coronavirus-affects-chinese-component-parts-supply

Mechanical Power has been closely monitoring the situation and quantifying any potential impact

As all have seen in the news, the coronavirus in China is impacting global economies and specifically manufacturing relevant to our respective businesses. Mechanical Power has been closely monitoring the situation and quantifying any potential impact to our ability to maintain continuity of supply. The Lunar New Year celebration commonly referred to as CNY was to have ended and have factories back to production this week, however the Chinese government extended the holiday by one week. We are hearing rumors of a potential February shut down altogether, however Foxconn is back to work (they make iPhones) and people in Hong Kong are permitted to go to work and go home. Ultimately, 20,000 people have been diagnosed and there have been ~350 deaths. Wuhan, the capital of the virus, is an area in which we have no affiliation in terms of operations or manufacturing partners.

Fortunately, one of Mechanical Power’s competitive advantages over the years has been the willingness to hold more finished good inventory than most. Because of this, we are generally positioned to keep our customers whole during this unprecedented time. With that said, we are combing through accounts at the mechanical parts level to ensure we have what you need when you need it over the next 30-60 days. Rest assured we are on top of the situation and will proactively and formally contact you if we see any exceptions relative to our ability to supply your parts on time.

We like to say we take the hassle out of global sourcing for customers and this unique circumstance is another reminder of why we’re here. We appreciate your support!

 

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Brent LaLonde

Brent has spent considerable time in global supply chain operations in both manufacturing and distribution environments with a strong background in global sourcing & procurement. He’s worked for companies renowned in operating systems, kaizen continuous improvement and strategic planning cadences.

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