javascript hit counter
Business, Financial News, U.S and International Breaking News

Survey finds auto business hit hardest by provide chain disruptions throughout Covid pandemic

Staff in an car manufacturing facility in Beijing, China.

Chalffy | Getty Pictures

SINGAPORE — The automotive sector was hit the toughest by provide chain disruptions in the course of the Covid-19 pandemic, in line with a survey that coated six broad industries.

The survey was carried out by the Economist Intelligence Unit and sponsored by Citi. It surveyed 175 provide chain managers — greater than 70% of which had been primarily based in Asia — in February and March this yr, and its findings had been launched on Wednesday.

Along with auto, the respondents got here from 5 different industries:

  • Footwear and attire;
  • Meals and beverage;
  • Manufacturing;
  • IT, tech and electronics;
  • Healthcare, prescription drugs and biotechnology.

Round 51.7% of respondents from the auto sector mentioned disruptions to produce chains had been “very vital” — the best proportion throughout the six industries.

The footwear and attire business got here in second with 43.3% respondents reporting “very vital” disruptions. In the meantime, solely 6.7% from the IT, tech and electronics sector indicated the identical.

Over the previous yr, the motion of products was disrupted as the worldwide unfold of Covid compelled many international locations to close borders, shut workplaces or restrict exports.

The unfold of the extra transmissible delta variant has once more heightened such worries, as main Asian manufacturing hubs — akin to China and Vietnam — in current weeks locked down elements of their international locations to curb an increase in Covid circumstances.

The auto business was notably affected by a scarcity of semiconductors, which brought about a number of carmakers to chop manufacturing at a few of their crops. The chip scarcity was brought on by a surge in demand for private computer systems and different shopper electronics as many individuals had been saved at residence throughout Covid lockdowns.

New areas

The pandemic has led some companies to rethink their provide chains for the long run, with round one-third of respondents conducting an entire overhaul, the survey discovered.

Inventory picks and investing tendencies from CNBC Professional:

One in 5 provide chain managers surveyed have invested or want to put money into the Philippines and India within the subsequent 12 months as a part of their technique.

“Low-cost labour prices and younger populations in each these international locations are essential components on this selection,” mentioned the report outlining the survey findings.

The report famous that the Philippine authorities is eager to draw manufacturing investments in sectors together with electronics, automotive, aerospace, well being and IT. India, in the meantime, was a most well-liked location for a lot of provide chain managers within the auto sector, in line with the report.


Comments are closed.