Supply chains may soon be affected

Analysis

Photo by Chuck Rausin/Shutterstock.com

Many Hungarian companies now have overtime purchasers and logisticians to ensure all parts are available for continuous production, writes G7.hu.

Photo by Chuck Rausin/Shutterstock.com

Although the situation in northern Italy could severely affect companies buying parts from there, the real problem is caused by the stalling of Chinese supplies.

China is an indispensable source of supply in many manufacturing sectors. The effect is difficult to quantify, but at least the virus occurred during the Chinese Lunar New Year’s celebration, when there would have been no production in the Asian country anyway, so before that customers had accumulated inventories.

However, they were not prepared for the fact that quarantine did not restore production in February, G7.hu notes.

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