'No supply chains are likely to be untouched by the outbreak': BMA issues members with Coronavirus briefing

The BMA has issued its members with a briefing on the Coronavirus, which states that ‘no member’s supply chains are likely to be untouched by the outbreak.’

The briefing, a one-page document that provides a context of the recent strain of COVID-19 alongside an overview of its impact on economic activity, has advised members to closely monitor Government guidance on the disease, adding that ‘leading writers in supply chain risk management are advising companies to map the location of first, second and third-tier suppliers. If they are in affected areas stay in touch to monitor the situation and prepare plans for alternate sourcing.’

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The briefing states that, having a marked impact on manufacturing in China and the continuity of global supply chains, at present, the ultimate impact of the epidemic is unknowable.

“Multiple factors are suggesting that the economic impact on China will be greater than SARS. Hubei province has been shut down, which was the source of the viral outbreak. This area of China, according to Nomura, accounts for 4.5% of Chinese GDP. It has been estimated that throughout the provinces, those most affected by the virus equate to a quarter of the major Chinese infrastructure projects. China’s burgeoning dependence on domestic consumption will mean a dent in its economy as restrictions on movement and transport will dent consumer spending” it reads.

“Chinese production has seen significant disruptions due to the virus outbreak. This disruption may carry through to the rest of the world due to exports and supply chains. Manufacturers that rely heavily on Chinese inputs from the most affected provinces my struggle to maintain production. Examples of companies already affected include South Korean automaker Hyundai, which has halted production after exhausting stocks of Chinese components. At present BMA members have not reported immediate problems to the association, although most are braced for disruption in supply.”

Tom Reynolds, association CEO said: “Modern global value chains mean that all sectors will be impacted by the coronavirus disruption. The bathroom industry is no exception, but we must be careful not to scaremonger. BMA has issued a briefing to our members to point them towards trusted guidance as they plan their response to the issue”.