IPC Survey: Impact of COVID-19 on Electronics Manufacturers
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A recent outbreak of the coronavirus, named COVID-19 by the World Health Organization (WHO), is raising alarms not only about the immediate human toll of the epidemic but also about the short-term and long-term effects on the global economy, including the electronics manufacturing industry.
Many workplaces in China have been shut down; workers have been confined to their homes;Â and shipping has been disrupted.
Travel bans have been put in place that have inhibited workers from returning from Lunar New Year holiday travels.
IPC surveyed its members on this issue between February 11th and February 16th, 2020, and here are the highlights of what they told us.
- The overwhelming majority (84 percent) of electronics manufacturers and suppliers said they are concerned about the impacts COVID-19 will have on their business operations.
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- Roughly 65 percent of respondents reported being told by their suppliers that there will be delays in shipments due to COVID-19. Companies in this situation report they are being told to expect delays of three weeks, on average.
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- Electronics manufacturers expect delays to be longer than what their suppliers are currently quoting. On average, executives expect shipment delays to be at least five weeks. While 91 percent of companies are being told to expect shipment delays of four weeks or less, only 55 percent of respondents expect the delays to be that short. And while no companies currently report they are being quoted delays of more than six weeks, some 16 percent of respondents expect shipment delays related to COVID-19 to be longer than six weeks.
Read Lapp Tannehill's Coronavirus/COVID-10 Update.
