Most Manufacturers Expect Financial Hit From Coronavirus, NAMA Survey Says
A whopping 78.3 percent of manufacturers “anticipate a financial impact” from the coronavirus, according to a recent survey by the National Association of Manufacturers (NAM).
NAM conducted the survey of its member companies about the impact of the COVI-19 outbreak from Feb. 28-March 9. The 558 respondents were asked about effects to their supply chain and operations, their financial expectations and their emergency response plans.
The survey also found that 53.1 percent of respondents anticipate a change in operations, and 35.5 percent anticipate facing supply chain disruptions. Respondents were split between having an emergency response at their company (50.8 percent) and not (49.2 percent).
When commenting on supply chain disruptions, respondents noted issues with parts arriving late and delivering to customers late as a result. While some say these disruptions are “manageable at this point,” they do create “some additional costs.” Many mentioned having to find “alternative suppliers,” and while disruptions are characterized as “minor now,” they are expected to become more serious “if slowdowns continue beyond next quarter.”
When discussing operations, respondents are anticipating slowdowns and “reduced customer demand.”
In an open-ended question about the resources needed to help them through the crisis, respondents cited the need for non-political and non-sensationalized information as well as information about how other companies are responding.
Considering the survey was done several days ago, there will be no surprise if even more respondents in future surveys anticipate a financial hit, a change in operations and supply chain disruption.
“The federal government can take steps to further equip manufacturers to deal with COVID-19 by implementing the NAM’s COVID-19 Policy Action Plan Recommendations,” said NAM President and CEO Jay Timmons.