Coronavirus Pandemic – Manufacturing Industry to Rethink Processes and Products
2020 was a year of major upheaval for the manufacturing industry. The extent of the disruption was so much that a return to normalcy will likely take several years. Because of the pandemic, the economic landscape for manufacturers has changed forever, and there have been several fundamental changes in its wake, like – greater emphasis on automation. Below are some more ways COVID-19 has affected the manufacturing sector.
The effects of the crisis differ greatly depending on the sub-sector.
Companies serving industries that are doing well, such as – health care, technology, home improvement, and remodelling, have experienced a spike in demand. On the other hand, those that manufacture components for industries that suffered heavily due to the pandemic, such as the aviation, aerospace, electronics, and automotive industry have languished.
Impact on the Pharma Manufacturing Industry
COVID-19 put the global supply of medical products under unprecedented pressure, creating severe shortages. Pharma companies source their raw materials from different countries, but as the virus spread, it disrupted the supply of raw materials, leading to a severe shortage of several pharmaceutical products. For instance, many countries rely heavily on sourcing material directly and indirectly from China, but as the supply of raw materials got disrupted due to the virus, the production came to a halt too.
Impact on the Food Production Industry
While the COVID-19 pandemic does not directly affect production, restrictions in the transportation of goods and labour migration caused a significant disruption in the food supply chain. Labour shortage due to the COVID-19 crisis-affected livestock production, farming, horticulture, harvesting, and crop processing which are relatively labour-intensive.
Impact on paint & coatings manufacturing sector
As major markets remained locked down to slow the transmission of the novel coronavirus, the global paint & coatings manufacturing sector suffered a deep recession. China is the key exporter of critical paint & coatings raw materials like pigments and certain additives, but due to COVID-19 restrictions, the supply of raw materials was severely affected, causing a heavy blow to the industry.
Impact on home improvement products and construction equipment industry
As people were spending much more time at home due to lockdowns, home improvement and construction activities increased. As per a study, 57% of homeowners did a home improvement project from March to May 2020. From window replacements to decking and other remodelling projects, these trends caused a spike in demand for home improvement products and construction equipment.