The economic recession caused by the pandemic is definitely unique in its circumstances and causes. The response by the government was not optimal resulting in uncertainties and additional issues in both demand and supply side of integration. Businesses are already adapting, and it is becoming clear that the change will be the new norm. Many companies are already sourcing components in geographical regions accessible under restrictions. Decisions on making or buying are revisited and transparency is becoming critically important for financial health of the enterprise.
- One sector of the business community that has felt the rippling effects of the pandemic on its economic plate is the manufacturing sector. Many have closed, deemed nonessential.
- The Asian supply chain that was feeding certain manufacturing sites got dicey and caused problems for those sites.
- Highly uneven demand shifts boosted some areas while leveling others. Some parts were unavailable for final production in some areas.
“The pandemic and the widely varying governmental responses to it have raised all sorts of uncertainties on both the supply and demand side of the equation.”