Coronavirus and Your Supply Chain

Coronavirus and Your Supply Chain
What is happening to our customers? While manufacturers may be in conditions varying from complete lockdown to full operations, the state of the overall economy means life as we knew it is no more. Beyond cash flow, primary worries must include the condition of our customers and the state of our supply chains. At least the resumption of “normal” busiiness is now scheduled for most places to begin on May 1.

Those of us in the industrial business are probably relived we re not in the restaurant or personal service business. As a personal aside, we heard haircut clippers are now in the toilet paper category of things people are buying like mad! We looked on Amazon and discovered delivery of clippers is out 2-3 weeks! Go figure! Just imagine life if you’re in the barbershop business.

Anyway, supply chains are an area of particular interest. We don’t know the exact status of Chinese manufacturers, but it’s doubtful that supplies coming from China will be happening as they were just a few months ago. If components of your products are in jeapordy, maybe we can help: CLICK HERE.

Once Congress returns to work one would think that the US supply chain for categories such as rare earths, drugs and medical supplies will get a new examination. Most of these items come from China; all are essential for us all. Now it seems China withheld important virus information and may have caused needless damage to the entire global economy, not to mention the deaths and suffering of a vast number of people all over the world.

So if all that is true, will the US continue business as usual with such a country? And if major change is in the offing, what will the transition look like?

Here’s just one example, having to do with steel availability;

In the latest edition of Metal Center News, an article concerned with the 2020 Fabricators and Manufacturers International annual meeting noted this:

“[One supplier’s chief economist]…believes that [steel] pricing will deteriorate further this year, fueled by China’s oversupply situation. He said Chinese steel inventory is 60 percent higher than the highest levels of the past five years.
“You’re already looking at prices below cost in China. They can’t sell to the US because of anti-dumping. They can sell to Japan and Korea and Vietnam and Europe and india. That’s how it’s going to spread,” he said of the figurative virus of low steel prices”.

We have no idea if this is good news for fabricators and machine shops, or others who are consumers of steel materials. What is does suggest is that big changes are on the immediate horizon, and what sounds like major disruptions are to be expected. What does this mean for you, and how to prepare?

Our particular corner is providing excellent suppliers to manufacturing OEM’s, expecially for the very large and very small metal parts and assemblies. And if your are having problems with your Chinese suppliers, our network is ready to help with your requirements. (513) 489-5252 is a number to call if you need such assistance. We wish you all well in these times of potential chaos. May the force be with us all!

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.