Coronavirus related transportation restrictions have caused a large percentage of U.S. companies to experience supply chain disruptions. Not only is the United States affected by this virus, but its outbreak affects the entire globe. For this reason, an Institute for Supply Management survey shares that the virus will continue to add to the growing strain companies are currently experiencing. More than 44% of respondents from this survey said they did not have a plan in action to address supply chain disruptions from China.
How The Coronavirus is Affecting Supply Chains
Challenges from the COVID-19 virus have been ever present as it continues to spread across the world. Corporations are experiencing higher lead times of which have doubled since the end of 2019. One in every six companies have had to lower their revenue targets for the time being. Companies have had to lower these targets by 5.6% on average. In addition to this, many firms expect this number to grow even higher after the first quarter.
More than 60% of companies who frequently travel to China for business operations have restricted their employees from doing so for over the next six months. Additionally, manufacturers who have locations in China are currently operating at only 50% capacity. China being the main hub for global manufacturing has almost haulted the rest of the globe. For the United States, the chance of manufacturers having to limit or completely cease manufacturing is very high. Many believe the peak of these disruptions will occur mid and late March.
Unilogic understands the severity of the current COVID-19 virus situation and is taking every necessary precaution. Our team is staying up to date with all CDC announcements, and we encourage our clients to stay updated on this information as well. As a supply chain solutions company, we ensure you that we will continue to offer our services unhindered. We guarantee that we will continue to offer modernized and personalized approaches to all supply chain operations. We hope to be able to give our clients peace of mind in knowing that we will continue to stay aware, prepared, and proactive.