Coronavirus: China’s southern manufacturing hub facing supply shortage as global fears grow

American Chamber of Commerce in South China survey shows 32 per cent of firms are facing a supply shortage, with 15 per cent already out of stock

Supplies from within China have been most disrupted, followed by the United States, Asia-Pacific and the European Union

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Just over half of the firms surveyed said their manufacturing ability had been “slightly” impaired by supply chain disruption, while 42 per cent described the impact as “moderate”, with 6 per cent saying they had been “severely” affected. Photo: Xinhua

Published: 9:00am, 18 Mar 2020Updated: 1:01am, 19 Mar 2020

Almost a third of companies in China’s southern manufacturing hub are facing a supply shortage as the coronavirus takes it toll around the world, a survey of companies showed.

The survey by the American Chamber of Commerce in South China also showed that 15 per cent of the 237 companies which took part in the survey conducted from March 9 to 14 said they had already run out of some supplies.

Just over half said their manufacturing ability had been “slightly” impaired by supply chain disruption, while 42 per cent described the impact as “moderate”, with 6 per cent saying they had been “severely” affected.

“It will require a coordinated international series of actions to minimise the impact of disruption in the supply chain. Today’s events prove we need each other as no one country can do it alone,” said Harley Seyedin, president of the American Chamber of Commerce in South China.

Supplies from within China have been most disrupted, followed by those from United States, Asia-Pacific and the European Union, with the situation within China expected to recover quickly while global disruption is expected to worsen as the virus spreads.

All respondents to the survey reported that the coronavirus had affected their supply chains in some way, with 89 per cent expecting that the disruption would last between one to three months, while 11 per cent believed it would last six months or longer.

Transport and logistics disruptions for themselves or their suppliers were expected by 60 per cent of respondents, with 17 per cent saying a shortage of supplies and 23 per cent citing a shortage of labour among the main disruptions.