The Coronavirus outbreak could impact more than just health. It has the potential to impact global economics and manufacturing worldwide.
North America and Chinese business manufacturing are undeniably connected. Now, with China shutting down factories, we will see an impact to business and manufacturing in the US.
The Question? How does Coronavirus impact global manufacturing and business?
The answer is… quarantine.
According to The Wall Street Journal “Even manufactured items with a very marginal quantity of Chinese content will be affected as production is halted, and the increasing complexity of products means replacing specialized manufacturers is difficult.”
Overall production has the potential to slow, even if just a small part of the product is manufactured in China. This could cause disruption in US manufacturing because specialized parts, ingredients, or materials imported from China could be paused, or completed halted. The results of this could be huge.
Check out The WSJ article on the Coronavirus Impact on Business for more info on how this may impact global manufacturing.