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Coronavirus expected to cause five-week product shipment delays, says electronics manufacturing industry.

According to a survey conducted by the global electronics manufacturing association IPC, electronics manufacturers are looking at a five-week product shipment delay from suppliers, at the minimum, as a result of the burgeoning coronavirus epidemic. IPC says that already there are shipping delays for manufacturers due to the spread of the coronavirus outbreak in China and other countries.

Among manufacturers, about 65 percent report that their suppliers are predicting roughly a three-week delay, but the manufacturers fear that greater delays might be lurking in the future, with executives forecasting shipment delays of at least five weeks.

"The delays will likely have ripple effects for the rest of the year," John Mitchell, IPC's president and CEO said in a press release. "The longer China is affected by the epidemic, and the more it spreads to other parts of the world, the supply chain will experience more and varied strains and disruptions."

More than 80 percent of electronics manufacturers and suppliers are expressing concern over the potential impact of the coronavirus outbreak on their business operations. Potential impacts in the manufacturing chain could involve factory downtime, higher costs, transportation issues, delayed sales, necessity of alternative sourcing, and delayed prototyping, according to the IPC. "In most cases, it's not easy for manufacturers to switch suppliers, if that's what turns out to be necessary," added Mitchell. "Securing alternate sources requires an investment of significant time and money that must be weighed against the value gained."

The survey was conducted Feb. 11-16, 2020.

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Title Annotation:INDUSTRY REPORT
Publication:EE-Evaluation Engineering
Date:Apr 1, 2020
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