The Impact Coronavirus Could Have on the Manufacturing Supply Chain

Despite recent containment measures taken by the United States government and other countries around the world, COVID-19—commonly known as coronavirus—is expected to have a massive impact on the global economy in virtually every sector. Beyond just fluctuations in stock prices, a widespread pandemic has the potential to cripple manufacturing capabilities through a lack of raw materials, as well as a lack of manpower.

The calamitous degree to which the coronavirus has already spread in China is a significant concern, in no small part because of the crucial role Chinese manufacturing plays in the global economy. Compared to when SARS infected 8,000 people in China’s Guangdong province in 2003, China’s share of world GDP has increased by almost 400 percent—from 4.3 percent to roughly 16 percent. To make matters worse, the coronavirus has already infected ten times as many people as SARS did, with no signs of its infection rate slowing down.

The rapid spread of COVID-19 will likely leave many companies with a shortage of workers, while other operations may be forced to close—leaving hardworking employees with the need for work and income. Based on current estimates, it is probably only a matter of weeks or even days before there is a worldwide impact on the supply chain. However, HapiGig is helping connect employers struggling due to volume variation and staffing in the wake of coronavirus with hardworking men and women throughout America.

The Nationwide Effects on the Warehouse Industry

A downturn in international production—not to mention shipping and selling—could spell disaster for thousands of warehousing companies within the United States. Compared to February 2019, some manufacturers are reporting almost 50 percent declines in sales of Chinese-produced products this past month—to say nothing of the shortages that manufacturing stoppages may produce in the upcoming months.

At the very least, supply lead-times will be severely impacted. However, if there is a continual disruption in the supply chain between China and the U.S., it could mean that certain manufacturing has to stop completely. Some companies have already had to greatly slow down production, with more likely following suit.

Warehouses in ports are bound to be hit especially hard, as they will likely be the first to feel a manufacturing slowdown abroad and have to contend with disease transmission from international business. Departures from China to ports like Rotterdam and Le Havre have already slowed by 20 and 30 percent, and those numbers will likely only increase as the virus continues to spread.

This could result in active employees looking for additional work due to shutdowns, in conjunction with warehouse employers seeking to fill gaps in their workforce due to illness and call-outs. While connections need to be made right now between dedicated workers and employers requiring staff, this demand will likely continue once the immediate threat of the coronavirus has passed. Fortunately, HapiGig can help to make these connections.

How HapiGig Could Help Both Workers and Warehouses

Many employers are in constant need of dependable short-term warehouse labor, and many talented warehouse workers are searching for work in a job market made even more uncertain with the threat of the coronavirus. HapiGig is a service that brings employers together with great warehouse workers immediately and seamlessly.

Employers in need of flex warehouse labor can search HapiGig for qualified workers. These workers first register on the platform and then go through an intensive vetting process. Once cleared, workers are then hired by HapiGig, where they can list their skill sets and continuously update their availability. Likewise, employers in need workforce solutions can go through a discovery process with HapiGig to learn more about how the platform can benefit the specific needs of their company.

Once a gig is complete, employers can rate workers on their performance. This system makes it possible for reliable and hardworking employees to work extra hours, while also ensuring employers can fill critical gaps in their workforce.

The coronavirus has and may continue to cause breakage in the supply chain across America and throughout the world, but that does not mean your business is out of options. To start addressing your flex workforce needs, learn more about the process of becoming a HapiGig Worker or Employer today.

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