Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise. Sign in to the product or service center of your choice.
The Automotive Supply Chain and Technology team at IHS
Markit conducted a survey among executives at automotive suppliers
across all key regions to capture the perception of suppliers
regarding the impact the COVID-19 pandemic has on their
manufacturing operations and the supply chain.
The survey results clearly highlight that one third of suppliers
reported moderate to severe impact from fast spreading global
pandemic, but there are still high levels of uncertainty among
parts manufacturers on business continuity and the business
outlook. The weakening of vehicle demand due to OEM plant shutdowns
and availability of raw material due to logistics issues were
listed as two of the major concerns.
Impact on suppliers' operations
The rapid outbreak of COVID-19 has left the entire automotive
supply chain grappling with unforeseen challenges. These major
issues include OEM shutdowns, output reduction, lack of sufficient
labor and raw material shortages.
Nearly half of the respondents in the survey said that COVID-19
pandemic has had a "limited impact" on their operations, for
example a minor reduction in output due to reduced OEM demand, with
greater resilience in Asia (China and Japan mainly) where 46% of
respondents claimed the disruption was contained. At the opposite
side of the spectrum, Europe emerged as the region most impacted
according to the survey with 64% of respondents claiming a severe
impact is European-based. A severe impact is defined as a major
event such as a plant shutdown. North America is so far positioned
in between Asia and Europe in terms of impact according to survey
respondents, which suggests the mood of the supply base follows to
an extent the statistics on the outbreak as Asia seems to be
recovering while Europe is currently still at the center of the
outbreak.
