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Coronavirus: Manufacturers Rethink Global Supply Chain

Coronavirus, a global pandemic that has practically affected every single industry in the world, is showing no signs of stopping. The supply chains are in shock and every single manufacturer is trying to figure out the ways to counter it. The weapon that we need to fight this pandemic is the use of personal protective equipment, which is currently great in demand but short in supply. Most of the PPE was built in China, the epicenter of this pandemic. The outbreak of coronavirus in China meant that the production of these PPEs stopped and at the same time the demand increased. The manufacturers in America, upon considering the request of the health professionals and the government authorities, ceased the usual production and started manufacturing the personal protection equipment such as face masks, face shields, and hand sanitizers.

It is not just about the PPE, every industry in America in some way or another is dependent on China. Either for the processing of raw material or the complete manufacturing of products. Due to the production halt in China, the supply chains of every single industry in America were disturbed. Whether it is the pharmaceutical manufacturers, the food manufacturers, the food processors or the sports and technology manufactures, all of them are affected by this. Looking at the current conditions, we might see a decline in the globalization of the market in the coming future.

Most of the manufacturers in America were getting their products made from China, but after trade tariffs were imposed on Chinese manufacturers, they were already considering moving their businesses back to America. Not only that, the main attraction of low labor rates, was not the main attraction since the Asian markets increased the wages of their workers. With the pandemic halting everything, the American manufacturers will have a chance to start again, and this time, they might stay in America. Instead of a global supply chain, the manufacturers will try and go local. In Oregon, the sports apparel maker Nike is manufacturing the face shields and respirator mask lenses for the health care workers of the USA. This will increase the job opportunities in America and will make the manufacturers self-sufficient for the most part.

Food manufacturers and food processors are already using the local resources for their needs in this pandemic situation and they are making it work in such a short period of time. This shows that it is possible for the American manufacturers to move the supply chains back to the continent of America, while it hinders the globalization of the industry and limits the speed of progress, it is for the betterment of American industry in the long run.

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