The Pandemic’s Impact On the Electronics Manufacturing Industry
The COVID-19 pandemic has affected millions of people globally. Around 5.4 million people died due to the COVID-19 disease, and around 114 million lost their jobs in 2020. COVID-19 has also affected large and small businesses in every domain, and electronic manufacturing services weren’t spared either.
This blog discusses the impact of the COVD-19 pandemic on the electronic manufacturing industry.
The biggest impact of the COVID-19 pandemic on electronic manufacturers was the delay in delivering auto parts and components late. Furthermore, they’re also receiving late deliveries of material. In the electronics industry survey, almost sixty-six percent of individuals reported that they experienced delays due to the pandemic.
While the average delay quote is three weeks, around fifteen percent of electronic manufacturers reported delayed deliveries by more than six weeks. This happened due to the lack of labor forces and logistical issues.
Although most manufacturers are trying to maintain the quality of their electronic products, they’re still facing issues due to supply chain disruption. In such circumstances, manufacturers have to look for alternative suppliers and delivery services, which cost more. The increased production cost has led to increased prices of electronic products in the market. Due to COVID-19, both manufacturers and customers have been forced to pay a higher price.
Alongside other negative impacts on businesses, the electronic production market has never been this uncertain before. The scale of the global economic slowdown is still unknown, but most electronic manufacturers state that it would take a lot of time for businesses to get back to normal. The uncertainty in the market has led to many small and mid-sized electronic device manufacturing businesses shutting down or minimizing their production.
Demand Decrease for Aerospace
With industries like tourism almost shutting down, the aerospace manufacturing sector has suffered the most. This has led to less production and less benefit for aerospace manufacturers.
Increased Demand for Medical Supplies
However, not every electronic manufacturer has had to decrease production. An example of this is electronic product manufacturers that create medical supplies like ventilators. The COVID-19 pandemic has increased the use of various healthcare supplies everywhere, and medical supplies production facilities have had to increase production to meet these demands.
Is your business affected by the pandemic too? Are you looking for alternative and dependable electronic contract manufacturing services? At Find An EMS, we act as a platform for OEMs and EMS partnering. Through our one-of-a-kind platform, OEM leads can connect with EMS providers and get their business back on its feet.