Date: May 28, 2020
Covid-19 Shakes the Canadian-Chinese Supply chain flow
The world’s supply chain industry is facing a shutdown unlike anything else seen in the modern era as efforts to contain the coronavirus outbreak hits everything around us.
Worldwide cargo and organizations were experiencing delays of as much as 85 percent in the volume of Chinese-made products, as the effect of COVID-19 was felt over the globe. The Canadian economy has equally been impacted as a wide range of imported goods are subjected to Chinese manufacturing capacities, logistics and practices.
China requested industrial facilities to close across a large portion of its regions in January as it battled to control the virus within their borders. Even though those manufacturing plants were at first scheduled to revive a month back, numerous employees just returned or work, while many more factories are yet to be reopened.
Similarly, the PPE industry which was one among the worst-hit, could not cope up with the high global demand for products and had to take drastic measures, such as ramping up vital PPE production, retooling existing lines, and partnering with government agencies to increase the supply of the products.
The global PPE market was valued at USD 52.7 billion in 2019 and is expected to reach USD 92.5 billion by 2025. This is mainly due to initiatives taken by the government and the NGOs to spread the awareness of employee protection and to reduce the injury rate. Considerations will be put in place to adapt to the considerable increase in demand, especially as we see expanded usage in non-traditional segments like retail, food service, public service and within general consumers.
It’s already starting to have an impact on the global economy in terms of increased rate of unemployment, a hit in the oil & gas sector and trade sector. Governments and organizations are taking every step possible to curb the spread of Covid-19. A good example is the retail industry which has moved to an online space and has started offering curbside pick-ups; restaurants have also followed suit and other industries have moved a large part of their workforce to work from home.
Sources - https://bit.ly/3cbf9ro