Passa ai contenuti principali

Over 80% Of Companies Expect Covid-19 Disruptions, Fear "Lengthy Recovery"

Despite the constant imploring from administration officials that all is well...

"We see no material impact on our economy," Larry Kudlow, director of the National Economic Council Director, told Fox Business Network.

Almost 75% of companies have reported supply chain disruptions as a result of coronavirus disease, or COVID-19, according to a new survey released by the Institute for Supply Management (ISM). 

Additionally, the first-round results of the survey focused on the effects of COVID-19 on business and supply chains, show that more than 80% of companies expect to experience some impact because of COVID-19 disruptions.

"The story the data tells is that companies are faced with a lengthy recovery to normal operations in the wake of the virus outbreak," said Thomas Derry, CEO of ISM.

"For a majority of U.S. businesses, lead times have doubled, and that shortage is compounded by the shortage of air and ocean freight options to move product to the United States — even if they can get orders filled."

Primary reported supply chain impacts include the following:

  • 57 percent noted longer lead times for tier-1 China-sourced components, with average lead times more than doubling compared to the end of 2019.

  • Manufacturers in China report operating at 50 percent capacity with 56 percent of normal staff.

  • More than 44 percent of respondents do not have a plan in place to address supply disruption from China. Of those, a majority (23 percent of respondents) report current disruptions.

  • Of the companies expecting supply chain impacts, the severity anticipated increases after the first quarter of 2020.

  • Six in 10 (62%) respondents are experiencing delays in receiving orders from China.

  • More than half (53%) are having difficulty getting supply chain information from China.

  • Nearly one-half are experiencing delays moving goods within China (48%).

  • Almost one-half (46%) report delays loading goods at Chinese ports


Conducted between February 22 and March 5, the survey's 628 respondents largely represent U.S. manufacturing (52%) and non-manufacturing (48%) organizations, 81 percent of which have revenues of less than US$10 billion. Respondent roles range from emerging practitioner (4%), to chief procurement officer (6%), with 73 percent being experienced practitioners, managers and directors in a supply chain management role:  

"We're seeing that organizations who diversified their supplier base after experiencing tariff impacts, are potentially more equipped to address the effects of COVID-19 on their supply chains," said Derry.

More than 60 percent of companies that ordinarily travel to China have no plans to do so over the next six months. Additionally, nearly one-half (47%) note travel to other international areas is subject to extra scrutiny or limitations, with the most mentioned areas being Korea, Italy, Japan, broadly Europe, Hong Kong and Singapore.

Commenti

Posta un commento

Post popolari in questo blog

Charting the World Economy: The U.S. Jobs Market Is On Fire - Bloomberg

Charting the World Economy: The U.S. Jobs Market Is On Fire - Bloomberg https://www.bloomberg.com/news/articles/2019-12-06/charting-the-world-economy-the-u-s-jobs-market-is-on-fire Charting the World Economy: The U.S. Jobs Market Is On Fire Zoe Schneeweiss Explore what's moving the global economy in the new season of the Stephanomics podcast. Subscribe via  Apple Podcast , Spotify or  Pocket Cast . The last U.S. payrolls report of the decade was a doozy, beating expectations and doing its bit to keep the consumer in good health heading into 2020. That's good news given the various pressures still weighing on global growth. Here's some of the charts that appeared on Bloomberg this week, offering a pictorial insight into the latest developments in the global economy. U.S. Advertisement Scroll to continue with content ...
Posta un commento
Continua a leggere

Fwd: The Looming Bank Collapse The U.S. financial system could be on the cusp of calamity. This time, we might not be able to save it.

After months  of living with the coronavirus pandemic, American citizens are well aware of the toll it has taken on the economy: broken supply chains, record unemployment, failing small businesses. All of these factors are serious and could mire the United States in a deep, prolonged recession. But there's another threat to the economy, too. It lurks on the balance sheets of the big banks, and it could be cataclysmic. Imagine if, in addition to all the uncertainty surrounding the pandemic, you woke up one morning to find that the financial sector had collapsed. You may think that such a crisis is unlikely, with memories of the 2008 crash still so fresh. But banks learned few lessons from that calamity, and new laws intended to keep them from taking on too much risk have failed to do so. As a result, we could be on the precipice of another crash, one different from 2008 less in kind than in degree. This one could be worse. John Lawrence: Inside the 2008 financial crash The financial...
Posta un commento
Continua a leggere

The repo market is ‘broken’ and Fed injections are not a lasting solution, market pros warn

By Joy Wiltermuth Published: Dec 7, 2019 9:35 a.m. ET Banks prefer to keep money at Fed instead of lending to other banks Getty Images Examining $100 bills. Getty Images By Joy Wiltermuth Markets reporter The Federal Reserve's ongoing efforts to shore up the short-term "repo" lending markets have begun to rattle some market experts. The New York Federal Reserve has spent hundreds of billions of dollars to keep credit flowing through short term money markets since mid-September when a shortage of liquidity caused a spike in overnight borrowing rates. But as the Fed's interventions have entered a third month, concerns about the market's dependence on its daily doses of liquidity have grown. "The big picture answer is that the repo market is broken," said James Bianco, founder of Bianco R...
Posta un commento
Continua a leggere