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  • This is the 3M N95 mask. It's ubiquitous by now.

  • There's another type of mass called an N95, or respirator mask.

  • What I want to show you guys is these N95 respirators.

  • The N95 masks that 3M is so crucial to production of our in turn so crucial to our health care workers.

  • It usually costs around $1.

  • It's one of the most essential pieces of equipment to keep health care workers safe

  • while fighting the Corona virus

  • by filtering out 95% of all airborne particles --

  • Hence the name N95.

  • It's also an extremely short supply.

  • Well as the Corona virus continues to spread, the demand for N95 respiratory masks

  • around the world is also growing.

  • The masks should be for the health care workers. The public should not be buying masks.

  • But there are other masks besides the N95.

  • This is the FFP2 to mask from Europe.

  • It keeps out 94 percent of airborne particles.

  • This is the K995 mask from Asia.

  • It keeps out 95 percent of airborne particles.

  • Yet the U.S. can not import any of these during the crisis.

  • We 're really trying to dig into the exactly why this is happening on it on a daily basis,

  • but it looks, for now like the government simply did not have enough of these

  • things on hand to respond immediately.

  • The federal government reportedly had 12 million masks in its stockpile.

  • The U.S. will reportedly need 3.5 billion masks during this pandemic.

  • There's a myriad of reasons why we have insufficient stockpiles.

  • The role of government is to plan for crises, to stockpile masks so that if we ever have a pandemic,

  • we have enough masks on hand.

  • And it looks like the government didn't do its part of the job there.

  • And we do have a federal agency and the CDC that has been systematically underfunded.

  • We haven't received the right pieces that haven't invested in stockpiles over the years

  • Because of the short supply

  • black markets have popped up overnight where prices for the N95 have more than quintupled.

  • An investigation into hundreds of thousands of medical grade masks

  • that were just sold at auction.

  • 43-year-old Baruch Feldheim is accused of selling a thousand N95 masks

  • to a doctor at a 700 percent markup.

  • If you go to Craigslist, you can find N95 masks going for hundreds of dollars.

  • States are also all in a bidding war with one another to procure these masks at inflated prices.

  • If you have the capacity to make these products,

  • we will purchase them and we will pay a premium.

  • But the federal government says that they are not at fault for the shortage.

  • The notion of the federal stockpile, was it to be our stockpile?

  • It's not supposed to be state stockpiles that they then use.

  • So we're encouraging the states to make sure that they're assessing the needs.

  • They're getting the data from their local, local situations

  • and then trying to fill it with the supplies that we've given them.

  • So what the government stockpile not being the answer.

  • Other avenues needed to be explored to fulfill the spike in demand.

  • Just one problem.

  • We have our own Food and Drug Administration.

  • We have our own regulatory bodies.

  • We have our own standards.

  • And we tend to gravitate towards importing things that we know

  • and that we're comfortable with.

  • And that's where the N95 mask comes in.

  • But also, remember, this isn't just stockpiles from a federal stockpile,

  • our point of view, but also the broader supply chain.

  • 3M produces a large amount of respirator masks, but they aren't the only ones.

  • There are 50 percent of face masks are produced in China, for example,

  • and there are big suppliers that exist globaly.

  • And remember those alternative masks we were talking about in the beginning?

  • Country equivalent standards do not fly in America

  • because they're not approved by the FDA or the National Institute for Occupational Safety and Health

  • despite being equivalent masks.

  • But these standards are also and this is something we're seeing here again in this crisis

  • can be a barrier to trade and can be a barrier to getting supplies

  • into the right into right places.

  • The masks that are currently produced in China are right now not approved for export or import in the United States

  • as a class one medical device,

  • which puts a restriction on the amount of supply.

  • So without a sufficient stockpile and options limited overseas, America has to look inward.

  • The federal government is calling on the private sector to help fill the need of medical supplies.

  • Honeywell will be the latest company to pivot and prioritize public health

  • by producing N95 masks at its facility here in Phenix.

  • New Balance says many of its U.S. factories, including one in Lawrence,

  • are now producing face masks for hospitals.

  • We're seeing automakers start to get into the business of making ventilators.

  • We're seeing distillers started to make hand sanitizer.

  • There's a huge ramping up of industrial America that is happening.

  • But as we saw during the Second World War and in previous wars.

  • But with the first shipment of masks from China landing in New York in early April

  • and Trump enacting the Defense Production Act to manufacture more masks and respirators domestically,

  • millions of masks are being made available.

  • But it's not enough.

  • The solutions that we need and one of the key lessons that I hope we also get out of this

  • in order to be able to diversify our supply chains,

  • to make sure that we've got sufficient inventory,

  • it requires us to take a global view and then a global piece

  • so that we can move product and move support from one region that is being impacted today

  • to another that's going forward.

  • We're again at one of those moments where when you respond to a global crisis like COVID- 19,

  • the answer is taking care of things at home, but also of learning from your neighbors.

This is the 3M N95 mask. It's ubiquitous by now.

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