Coronavirus Extends Wuhan Production Halt

The city of Wuhan is one of China's manufacturing centers. The automotive and steel industries have established a huge presence in Wuhan. Many tech companies as well as pharma companies have locations in or around Wuhan, which is now recognized as the center of the Coronavirus outbreak.

Currently there is no transportation allowed, either in or out of Wuhan. If you are sourcing or manufacturing items in Wuhan, your supply chain is currently at a standstill.

The issues and risk aren’t limited to Wuhan based factories. However, it remains to be seen how other cities will be impacted, as most supply chains were already shut down for Chinese Lunar New Year.

Now that most manufacturers have extended the New Year closures for at least another week, we will begin to see the impact of closures after these plants reopen for production.

One important aspect of Chinese New Year is that many workers return to their hometowns. As a result, anyone who returned to Wuhan will now also be stuck there until any quarantine is ended.

Air carriers are suspending service to and from mainland China, due to drops in demand. The lack of flights combined with a rush to produce and deliver quickly upon restarting production, could lead to a capacity crunch.

If you have any questions about the impact the Coronavirus might have on your supply chain, or if you are looking for contingency plans, please contact Allyn at sales@allynintl.com