At the last count, there were 110,337 active cases of coronavirus around the world, with the condition already responsible for 3,831 deaths. As well as the human tragedy that’s unfolding, the economic impact of the outbreak continues to deepen. Data released late last month revealed a steep fall in Chinese factory output, while the surge of cases and the subsequent lockdown in the north of Italy has ramped up eurozone fears.
The coronavirus outbreak has already a significant impact on the global supply chain and the fortunes of businesses in diverse industries around the world. However, with no sign of any respite in its relentless march, what could the potential impact be?
The toll on the Chinese manufacturing sector
The Chinese manufacturing sector, which millions of businesses around the world are reliant upon, has been hit hard by the relentless spread of Covid-19. A report released in February showed a plunge in Chinese factory output as quarantine efforts to contain the disease were put in place. That lead to the closure or understaffing of thousands of factories across China.
Britain’s largest carmaker Jaguar Land Rover has added its voice to a chorus of companies that are already counting the cost of the outbreak. It has warned it will soon run out of car parts at its British factories as the coronavirus halts supplies from China. That comes after the car manufacturer admitted it had been bringing in parts into the UK from China in suitcases.
Even the most powerful companies are not safe. The tech giant Apple has sounded the alarm, warning of potential iPhone supply shortages resulting from the closure of its Chinese factories, while Tesla has had to put its business in China on hold. Transport groups, hospitality chains, luxury goods makers, retailers and airlines have also been among the hardest hit, with consumers staying away from the shops and travellers putting off travel plans.
The worst is yet to come
The impact of Covid-19 on global supply chains has already been hugely damaging, but the predictions are that the worst is yet to come. The peak of the impact is expected to occur in mid- to late-March, forcing thousands of companies in Europe and the US to temporarily shut assembly lines or even close manufacturing plants permanently.
The most vulnerable companies will be those that rely heavily or solely on factories in China for parts and materials. Although the number of coronavirus cases in China is now falling, the activity of Chinese manufacturing plants is expected to remain depressed for months. That’s the inevitable impact of current efforts by the Chinese government to quarantine almost half of its population and the knock-on effect that has had on transportation.
Supply lead times are also expected to delay the peak of the impact. Shipping to Europe or the US from China takes an average of 30 days. With many Chinese plants ceasing manufacturing before the beginning of the Chinese holiday on 25 January, the last of their shipments will have arrived in the final week of February. By mid-March, with no new supplies on the horizon, production in UK companies will inevitably grind to a halt. And, once the slowdown does hit with full force, it could last for months.
It’s business as usual at PER-International
Whether you want a job or need to recruit in the global electronics industry, we are the specialist recruiters to turn to. We place and find talented candidates in the UK, the USA, Ireland, across Europe, in India, South America and Singapore. Just get in touch to discuss your requirements with our team.
13 Jun 2021
Use The EU Blue Card to Hire Electronics Professionals From Around the World
Struggling to hire skilled electronics professionals for your EU firm? Here’s how the EU Blue Card and PER Specialist Recruitment can help.
13 Jun 2021
How to Video Interview Well
With video interviews now the norm in the electronics, SMPS, UPS and semiconductor sectors, we provide our tips to set you up for success.
28 May 2021
Become a Skilled Worker Sponsor to Access Larger Talent Pools
We discuss the eligibility criteria to become a Skilled Worker Sponsor, explore the application process & look at the benefits that casting a wide net can bring.
28 May 2021
State of Electronics and Semiconductor Recruitment - Q2 2021
After a better than expected Q1, the welcome news for candidates is that Q2 in the electronics and semiconductor recruitment market is performing strongly.
14 Apr 2021
The New Bar for Electronics Recruitment
PER Specialist Recruitment is setting new standards in electronics recruitment. Find out what sets our industry specialists apart.
14 Apr 2021
How to Sell Yourself With a Flawless Sales CV
Having trouble selling yourself? Then read our guide to creating an attention-grabbing sales CV that gets you noticed for all the right reasons.
08 Mar 2021
Contingency or Exclusivity - Which Recruitment Model is Right For You?
Many of the employers we work with are not aware that there are two different models of recruitment that shape our relationship with them. With that in mind, we thought it was worth putting together a guide that provides an insight into each of the recruitment models, how they work and what the benefits are for you.
23 Feb 2021
How to Write a Great Engineering CV
Want to write an engineering CV that gets you noticed for all the right reasons? Then read our guide to perfectly calibrating your engineering CV.
31 Jan 2021
State of the Power Electronics Recruitment Market for Design and Sales
After a COVID-sized slump, the power electronics recruitment market for design and sales roles is now recovering. If you’re looking for a talented power electronics professional, our unique insights will show you why now could be a great time to hire.
18 Jan 2021
State of the Power Electronics Jobs Market for Design and Sales
It’s fair to say that the power electronics jobs market has been on a bit of a bumpy road over the last six months. However, if you’re looking for a new role in power electronics sales or design, the good news that the jobs market has bounced back. Demand is now on the up, with employers increasingly looking for candidates with design-in wins.
22 Dec 2020
At PER-International, the COVID-19 hiatus is over and we’re officially back to doing what we do best - connecting the world’s best electronics, power electronics, SMPS, UPS and semiconductor professionals with leading employers around the world.
09 Mar 2020
What is the impact of the coronavirus on the global supply chain?
The coronavirus outbreak has had a significant impact on the global supply chain, but when will it peak and how is it affecting businesses around the world?