Coronavirus outbreak: Impact on complex global supply chains and beyond


Summary

As coronavirus continues to spread globally, it is becoming clear that the economic backlash of the outbreak will be colossal. The world economy is more globalized than ever and as a result the spread of the virus and the measures taken to contain it have become highly disruptive to fragile global supply chains. This case study explores how the outbreak has affected global supply chains, the industries which will be the worst hit and what action can be taken to improve supply chains to prevent major disruptions in the future.


Key Highlights

  • To understand the impending economic impact of coronavirus through its disruption of global supply chains, it is important to appreciate how deeply integrated the global economy is. Since 2000, globalization has sped up at a fast pace, transforming the global supply chain. The ability to access global markets for manufacturing has led to choke points within certain industries, an issue which has been highlighted due to both natural disasters and disease outbreaks in the past. The outbreak of coronavirus and the implementation of quarantines and travel bans as a result, have once again exposed just how heavily global supply chains depend on Chinese manufacturing.
  • While the devastating toll of the ongoing outbreak on human lives is clear, it is now becoming apparent that the economic fallout will also be significant. China, often referred to as the ’workshop of the world’, is a manufacturing giant, as a result the disruption caused by factory closures and export restrictions has had a knock-on effect in multiple markets globally. The automotive, electrical and pharmaceutical industries have been amongst the worst hit, due to their highly complex, globally integrated supply chains. While the impact of disruptions is already being felt, the true devastation caused by the fragility of these supply chains is yet to be seen.
  • While the devastating toll of the ongoing outbreak on human lives is clear, it is now becoming apparent that the economic fallout will also be significant. China, often referred to as the ’workshop of the world’, is a manufacturing giant, as a result the disruption caused by factory closures and export restrictions has had a knock-on effect in multiple markets globally. The automotive, electrical and pharmaceutical industries have been amongst the worst hit, due to their highly complex, globally integrated supply chains. While the impact of disruptions is already being felt, the true devastation caused by the fragility of these supply chains is yet to be seen.


Scope

  • Examines the impact of coronavirus on the Chinese economy
  • Looks at how Chinese manufacturing is affected by the shut down
  • Assesses whether there will be a swift recovery
  • Looks at how term the problems may be
  • Assesses how coronavirus might impact other countries


Reasons To Buy

  • Just how severe is this virus for the economy?
  • How long might it last?
  • What sectors have been hit hardest?
  • What has China seen that other countries can expect?