock on their own,” said Robert Butera, Georgia Tech’s Vice President for Research Development and Operations. “We can track down the best suppliers and create a buffer in the system. We’ll also be able to identify who are the most reliable suppliers.”
From individual laboratories, the system needs daily reports of how many gloves, masks, and other PPE are used. The system aggregates the numbers and uses that information to predict future usage, allowing Montreuil and his team to provide information to Georgia Tech’s Environmental Health and Safety (EHS). Baseline information obtained during Phase 1 of the research ramp-up will help plan for PPE needs as the number of researchers increases during Phase 2.
Individual labs won’t need to place orders unless than they encounter an unexpected change in demand.
“Rather than principal investigators requesting PPE for their labs and having to anticipate demand, they will log usage and the platform will do all the back-end work to make sure there’s a three-day supply in each lab and a two-week supply in the buildings,” Butera explained. “We are switching from making requests to logging usage in real time. People have to log their use of PPE on daily basis to make sure they are supplied.”
The new system will supply an estimated 95% of PPE needed on campus. Other items that are purchased less frequently, such as lab coats and shoe coverings, will continue to be ordered through traditional means. Those other supplies may be added to the system later.
“The idea is to focus right now on the key PPEs that are most critical from a supply perspective,” said Montreuil. “We will be revising consumption predictions on a daily basis and transferring this information into an overall demand forecast for PPEs.”
Georgia Tech’s research enterprise is ramping up in two phases over the summer. The first phase began June 18, and the second will start July 13. The new PPE supply system launches July 1.
To initiate the system, EHS has provided a stock of supplies to each lab, and that initial stock will be replenished based on the new system. In Phase 2 of the research ramp-up, the system will grow to include distribution centers in more than 50 campus buildings. At this point, Georgia Tech Research Institute (GTRI) labs will receive their PPE through a separate supply system.
PPE distribution will begin at a campus warehouse managed by EHS. To meet the predicted demand, the warehouse will regularly distribute supplies to buildings, where managers will in turn supply individual labs. How labs receive their supplies will depend on building-level plans developed by managers, Butera said.
The centralized and automated system will for the first time allow administrators to know how much stock of each PPE item is available on campus. Ensuring adequate stock has become increasingly important with the protection needs of the Covid-19 environment.
While researchers who work with biological and chemical materials are accustomed to using and maintaining PPE stocks, keeping up with face masks and disinfectant stocks will be a new practice for others.
“In my lab in ISYE, nobody was using PPE before Covid-19 because we are only around workstations and computer displays,” said Montreuil. “Now, ISYE researchers won’t be able to get into the lab unless they have masks and we will provide hand sanitizer. We will have to get used to this change.”
Georgia Tech has one of the world’s best industrial engineering schools, and supply chain and logistics research is a key part of that. But even that expertise is challenged by the global logistics issues created by the pandemic, he added.
“The basics of inventory replenishment systems are well known,” Montreuil said. “But most of the time, the assumptions made in the models are very different from the environment we have now. With highly disrupted settings around the world, we find ourselves on a new frontier. It’s not a lab problem, a building problem, or a Georgia Tech problem. It’s a global challenge, and it affects everybody.”
Below are some frequently-asked questions about PPE supplies.
Where is the form to log use of PPE?
The form is available at this link.
Which PPE items are covered by the system?
Consumption of the following items should be reported: Pairs of nitrile gloves by size (S/M/L/XL), pairs of latex gloves by size (M/L), pairs of vinyl gloves, individual surgical masks, individual cloth masks, hand sanitizer by bottle, disinfecting spray by bottle, and disinfecting wipes by package.
How should consumption be reported?
Reporting usage by individual lab occupant would be most useful to the system because it will provide the most detailed data for predicting future use. But if labs cannot report usage by individuals working in the lab, they should provide daily data on the entire lab.
When are labs expected to begin reporting their daily consumption of PPE?
The system is operational now, and labs will be expected to start using it July 1.
Will GTRI labs obtain their PPE through this system?
No, GTRI has a separate system for providing PPE.
How will PPE supplies be restocked from buildings to individual laboratories?
Building managers will receive supplies from EHS and will be responsible for determining how labs will receive replenishment.
What should labs do with empty hand sanitizer and disinfectant spray bottles?
Empty hand sanitizer and disinfectant spray bottles should be returned to building managers for refill from bulk supplies. There is a shortage of bottles and reuse will help prevent shortages.
What is the lead time for PPE materials ordered from suppliers?
That varies according to the item. The median lead time for nitrile gloves has ranged from 11 to 53 days depending on glove size, with shortest for various sizes ranging between 7 and 11 days while the longest ranged between 11 and 130 days, depicting a high volatility. Supply chain challenges for hand sanitizer led Georgia Tech to work with non-traditional suppliers to create an alternative supply chain based on ethanol rather than isopropyl alcohol.
If labs will be provided with a robust three-day stock, how much will be at building depots?
Buildings should have a robust two-week supply of critical PPE items. The adjective robust is important as the aim is not to keep a stock covering an average three-day demand in labs, and an average two-week demand in buildings, but rather enough to cover demand considering consumption and supply stochasticity with degree of confidence. The three-day and two-weeks targets will be dynamically adjusted according to learning of the overall demand and supply chain dynamics.
Where can I get more information about accessing the consumption reporting system?
Please visit https://ehs.gatech.edu/covid-19/isye.
What if labs need certain supplies immediately?
An urgent request can be made using the urgent request form. At this point, ISYE is monitoring the requests and will notify the building manager. In the near future, requests will go directly to the building manager (or other point of contact).
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Jun. 16, 2020
So many people Seth Marder spoke to didn’t see the hand sanitizer crisis brewing. The country was going to run dangerously short if someone did not act urgently.
The professor at the Georgia Institute of Technology rallied colleagues and partners around the cause in March, and by early June, they had replaced a key component of hand sanitizer, created a new supply chain, and initiated their own donation of 7,000 gallons of a newly designed sanitizer to medical facilities.
Its name: Han-I-Size White & Gold, named for the colors of Georgia Tech. The new supply chain also may ensure that hand sanitizer producers across the country do not run out of the main active ingredient, alcohol, but the team’s path to success was a stony labyrinth.
“This project was on life support so many times because people did not understand how severe this shortage was going to be,” said Marder, a Regents Professor in Georgia Tech’s School of Chemistry and Biochemistry. “I called hospitals and institutions to assess the need and heard the same thing over and over: ‘No, we just got a delivery. We have no need. You’re wasting your time.’”
Marder was not. Contacts at major chemical suppliers of hand sanitizer ingredients said that a critical shortage of alcohol, particularly the one usually in hand sanitizer, isopropanol, was coming.
“Isopropanol plants in the U.S. were running at full capacity and still didn’t have enough. People were using pharmaceutical-grade ethanol now, too, but it was also in short supply. We weren’t going to have enough of either; I mean the whole United States was running low,” Marder said.
Clean hands cabal
Marder hastily drafted Chris Luettgen, a professor of practice in Georgia Tech’s School of Chemical and Biomolecular Engineering, George White, interim vice president of Georgia Tech’s Office of Industry Collaboration, and Atif Dabdoub, a Georgia Tech alumnus and owner of a local chemical company, Unichem Technologies, Inc.
To the three chemists and the business professional, it seemed simple: Mix alcohol with water, peroxide, and the moisturizer glycerin then bottle and ship it. That bubble burst quickly.
Luettgen, who had worked in the consumer products industry for 25 years at Kimberly-Clark Corporation and knew how to take products to market, had to plow through constant unexpected supply chain barriers and bureaucracy while White forged connections between companies. Neither the supply chain nor the business relationships had existed before, and the teams’ phones stayed glued to their ears night and day as they created them from scratch.
“When I worked for Kimberly-Clark, getting a new product out would take the company nine to 18 months, and the three of us had to get this done in weeks. The demand was there, and people were getting sick in some cases from lack of sanitizing. We felt speed was necessary to meet the growing demand. Seth told me to push this across the goal line, and I put everything into it,” Luettgen said.
“Georgia Tech is about the power to convene. Companies and stakeholders are eager to come to the table here to make things happen,” White said about forging new business ties. “Not everyone has that incredible recognition as a problem solver with the brainpower amassed here.”
Stinking of gin
Purchasing truckloads of alcohol was priority one.
Boutique liquor distilleries in Georgia were already converting to sanitizer ethyl alcohol production, but output was nowhere near enough to meet demand. ExxonMobil connected the team with Eco-Energy, a company that handles fuel-grade ethanol as a gasoline additive.
“The amount of ethanol that’s made for fuel in the U.S. is 1,500 times the amount of the isopropanol made. They could drain off about 1 percent of what is used for fuel and double or triple the amount of alcohol available for hand sanitizer in this country. And the fuel companies wouldn’t even notice it was gone, especially since hardly anyone was driving anymore,” Marder said.
But then prospective hand sanitizer distributors crimped their noses at that ethanol, saying it smelled odd.
“I thought, ‘This has the makings of a screenplay.’ I asked the distributor if we could come over to smell a sample for ourselves,” White said. “It needed a little love.”
Eco-Fuels produced the highly refined ethanol and then processed it through carbon filtration to increase purity and reduce odor. Atlanta-based chemical manufacturer, Momar, Inc., oversaw production, packaging, and distribution of Han-I-Size White & Gold.
The Georgia Tech team garnered funding through a donation from insurer Aflac Incorporated allocated through the Global Center for Medical Innovation (GCMI), a Georgia Tech affiliated non-profit organization that guides new experimental medical solutions to market. Aflac’s gift of $2 million through GCMI has also expedited the development, production, and purchase of other PPE to donate to health care workers.
In addition, GCMI helped guide the hand sanitizer through regulatory processes and to market. In a another development, the U.S. Food and Drug Administration was also aware of the dire shortage of alcohol for sanitizer and issued waivers for the pandemic to allow for use of ethanol in sanitizers without having to meet usual specifications.
Water, water everywhere
Arkema, Inc. donated hydrogen peroxide, which was delivered to PSG Functional Materials, which mixed and packaged the product then shipped with no delivery fee to Atlanta. Though water is ubiquitous, hand sanitizer requires purified water, and the Coca-Cola Company donated a tanker truck of it just when White was pondering desperate measures.
“If I have to get a truck to go pick up water and drive it, I’ll do it myself,” he said.
Finally, the first few hundred gallons of donated Han-I-Size White & Gold rolled into Piedmont Healthcare in Atlanta and Brightmoor Nursing Center in Griffin, Georgia, in the second week of June 2020.
GCMI is facilitating donations of the 7,000 gallons nationwide. Separate from the Aflac-financed donations, Momar will continue to manufacture the new hand sanitizing formula commercially to include in its regular product lineup, and Georgia Tech will be able to purchase it at a reduced rate to help protect researchers now returning to their labs.
The new supply chain, the first of its kind, of “waiver-grade” ethanol has given hand sanitizer producers across the country a new opportunity to re-supply America.
“Hopefully, we helped solved a national need,” Luettgen said.
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Writer & media inquiries: Ben Brumfield, ben.brumfield@comm.gatech.edu or John Toon (404-894-6986), jtoon@gatech.edu.
Georgia Institute of Technology
May. 10, 2020
As the world contemplates ending a massive lockdown implemented in response to COVID-19, Vinod Singhal is considering what will happen when we hit the play button and the engines that drive industry and trade squeal back to life again.
Singhal, who studies operations strategy and supply chain management at the Georgia Institute of Technology, has a few ideas on how to ease the transition to the new reality. But this pandemic makes it hard to predict what that reality will be.
“We know pandemics can disrupt supply chains, because we’ve had the SARS experience, but this is something very different,” said Singhal, the Charles W. Brady Chair Professor of Operations Management at the Scheller College of Business, recalling the SARS viral pandemic of 2002 to 2003. But that event did not have nearly the deadly, worldwide reach of COVID-19.
“There is really nothing to compare this pandemic to,” he said. “And predicting or estimating stock prices is simply impossible, unlike supply chain disruptions caused by a company’s own fault, or a natural disaster, like the earthquake in Japan.”
For more coverage of Georgia Tech’s response to the coronavirus pandemic, please visit our Responding to COVID-19 page.
The earthquake that shook northeastern Japan in March 2011 unleashed a devastating and deadly tsunami that caused a meltdown at a nuclear power plant, and also rocked the world economy. It was called the most significant disruption ever of global supply chains. Singhal co-authored a study on the aftereffects, “Stock Market Reaction to Supply Chain Disruptions from the 2011 Great East Japan Earthquake,” published online in August 2019 in the journal Manufacturing & Service Operations Management.
But COVID-19 represents a new kind of mystery when it comes to something as complex and critical to the world’s economy as the global supply chain, for a number of reasons that Singhal highlighted:
- The global spread of the virus and duration of the pandemic. “We have no idea when it will be under control and whether it will resurface,” Singhal said. “With a natural disaster you can kind of predict that if we put in some effort, within a few months we can get back to normal. But here there is a lot of uncertainty.”
- Both the demand and supply side of the global supply chain are disrupted. “We’re not only seeing a lot of factories shutting down, which affects the supply side, but there are restrictions on demand, too, because you can’t just go out and shop like you used to, at least for the time being,” he said. “And all this is taking place in an environment where supply chains are fairly complex – intricate, interconnected, interdependent, and global.”
- Longer lead times. “We get close to a trillion dollars of products annually from Asian countries, about $500 billion from China,” Singhal said. “Most are shipped by sea which requires a four-to-six-week lead time. The fact that logistics and distribution has been disrupted and needs to ramp up again will increase lead time. So, it will take time to fill up the pipeline, and that is going to be an issue.”
- Supply chains have little slack, and little spare inventory. While manufacturing giants such as Apple, Boeing, and General Motors have more financial slack to carry them through a massive economic belt tightening, their suppliers, spread out across the globe, come in different sizes, different tiers, “and these smaller companies don’t have much financial slack,” said Singhal, pointing to a report of small and medium sized companies in China, “which have less than three months of cash. They’ve already been shut down for two months, and cash tends to go away quickly.
“Many of these companies may go bankrupt,” he added. “So we need to figure out how to reduce the number of bankruptcies. Government is going to play an important role in this, and the stimulus package the U.S. has approved will be helpful.”
Trying to get a handle on how stock markets are responding to all that has happened is like trying to take aim at a moving target during a stiff wind. Volatility has increased significantly since February 13, when the Dow Jones index reached an all-time high of about 29,500.
“That’s because we did not expect the pandemic to spread and disruptions initially were low because of pipeline inventory,” Singhal said, noting that since then the Index dropped sharply, to 18,500 on March 23 (a decline of nearly 38 percent), it picked up and was back to 22,000 by March 30. “The same is true of other stock markets. The Chinese stock market was down 13 percent, but they seem to have the pandemic under control.”
While COVID-19 is making it difficult to predict what the market will look like, Singhal has some ideas of which industries will be most affected.
“Travel, tourism, entertainment, restaurants – businesses that rely on people going out—will take a long time to recover, in terms of profitability and stock price, even once the pandemic is contained,” he said. “People are going to be hesitant to travel after all this. Tourism will take a hit.”
Essentials like groceries are surging as people stock up in reaction to being shut in, but this isn’t a long-term trend. Singhal doesn’t expect this trend to continue as shopping habits and store shelves eventually normalize.
Companies that sell basics, with a strong online presence, will do well, “but industries like automobiles and electronics, which have global supply chains and have a hard time replacing specialized, high-tech components will be affected,” said Singhal, who also has suggestions on the most important issues to address and how to help speed up the recovery and bring supply chains back to normal (or whatever normal looks like after this):
- The ability to bring capacity online, especially for small and medium-sized companies. “Facilities and equipment may need some time to restart,” he said. “Staffing is a big issue. How quickly can you get people back to work? Also, can you get the raw materials and build up the inventory to support production? That may be tough when pent up demand is being released and everybody is competing for limited supplies.”
- Distribution. Lead times already are long, he notes, and a sudden increase in demand for logistics and distribution services as everybody ramps up again could extend lead times.
- Prevent bankruptcies. Government programs need to be established (like the U.S. stimulus package) to keep small- and medium-sized firms in business. This concern extends to second- and third-tier suppliers, and large firms like Apple or Boeing or GM, should do the same for their most critical suppliers.
- Build slack. “Preserve cash, get new lines of credit or draw down lines of credit, maybe cut dividends or stock repurchases,” Singhal said. “And build inventories of critical components.”
Singhal also stresses the need for transparency, up and down the supply chain: “What that means is, companies need to have a good understanding of what is happening to their customers and suppliers, but not just their immediate, first tier customers and suppliers, but also their customers and suppliers, and so on up and down the line.”
It will be very important going forward for the next several months to monitor the health of the supply chain from both the customer perspective and a supplier perspective, because this is a new world, says Singhal, who adds an optimistic postscript, “It’s a crisis situation now, but I think we can put it back together.”
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