Manufacturing in China: How Coronavirus Has Impacted Business

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Coronavirus, also known as COVID-19, has taken over the news broadcasts and has sparked a public health crisis around the world.  Travel into and out of China, Italy, and other countries has been limited or banned altogether for extended periods to limit the spread of the virus.

COVID-19 has disrupted manufacturing in one of the biggest manufacturing hubs in the world: China. Many factories in China were shuttered for weeks as citizens were required to stay home in an attempt to reduce the rate of infection.  Many American companies are experiencing disruption of receiving goods vital to their business practice.

How China Based Manufacturers Responded

 

March Blog 1 pictureMost manufacturers have been communicating with their American partners to create a plan to resume production.  Companies have been communicating directly with their clients and have also been posting updates on social media to keep business partners up to date.

What Sectors Have Been Hit the Hardest?

All areas of business have been hit hard, but some areas have been hit harder than others.  Transportation, retail, technology and the auto industry have been hit the hardest.  Many Chinese factories had to file extensions on contracts that they knew they would not be able to fulfill by the original agreed upon timeframes.

Rapid Recovery is Expected

It’s been a couple of months since the virus took hold of China, but it already appears to be in the initial stages of recovery. Leader Xi Jinping has claimed the country has beaten the virus.

Currently, congestion delays are at 73% of 2019 levels, up from 62% during the most significant portion of the epidemic in China.  These numbers show that both people and products are on the move again.

While there will continue to be delays as factories work feverishly to clear backlogs and signs of recovery are there.  The virus has temporarily broken links in the supply chain in ways that could not have been foreseen.  Companies all along the chain are working to try and mitigate the damage as best they can.

Looking Ahead

With over 40 years of working with factories in China, we are confident that the recovery of manufacturing and shipping will resume as quickly as possible.  When recovery begins you can be ready by being proactive and working with ITI Manufacturing now.  Our Chinese staff is available to help you get your product moving quickly.  We are already in China with an experienced and qualified staff.  Give us an opportunity to help your company.  Give us a call today at (877) 736-2088.