Staff in an vehicle manufacturing unit in Beijing, China.
Chalffy | Getty Photos
SINGAPORE — The automotive sector was hit the toughest by provide chain disruptions through the Covid-19 pandemic, in line with a survey that coated six broad industries.
The survey was carried out by the Economist Intelligence Unit and sponsored by Citi. It surveyed 175 provide chain managers — greater than 70% of which had been based mostly in Asia — in February and March this 12 months, and its findings had been launched on Wednesday.
Along with auto, the respondents got here from 5 different industries:
- Footwear and attire;
- Meals and beverage;
- IT, tech and electronics;
- Healthcare, prescribed drugs and biotechnology.
Round 51.7% of respondents from the auto sector mentioned disruptions to produce chains had been “very vital” — the very best proportion throughout the six industries.
The footwear and attire trade got here in second with 43.3% respondents reporting “very vital” disruptions. In the meantime, solely 6.7% from the IT, tech and electronics sector indicated the identical.
Over the previous 12 months, the motion of products was disrupted as the worldwide unfold of Covid compelled many international locations to close borders, shut workplaces or restrict exports.
The unfold of the extra transmissible delta variant has once more heightened such worries, as main Asian manufacturing hubs — similar to China and Vietnam — in current weeks locked down components of their international locations to curb an increase in Covid instances.
The auto trade was notably affected by a scarcity of semiconductors, which prompted a number of carmakers to chop manufacturing at a few of their crops. The chip scarcity was brought on by a surge in demand for private computer systems and different shopper electronics as many individuals had been stored at dwelling throughout Covid lockdowns.
The pandemic has led some companies to rethink their provide chains for the long term, with round one-third of respondents conducting an entire overhaul, the survey discovered.
One in 5 provide chain managers surveyed have invested or need to spend money on the Philippines and India within the subsequent 12 months as a part of their technique.
“Low cost labour prices and younger populations in each these international locations are essential components on this selection,” mentioned the report outlining the survey findings.
The report famous that the Philippine authorities is eager to draw manufacturing investments in sectors together with electronics, automotive, aerospace, well being and IT. India, in the meantime, was a most well-liked location for a lot of provide chain managers within the auto sector, in line with the report.