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The repercussions of COVID-19 on the global manufacturing supply chain are expected to worsen over the coming months. Market intelligence experts at Infiniti Research predict the peak of the impact of coronavirus to occur mid-March. This would consequently prompt companies to temporarily curb assembly and manufacturing in the US and Europe. Over the past decade, several global companies had resorted to practices such as lean manufacturing, offshoring, and outsourcing in an effort to bring down their supply chain costs. Such cost-cutting measures indicate that when there is a supply-chain disruption, manufacturing will stop quickly because of a lack of parts. Furthermore, as the number of departures from Chinese ports shows a steep decline (by at least 20%), we should brace for a major effect on manufacturing worldwide.
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