Most U.S. factories in China’s manufacturing hub around Shanghai will be back at work this week, but the “severe” shortage of workers due to the coronavirus will hit production and global supply chains.
This latest disaster in China is a major blow to the international supply chain. Businesses should brace for a sharp descent into unknown territory and, most likely, a recession.
Less than a month into the health crisis that began in China, supply chain disruptions are showing up around the world, from automakers to mobile-phone producers to energy companies.
Forecasts indicate slower growth for global trade this year, but there are opportunities for shippers and providers of logistics and transportation services — especially in emerging countries such as Vietnam, India and the Philippines.
Analyst Insight: Never have tariffs held such a prominent place in the day-to-day global operations of businesses. The current U.S. administration has levied millions of dollars of tariffs on U.S. businesses, regardless of size. As a result, any company that imports or exports is experiencing increased costs to make, move or sell their products. And companies are making significant investments in their global supply chains to mitigate the collateral damage that the trade wars are wreaking.
Unlike other big developing Asian nations such as Indonesia or India, which depend more on domestic demand to fuel their growth, Vietnam is particularly vulnerable to geopolitical risks because of its reliance on trade.
Shippers and 3PLs are getting serious about supply-chain financial management, a new study shows, with many employing senior-level finance leaders into their teams.