Coronavirus Cases in the US: Live Updates

So far this year, most of the disruptions have stemmed from factory shutdowns in China, a manufacturing hub for products like electronics and industrial machinery. Laptop exports from China to the United States have plummeted, for instance, just as demand is surging as companies switch to remote work and students are thrust into distance learning.

But like the virus, which spread from China to the rest of the world, so too will the economic disruptions, which are likely to intensify in months to come. For companies and consumers who have come to rely on being able to ship goods rapidly and seamlessly around the world, the disruptions could come as a shock.

“China has shown us how extreme the downturn in industrial activity can be,” said Chris Rogers, a global trade and logistics analyst at Panjiva.

Across the United States and Europe, major manufacturers like Volkswagen and Ford have shuttered, in turn reducing demand for steel, electronics and other components.

So far, many of the product shortages in the United States and Europe don’t stem from an actual lack of goods, but rather surging demand from consumers, who are stockpiling bleach, toilet paper, diapers and dried beans, unsure what the months to come will hold.

Other shortages are occurring as producers of toilet paper, food and other products try to figure out how to rework supply chains that are set up to provide bulk shipments to restaurants and schools to instead meet household demand.

The situation is likely to get worse over the next few months.

Mike Jette, vice president of consulting services at GEP, which provides supply chain software and strategy for General Mills, Exxon Mobil, Macy’s, Walmart and other major companies, predicted that peak disruption for major companies with international supply chains would likely happen three months from now.

Article source: https://www.nytimes.com/2020/04/10/us/coronavirus-updates-usa.html