IPC survey: COVID-19 major cause of concern
In a recent survey of electronics manufacturers and suppliers conducted between February 11-16, results released by IPC yesterday showed overwhelmingly that most “are concerned about the impacts COVID-19 will have on their business operations.”
According to the survey data, 84% showed concern, with 65% responding that they had been told directly by their suppliers to expect delays of up to three weeks, on average, due to the global COVID-19 outbreak, which has closed factories and slowed shipping and trucking routes in China, and beyond. However, respondents also indicated they’re expectations do not match suppliers’ estimates. Most respondents to the survey are expecting the actual delays to be longer than what suppliers were predicting, with 16% of respondents expecting delays of up to six weeks. Among respondents, contract electronics manufacturing services (EMS) providers make up the largest sector of those who have been warned of supplier of delays, at 28%. The next highest groups were PCB fabricators and suppliers, and OEMs, both with 8%. The most unaffected of the respondents was wire harness and cable assembly manufacturers, components suppliers, and “other,” IPC is reporting. Further down the supply chain, manufacturers have already been noticing their customers, citing bare board and other component shortages as the primary cause for delayed shipments. Small businesses will likely suffer the worst impact due to less flexibility to adapt. Conversely, larger companies will be able to find alternate sources for supplies outside of China and absorb the increased cost associated with such alternatives. In the most recent World Health Organization COVID-19 Situation Report dated February 25, four new member countriesꟷAlgeria, Austria, Croatia, and Switzerlandꟷreported active cases of COVID-19 in the past 24 hours, with Algeria the first member state of the AFRO Region to report a case. Additionally, for the first time since the first identified case of COVID-19 in China on December 8, more new cases of the virus have been reported from countries outside of China than from inside.