Alan Lim of E-Services Group says there is “completely no domestic consumption” now and “factories are, at best, this week at 25% production … you need approval by the government to say you [can] work.”
The GLOBAL SUPPLY CHAIN ARMAGEDDON is happening!
The global supply chain Armageddon is happening. The economies of the world are more interconnected than ever. There are many ‘single points of failure’ in these complex and global operations, of which many of them originate in China.
A new poll via Shanghai’s American Chamber of Commerce (AmCham) discovered that 50% of US firms operating in China say shutdowns of factories have impacted their global operations due to the Covid-19 outbreak, reported Reuters.
About 78% of these firms warn that their staffing is currently short at the moment, which would prevent the resumption of full production, leading to massive shortages of products in the next several months for Western markets.
Many of these companies, about 109 in total, have operations in Shanghai, Suzhou, Nanjing, and across the Yangtze River Delta, are regions currently experiencing mass quarantine of citizens, industrial hubs shuttered, and transportation networks halted.