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The automotive supply chain was hit hardest during the Covid pandemic: Survey

Workers at an automobile factory in Beijing, China.

Chalffy | Getty Images

Singapore — According to a survey of six broad industries, the automotive sector was hit hardest by supply chain disruptions during the Covid-19 pandemic.

The survey was conducted by the Economist Intelligence Unit and sponsored by Citi. In February and March of this year, we surveyed 175 supply chain managers, more than 70% of whom are based in Asia, and the findings were announced Wednesday.

In addition to automobiles, respondents came from five other industries.

  • Footwear and apparel;
  • Food and beverages;
  • Manufacture;
  • IT, technology, electronics;
  • Healthcare, pharmaceuticals, biotechnology.

Approximately 51.7% of respondents in the automotive sector say supply chain disruptions are “very serious” and the highest percentage of all six industries.

The shoe and apparel industry came in second, with 43.3% of respondents reporting “very serious” confusion. On the other hand, only 6.7% of the IT, technology and electronics sectors show the same.

Over the past year, the global spread of Covid has disrupted the movement of goods as many countries have closed borders, closed workplaces and restricted exports.

Spread More transmissible delta variant As Asia’s leading manufacturing hub, these concerns are rising again. China When Vietnam — In recent weeks, we have blocked parts of the country to curb the rise in Covid cases.

The auto industry was particularly affected by the shortage of semiconductors, with some automakers cutting production at some factories. NS Chip shortage Demand for personal computers and other consumer electronics surged as many people stayed at home during the Covid blockade.

New place

The pandemic has led some companies to rethink their supply chains over the long term, and a survey found that about one-third of respondents are undergoing a complete overhaul.

Stock Selection and Investment Trends from CNBC Pro:

One in five supply chain managers surveyed has invested in or is considering investing in the Philippines and India within the next 12 months as part of their strategy.

“Low labor costs and a young population in both countries are important factors in this choice,” said a report outlining the findings.

The report states that the Philippine government is keen to attract investment in manufacturing in areas such as electronics, automotive, aerospace, health and IT. Meanwhile, according to the report, India was a good place for many supply chain managers in the automotive sector.

The automotive supply chain was hit hardest during the Covid pandemic: Survey

Source link The automotive supply chain was hit hardest during the Covid pandemic: Survey

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