The dreadful, spreading disease caused by the strain of Coronavirus has now affected approximately 28 countries around the world. In this modern world of globalization, where China is the biggest production hub, this virus is creating parts shortages for manufacturers around the world. China is the third largest trading partner for the US and the plant lockdowns are already causing a severe blockade to many global transportation providers. This includes all modes of transportation from highway, air, rail, and maritime shipments.
The Troubled Areas:
- Customers’ Perception:
Customers’ are concerned about safety of the products being produced in China due to a fear of coronavirus’ exposure at any point in manufacturing, assembling, or shipment. These doubts can have a long-lasting impact.
- Labor’s Unavailability:
Even with Ching’s huge population, labor shortages will appear as a result of the virus. Due to this illness or fear of it spreading, the availability of plant workers may not be able to meet the labor requirement. It is unknown how many companies will be impacted once the New Year’s celebration is over.
- Logistics’ Inconvenience:
One of the big concerns is that the transportation infrastructure may not be able to reach the manufacturing production centers due to the lockdown. Freight rates will be impacted and finding alternative transportation resources will consume a lot of time.
The country has announced that they will lengthen plant shutdowns by increasing the number of holidays for the Chinese New Year. This will result in Wuhan, possessing the title of the “Motor City” and the hub for the hi-tech goods, to suspend all the operations of major globally scattered companies like Honda, Volkswagen, Tesla, Apple, Google and so on. Also, the city is the world’s busiest shipping port with the cheapest shipping rates. The overall business of other industries including chemicals, household goods, textiles, machinery, and other medicinal related ones, having any connection with China, will also be highly impacted. And the products already shipped may or may not carry the virus along to other European countries as well. The priority of the consumers will also be derived more towards less worthy but safe products and loyal customers might disappear. Here the source of transport and freight delivery will play a significant role for the users to depict their loyalty.
Wuhan-based manufacturing is not the only area affected by the coronavirus pandemic. Production in other cities is being disrupted as well. Manufacturing companies are opting for alternate sources but that requires time and patience. Mobile World Congress (MWC) is coming up soon and this is another concern due to product launch delays.
