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4 Ways the Pandemic Has Affected Manufacturing

Most industries were affected by the COVID-19 pandemic. Even though we cannot say that any aspect of life was unaffected by the pandemic, manufacturers were really impacted. That’s because most manufacturing happens within factories, and workers cannot work remotely. About 80% of companies in manufacturing expected the pandemic to affect their business. Some of these expectations are being seen as oil prices plummet, supply chain bottlenecks, and spending slows down. This article gives more details about how the sector was affected.

Supply Chain Disruption

As countries struggle to recover from the spread of COVID-19, the production of goods will be delayed. The period of quarantine made it almost impossible for manufacturers to produce since most of their workforce cannot work from home. Supply faced many interruptions before reaching their destination owing to various closures and restrictions, and businesses with lean supply chains have felt the impact most. Manufacturers are now taking steps to keep supply chains up and running as they try to recover. Businesses are also putting measures in place to be ready to handle supply chain disruptions. While many manufacturers know their critical suppliers, they do not have a clear idea of who the full chain of suppliers is. They, therefore, need to handle such a vulnerability in their supply chains.


The slowdown of economic activity has decreased the demand for industrial products, meaning sales has reduced drastically. Manufacturers have therefore been put in a tight corner, as there isn’t any substantial inflow of funds. Keeping things running has also become more expensive.

Delay in Production

COVID-19 across the globe has caused manufacturers of aircraft, electronics, automobiles, and chemicals to face concerns that have to do with the availability of raw materials. Electronics companies started to reduce production operations and postponed the introduction of new products, which has interrupted component supply. Therefore, production was delayed in many factories.

Increased Prices

Another unfortunate effect on the pandemic is the hike in prices due to low demand. For instance, in the electronics industry, China accounts for almost 85% of components used in smartphones and a significant percentage of components used in televisions. All components that are important such as LED chips, memory, capacitors, circuit boards, and mobile displays, are all imported from China. Most Chinese factories were shut down owing to the pandemic, and this caused an increase in prices by nearly 2-3% because of a shortage of supplies. The oil and gas industry also faced turmoil as prices of drilling supplies like hammers, clamps, power tongs, and others went up due to decreased production. Companies like Texas International, however, have risen to the occasion to provide the land and offshore drilling rigs with the equipment they need.

The manufacturing industry is one of the largest industries in the world, and as no aspect of life was unaffected by the pandemic, manufacturers suffered gravely and are still trying to recover. As manufacturing picks up pace, we hope to expect that they can manage supply chain disruptions. Prices also expected to reduce as production has begun.

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