As the US schools and businesses shut down in order to prevent the spread of the COVID-19 Coronavirus, we wanted to update our clients on their product production.
The following are updates on factory capacities in the top countries where we manage production. These updates come directly from our factory partners in each location.
Due to intense containment efforts by the Chinese government, fewer new cases of COVID-19 are being reported each day. This could suggest the worst of the outbreak is over in China. Most factories we work with in China are at 93% capacity. However, we still expect about a five-day delay on most production coming out of China. Air-shipping is always a good option to speed up delivery.
With population in excess of 1.37 billion, there are only about 140 reported cases of COVID-19 thus far. Many businesses in India are shut down, but most factories remain open. Trade with China has been halted, which has caused some raw materials shortages. Currently, development or production at manufacturing facilities will be slightly delayed, but production is not at a standstill.
Seems to be relatively safe. Of the country’s 57 total confirmed cases, 16 have been discharged from hospital after recovery. However, about 30% of raw materials used in Vietnamese factories come from China. With fewer raw materials available, some factories have slowed their production. We do not expect significant production delays in Vietnam at this time.
There are about 14 confirmed cases in Bangladesh. Schools and most businesses are closed. There are reports that many factories are operating at about half capacity. Bangladesh imports about 50% of raw materials from China, which is the primary cause of production delays. Assuming the spread of the virus in Bangladesh remains low and as more raw materials from China arrive at factories, we expect Bangladesh to return to full capacity quickly.
All factories we work with in Mexico are still open at this time. However, Mexico has received international scrutiny for not taking the spread of the virus seriously. We may see Mexico factories close in the weeks to come. Discussions between the US and Mexico about border closings could cause supply chain delays in the coming weeks.
Keep in mind that there are too many unknown factors at this time to predict what will happen in the coming weeks. We will keep all of our clients updated as new events unfold.
All Blacksmith employees are still working from home, so if you have any questions about your production, please reach out to your dedicated Client Success Manager or contact us here.