How Is COVID Impacting Manufacturing Facilities

There does not seem to be any aspect of life that has been immune to the COVID-19 pandemic. It affects how people live, work, go to school, shop, and socialize. It also affects life in ways less visible to many people—particularly in the supply chain and manufacturing industry.

Over the past year and a half, many companies have had employees stay home, work reduced or staggered hours, work remotely when possible, or have gone on hiatus. On top of that, the pandemic has also resulted in a bit of a labor shortage. This makes it more challenging for manufacturing facilities that wish to return to full production.

As a result, production and supply chains have suffered significant disruption. Manufactured goods have seen lower quantities produced and difficulty getting items to market in a timely or affordable manner.

Delivery and Cost Impact

Across industries from electronics to vehicle fabrication and beyond, over two-thirds of companies have been reporting significant delays in delivering raw materials, parts, and components. Delays have been reported of up to six weeks or more. This, in turn, forces those companies to experience uncertainty in shipping out their own products, thus extending the problem.

In many cases, manufacturers have been trying to stay on top of target production levels. This is usually in anticipation of a return to regular business and increased demand as other companies look to do the same.

To maintain these production goals as supply chains are in turmoil, manufacturers often look to alternative suppliers. Usually, this results in higher costs which get passed along to customers.

Uncertainty For the Future

With the emergence of the Delta variant and resurgences of COVID-19 in certain areas across the country, many companies feel that it is too soon to tell exactly when business will return to normal. As more people receive vaccinations, businesses are more hopeful of a return to normalcy sooner than later. However, there is still a ways to go before the pandemic can be officially declared over.

Until then, there will continue to be uncertainty about the future and the sustainability of the manufacturing and supply chain.

A Question of Demand

It’s not all about supply. There is also consumer demand.

What has changed?

Travel, tourism, and hospitality industries have all experienced downturns. Even with vaccinations available, many people are still avoiding large gatherings until things are more under control. Similar problems are occurring in many entertainment fields. While venues are opening up, they’re usually not at full capacity.

On the other hand, there has been a marked increase in demand for consumer packaged goods, electronics, medical equipment, and supplies. Home goods such as hand sanitizer, paper goods, and personal masks are also in high demand.

Some companies have been able to use this time to improve and increase manufacturing and delivery for these in-demand items. As labor and ability allow, other businesses have managed to convert some of their manufacturing goals to meet these increased needs.

The Impact on Manufacturing Equipment

As COVID-19 continues to be a factor, many manufacturers are finding themselves increasing capacity or adjusting production in response to demand. This can impact equipment performance and upkeep—particularly in businesses that rely on carefully calibrated products such as medical equipment.

The good news is that an experienced company such as VX LLC can help businesses locate and acquire the industrial machinery they need to maintain production in a dependable and efficient manner without sacrificing quality and exactness.

VX LLC offers a well-balanced combination of industry experience, multi-discipline technological expertise, process knowledge, and an understanding of foreign markets so they can get you what you need, when you need it, and at a cost that works for you.

Contact VX LLC today for more information.

This article does not necessarily reflect the opinions of the editors or the management of EconoTimes