Coronavirus causes anxiety amongst electronics manufacturers: Shortage expected as the illness escalates

The coronavirus is causing apprehension all over the world. Not only are the travelers reluctant to fly but schools are giving off for extended periods and even religious gatherings see a significant halt as the number of diagnoses across the globe continue to increase.

The manufacturers of electronics that are responsible for everything from computers and generators to phone and TV is also worried about the current situation. Since most of their suppliers are based in China, the electronic vendors predict that slow shipping will significantly impact their production.

IPC, an electronics equipment trade organization ran a survey regarding the same issue and found that 65% of the 150 participants are experiencing delays from suppliers due to the coronavirus.

As of yet, the manufacturers are able to manage despite the delays. However, experts predict that if the outbreak continues, the shoppers would definitely begin to notice the shortage of electronic equipment.

Unfortunately, health experts are anticipating the worse in the future. As of this writing, the coronavirus has caused over 3,830 deaths around the world.

Speaking about the electronic manufacturers and their struggle with the delayed shipment, the IPC chief economist commented that it is critical for the manufacturers to receive all the supplies needed to stay on top of their inventory.

However, a majority of the manufacturers that took part in the IPC survey said that they are told by their suppliers to expect delays of around three weeks. 30% of the survey participants also expressed deep concern regarding the situation while 54% were somewhat troubled.

The representatives of the electronic industry also said that the delays can continue long after the situation is back to normal and factories are operational as before.

Unknown consequences

The electronic industry is vast and contains various items from generators to control panels. Due to its broad range, the IPC chief said that now will be too early to assess the products or company that can face the hardest impact from the coronavirus.

However, he claims that most companies have inventories that may be able to hold out until Easter. But of course, the situation can be out of control if the epidemic calls for delays of more than 2 months.

Manufacturers are working on ways to reroute their supply to avoid areas in China that are heavily affected by a coronavirus. Finding new suppliers can also provide an easy solution but finding a new one that offers the same quality is a task that is easier said than done.

Nevertheless, IPC chief says that the delays maybe more felt on the production side while shoppers will continue to see products lining up on the shelves for some time.

Photo: VCG / Visual China Group
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